M1 versus MyRepublic – 6th July 2017

A scenario of company versus company
M1 was one of three players within the Singapore telecommunications market which was considered to have high legal barriers to entry
On 6th July 2017, MyRepublic announced plans to launch new mobile service in Singapore
Key areas used to assess potential impact of new entrant
- How rapid can new entrant build out distribution channel to start disrupting new entrant
- Market segment differentiation through analysis of product features
Short term: Loss aversion, reversion to mean scenario
- Market reacted by falling 16%
- Market reverted to mean by 5%
Mid/Long term: share prices recovered to historic levels when major third party attempted a take over bid