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

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