34387815 project on idea cellular ltd

8/8/2019 34387815 Project on Idea Cellular Ltd

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Strategy in Global Context For Idea Cellular Ltd.

Strategy in Global Context

Report-Idea Cellular Ltd.

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Company Idea Cellular Ltd.Submitted to Prof. Dilip

Submitted by Hitesh GoyalSheron PrabuBrendan Gomes

Batch PGPRM-9MBA 12 B

Reg. No. BLR 0903071001

BLR 0903031042BLR 0903031006




Contents

CONTENTS ......................................................................................................... 2

INTRODUCTION TO INTERNAL ANALYSIS: ............................................................ 4

IMPORTANCE OF CONDUCTING AN INTERNAL ANALYSIS: ...................................... 4

PROFIT ANALYSIS: ............................................................................................. 4

Financial Resources: The current ratio and the quick ratio of Idea Cellular (Current

Assets/Current Liabilities) is 1.38:1 and 1.3:1 which show they can convert their assets

in to cash easily and pay their current liabilities (Capitaline, 2009). In the same way

their working capital is $1.5 billion which shows that they have huge cash for daily

bases operation and financial works. If we talk about their shareholder funds which

include general reserve and equity share capital is $ 23 billion and total long term debt

is $6 billion which is less than their capital, so it helps them to get loan easily (Idea

Cellular Revenue, 2009). Revenues for Idea’s 13 operating service areas for Q1 at Rs.

26 million grew by 13.9% in 2009 (The Financial Express, 2009). Similarly, they invest in

almost every big mutual fund companies, such as in ABN Amro Mutual Fund, ICICI

Prudential Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund, and Birla Sun Life Mutual

Fund. So we can say base on the data, the company has strong financial management

resources (Capitaline, 2009). ..........................................................................................5

Technological Resources analysis: Idea Cellular invests huge amount in the innovation

embedded solution to enhance its technology, network, wireless space and Customer

Relationship Management (Our Partners, 2009). For this, they signed a deal of $19.2

million with IBM (USA base Software Production Company). Idea uses IBM webspare

application server for data and financial transaction, Oracle Siebel customer dataintegration for Customer Relationship Management and Supply Chain Management,

they use OLTP (Online Transaction Process), CICS (Customer Information Control

System) software to optimize the data security, network and mobility management

(Idea Portal, 2009). Idea Cellular uses Vehicle Tracking System by GIS (Global

Processing System). ........................................................................................................6

VRHN: IDEA CELLULAR ........................................................................................ 6

INTERNAL FACTOR ANALYSIS: ............................................................................. 7

S TRENGTH:...............................................................................................................................7

WEAKNESS:...............................................................................................................................8

IFE ANALYSIS MATRIX .................................. 9

IMPORTANCE OF UNDERSTANDING COMPETITION: ............................................. 10

RATIONAL BEHIND IDENTIFYING THE COMPETITORS: .......................................... 10

COMPETITIVE PROFILE MATRIX: ................. 10

ANALYSIS OF CPM AND IFE: .............................................................................. 11

INTERNAL-EXTERNAL (IE) MATRIX ..................................................................... 14

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QUANTITATIVE STRATEGY PLANNING MATRIX (QSPM) ........................................ 15

PLAN FOR NEXT THREE YEARS .......................................................................... 16

CONCLUSION .................................................................................................... 16

ANNEXURE 1 .................................................................................................... 16

ANNEXURE 2 .................................................................................................... 17

................................................................. 19

REFERENCES ................................................................................................... 19

APPENDIX ........................................................................................................ 21

Introduction:

In this report on the basis of various tools and techniques like Internal Factor evaluation, SWOT

analysis, Resource based view and other techniques like competitive profile matrix; we are now

able to suggest the appropriate strategy for Idea Cellular. Now we are incorporating GE matrix as

well as BCG matrix in order to come to a definite conclusion as to which strategy is suitable for

the firm in the upcoming years as the telecom sector is growing at an unbelievable pace.

