strategic analysis of telecom sector
Post on 17-Oct-2014
622 views
DESCRIPTION
TRANSCRIPT
STRATEGIC ANALYSISOF TELECOMMUNICATION SECTOR
PRATIK PANDEY13HM24
COMPANIES
TELECOM SECTOR• In 1881, Oriental Telephone Company Limited of
England was the first company to open telephone exchanges at Calcutta, Bombay, Madras and Ahmedabad.
• Now, India is the world's second-largest telecommunications market, with 922 million subscribers and service revenues of Rs. 54,284 crore as on 31st December 2013 (TRAI).
• Major Companies are BSNL, MTNL, RELIANCE, TATA DOCOMO, IDEA, AIRCEL, VODAFONE etc.
TELECOM SECTOR
• Source: (Press Release No. 13/2014)TRAI.
Number of Telecom Subscribers
• Source: (Press Release No. 13/2014)TRAI.
Service Provider wise Market Share as on 31st January, 2014.
• Source: (Press Release No. 13/2014)TRAI.
Service Provider wise net subscriber addition during January, 2014
• All data's in Millions.• Source: (Press Release No. 13/2014)TRAI
Service Provider wise Market Share of wire line subscribers as on 31st January, 2014
• Source: (Press Release No. 13/2014)TRAI
Company ProfilesCOMPANY
INFORMATION
BSNL BHARTI AIRTEL
RELIANCE COMMUNICATONS
IDEA CELLUAR
INDUSTRYTelecom Telecom Telecom Telecom
TYPEState-owned enterprise
Public company BSE: 532454 NSE:BHARTIARTL
Public company
NSE: RCOMBSE: 532712
PublicBSE: 532822NSE: IDEA
FOUNDED 1st October,2000
7 July 1995 2004 1995
HEAD QUARTERS
New Delhi, India
New Delhi, India
Mumbai, India Santacruz East, Mumbai, India
KEY PEOPLE R.K. Upadhyay(Chairman & MD)
Sunil Bharti Mittal
Anil Ambani (President)
Kumar Mangalam Birla(Chairman)
.COMPANY
INFORMATION
BSNL BHARTI AIRTEL
RELIANCECOMMUNICATONS
IDEA CELLUAR
Products Fixed line and mobile telephony, Internet services, digital television, IPTV
Fixed line and mobile telephony,broadband and fixed-line internet services, digital television and IPTV
mobile telephony,broadband and fixed-line internet services, digital television and IPTV
Mobile telephony, Wireless broadband
Revenue Rs.279.33 billion(2011-12
Rs.419.31 billion (2012
Rs.218 billion (2013)
15389.00 crore (2011)
Net income Rs. 88.51 billion (2011–12)
Rs.53,700 million (2012)
Rs.6.72 billion (2013)
844.60 crore (2011)
Employees 244,891 (as on 19 November 2013)
21,299 (2012) 18,070 (2013) 6,481 (2010)
Owner(s) Government of India
Bharti Enterprises (52.7%)[3][4]SingTel (15.57%)[3][4]Vodafone (4.4%)
Reliance Group Aditya Birla Group (49.05%)Axiata Group Berhad (19.96%)Providence Equity (10.6%)
BSNL
MISSION: • Be the leading telecom service provider in India with global
presence.
• To Provide world class telecom infrastructure to develop country's economy.
• Leveraging technology to provide affordable and innovative products/services across customer segments
VISION: • To become the largest telecom Service Provider in Asia
BSNLTagline/ Slogans Connecting India; BSNL hai to bharosa hai
USP SMS rates are reasonable; high speech quality and is capable of delivering high bandwidth using DSL technologies
Segment Senior citizens, Conservative audiences
Target Group Middle class from urban and rural areas
Positioning Most reliable and low priced service
S W
T
Strengths• Alliances with Ericsson and Cisco Systems • IT alliances with HP Compaq, interconnecting alliances • Selling capacity of 25 million per annum • Has an excellent network coverage across India
Opportunities
•Strong strategic alliances with network companies may help BSNL Communication to focus on marketing its services
•Untapped rural markets
•
Threats
•Competitors low price offering
•2. Saturation point in Basic telephony service
•3.Mobile Number Portability
O
Weaknesses
Suffers from high call dropping rates and a reduction in brand equity
Has a major presence only in C’ Circle
Low brand visibility and low brand loyalty
SWOT ANALYSIS
BHARTI AIRTELMISION:
• “We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”
VISION:• “To be globally admired for telecom services that
delight customers”
BHARTI AIRTELTagline/ Slogans Express yourself
USP Top brand in India and Brand connect
Segment Elite class of people; Corporates
Target Group Elite class above 25 years age; YUPS(Young Upward Professionals)
Positioning Aspirational and lifestyle brand; Premium category
S W
T
Strengths•Largest Telecom operator in the world with 207.8•Only Indian operator, with VSNL, that has an international submarine cable•4.High brand visibility •5.Strong advertising with celebrity brand ambassadors
Opportunities•Fast expanding cellular market
•Latest and low cost technology •Untapped rural market
•
Threats
O
Weaknesses
•Price competition from BSNL and MTNL
• Untapped Rural Market
•New entrant's low price offering
•Saturation point in Basic telephony service
•Mobile Number Portability
SWOT ANALYSIS
Reliance Communications
MISSION:• Meeting and exceeding Customer expectations with a segmented
approach• Establishing, re-engineering and automating Processes to make
them • customer centric, efficient and effective
VISION: • By 2015, be amongst the top 3 most valued Indian companies,
providing Information, Communication & Entertainment services, and being the industry benchmark in Customer Experience, Employee Centricity and Innovation
Reliance Communications Tagline/ Slogans Karlo Duniya mutthi mein
USPConnection with handset
Segment
Lower and lower middle
Target GroupVillagers, poor, Daily wagers
PositioningWorld in your hands
S W
T
Strengths• Flexible plans • Good advertising • High brand visibility • Celebrity brand ambassadors • Ability to attract customers with various plans
Opportunities•Fast expanding cellular market
•Latest and low cost technology •Untapped rural market
•
Threats
O
Weaknesses
•Price competition from BSNL and MTNL
• Untapped Rural Market
•New entrant's low price offering
•Saturation point in Basic telephony service
•Mobile Number Portability
SWOT ANALYSIS
IDEA CELLUAR
Mission:• We will delight our customers while meeting
their individual communication needs time anywhere. We survive because of our customers.
