Could it be, they are sittlng back ,like spiders in a web,waiting for the next catch,whilst also ruthlessly pursuing cost cutting measures ,implementing quality check system, developing exact time delivery and looking at growth opportunities?.
I didn't read the whole thing because of time but very good post and link. I think that most people who buy their 1st smartphone from somewhere like CPW maybe on impulse but then the network gets hold of them which means that the customer is being sent offers all the time.. CPW are the middle men. I do think that it would be good for both companies if they also think about distribution. There is a lot of buy online and pick up services which seem to have done well in the last sales.
Intriguing and a reason why DXNS should be given a premium. Dunstone knows that sooner or later the operators (EE, Voda, etc.) will reduce their exposure to third party retailers. Its currently is at 20-25%, if its goes to 10% for example (which seems to be the strategy for the big operators), then CPW profits will reduce by 50%. CPW are in a losing game it seems... hence they are trying to get in to tablets, PCs and other electricals. Dunstone saw it a long time ago hence he tried going in with Best Buy - that failed. Now he is on a last line and hence HE/CPW approached DXNS, not the other way around. They need it more than DXNS do, and DXNS and Seb will be well aware of this. I still think talks could tumble as DXNS must ask for a premium, as if it is a merger of equals they are inheriting a diminishing business.... Views please gentlemen?
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