Idea cellular is a part of Aditya Birla Group, a multinational having operations in 25 countries.

The reputation of being the first Indian multinational and part of 100 fortune companies carries a

lot of strength which Idea cellular enjoys being the part of prestigious group. (Idea Cellular,

2008) The profit margin of Idea cellular in relation to its competitors like Bharti Airtel and

Vodafone has grown relatively about 4% from 2006-07 which was 11% to 15% in 2007-08. It is

strength for the organization as it is likely to give them a competitive edge. (Q3 result: Idea

cellular, 2008) Idea cellular has strategic alliance with IBM and Oracle. Both have a unique

brand image for providing best in class software solutions like CRM (Customer RelationshipManagement) and OLAP (Online Analytical Processing). It has also tie ups with leading mobile

producers like Nokia. This shows that the organization is dedicated towards providing superior

services to its customers. (Idea Portal, 2009)

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Introduction to Internal Analysis:Internal analysis is a vital strategic management tool that helps in identifying the strengths and

weaknesses of an organization. These strengths and weaknesses, give an organization certain

advantages and disadvantages to meet the needs of its target markets. Both strengths and

weaknesses should be identified from the customer’s perspective, because customers often

perceive what the organization couldn’t identify. (David, 2008)

Importance of conducting an internal analysis:It helps to identify an organization’s own capabilities, assessing the following things:

• What makes us different from competitors?

• What is the general market condition of our business?

• What are the problems and complaints that customers are facing with our products in the

industry, and how can we deal with them effectively?

Profit analysis:

Physical Resources: Idea cellular is a public listed company having license to operate

in 22 areas. Presently its operations exist in 11 service areas, having a customer base of 24

million covering more than 60 % of the total Indian telecom population. (Capitaline, 2009)

Currently Idea cellular has its corporate office in Mumbai, and a registered office in Gujarat. Its

circle offices are located in 17 states. Presently it has partnership agreements with some

renowned organizations such as, Cellebrum India Pvt. Ltd., and NDTV for VAS (value added

services), and for roaming Bharti Telesoft, for marketing communication it has tied up with

Lowe India Pvt. Ltd. and for network, Nokia and Ericson are its biggest partners. (Bureau E. ,

2009)

Reputation Resources: Being a part of India’s first multinational group, Aditya Birla,

and being the third largest telecom service provider, it carries a strong reputation in the Indian

telecom industry. It is also listed in Bombay Stock Exchange (BSE) as well as National Stock

exchange. It has been awarded “Emerging Company of the year” by Economic times in 2009

(The Economic Times, 2009) It has won an award for ‘Care services in the best billing or

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customer care’ at the GSM association award in Barcelona, Spain. The company won prestigious

Golden Peacock Award for its innovative product “My gang” in 2008. Idea cellular limited is

also an official sponsor of IIFA awards (Idea Cellular, 2008)

Organizational Resources: Along with Idea Cellular, Aditya Birla Group is considered

as one of the most ethical companies in India and it reflects in all of its operations. The company has

maintained cordial relations with its suppliers and distributors. The company holds annual award

functions to reward its suppliers, distributors and employees. It gives bonuses and dividends to its

shareholders and employees every year.

Financial Resources: The current ratio and the quick ratio of Idea Cellular (Current

Assets/Current Liabilities) is 1.38:1 and 1.3:1 which show they can convert their assets in

to cash easily and pay their current liabilities (Capitaline, 2009). In the same way their working capital is $1.5 billion which shows that they have huge cash for daily bases

operation and financial works. If we talk about their shareholder funds which include

general reserve and equity share capital is $ 23 billion and total long term debt is $6

billion which is less than their capital, so it helps them to get loan easily (Idea Cellular

Revenue, 2009). Revenues for Idea’s 13 operating service areas for Q1 at Rs. 26 million

grew by 13.9% in 2009 (The Financial Express, 2009). Similarly, they invest in almost

every big mutual fund companies, such as in ABN Amro Mutual Fund, ICICI Prudential

Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund, and Birla Sun Life Mutual Fund.

