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Accounting & Taxation

An Immodest Proposal

Business Fundamentals

Why U.S. Retailers are Still Vulnerable

Business Law

Slow Cop, Fast Beat

Business Strategy

Can Etihad's Flock of Also-Rans Fly?

Economics

Millennials Still Feel the Recession’s Bite

Entrepreneurship

Innovation: Pay Range

Ethics & Responsibility

Samsung's War at Home

Finance

Slow Cop, Fast Beat

Information Technology

Can Dropbox Avoid Getting Lost in the Clouds?

International Business

For Expats in China: Smog Perks

Marketing

I’ll Pass

Operations Management

Why U.S. Retailers are Still Vulnerable

The Rise of the Affinity Cell Phone Reviewer:   Craig A. Turner, Ph.D.

Abstract

With big players like AT&T, Cingular, and Verizon competing for market share, a startup firm would not normally attract much interest.  However, when the startup is headed by a serial entrepreneur notorious for his connections to successful entities such as Microsoft and Macromedia, the interest piques.  According to BusinessWeek's article The Rise of the Affinity Cell Phone (October 15, 2007), Juha Christensen's resume would be the envy of any aspiring businessperson, with successful projects within megacompanies as well as startups.  He uses an old model of competition in which he leases space from one of the big competitors, repackages it, and then distributes it to many smaller customers.  His target market includes special interest groups like sports teams, churches, and rock group fans.  He eschews the typical tactics of larger firms such as subsidized hardware and retail outlets.  His model counts on its internet-based sales and services and the passion of its customer's client base.  So far it seems to be working, taking a mere 8-9 months to break even with a new customer, compared to 20 months for conventional suppliers. 





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