global startegy analysis of eci

8/3/2019 Global Startegy Analysis of ECI

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ECI Telecom

International Business Strategy

Group 8

Roll No 01 Abhijit Chattopadhyay

Roll No 03 Aditya Chauhan

Roll No 12 Anand Singh

EPGDIB (VSAT) 2010-2011

Course Coordinator K Rangarajan, Indian Institute of Foreign Trade

(IIFT), NewDelhi

Trimester -III


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Table of Content

Executive Summary.3

Introduction..........................3

ECI Global Business Locations. .............5

Industry Segment....... 6

Solution & Services....... ..7

Value Chain.. .. 7

Competitive Requirements 8

Globalisation Ambition.10

International Marketing Strategy.11

Global Strategy...12

Recommendations... .13

Conclusion..15

References..... 15


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Executive Summary

In this report we are analyzing ECI Telecom Global Business Strategy. ECI Telecom and

its current position in market, type of industry, types of service offering to customer, its

key differentiators, its international marketing approach, competitive requirement andglobalization ambition etc. We are also analyzing ECI Telecom Global Business strategy

and its impact on firm performances.

At last based on analysis giving some recommendations for ECI Telecom.

Introduction

ECI Telecom Ltd is a global telecom networking infrastructure provider headquartered

in Petah Tikva, Israel. It provides communications platforms and solutions to carriers

and service providers, cable/multiple system operators, wireless/cellular service

providers, utilities and carrier of carriers, and government and defense entities

worldwide. The company focuses on solutions for multi-play services, business

services, voice services, wireless, cellular backhaul, optical networking, Carrier Ethernet

networks, TDM to Ethernet evolution, migration to all IP, network security, carrier of

carriers and wavelength services.

ECI Telecom is a provider of advanced telecommunications networking solutions to

carriers and service providers in the world. Founded in 1961, ECI is privately owned.

ECIhas global reach and is headquartered in Israel with R&D centers in Israel, India,

China and the USA, and over 35 regional sales and service centers around the world.

ECI's sales and profit grew dramatically during the first five years of the 1990s.

Revenues increased over 500 percent, from $74 million in 1990 to over $450 million in

1995, while net income skyrocketed from $3 million to $87.9 million.

ECIs revenues exceed $600 Million annually and the Company has enjoyed year-on-year revenue growth for the past several years.


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ECI Telecom Employees

ECI has more than 2,500 employees in 24 offices worldwide.

Awards & Recognition

In July 2010, Infonetics Research validated ECIs top position in the Indiantransmission market, with 25% share of the countrys metro optical network

hardware market.

Also in 2010, ECI's 9710 Carrier Ethernet switch/router (CESR) platform wasnamed a 2009 Cable.TMCnet.com Product of the Year by Technology Marketing

Corporation (TMC).

As part of the iSMART Consortium, ECI was a Light Reading 2009 Top Pick,Telecom Software (EMEA), for Dynamic Spectrum Management Level 3 (DSM

L3), which aims to extend the useful life of copper networks for high-speedbroadband. Top Picks are the communications technologies, services and

products that Light Readings editors think best indicate where the

communications industry is headed in the next 12 months


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ECI Global Business Locations

ECI has over 200 active customers in over 70 countries, including most of the world's

major and most advanced telecommunications providers, as can be seen from the chart

below:

ECI works to service all customers through the Company's local sales forces and local

partners.

ECIs products, solutions and services are offered under 1Net, a comprehensive

framework for optimized transition to next-generation networks. 1Net is our customers

Path for Growth. 1Netaddresses our customers' challenges and needs as they transition

to next-generation networks, mitigating risks and optimizing migration.

ECI offers a full range of support and maintenance services including full project

implementation, maintenance and support services, network planning, design and

diagnostics, and turnkey solutions for end-to-end networks combining third party

solutions.


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Industry Segment

Telecom Equipment industry broadly categories into four segments Network

Equipment Vendors, Handset Equipment Vendors, Test & Measurement Vendors and

Independent Software Vendor.ECI belongs to Network Equipment Vendor segment.

Broad areas of offerings, of the network equipment vendors industry


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Solutions & Services

Transport Multi-service provisioning and transport platforms from access to core,

supporting legacy TDM/packet technology to IP/MPLS functionality, fully integrated

with WDM/ROADM optics.Carrier Ethernet Carrier-grade metro transport and IP/MPLS solutions and

platforms.

Broadband Access Multi-service access nodes for broadband access delivery of voice,

video and data.

Network Management Unified network management for end-to-end metro access to

long haul provisioning.

Services Network lifecycle services including network planning and design,implementation and integration, maintenance, optimization and operations. Managed

services sourcing strategies and end-to-end turnkey programs.

Value Chain

A value chain is a chain of activities for a firm. ECI value chain mainly comprises of

R&D, Inputs, Assembly, Distribution, Sales and Services.


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Generic Value Chain Map

Functions such as R&D, Sourcing, Assembly, and Distribution have been subdivided tobetter reflect the shifting functions of value in the map. As software has become a more

important component, many of the value functions reflect portions related to software.

Competitive Requirements


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Being a Network Equipment company Global and Local forces are high i.e

Competitive requirements are high for ECI.