So we can say base on the data, the company has strong financial management resources

(Capitaline, 2009).

Intellectual Resources analysis: Idea Cellular has separate R&D department

which helps to increase market share. It invests a huge amount in advertisement such as they

have brand ambassadors such as Abhishek Bacchan and Mumbai Indians (Indian Premiere

League). Idea has positioned themselves as young smart and innovative (Idea Cellular Revanue,2009). Their advertisement punch line “An idea can change your life” created self image of the

brand that other players were not able create in a short span of time. Moreover, in the year 2008

it collaborated with Geodesic, an innovator in communication and entertainment applications on

mobile for providing “Idea radio” a radio service for its customers.

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Technological Resources analysis: Idea Cellular invests huge amount in the

innovation embedded solution to enhance its technology, network, wireless space and

Customer Relationship Management (Our Partners, 2009). For this, they signed a deal of

$19.2 million with IBM (USA base Software Production Company). Idea uses IBM

webspare application server for data and financial transaction, Oracle Siebel customer

data integration for Customer Relationship Management and Supply Chain Management,

they use OLTP (Online Transaction Process), CICS (Customer Information Control

System) software to optimize the data security, network and mobility management (Idea

Portal, 2009). Idea Cellular uses Vehicle Tracking System by GIS (Global Processing

System).

VRHN: Idea CellularVRHN analysis is considered as the foundation of internal analysis. Whatever an organization

possesses is generally considered as a resource or capability. Financial resources, plant,

equipments, technology, brand equity and organizational expertise all can be considered as

resources. Therefore, in order to have a competitive advantage an organization has to make sure

that its resources are valuable, rare, hard to imitate and non substitutable.

Value: The Indian Telecom sector is the biggest telecom sector in the world, which has not

been affected by economic downturn (Antony A. & Ghosh D., 2008). Due to change in per

capita income, and providing good service, it is growing rapidly. Many multinational companies

such as AT&T (USA), MTN (South Africa), Vodafone (UK) are trying to take control in India,

but the domestic players like Airtel and Idea Cellular are trying to stop them to become a market

leader. Idea cellular has great goodwill in India, because of many reasons such as, it is a public

listed company, part of 12$ billion of India’s first multinational group “Aditya Birla Group”,

which has operations in 18 countries (Idea Cellular, 2009). Even though, Idea wasn’t the first player in the telecom industry to launch GPRS, it has been awarded by The Economic Times in

2009 as emerging company of the year (The Economic Times, 2009). So its product has positive

image between consumers.

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Rarity: As we know infrastructure and technology is not at par in India. So, Idea has tie ups

with IBM, Oracle, Nokia and Ericson. They provide good software which Idea cannot get in

India due to technology. Idea use IBM webspare application server for data and financial

transaction, Oracle Siebel customer data integration for Customer Relationship Management and

Supply Chain Management OLTP (Online Transaction Process) software to optimize the data

security, network management. (The Financial Express, 2008)

Hard to imitate: In India, every telecom company has to follow same rules and

regulations laid down by TRAI (Telecommunication Regularity Authority of India) and DoT.

One company cannot copy another’s product, service name or punch line because of Registered

Trademarks and Copyrights (TRAI, 2009), but they can start same service at same price with

different name such as Idea came up with a unique plan “Idea Women Calling Card and MyGang” then in few days Airtel started “Family and Friends”, when Idea started GPRS service,

Airtel and Vodafone also launched similar services with a different name and when Idea reduced

call charges and launched easy recharge, others also did the same thing. The punch line of Idea

Cellular “An idea can change your life” cannot be imitated; the quality of product, network and

service cannot be imitated.

Not Substitutes: Due to same call tariffs and similar bandwidth, Idea can be easily

substituted. There are many telecom service providers who offer services at almost same price

such as Airtel, Vodafone and Tata Indicom. Therefore if people are not satisfied with the

services or ongoing plans, they can easily step out and use the services of other players.

