This case requires structured market analysis combining customer base sizing, customer preference segmentation, and channel distribution evaluation. The key insight is that market size alone is insufficient—customer willingness to adopt premium new technology and ease of distribution channels are decisive factors favoring ATT/Verizon despite their smaller customer base.
Our client is Hudson Electronics, a manufacturer of high-tech electronic devices based in the US. They have just developed a new product called the Optic-Eye. This is an augmented reality tool that users wear around their eyes. This product is new to the market and needs WiFi to work, but also could potentially be bundled with a cellular service provider. The way that it could be sold is similar to how cell phones are currently sold, in an annual contract.
Our client is debating between partnering with Verizon/ATT vs partnering with other providers, but is unsure of which of these two options will work best.