Recent trend illustrate increasing integration between telecommunication and finance sectors and the industry structure is changing. Such a move has stirred sense of urgency among many of the financial service firms-fear that they might lose a significant portion of core businesses. As a result, both competition and collaboration are frequently occurring among mobile telecommunication providers and financial institutions fighting for securing influential position in the market.
The purpose of this study is to examine how such collaborative/competitive environment affects business decision making among the management, and, ultimately, analyze how service quality differences resulting from corporate integration influences a company's brand leadership strategy in the market.
The market share of a mobile service provider would increase as more number of customers prefer the company's brand in the market, and as the service quality is better then its competitors. Aggressive market leadership strategy in the mobile payment can result in equally aggressive resistance from the financial institutions and failed collaboration with them. However, the mobile service provider can increase market share despite failed collaboration with financial services institution when it provides differentiated payment service by acquiring or launching credit card companies which services complement services provided by the mobile service provider.
