March 22, 2005

April fool!

Oh, sorry — am I a bit early? Never mind, here’s a great joke from The Register:

O2 is to axe 500 jobs as part of a major restructuring of its business. The mobilephoneco wants to replace back office workers tied up with managerial and admin tasks and replace them with 2,000 workers dealing directly with punters.

It also plans to open a fourth call centre and expand its network of shops. […]

Which means that the mobile outfit will spend more time chatting up its punters so they won’t up sticks and switch allegiance to one of the discount mobile operators - such as easyMobile - currently making a big noise in the market.

Errr… but the punters are only interested in customer service if the product doesn’t work. Otherwise, they just keep talking.

So apparently the way to battle low-cost competitors of a largely undifferentiated product is to increase your cost base. Rapidly.

No wonder I never made more than manager grade — I clearly don’t have what it takes.

Posted by Martin Geddes at 09:32 PM
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