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Completel

Completel. Best In France Case Study. K.Stoknes J.Torres M.Bhandari J.Leleu. Business Description. Completel Europe N.V., a Dutch incorporated company Was established in January 1998 to take advantage of the opportunities in the European liberalized telecommunications market

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Completel

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  1. Completel Best In France Case Study K.Stoknes J.Torres M.Bhandari J.Leleu

  2. Business Description • Completel Europe N.V., a Dutch incorporated company • Was established in January 1998 to take advantage of the opportunities in the European liberalized telecommunications market • Providing of voice, data and internet related services to the business, government administration, carrier and isp markets • The group is involved in the exploitation of a fiber optic communications infrastructure in western Europe and provides telecommunications and internet related services to clients such as internet service providers as well as commercial and governmental end-users

  3. Geographical DistributionUntil 2002 2001 Revenues • Completel Europe had operations in France, Germany • & United Kingdomuntil May 2002

  4. Business Description • The German and the UK ISP operation was sold on 10 May 2002 (cash savings in the €20m range) • Following the recapitalization in 2002, the company refocused its activities on the French market • Thus, Completel S.A.S became its main subsidiary. • In three years, Completel SAS has become a leading national infrastructure based alternative carrier in France • providing telecom services through direct fiber connection to medium and large companies, public institutions (Hospitals, Ministers, Universities), carriers and ISP.

  5. Growth in Revenues CAGR = 5.7%

  6. Competition • As Completel begins to focuses on larger customers, it is likely to run into more direct competition. France Telecom, its main competitor, has traditionally focused on larger customers, which constitute the majority of its corporate fixed line revenue base. • For these customers, France Telecom is prepared to respond more quickly and flexibly to changing customer demands and the threat of competition. • Large customers are also more attractive to other competitors – for example, Cegetel, MCIWorldCom and COLT.

  7. Competition Map

  8. Completel’s strategy in France • Completel’s objective in France is to take the leading place in the telecom service market after France Telecom • To reach this goal Completel will increase their effort towards large sized companies, both public and private • Their already strong presence in medium sized companies will help them grow further, together with their strategic alliances with regional and national partners.

  9. Why go to France? Market Potential Good product Available competencies European directives

  10. Expectedproblems Social / Fiscal / Legal Cultural Bureaucratic Can BP be applied in France ?

  11. Organizational strategy Local Organisation in France is based upon regional Management teams • Close to the customers • Increased reactivity • Better ability to offer technical support

  12. Introduction Strategy : HR (1 of 2) US management recruited top French management. HRD, CFO, and TD of French origin French managers (HRD, CFO and TD) had Freedom to create their own teams Some US managers as technical consultants (processes and organisation) Staff distribution: 78% “cadres”, mostly engineers Origin: Mainly France (Écoles Télécom, Grandes Écoles ingénieurs), Magreb, US

  13. Introduction Strategy : HR (2 of 2) • Main recruitment procedure: “cooptation” • Overall staff evaluation: 360º method • Compensation: importance of variable part (bonus) • US organization chart: quite flat structure, low hierarchy, high level independence • Strong internal communication on company goals • Focus on integrity on the job

  14. Introduction Strategy : Business • Objective: 15% yearly revenue growth • Organisation in 9 centres of profit  9 geographical areas linked with a backbone • Independence of every centre. However, monthly meetings of partners of every region

  15. Introduction Strategy : Networking • Strong link with political activity • Important network of 3 top French managers (HRD, CFO, and TD) • Conference in the senate: “La dérégularisation du marché des télécommunications”  Good impression of politicians vis-à-vis de Completel

  16. Actual situation • All fears disappeared but it took long (35h,…) • Financial results are mitigated • 10% Market Share, overall • Turnover: 60% public, 40% Private

  17. Other European countries Germany Numerous big cities Easier Negotiations Spain (To be developed) Telefonica’s competition Harder Geography

  18. CompletelMr. Richard FolliotHuman Resources DirectionTel: 01.72.92.20.00

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