But how does a company benefit from setting up another business to compete with themselves ? I must be missing something.
Happens everywhere, if you have an offer at every pricepoint you can service every customer.
Look at all the brands in Swatch group for example.
Oligopoly, standard example being soap powder. If there are only a few actual competitors, the more brands there are under you the bigger share you have overall.
That’s not quite the same thing though. They had been providing me with a service which I was happy with for around 20 years, they then crank up the price and reduce the level of service forcing me to look elsewhere. I end up with a far better level of service for a lower cost, from the same company. Presumably there are also costs involved in setting up a new account etc.
Ps. I have zero knowledge of Swatch products.
90% of the public buy based on a brand name or what they know. 3 have their own deals but also own Smarty for people that actually shop around etc.
3 will spend a fuck ton on adverting 3 so costs will be higher whereas Smarty tend to be word of mouth or places like moneysavirngexpert etc so do the advertising for them.
Same with Vodafone and VOXI, although VOXI have recently started saying “part of Vodafone” where before they never advertised the link.