VISION: • To be the most customer-focused mobile service
brand, continuously innovating to help liberate our customers from the shackles of time & space.
IDEA CELLUARTagline/ Slogans An idea can change your life
USP Big brand with great service
Segment Middle and upper middle class
Target Group Students (majority out station), workers, labourers
Positioning Smartness that comes with using Idea
S W
T
Strengths•.Flexible plans • Good advertising • High brand visibility • Celebrity brand ambassadors • Ability to attract customers with various plans
Opportunities•Fast expanding cellular market
•Latest and low cost technology •Untapped rural market
•
Threats
O
Weaknesses
•Price competition from BSNL and MTNL
• Untapped Rural Market
•New entrant's low price offering
•Saturation point in Basic telephony service
•Mobile Number Portability
SWOT ANALYSIS
COMPARISONCOMPANY
ANALYSIS BSNL BHARTI AIRTEL RELIANCE
COMMUNICATIONS IDEA CELLUAR
Strengths
IT alliances with HP Compaq, interconnecting alliances Selling capacity of 25 million per annum Has an excellent network coverage across India
Largest Telecom operator in the world with 207.8
Only Indian operator, with VSNL, that has an international submarine cable
Flexible plans
Good advertising
Ability to attract customers with various plans
Good advertising High brand visibility
Celebrity brand ambassadors
Weakness
Suffers from high call dropping rates.
Low brand visibility and low brand loyalty
Price competition from BSNL and MTNL
Untapped Rural Market
Price competition from BSNL and MTNL
Untapped Rural Market
Price competition from BSNL and MTNL
Untapped Rural Market
COMPARISONCOMPANY
ANALYSIS BSNL BHARTI AIRTEL RELIANCE
COMMUNICATIONS IDEA CELLUAR
Opportunities
Adoption of Next Generation Networks (NGN) is global . Untapped rural markets
Fast expanding cellular market
Latest and low cost technology Untapped rural market
Fast expanding cellular market
Latest and low cost technology Untapped rural market
Fast expanding cellular market
Latest and low cost technology Untapped rural market
Threats
Low price of Competitors
Mobile Number Portability
Saturation point in Basic telephony service
Mobile Number Portability
Saturation point in Basic telephony service
Mobile Number Portability
New entrant's low price offering
Mobile Number Portability
Porter five forces analysis
Porter five forces analysis
• Threats of new entry : Low
• Bargaining power of Suppliers : Medium
• Bargaining power of Buyers : High
• Internal and External rivalry : High
• Threats of Substitutes : High
Critical success factors• Product quality, employee attitudes(particularly
BSNL), manufacturing flexibility, and brand awareness.
• Explore rural market
• Proper market segmentation
• Better network services (Reliance and BSNL)
Competitive Advantages• BSNL has an advantage in that it does have to pay the 8-12 per cent
revenue share that other private operators do to the government as licence fees.
• BSNL does not have to pay the large share of the revenue as interconnect charges for routing the landline calls and STD calls.
• In 2011, Idea acquired 3G licences for 11 circles for Rs 5,800 crore.• Reliance is a well known brand and it adds advantage in terms of
brand visibility.• Bharti’s acquisition of Zain, gives Bharti the access to Africa.
CONCLUSION
• From the study it is found that PSU’s like BSNL and MTNL has lost its grip in telecom sector because of poor governance and very less marketing strategies. Private sectors are gaining more market share. Though the threats of new entry are very less, the completion among the existing players is very high. The swot analysis and Porters five forces model shows very little difference among the companies, because the companies provide exactly the same products and services.