Internal Factor Analysis:

Strength:

Brand reputation: Idea cellular is a part of Aditya Birla Group, a multinational havingoperations in 25 countries. The reputation of being the first Indian multinational and part of 100

fortune companies carries a lot of strength which Idea cellular enjoys being the part of

prestigious group. (Idea Cellular, 2008)

Profit margin has been increasing at high rate. The profit margin of Idea cellular in relation to

its competitors like Bharati Airtel and Vodafone has grown relatively about 4% from 2006-07

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which was 11% to 15% in 2007-08. It is strength for the organization as it is likely to give them a

competitive edge. (Q3 result: Idea cellular, 2008)

Financial strength: The current ratio and the quick ratio of Idea Cellular (Current Assets/Current

Liabilities) is 1.38:1 and 1.3:1 which show they can convert their assets in to cash easily and pay their

current liabilities (Capitaline, 2009). In the same way their working capital is $1.5 billion which shows

that they have huge cash for daily bases operation and financial works. If we talk about their shareholder

funds which include general reserve and equity share capital is $ 23 billion and total long term debt is $6

billion which is less than their capital, so it helps them to get loan easily (Capitaline, 2009).

Market share: The overall market share of Idea cellular is increasing at a healthy rate. It is

currently operating in an industry which is expected to grow at a rate of 1.3 $ trillion in revenue

according to a US based research agency (Insight research corporation New Jersey). Thus we can

infer from this fact that Idea cellular has a huge target audience, as it has expanded its operations

in almost all parts of India (The Money control, 2008).

Technology innovation: Being the first player in the telecom industry to start GPRS services in

India, and even starting unique products, such as ‘My gang’ and ‘Idea radio’, the technological

innovation of the organization can act as strength to the company in the long run (The Hindu,

2008).

Strong advertising and promotion: Idea cellular is known in the industry for its aggressive

promotional and advertising techniques, such as having Abhishek Bachan, a famous Bollywood

star as part of its advertising punch line ‘What an idea Sir Ji’ proved effective in carrying out the

promotional campaigns throughout the country (Money Outlook, 2001).

Strategic alliance: Idea cellular has strategic alliance with IBM and Oracle. Both have a unique

brand image for providing best in class software solutions like CRM (Customer Relationship

Management) and OLAP (Online Analytical Processing). It has also tie ups with leading mobile

producers like Nokia. This shows that the organization is dedicated towards providing superior

services to its customers. (Idea Portal, 2009)

Weakness:

No presence in Broadband or internet service: BSNL, Airtel, Reliance communications, Tata,

all of them offer broadband services. Reliance communications as well as Tata are now offeringhigh broadband access through Data cards. It thus adds value to their respective brands. Not

being a broadband service provider is therefore a big weakness for them.

Less PAN India presence: Idea cellular limited has a low PAN (Presence across nation) India

presence as compared to its rivals Airtel and Reliance communications. Airtel and Reliance have

always been the first ones in expanding their operation expeditiously as compared to other

players in the industry.

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Importance of understanding competition:When a company positions its product in the market, it tries to position its brand uniquely among

other brands present in the market. Therefore it is critical to understand the strengths,

weaknesses, opportunities and threats of each of those competitors along with the industry

structure itself. This knowledge is important because it’s the competition that helps us to own the

unique benefit in our customer’s mind that our competitors’ have not addressed and cannot easily

address in the future.

Rational behind identifying the competitors:Analyzing the competitors is an essential component of corporate strategy. Knowing about the

competitors and their profile will help the concerned organization in knowing its weaknesses that

it may exploit. A detailed profile of the competitors, helps an organization in getting an in depth

description of the competitor’s background, its unique selling proposition, financial condition, its

strategies, the products and the market share.

