uickly as possible. Customers typically shop the different offers and then settle down with the technology to see what it is all about. The Expansion Phase Market Company 1 Company 2 Quarters of Operation Conceptual Figure 4-6: Expansion Phase Market Share for Competitors (Conceptual) During the expansion phase, a company's market share is usually based on the size of its marketing budget, initial network outlay, and ability to sign up customers quickly. In most markets, this relative market size will not change as the market expands. Chapter 4 Figure 4-6 shows a typical market share distribution for competing carriers in an expansion market. The solid line at the top represents the growth of the overall market over time. The dotted lines indicate the market growth that each individual carrier experiences. Market forces and market momentum keep the carriers in their position no matter how well or how poorly they manage the customers. For a while the service provider is given a grace period. Customers do not know what to expect of the technology, SO they have no standard yet against which to judge the competition. During this period, however, consumers begin to establish standards for acceptable levels of service, price, and value. Maturity Phase Churn - Common As the expansion phase comes to an end, the consumers will have resolved these issues. They now look at offers with a more discerning eye and they listen carefully to claims by competitors offering better coverage or call quality. If the customer isn't relatively satisfied, then the competitor has a chance that was not likely a few months earlier. The Maturity Phase Market Company 1 Company 2 New Company Quarters of Operation Figure 4-7: Maturity Phase Market Share (Conceptual) It is during the market maturity phase that we see major shifts in customer membership based on how well the company is managing churn. Figure 4-7 shows how relative market share can shift greatly during the maturity phase as some carriers manage churn and acquisition better than oth