Segments With Different Competitive Requirements

Even though competitive requirements for ECI is high but the company mainly

manufactures SDH and SONET technology based equipment. ECI has its rare presence

in IP and DWDM technology driven equipments.

IP and DWDM based equipments are not the core competences of ECI.


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Globalisation Ambition

ECI global ambition map shows that company is in between of Regional Dominant

Global player to Global player.

ECIs revenues exceed $600 Million annually and the company has enjoyed year-on-

year revenue from its foreign customers for the past several years which shows

company ambition to become a Global player.


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International Marketing Strategy

ECI Telecom is using Global High Share strategy. It shows company ambition to

faciliate its foreign customer and holistic approach to become a Global player in telecom

network equipment vendor segment.


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Global Strategy

As the partner for growth for telecom carriers and service providers worldwide, ECI

brings the 1Net framework to the market.

1Net focuses on customer needs to optimally transition to more competitive networks.1Net is the key to customer successful migration to next-generation networks.

1Net is based on three main principles:

Customer needs for an intuitive, scalable path for growth to support improvedtime-to-market.

ECI offering of holistic, integrated platforms, solutions and services. ECI ability to craft a unique solution, based on our in-depth knowledge of

customer requirements, our track record of innovation, the flexibility of our

offerings and ECIs financial stability.

ECI offering is customer Solution: A well-tuned orchestra of multi-functional

products.

ECI ability to answer customer Unique Needs: Flexible, state-of-the art offerings, with

a personal touch.

ECI Guarantee to customer: Lower TCO and investment risk mitigation.

Other Strategies

Making wireless backhaul a strategic asset and key competitive advantage. Create new opportunities while preserving your existing business and

infrastructure.

Leverage your network for new revenues with a one-stop wholesale solution.Benefits to Customer from the Global Strategy

By combining highly innovative products, solutions and services with a collection of

unique value propositions, with 1Net customer will enjoy winning results: Improved Execution: make customer business more pro-active, agile and

effective.

Reduced Costs: 1Net is about leveraging customer current investment whilepreparing customer for whats next to come.


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New Business Opportunities: ECI commitment is to facilitate new businessopportunities and service revenues.

Managed Risk:in todays uncertain markets, sustainability is a keyword 1Netis customer safe harbor Better Time to Market: once customers are ready to

move, 1Net is right behind him, ready to take him to the next level!

Recommendations

One of the challenges ECI is facing today includes coping with multiple and

simultaneous transitions of new technologies for IP based devices and DWDM

equipments, which are not the core competencies of the company and have huge

market potential of $3.8 billion. ECI must mitigate the pain and the risk associated with

these challenges, through a holistic approach to do strategic alliance or licensing of

technology with big player such as Cisco & Huawei (Fig for IP based equipment market

share).

Mobile data demands growing explosively, the key question ECI are facing today is

how to manage growth efficiently, cost-effectively and flexibly in an evolving 4G/LTE

network environment. In other words, how can ECI support more bandwidth at a lower

cost per bit to its customers? Such high-pressure demands make optimizing backhaul

operations as business-critical as investment in the wireless infrastructure itself. ECI


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need to be able to deploy quickly, address bottlenecks and cut the cost per bit. ECI

needs integrated, technology-neutral and 4G/LTE-ready solutions that can handle not

only mobile traffic, but also serve as converged infrastructure ready to support any

future business models customer may adopt.

ECI must focus on wireless business, which is one of the highly growing area of telecom

industry, with probable strategic alliance with Ericsson. With this alliance ECI can offer

all kind of telecom services under one umbrella. By doing so under one single

infrastructure, ECI can save on capex and reducing opex ( Fig for wireless market

share).

ECI must enhance access and transport networks will enable them to create, future-

proof revenue streams through next-generation applications, services, technology,

functionality and capabilities.


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Conclusion

ECI Telecom delivers innovative communications platforms to carriers and service

providers worldwide. ECI telecom provides efficient platforms and solutions that

enable customers to rapidly deploy cost-effective, revenue-generating services.ECI 1Net global strategic framework helps customers to manage risk, accelerate time-to-

market of new services, lower operational costs, improve deployment, enhance

profitability and generate new revenue opportunities with an integrated range of

solutions, platforms and services.

ECI's solution delivers on the necessary requirements for mission critical applications,

such as guaranteed low latency, high availability and managing the business services in

a way that makes it easy to deploy and supervise.

ECIs multi-play solution allows customer to offer their residential and business

customers a range of services, including voice, video and data, with a single point of

contact for integration and multi-play ecosystems.

ECI is one of the leading vendors in telecom industry. SDH & SONET technology based

equipments are the core competencies areas to ECI. The global SDH/SONET market

had become one of ECI's key divisions. The Company is enjoying year-on-year revenue

growth for the past several years and maintaining its leading position in SDH/SONET

global market since last few years.

ECI has begun to transform itself from a niche player in the telecommunications

equipment industry to a "global integrated network manager."

References

www.ecitele.com

www.indiaelectronicnews.com

www.wikipedia.org
http://www.ecitele.com/http://www.ecitele.com/http://www.indiaelectronicnews.com/http://www.indiaelectronicnews.com/http://www.indiaelectronicnews.com/http://www.ecitele.com/

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