Competitive Profile

Matrix:

Idea Airtel VodafoneReliance teleco

CSF’s Wt Rating Wt’d

Score

Rating Wt’d

Score

Rating Wt’d

Score

Rating Wt’D

Scor

Market Share 0.15 2 0.30 4 0.60 3 0.45 1 0.15

Brand Image 0.15 3 0.45 4 0.60 3 0.45 2 0.30

Financial Position 0.10 4 0.30 4 0.40 3 0.30 3 0.30

Service Quality 0.08 3 0.24 4 0.32 4 0.32 1 0.08

Customer Loyalty 0.06 2 0.12 2 0.12 2 0.12 2 0.12

Sales Channel

(Distributor, Outlets)

0.10 4 0.40 3 0.30 4 0.40 2 0.20

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Global Exposure 0.05 3 0.15 4 0.20 4 0.20 1 0.05

Org. Culture(Awards) 0.08 4 0.32 3 0.24 2 0.16 3 0.24

Sale growth 0.05 3 0.15 4 0.20 3 0.15 2 0.10

Promotions(advertisement) 0.06 3

0.183

0.184

0.18 3 0.18

Management.

experience

0.07 3 0.21 4 0.28 3 0.14 3 0.21

Company Image 0.05 3 0.15 4 0.20 3 0.15 2 0.10

Total 1 2.97 3.64 3.02 2.03

Analysis of CPM and IFE:With the analysis of the competitive profile matrix (CPM) we can conclude that the company’s

strategy in the Nature care segment is better than that of their existing and latent competitors, on

the other hand the company has to adopt new strategy to strengthen their position in the health

care segment. As the analysis of internal factor evaluation (IFE) we can say that the company’s

strategy is aligned with the strength and weakness of their organization.

We have also recognized how the study of internal factor and competition will help in

determining the strategy for the organization.

TOWS MATRIX

The TOWS matrix is an important matching tool that helps in developing four types of

strategies;

1. SO strategies —use a firm’s internal strengths to take advantage of external

opportunities.

2. WO strategies —are aimed at improving internal weaknesses by taking advantage of

external opportunities.

3. ST strategies —use a firm’s strengths to avoid or reduce the impact of external threats.

4. WT strategies —are defensive tactics directed at reducing internal weaknesses and

avoiding external threats

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After analyzing the SWOT analysis of Idea cellular which has been done in the previous report

the tows matrix can be constructed as follows:

SO strategies: Under Strength and opportunity strategy the company should penetrate the rural

market as the number of mobile users in rural India is increasing at a fast rate, we can say it is

becoming very close to urban consumers. As the organizations carries a good brand reputation of

Aditya Birla Group, and being the first organization to launch GPRS service, it should penetrate

the rural market and offer other value added services like GPRS at affordable prices. Brand

promotion is required in this perspective. The advertisements of Idea cellular give a touch of

Indian villages, it therefore can become successful in gaining a large pool of customers, but it has

to maintain superior digital clarity that too at an affordable prices.

WO Strategies: This strategy is a tool by which we can understand the weaknesses and compare

them with the opportunities we have in hand, and making an effort to see how weaknesses can be

utilized in maximizing the available opportunities.

Earlier the firm was targeting the consumers of Northern India only. In its recent expansion plan

it has slowly capture the other parts of India as well, but it has not been able to provide some

value added services like Direct to home and mobile broadband service like Tata and Reliance.

The reason behind providing these value added services is that it gives a unique strength to the

firm and a kind of diversification. The result is broadening of services and capability of jumping

into other related services which can be very securely connected with mobile services.

ST Strategies: Looking at the strength of the firm the firm carries a brand name and the market

share of the company is increasing in other parts of India as well including north and western

parts of India. The company’s promotional strategies are also proving beneficial. The recent

advertisements have proved successful in executing the brand communication to the consumers.

But the threats cannot be ignored and these have to be very carefully analyzed so that the threats

can be minimized into strengths. Poor infrastructure and not upgrading the technology whenever

the need arises is a big threat and it has to be minimized to the maximum extent possible.

