2d:null 2e:["$","title",null,{"children":"Winning as David | Brendan Ratter | Observable"}] 33:T531,md` The wireless industry is notoriously capex-intensive and scale-dependent. In many parts of the world pricing is tightly constrained, while network investment grows inexorably to accommodate the exponential growth in data consumption. Against this backdrop, low-share operators (defined as those with less than 20% share in their respective markets) are disadvantaged relative to their larger competitors. A lack of scale drives unavoidable systemic issues such as inefficient network deployment and lack of distribution/marketing reach. Despite these headwinds, several challenger operators have managed to grow rapidly in recent years. T-Mobile USA is one obvious example, but the performance of Play Poland, 2degrees New Zealand, and several others is no less impressive. How did they do this? What strategies did high-growth, low-share operators employ to outcompete the goliaths? To answer the question, we studied more than 200 operators globally, examining revenue growth and market share from 2012 to 2017 and identified 31 high-growth, low-share success stories – those who started with less than 20% market share, but achieved a revenue growth rate more than five percentage points higher than the average in their market ([Figure 1](#figureChart), with [table of operators](#operatorTable) in the appendix). `34:T12a7,// TODO: Need to make sure the rects don't render without height on the first render, causing error on page load // TODO: Need to add zoom on scroll // TODO: Make a "zoom to ZOI" button chart = { const svg = d3 .create('svg') .attr('viewBox', [0, 0, canvasDims.width, canvasDims.height]) .attr('width', canvasDims.width) .attr('height', canvasDims.height) .attr('font-size', 10) .attr('font-family', 'sans-serif') .attr('text-anchor', 'middle'); // Does the g need to be offset by 0.5px to put the lines on an integer pixel? const body = svg .append('g') .attr('transform', `translate(${margin.left}, ${margin.top})`); // Chart outline body .append('rect') .attr('width', chartDims.width) .attr('height', chartDims.height) .attr('fill', 'none') .attr('stroke', '#999999') .attr('stroke-width', 1) .attr('shape-rendering', 'crispEdges'); // Define a clip path to clip graph content that we don't want outside the bounding box svg .append('defs') .append('clipPath') .attr('id', 'bodyClip') .append('rect') .attr('id', 'bodyClip') .attr('width', chartDims.width) .attr('height', chartDims.height); // Zone of interest: group const zoi = body .append('g') .classed('zoi', true) .attr('clip-path', 'url(#bodyClip)'); // Zone of interest: rectangle and text zoi.append('rect'); zoi .append('text') .text('Zone of Interest') .attr('dy', '1.2em') .attr('text-anchor', 'end'); // Axes const axisGroups = { x: body.append('g').call(xAxis), y: body.append('g').call(yAxis) }; // Axis label: y-axis body .append('text') .classed('axisLabel', true) .attr('x', chartDims.width / 2) .attr('y', chartDims.height + 40) .text('2012 Market Share (%)'); // Axis label: y-axis body .append('text') .classed('axisLabel', true) .attr('text-anchor', 'start') .attr('x', -40) .attr('y', -17) .text('Relative 5-yr Growth CAGR (%)'); // Define the group to hold the bubbles, and attach the clip path // plus other settings that can apply at the group level const bubbles = body .append('g') .attr('clip-path', 'url(#bodyClip)') .attr('fill', '#364086'); //Define group to hold labels const labels = body .append('g') .attr('clip-path', 'url(#bodyClip)') .classed('labelLayer', true); // Create a local variable to attach a reference to the label from a bubble const labelNode = d3.local(); // Define the update function, it has to accept as arguments everything that get changed // or the cell will get rerun when a dependency changes // It creates a closure around elements of the graph (e.g. bubbles) function update(data) { bubbles .selectAll('circle') // Key by name .data(data, d => d.name) // Opacity has to be set on creation not the loop because it has to be set on each object // Can also add hover events here .join(enter => enter .append('circle') .attr('opacity', 0.3) .on('mouseover', function(d, n) { d3.select(this).attr('opacity', 0.6); }) .on('mouseout', function(d, n) { d3.select(this).attr('opacity', 0.3); }) ) .attr('cx', d => x(d.share12)) .attr('cy', d => y(d.relGrowth)) .attr('r', d => r(d.usd17)) .on('mouseover', function(d) { d3.select(this).attr('opacity', 0.6); const node = find.call( labels.selectAll('g.label'), l => l.name === d.name ); if (node) { labelNode.set(this, node); d3.select(node).classed('show', true); } }) .on('mouseout', function() { d3.select(this).attr('opacity', 0.3); const node = labelNode.get(this); if (node) d3.select(node).classed('show', false); }); // Update the zone of interest zoi .select('rect') .attr('x', x(zoiData.minShare)) .attr('y', y(1)) .attr('width', x(zoiData.maxShare) - x(zoiData.minShare)) .attr('height', y(zoiData.highGrowth) - y(1)); zoi .select('text') .attr('x', x(zoiData.maxShare) - 5) .attr('y', Math.min(y(zoiData.highGrowth) - 24, y.range()[1])); labels.datum(data).call(label, true); // Refresh the axes axisGroups.x.call(xAxis); axisGroups.y.call(yAxis); } // Returning a new object with Object.assign with update() function added // both returns the node for rendering and allows the update function to be called without rerendering the cell // could also add a value and fire an event to also use as a view return Object.assign(svg.node(), { update, labels, zoi }); }35:Taed,md` Successful challengers employed a combination (usually 1-3 each) of five growth archetypes to fuel their success: Price-Simplicity, Product Leadership, Roaming Expansion, Re/Sub-Branding, and Digital Forward ([Figure 2](#figureGrowthArchetypes)). Each archetype has distinct characteristics that are outlined below. - **Price-Simplicity**
The most common strategy observed was Price-Simplicity, which involves positioning as a price leader while dramatically simplifying service plans. Simplification is usually accompanied by brand repositioning as a fun lifestyle destination to broaden its appeal to a younger demographic with constrained but growing spending power. T-Mobile US is the largest successful example of this strategy, having demonstrated significant subscriber growth after launching its "Uncarrier" strategy. - **Product Led**
Offer expansion beyond core consumer telecom as the next most widely used strategy. Such product expansion either (a) used media and content offers to tap into a latent need of an existing customer segment, or (b) expand to serve an underserved B2B segment. For example, Zain in Saudi Arabia focused on a suite of SMB-relevant partnerships to bolsters its position as a one-stop-shop for small businesses contributing to its 11% above market growth. - **Roaming Expansion**
For several operators expanding from a small footprint, we found that roaming expansion enabled them to leapfrog larger competitors. They aggressively pursued roaming agreements and distribution expansion the followed it with facilities-based network buildout once a critical mass of customers had been attained. 2degrees in New Zealand notably used this strategy to steal share from Vodafone, the former market leader, since launching in 2009. Note that the regulatory framework for roaming in specific markets affects the possibility of this strategy. - **Re/Sub-Branding**
We had a hypothesis when starting this research that branding would be a popular strategy. While some operators were successful, it was far less common than we anticipated. In theory, substantial re-branding or the creation of sub-brand allows operators to reposition their value proposition to target new customer segments. However, in practice it proved difficult for operators successfully reposition without alienating existing segments. - **Digital Forward**
Finally, a digital forward approach can enhance revenue growth by both opening new channels to reach consumers and improving customer experience, particularly (but not exclusively!) for younger demographics. While we observed strong digital elements in more than half of our success stories, it was always implemented in conjunction with one or more other strategies – digital was not a strategy by itself. `36:T4dd,md` Use of these strategies is not independent. Revisiting Zain, we can see how their focus on “Winning Through Caring” was enabled through a combination of Price-Simplicity and Digital Forward to execute on the brand promise, plus Product Expansion to grow into SMB. Together, deploying these archetypes resulted in a 5% gain in market share over five years. Multiple strategies are available for challenger operators to grow, but context and execution matters. For example, Price-Simplicity, while clearly the leading approach, can only be done once in a market and has a short time window for execution. Digital is prevalent but is not a panacea – the complexities of this approach, which we will cover in a separate piece, make it difficult to use alone. Additionally, we don’t want to imply these strategies alone are sufficient for success – many other operators tried and failed with the same strategies – just that the modes of success are constrained to a set of tried and true archetypes. However, as these 31 operators showed, deploying the right combination of growth archetypes at the right time can lead to substantial growth and even the reorienting of entire established markets for operators bold enough to try. `37:T764,// TODO: This would better be done with a reactive html loop template operatorTable = { const filteredData = data .filter( d => d.share12 <= zoiData.maxShare && d.share12 >= zoiData.minShare && d.relGrowth >= zoiData.highGrowth ) .sort((a, b) => b.relGrowth - a.relGrowth) .sort((a, b) => b.share17 - a.share17); const parent = d3.create('div'); parent.append('h2').text('Appendix: Table of Operators'); parent.append('a').attr('name', 'optable'); parent .append('p') .text( `${filteredData.length} operators had a 2012 share <= ${formats.percent( zoiData.maxShare )} and a relative growth CAGR >= ${formats.percent( zoiData.highGrowth )} above market. Operators with share of < ${formats.percent( zoiData.minShare )} in 2012 were excluded.