TELECOM INDUSTRY

SWETA PANDEYSHITANSH NIGAM

ANUBHAV AGARWALARPITA SINGH

SAOOD ALI

Macro and Micro analysis of the Telecom Industry

TELECOM INDUSTRY

DIRECT BENEFIT Increase in GDP Increase in employment opportunity.

INDIRECT BENEFIT Reduction in transaction cost Information about various services.

MACRO ENVIRONMENT

Macro environment analysis is used to assess the external factors that affect a company or a sector. Analysis of macro environmental factors has impact on companies’ major decision like its objectives, strategy, business model etc.

FACTORS OF MACRO ENVIRONMENT

• Political• Economic• Demographic• Technological• Natural• Cultural

MICRO ENVIRONMENT

Micro environment factors are factors close to a business that have a direct impact on its business operations and success. Before deciding corporate strategy businesses should carry out a full analysis of their micro environment.

Factors Of Macro Environment

• Supply• Demand• Barriers to entry• Bargaining power of suppliers• Bargaining power of customers• Competition

SWOT ANALYSIS

Strengths• Improving the company brand and reputation to attract the corporate sector.•FDI equity inflow in telecom have been US$2223 million.

Weakness•Late adopter of new technology.•Difficult to enter into the market due to the high financial resources .

Opportunity•100% FDI is allowed for manufacturing of telecom equipment.•Increased market share in mobile broadband.

Threats•Low demand response to new service.•Decline in the margins as a result of price wars.

VODAFONE

COMPANY PROFILE

Vodafone India is a 100% subsidiary of Vodafone Group.

Vodafone India Ltd. is the second largest mobile network operator in India.

It has a market share of 22.95%.

It’s India CEO is Sunil Sood.

Vodafone name comes from Voice, Data and Phone.

MISSION

VISION

Our Vision is to be the communication leader in an increasingly connected world.

Vodafone will enhance value for its stakeholders and contribute to society by providing our customers with innovative, affordable and customer friendly communications services. Through excellence in our service we aspire to be the most respected and successful telecommunications company in India.

INTERNAL STRENGTHSGood experience in the field of telecommunication all over the world.

Broad network coverage in India.

It has 140000km strong backbone of optical fibre coverage.

State of art architecture and technology used in the construction of network.

High brand visibility.

Only private operator in India having internal submarine cable.

Good presence in rural markets of India, so it got payment Bank licence.

PRODUCTS

B2B

Wireline Solutions Enterprise Mobility Machine to Machine

B2C

Prepaid Postpaid 3G M-Pesa Music, Video & More

STRATEGIES

CORPORATE STRATEGIES

BUSINESS STRATEGIES

Growth through Product as well as Market Development.

Best Value Provider.

AIRTEL’S

MISSION

“Hunger to win customers for life”.

VISION

“To be globally admired for telecom services that delight customers.”

STRENGTH’S• Renowned Telecom company• High Brand Equity• Extensive infrastructure• Strategic Alliances• Torchbearer of the Telecom Industry

PRODUCT PORTFOLIOMOBILE SERVICES• Prepaid• Postpaid• Get More (Hello tunes, DND etc)• Mobile Handsets

TELEMEDIA SERVICES• Mobile Internet (launched 4G in 2013 )• Internet for home• Fixed Line • Dongles and routers• Get more (software, digital TV’s,Movies etc)• Digital media advertising services• Cloud services (Zoho)

STRATEGIES• Focusing upon challenges in Telecom

Industry.• Ensuring high standards of service for it’s

customers by innovation and by strengthening itself through mergers and acquisition.

CORPORATE LEVEL

STRATEGY

•To be the industry leader.•Build new businesses.

BUSINESS STRATEGY

•Diversify into businesses in agriculture, financial services, and retail business•Benefitting community through operations and engagements.