Sometimes poor execution of promotional activities can also damage the reputation of the firms.

The care has to be taken as to what technology is most suitable, with whom the firm should tie

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up (like strategic alliance with Nokia and other major software providers like IBM). Another

major threat can be the untrained workforce.

The strategy here the company can adopt is to see whether what kind of training is required for

the workforce and at what time. Dealing with the local distributors is a challenging task and it

requires a strong convincing power. Thus Idea cellular can minimize this threat by giving

appropriate training to its workforce from time to time. Upgrading the technology and bringing

on more creative promotional activities can bring in a lot of change in the company’s business.

BCG matrix:

BCG Matrix of Idea Cellular Limited with respect to Airtel and industry growth rate:

Idea

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Mark

et

GrowthRate

Relative Market Share




The Entire Telecom Industry is growing at a rate of 35% as compared to the base year 2006-07.

This can be termed as a moderately growing Industry and it is expected to grow in the coming

years. Also as per the latest report of TRAI, an apex body regulating telecom affairs, the number

of mobile subscribers has touched 50 crore. Bharti Airtel is the market leader with 32% share for

long time but now they are losing their market share. Idea Cellular Limited has a share of 22% in

the total GSM telecom market in India (as on July’09) and it is growing at 18% annually.

Presently its operations exist in 11 service areas, having a customer base of 24 million covering

more than 60 % of the total Indian telecom population. (Capitaline, 2009) Currently Idea cellular

has its corporate office in Mumbai, and a registered office in Gujarat. Its circle offices are

located in 17 states. Presently it has partnership agreements with some renowned organizations

such as, Cellebrum India Pvt. Ltd., and NDTV for VAS (value added services), and for roaming

Bharti Telesoft, for marketing communication it has tied up with Lowe India Pvt. Ltd. and for

network, Nokia and Ericson are its biggest partners. (Bureau E. , 2009). So it comes under star.

Internal-External (IE) Matrix

The IE matrix is the strategic tool used to analyze the working condition and the strategic

position of the business. The IE matrix includes both the internal as well as the external factors

which will affect the business, based on the scores of internal factor evaluation (IFE) and

external factor evaluation (EFE) we determine the company’s position in the Matrix. The matrix

is being divided into nine grids and the relative position of the company in the grid will explain

their strategy. The company lies in the position of strong so it lies in the strong grid of the IE

matrix so the company has to grow and build which suggests that the company should go for

intense and aggressive tactical strategies like market penetration, market development or product

development. The company can also consider the alternative of backward, forward or horizontal

integration.

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Grow

Idea

And Build

Hold And Maintain

Harvest Or Divest

Quantitative Strategy Planning Matrix (QSPM)

The QSPM is a strategic planning approach for evaluating the possible set of strategies, this act as an

analytical tool to for the comparison of the alternative strategies. In the given case we are considering

following three alternative strategies for Idea this includes: -

1. Strategic Alternative 1: Can go for backward integration such as Vodafone acquire

Hutch to increase market share or forward like acquire distributers

2. Strategic Alternative 2: Can go for marketing penetration: Target the urban segment;

launch a new service with same brand name like Tata Docomo has done “Billing per pulse

rate”, provide more high end services like GPRS, mobile internet services and provide

good customer service

3. Strategic Alternative 3: Can go for the horizontal integration activities i.e. Airtel has

gone for Dish TV, Reliance has gone for Big TV

Evaluating the above mentioned strategies with assigned weight to the strength, weakness,

opportunities and threats present in front of the company, and we have figure out that the

strategic alternative 2 i.e. Target the urban segment; launch a new service with same brand name.

Like Tata Docomo has done, Provide more high end services like GPRS, mobile internet

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IFE Scores

FE

cores




services and provide good customer service. This strategy has the attractiveness score of

6.22.