` ); const table = parent.append('table').classed('operators', true); const head = table.append('thead').append('tr'); const body = table.append('tbody'); head.append('th').text('Operator'); head.append('th').text('Country'); head.append('th').text('Mkt. Share \'12-\'17 (%)'); head.append('th').text('Rel. Growth 5-yr (%)'); head.append('th').text('Revenue \'17 (USD $M)'); body .selectAll('tr') .data(filteredData, d => d.name) .join(enter => { const row = enter.append('tr'); row.append('td').text(d => d.name); row.append('td').text(d => d.country); row .append('td') .text( d => formats.percent(d.share12) + ' - ' + formats.percent(d.share17) ) .classed('right', true); row .append('td') .text(d => formats.percent(d.relGrowth)) .classed('right', true); row .append('td') .text(d => formats.thousands(d.usd17)) .classed('right', true); }); return parent.node(); }38:T4aa,// Call update on the chart, this will be run initially after the chart is rendered, and whenever data is changed // so no need to run update() inside the chart definition itself // TODO: Is the only way to validate the inputs without having them flicker to do it on the form itself? { // Validation // TODO: Fix thes rules up slightly to give consistent behavior if (zState.xMin > zState.xMax - 5) { if (zState.xMin <= 0) viewof zState.value = { ...zState, xMin: 0, xMax: 5 }; else viewof zState.value = { ...zState, xMin: zState.xMax - 5 }; } if (zState.yMin > zState.yMax - 5) { if (zState.yMin <= -100) viewof zState.value = { ...zState, yMin: -100, yMax: -95 }; else viewof zState.value = { ...zState, yMin: zState.yMax - 5 }; } // Then ensure the domains and bubble range are synced with the relevant view x.domain([zState.xMin / 100, zState.xMax / 100]); y.domain([zState.yMin / 100, zState.yMax / 100]); r.domain([zState.rMin, zState.rMax]).range([1, zState.bubble]); // Then update the label/zoi classes and the chart chart.labels.classed('hide', !zState.showLabels); chart.zoi.classed('hide', !zState.showZoi); chart.update(data); }39:[{"id":"4b776ceb8b0d471732e761f5fdd468b269de97744e4f531db23f0c6028aa030345bfd75a01e816a89056e433b7c432c69d0d6c848b357305e218125591af7511","href":"https://static.observableusercontent.com/files/4b776ceb8b0d471732e761f5fdd468b269de97744e4f531db23f0c6028aa030345bfd75a01e816a89056e433b7c432c69d0d6c848b357305e218125591af7511","name":"Archetypes.png","type":"image/png","lastModified":1576969808115.929,"size":120075},{"id":"6ec8c6e61d347fc2c5af17600de9b30b779b2d474d340d5bc3b320c318b736eeaf8599bfb880ba15dafd2b6ac16d282d62f1df5e633040c29ea8ba519693269a","href":"https://static.observableusercontent.com/files/6ec8c6e61d347fc2c5af17600de9b30b779b2d474d340d5bc3b320c318b736eeaf8599bfb880ba15dafd2b6ac16d282d62f1df5e633040c29ea8ba519693269a","name":"revenue.csv","type":"application/octet-stream","lastModified":1573018020692.179,"size":22551}] 31:{"id":"95e1e64bdd37c30a","slug":"winning-as-david","title":"Winning as David","thumbnail":"41760749e26ea9bd2abde3b4975e24f046b1a80d6d2eb71fc1af723bfba55e5e","access_level":"public","create_time":"$D2019-08-26T18:28:29.706Z","update_time":"$D2020-01-08T17:16:17.469Z","view_time":null,"first_public_time":"$D2019-12-22T23:12:35.456Z","fork":false,"stars":1,"starred":false,"owner":{"type":"team","id":"ac1efc54e02edbcb","login":"bratter","name":"Brendan Ratter","avatar_url":"https://avatars-next.observableusercontent.com/72254c56b9894f2113524282297d982abcaaa6b50b1fb4d9e19658e6572e58d6","tier":"starter_2024"},"version":1223,"publish_version":1223,"role":null,"authored":false,"authors":[{"type":"individual","id":"832b3a3dcd4c23fe","login":"bratter","name":"Brendan Ratter","avatar_url":"https://avatars-next.observableusercontent.com/72254c56b9894f2113524282297d982abcaaa6b50b1fb4d9e19658e6572e58d6","tier":null}],"members":[{"type":"individual","id":"832b3a3dcd4c23fe","login":"bratter","name":"Brendan Ratter","avatar_url":"https://avatars-next.observableusercontent.com/72254c56b9894f2113524282297d982abcaaa6b50b1fb4d9e19658e6572e58d6","tier":null,"role":"editor"}],"comments":[],"custom_thumbnail":false,"trashed":false,"lapsed":null,"subscribed":null,"forks":3,"collection":null,"type":"notebook","body":{"title":"Winning as David","cells":[{"id":0,"value":"md`# Winning as David\n### How challenger wireless operators compete in a world of Goliaths\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1102,"value":"$33","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1118,"value":"figureChart = html`\n

Figure 1: Zone of interest – operators with low-share and high-growth. Bubble size is proportional to 2017 revenue in USD. This chart is interactive, you can hover over a bubble to see the operator name or use the controls below the chart to zoom.