FUNCTIONAL STRATEGY

MISSION Conditionally committed to exceeding customer’s excellence we provide networks and services which are innovative and reliable allowing the customer anytime anywhere communication. We attract, develop and retail all exceptional team of people. We are committed to enhance the quality of real life in the community in which we operate. We will meet the financial expectation of our stakeholders.

VISSIONTo become the service provider of choice of enterprise segment.

STRENGTH

1. Fifth largest GSM mobile service provider with more than 27 million subscriber

2. Occupies 13% of market share.

3. Launched 3G service in 13 circles, which is the fastest 3G roll out ever in India.

4. Low cost service provider.

PRODUCTS OF AIRCEL

1. One Nation, One Rate

2. Pocket Internet

3. Pocket Internet Game

4. Aircel Apollo Mobile Health Care

5. Facebook Voice Updates

6. INQ on Aircel

GROWTH STRATEGIES

• Promotional Strategy1. Innovation2. Add campaigns

• Marketing Strategy1. Differentiation Strategy2. Cause –Related Marketing

About Idea Cellular

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Introduction• Idea cellular, a part of Aditya Birla group, is one

of India’s leading GSM mobile services operator.• This telecom company has licenses to operate in all

22 service areas. Presently it is operating in 13 circles. Idea Cellular value–added services like GPRS, call conference, GSM, GPS and also provides customized solutions according to business specific needs.

• With a customer base of 98 million as on August 2011, it is among top 25 telecom companies.

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Vision, Mission & Goals

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Vision• To develop an integrated supply chain

focusing on maximizing the return on our spend and assets to efficient information systems supported processes, making its supply chain a benchmark across industry.

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Mission & Values• "We will Delight our Customers while

meeting their individual communication needs anytime anywhere"

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Values• Integrity - Honesty in Every Action.• Commitment - Deliver on the Promise• Passion - Energized Action• Seamlessness - Without Boundaries in Letter

and Spirit• Speed - One Step Ahead Always

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Goals We target to achieve operational excellence & become an industry

benchmark. The key focus areas to achieve this target are People, Processes & Profits. Various initiatives like ISO certification, Supplier connect etc are initiated to achieve this goal. The spotlight currently is on development in following areas:

Technology and Markets Business (domestic and local) Adding value to people Compliances Fair practices Close knitting with Teams

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Products of the Company• DTH• Idea Post-Paid• Idea Pre-Paid• Idea Internet Data card• HDFC Bank-RD/FD products

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Market Share

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Strategy-Corporate/Business/Functional

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Corporate Level Strategy Followed Merger & Acquisition Under Growth Strategy:1. Through merger and acquisitions, Idea Cellular has received

established service areas for mobile operations. 2. In January 2001 it merged with Tata Cellular, which had service

area in Andhra Pradesh.3. In June 2001, through its acquisition of RPG Cellcom, it received

Madhya Pradesh service area. 4. In January 2004 it received service areas of Haryana, Uttar

Pradesh and Kerala through its acquisition of Escotel Mobile Communication (Escotel). In 2006 it became part of Aditya Birla Group. Idea Cellular has acquired 40.8%  stake in Spice Communication.

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Business Level Strategy

Low Cost Provider:• Cheaper handsets from Chinese ODMs• GPRS at nominal/subsidized ratesDifferentiation:• Price Affordability• Hire Famous Personalities• Roaming Facilities in Affordable Price

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Functional Strategy

• Marketing-Distribution• Operations• Finance- Low Cost Debt financing in

International Market

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SWOT

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STRENGTHS:1. Strong advertising and promotion2. Reputation of the Brand3. Technological innovation

like India’s first GPRS service provider 

WEAKNESS:1. No broadband service2. Market leader only in North India3. Direct to home service is not

available4. Less market share in urban market

OPPORTUNITIES:1. The Indian telecommunication

Company is growing at a faster rate

2. Low penetration, particularly in rural India

3. Can go for 4G

THREATS:1. Intense Competition- Vodafone,

Airtel, Reliance etc.2. Customer Loyalty is low3. Increasing cost of promotion