Friday, September 11, 2009
SmartBro and Globe Tattoo: Unrelenting Price Wars
Today's technology is not only dictated by manufacturing cost but by law of supply and demand, mostly. Same goes with services. ith today's rising demand of on-demand internet services, two of the country;s giant telco plummeted their price point to cater to their respective market shares. And lowering the price further to cannibalize their competitors.
SmartBro had taken the lead in slashing down their price to Php995. Almost half of the original price.
Now, in less than a month, Globe, from a crippling point of view, rises up with vengeance by offering even more affordable solution, this time it's Php895.
While they fight ferociously in the arena of online services, the consumers as spectators as the sure winners.
But only if they wouldn't degrade their service levels to commensurate the huge price decline.