Plan for next three yearsThe company is having high operating cost i.e. the company is not utilizing its recourses properly, since

by the Internal-External (IE) matrix the company falls in the grid of Grow and Build which also suggests

that the company can go intense and aggressive strategy of market penetration or the alternative of going

for the vertical integration. According to the QSPM analysis as well the alternative for going for the

vertical integration was the most attractive one. The company should also come up with new service like

Tata Docomo has come up “Billing per pulse rate” in order to increase the market share. In the BCG

matrix Idea Cellular falls in the Star’s category. Idea Cellular should also try to acquire or tie up with

other companies such as Vodafone and Hutch and Airtel and MTN tried to tie-up in order to catch up with

the competition and the growth of the industry. They acquired spice in past and they have tie-up with

Ericson but they do not have any type of advantage in term of internet service or upcoming 3G service.

Idea should come up with new service for new segment of customers, try to focus on urban market which

is again found out to be best alternative from the QSPM analysis.

Conclusion

As a conclusion of this report we figure out that the company’s strategy to target the rural segment;

launch a new service with same brand name like Tata Docomo has done, provide fast GPRS, mobile

internet services and provide good customer service which is having the attractiveness score of 6.22.

Annexure 1

SO Strategy WO Strategy

1. Can go for Marketing penetration: Target the

urban segment; launch a new service with same

1. Can go for Forward Integration- Operate

other showrooms which supplement the

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brand name like Tata Docomo has come up “Billing

per pulse rate”, provide more good and fast

services like GPRS, mobile internet services and

provide good customer service distribution channels

ST Strategy WT Strategy

1. Can go for Backward integration such as Vodafone

acquire Hutch to increase market share

1. Can go for the horizontal integration

activities i.e. Airtel has gone for Dish TV,

Reliance has gone for Big TV

Annexure 2

StrategicAlternative 1



StrengthWeight

Score

Weightedscore

Score

Weightedscore

Score

Weightedscore

1 Brand reputation like SBU of

India’s first multinational group 0.15 4 0.6 2 0.3 2 0.3

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2. Strong advertising and promotion 0.03 1 0.03 2 0.06 1 0.03

3 Superior inventoryturnover ratio and currentratio 0.04 3 0.12 1 0.04 2 0.08

4. Wide distributionnetwork 0.1 4 0.4 4 0.4 4 0.45. Local and globalacquisitions 0.05 1 0.05 2 0.1 3 0.15

6. Technological innovationlike India’s first GPRSservice provider 0.06 3 0.18 3 0.18 2 0.12

7. Strategic Alliance such aswith IBM, Oracle, Nokia 0.08 2 0.16 3 0.24 3 0.248. Better understandingof rural market 0.12 3 0.36 4 0.48 3 0.36

Weakness 0 0

1. Target only North India 0.12 3 0.36 1 0.12 2 0.24

2 Net operating profit ratio isdecreasing 0.09 3 0.27 2 0.18 2 0.18

3. No presence in Broadbandor internet service 0.06 2 0.12 4 0.24 3 0.18

4. Increase in the operatingcost 0.1 4 0.4 4 0.4 1 0.1

1 1 1

Opportunities 0

1. Growth in market size 0.15 4 0.6 3 0.45 2 0.3

2. Scope for new andinnovative service 0.05 2 0.1 3 0.15 1 0.05

3. Opportunities for M&A 0.04 1 0.04 2 0.08 3 0.12

4. Growth in rural market 0.12 3 0.36 2 0.24 3 0.365. Higher disposableincome of consumers 0.1 2 0.2 3 0.3 2 0.2

6. Levi on fringe tax 0.06 1 0.06 3 0.18 2 0.12

7. Increase in FDI 0.09 1 0.09 2 0.18 1 0.09

8. Export potential 0.04 1 0.04 1 0.04 2 0.08

Threats 0 01.Price sensitive

Unorganized market 0.1 4 0.4 4 0.4 2 0.22. Productionmalpractices 0.05 2 0.1 2 0.1 3 0.15

