What gives the carphone warehouse a competetive advantage

The Carphone warehouse was set up in 1989 by Dunstone and Ross with just £6,000, they believed that mobile phones were the future but nobody knew how to sell them. They decided to focus on what was best for the customer offering impartial advice on the vast number of phones and networks available.

Since then the Carphone warehouse has grown to be the largest independent distributor of mobile phones in Europe. At the beginning of November 2000 it had 1.009 stores in 14 different countries giving it a leading position in eight markets and a turnover of £698 million. By 31 March 2001 the turnover had increased by 59% to over £1.1 billion and there were 1,059 operating under the ‘Carphone Warehouse’ name.

Carphone Warehouse is independent of phone service providers and is therefore not burdened by debt associated with licence acquisition. This allows Carphone Warehouse to invest in new technology such as those that improve sales efficiency. They have also tapped into the online market for phones, which allows them to increase its market at a very low cost.

In the future the Carphone Warehouse might try to accommodate new technologies to ensure that people who already own a phone will still come back to upgrade their old phones.

The Carphone Warehouse aims to attract loyal, regular spenders, rather than pay-as-you-go customers, as a customer on contract delivers two or three times more revenue than a pay-as-you-go user. This policy has allowed the Carphone Warehouse to stay ahead of the market despit

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