The expectation is that it would have an ultra-low operating cost, achieved through routine operation.
The South Korean company has rushed to remedy that with its own smart-phone platform, Bada, and by producing mobile phones that use Google's low-cost Android operating system.
Ocwen has long emphasized its cost advantages and low operating expenses as a competitive advantage, with at least three-quarters of its 5, 000 employees based in India and Uruguay, where it says its per-employee costs are one-eighth of those of a U.S. worker.
Europe's low-budget carriers, unlike some of their bigger name rivals, have thrived by operating slimmed-down, low-cost operations.
Withering competition from a slew of low-cost Asian competitors has eroded operating margins, yet Sony is hobbled in Japan by high taxes, 40% higher power costs, antilayoff laws and wages more than ten times that of China.
The carrier has gained tremendous respect and popularity for its low-cost business model and thrives on maintaining low operating expenses, in part due to its fuel hedging programs.
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The Android approach of coding an operating system and then providing it at a low cost so that hardware manufacturers would drive users towards Google services might have looked attractive on paper, but it would not reach a billion users without a huge amount of time and effort on the part of Facebook.
FORBES: Zuckerberg Goes Cuckoo To Test Facebook Home's Mobile Strategy
It is said that the requirement for America's Amtrak to become free of operating subsidy by early 2004 is largely the result of competition from low-cost airlines.
With savings achieved on the operating side, Cisco will be able to make aggressive price cuts to compete better with low-cost rivals and gain even more market share.
With savings achieved on the operating side, Cisco will be able to make aggressive price cuts to compete better with low-cost rivals such as Huawei and gain even more market share.
FORBES: Cisco Is Wired For $26 If It Can Navigate Europe's Slump
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