3. Competition 0.04 1 0.04 1 0.04 1 0.04

4. Disputes with retailers 0.02 2 0.04 2 0.04 1 0.025. Volume dependencyfor sales 0.07 1 0.07 2 0.14 3 0.216. Transportationproblem 0.07 2 0.14 2 0.14 2 0.14

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1 5.33 6.22 5.46

References

Idea Journey(n.d.). Retrieved September 02, 2009, from Idea Cellular:

http://www.ideacellular.com/ShowBinary/BEA

%20Repository/idea/InvestorPresentation/InvestorPresentationQ1FY10.pdf

Some gap in Idea market opportunity (2008, July 10). Retrieved August 29, 2009, from The

Financial Express:

http://www.financialexpress.com/printer/news/333489/

Anto Antony & Durba Ghosh, E. B. (2008, December 20). Telecom beats slowdown blues

contribute big to GDP growth. Retrieved August 31, 2009, from The Economic Times:

http://economictimes.indiatimes.com/articleshow/3864667.cms

Budget . (n.d.). Retrieved August 30, 2009, from India Budget:

http://indiabudget.nic.in/

Bureau, E. (2009, august 25). Features. Retrieved 09 01, 2009, from The Economic Times:

http://economictimes.indiatimes.com/articleshow/4930919.cms

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Bureau, O. (n.d.). Tax award for Idea Cellular . Retrieved September 02, 2008, from The Hindu

Business Line:

http://www.thehindubusinessline.com/2008/03/04/stories/2008030451172300.htm

Idea Cellular Revenue. (2009). Retrieved August 27, 2009, from The Financial Express:

http://www.financialexpress.com/news/idea-cellular-revenue-up-13.9-pct/414357/

Idea Cellular Revenue. (2009, January 23). Retrieved August 30, 2009, from The financial

Express:

http://www.financialexpress.com/news/idea-cellular-revenue-up-13.9-pct/414357/

India World's Second-largest Wireless Market . (2008, August 8). Retrieved September 1, 2009,

from The Economic Times:

http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/India-worlds-second-

largest-wireless-market-Study/articleshow/3340553.cms

Our Partners. (2009). Retrieved August 28, 2009, from Idea:

http://www.ideacellular.com/IDEA.portal?

_nfpb=true&portlet_MyIdeaController_5_actionOverride=%2FIDEA%2Fcontent%2FmyIdea

%2FdisplayContent&_windowLabel=portlet_MyIdeaController_5&portlet_MyIdeaController_5

displayParam=ourPartners&_pageLabel=IDEA_Page_AboutI

News. (2009, January 26). Retrieved August 28, 2009, from Television Point:

http://www.televisionpoint.com/news2009/newsfullstory.php?id=1232973159

press. (2009, January 20). Retrieved August 31, 2009, from Idea:

http://www.ideacellular.com/IDEA.portal? _nfpb=true&_pageLabel=IDEA_Page_IdeainMedia&displayParam=content_press_newreleases_

corpHome3.html

Press Releases. (2009). Retrieved august 21, 2009, from Aditya Birla Nuvo:

http://www.adityabirlanuvo.net/media/press_releases/pressrelease.aspx?ID=BYPQa0lysY8=

Press Releases. (2009). Retrieved August 29, 2009, from Idea Cellular:

http://www.ideacellular.com/IDEA.portal?

_nfpb=true&_pageLabel=IDEA_Page_IdeainMedia&displayParam=content_press_newreleases_

corpHome3.html

Publication. (n.d.). Retrieved August 29, 2009, from CIA:

https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#top

Tax Award For Idea Cellular . (2008, March 3). Retrieved September 1, 2009, from The Hindu

Business Line:

http://www.thehindubusinessline.com/2008/03/04/stories/2008030451172300.htm

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Appendix

1. Oracle CRM Data model and ERP data model used by Idea

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2) GPS and GIS used by Idea Cellular:

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3) GPRS and VAN system used by Idea Cellular:

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34387815 project on idea cellular ltd

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