A small company that is considering in the U.S. prepaid phone card industry a new $ 5 phone card with a 60 minute service to Mexico. The sales group at the company believes that the card is a market success. The brand manager, skeptical of the potential profitability of card has assigned the task of the corresponding costs. Three airlines have offered different pricing proposals for the new card. Students are introduced to a spreadsheet model to assess the potential profitability … Read more »

A small company that is considering in the U.S. prepaid phone card industry a new $ 5 phone card with a 60 minute service to Mexico. The sales group at the company believes that the card is a market success. The brand manager, skeptical of the potential profitability of card has assigned the task of the corresponding costs. Three airlines have offered different pricing proposals for the new card. Students are introduced to a spreadsheet model to evaluate the potential profitability and relative merits of the three proposals and single-point estimates of many inputs.
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from
Robert I Carraway,
Robert Jenkins
Source: Darden School of Business
11 pages.
Release Date: 19, July 2005. Prod #: UV1460-PDF-ENG
Taurus Telecommunications Corporation: a new prepaid phone card HBR case solution

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