The Taste Of LIME: Competitive Dynamics and Strategies In The Telecommunications Industry

Cable and Wireless, Jamaica (C&WJ) operated in Jamaica under an exclusive license that made it a virtual monopoly. In 1999, the government of Jamaica decided to renegotiate the license and liberalize the telecommunications industry. At the beginning of the liberalization process, new companies entered the market and C&WJ struggled with the new competitive dynamics of the market. Although dominant in the fixed line market, C&WJ struggled to compete in the wireless market and lagged behind relatively new competitor Digicel. América Móvil’s recent entry under the Claro brand has intensified competition and threatens C&WJ with being relegated to third place. In response, C&WJ launched a new high-risk transformation strategy in 2008 that included renaming the company and changing its name to LIME (Landline, Internet, Mobile Devices, and Entertainment). This case documents the problems LIME faces in adapting to a telecommunications industry paradigm.

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