Matrix Cellular: Tapping into innovation to disrupt a regulated and saturated market

The case follows Matrix Cellular (International) Services (Matrix), a telecommunications company that forayed into the nascent cellular telephony market in India, as a retailer of mobile handsets, accessories and international SIM cards. The Managing Director and Chairman of the Risk Management Committee of the company, Gagan Dugal, identified the potential demand for international SIM cards in the Indian outbound travel market that was set to boom on the back of globalisation.
MCIS bought international minutes in bulk from Mobile Service Providers (MSPs) in destination countries and retailed them through SIM cards to outbound Indian travellers. The service was an instant hit among elite travellers. Matrix, exploiting its pioneer advantage, began to strategically build its capabilities in the areas of sourcing, marketing, distribution and servicing, and expanded its product portfolio. Thus, from being a retailer of hardware and accessories, Matrix quickly evolved into a Mobile Virtual Network Operator (MVNO), trading and retailing talktime and data.