\n\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":672,"value":"$34","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":772,"value":"boundForm(\n viewof zState,\n html``\n)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":827,"value":"resetZState = {\n const button = html``;\n\n button.addEventListener(\n 'click',\n () => (viewof zState.value = { ...defaultZState })\n );\n\n return button;\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1115,"value":"html`Source: Ovum WCIS, A.T. Kearney`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1135,"value":"$35","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1145,"value":"// TODO: Use

for figures?\n// TODO: Reduce size somewhat\nfigureGrowthArchetypes = html`\n
\n
**Figure 2:** Summary of growth archetypes.
\n \n
\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1193,"value":"$36","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1208,"value":"md`---\n**About the author:** Brendan Ratter is a Principal with A.T. Keaney's Communications, Media, and Technology Practice. He works on large-scale transformation programs to improve customer experience and efficiency at Telecom and Tech companies.\n\nThis article was originally published on [LinkedIn](https://www.linkedin.com/pulse/winning-david-how-challenger-wireless-operators-compete-ratter).`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1221,"value":"md`---`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":242,"value":"$37","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":228,"value":"md`## Appendix: Chart Components`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":714,"value":"$38","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":831,"value":"defaultZState = Object.freeze({\n xMin: 0,\n xMax: 50,\n yMin: -10,\n yMax: 20,\n rMin: 0,\n rMax: d3.max(data, d => d.usd17),\n bubble: 50,\n showLabels: false,\n showZoi: true\n})","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":743,"value":"viewof zState = new View({ ...defaultZState })","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":1065,"value":"zoiData = ({\n minShare: 0.01,\n maxShare: 0.20,\n highGrowth: 0.05\n})","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":592,"value":"// Upload the revenue attachment, then process after awaiting\n// Also sort by bubble size so smaller bubbles are on top\ndata = d3\n .csvParse(await FileAttachment('revenue.csv').text(), d3.autoType)\n .map(d => {\n const growth = Math.pow(d.norm17 / d.norm12, 1 / 5) - 1,\n mktGrowth = Math.pow(d.mkt17 / d.mkt12, 1 / 5) - 1;\n\n return Object.assign(d, {\n share12: d.norm12 / d.mkt12,\n share17: d.norm17 / d.mkt17,\n growth,\n mktGrowth,\n relGrowth: growth - mktGrowth\n });\n })\n .sort((a, b) => b.usd17 - a.usd17)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":35,"value":"canvasDims = ({ width: 640, height: 450 })","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":17,"value":"chartDims = ({\n width: canvasDims.width - margin.left - margin.right,\n height: canvasDims.height - margin.top - margin.bottom\n})","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":25,"value":"margin = ({ top: 35, right: 20, bottom: 60, left: 50})","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":65,"value":"x = d3.scaleLinear().range([0, chartDims.width])","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":93,"value":"y = d3.scaleLinear().range([chartDims.height, 0])","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":198,"value":"r = d3.scalePow().exponent(0.5)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":98,"value":"xAxis = g => g\n .attr('transform', `translate(0, ${chartDims.height})`)\n .call(d3\n .axisBottom(x)\n .ticks(3, formats.percent)\n .tickSizeOuter(0)\n .tickSizeInner(-chartDims.height)\n .tickPadding(6)\n )","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":117,"value":"yAxis = g =>\n g.attr('transform', `translate(0, ${0})`).call(\n d3\n .axisLeft(y)\n .ticks(3, formats.percent)\n .tickSizeOuter(0)\n .tickSizeInner(-chartDims.width)\n .tickPadding(6)\n )","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":905,"value":"label = simpleLabel()\n .text(d => d.name)\n .size(14)\n .margin(2)\n .padding(2)\n .x(d => x(d.share12) + r(d.usd17))\n .y(d => y(d.relGrowth))","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":101,"value":"formats = ({ percent: d3.format('.0%'), thousands: d3.format(',.0f')})","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":108,"value":"html``","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":626,"value":"import { form, boundForm, View } from '@bratter/form-input'","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":910,"value":"import { simpleLabel, find } from '@bratter/d3-label'","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":6,"value":"d3 = require('d3-array', 'd3-selection', 'd3-scale', 'd3-axis', 'd3-format', 'd3-dsv')","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"}],"files":"$W39","stdlib":"1","titling":"auto"}} 32:"$31:body"