An Internal Analysis of HathwayBy Naresh R Shah

Presentation Structure: An overview of ISP: Hathway SWOT Analysis of Hathway Value Chain Analysis of Hathway VROI Analysis of Hathway Conclusion

An overview of ISP: Hathway Entered into Broadband Technology in the year

2000, providing internet with DOCSIS technology. Reached 100,000 customers in 2004. Acquired two major MSOs in Maharashtra:

Hathway Rajesh Multichannel Private Limited and Hathway MCN Private Limited.

Reached 3,20,000 subscribers in 2009.

SWOT Analysis

Strengths• Experience in ISP market• Known name• Innovation• Business contracts/Peering agreements• Experienced personnel• Network management and economics

knowledge

Weaknesses• Customer service is somewhat lacking• No local content• Usually don’t own infrastructure

Opportunities• Relationships with Telcos long established• Mergers with content providers• Acquire smaller enterprises• Development of web applications

Threats• Entry of Telcos/other cable companies• Some market squeeze• Saturation of Market

• Relationships with Telcos long established

• Mergers with content providers• Acquire smaller enterprises• Development of web applications

• Entry of Telcos/other cable companies• Some market squeeze• Saturation of Market

• Customer service is somewhat lacking• No local content• Usually don’t own infrastructure

• Experience in ISP market• Known name• Innovation• Business contracts/Peering

agreements• Experienced personnel• Network management and economics

knowledge

Strengths

WeaknessesOpportunities

Threats

Value Chain Analysis- Primary Activities

Inbound logistics - HIGH• Inbound logistics add a lot of product value for large ISPs since they need to

minimize the ‘lease’ costs.

Outbound logistics - HIGH• Outbound logistics are relatively high for large ISP’s since they need to

‘minimize’ ‘lease’ costs.

Operations - LOW• Typically, larger ISP’s have low operation costs since they get their

technology at a bargain.

Marketing and Sales - HIGH• Customer perception of product is entirely through marketing of the product.

Hence, Marketing and Sales have a relatively high priority.

Services - LOW• Services have a low priority since, they do not serve a niche market but a

more generalized market.

Secondary ActivitiesProcurement - LOW• Procurement is easy once there’s infrastructure in place, since a single long

lease from a telco is generally sufficient.

Human Resource Management – LOW• Human Resource management is not very important for companies of the size

of Hathway since they have a sufficiently large amount of technical backup staff.

Technology Development - HIGH• Frequent changes in standard technology implies that Technology

Development is a necessary cost for an ISP.

Infrastructure - HIGH• Frequent expansions require a lot of infrastructure development. This is quite

important in a company of Hathway.

Value Chain Order: Primary Activity rank:

Marketing and Sales > Inbound Logistics = Outbound Logistics > Services > Operations

Secondary Activity rank: Infrastructure > Technological Development > Procurement >

Human Resource Management

VRIO Analysis

If a firm has resources that are: Valuable Rare, and Costly to Imitate and, The firm is Organized to exploit these resources

Then the firm can expect to enjoy a sustained competitive advantage.

Factors to look at in the VRIO analysis: Experience in ISP market Known name Innovation Business contracts/Peering agreements Experienced personnel Network management and economics knowledge

VRIO Analysis of strengths of the company:Experience in ISP market – Not very Valuable

Known name - Valuable

Innovation – Not very Valuable

Business contracts/Peering agreements - Valuable

Experienced personnel – Valuable

Network management and economics knowledge - Valuable

Value Analysis of… Known name: This strength is valuable since a

customer is more likely to subscribe to a known name than to an unknown name, therefore leading to an increase in revenue.

Business Contracts: These are a constant source of ‘confirmed’ revenue and are thus very valuable.

Experienced Personnel: These people often set higher standards in research labs by providing breakthrough technologies giving the company a competitive advantage.

Value analysis of… Network Management and Economics: With lots of

data at hand, setting competitive tariff plans that work is much easier, therefore, getting a larger customer base.

Rarity Analysis of…. Known name: Not very rare in the industry as

such. Business Contracts: Again not rare enough to

have a competitive advantage in the industry. Experienced Personnel: These people are a rarity

in the industry as such. They can sometimes provide a competitive advantage.

Network Management and Economics: Again not much of a rarity since a lot of competitors have data as well.

Imitability Analysis of…. Known name: Not imitable. Experienced Personnel: Not imitable. Can be

imitated by ‘stealing’ or ‘poaching’ people from ‘start-ups’ or smaller companies. Other competitors can do this as well.

Organizational Analysis of… Known name: Organizational hierarchy allows

hathway to maximize its advantage. Experienced Personnel: High premiums and high

positions in Organization in Hathway allow Hathway to maintain this advantage.

Thank You!!