abhishreshthaa
Abhijeet S
The Support activities viz. Procurement, Technology, HRM etc. are present in the value chain of any sector but for a service sector like the cellular service market the effect of these functions is negligible and does not affect the competitive stance of any of the players.
The most important Primary Activity concerning this Cellular service providers sector is Operations and players can derive a huge competitive advantage from this activity of the value chain. The stronger the network of the company the higher would be the sales as one of the key factors affecting purchase of a cellular provider is the Network of the company & whether the customer can catch the frequency at various locations.
A key factor is also customer service. The quick the response time for answering the customer queries & taking action on it better would be the customer satisfaction & it will also lead to higher word of mouth publicity & sales. A number of customer service outlets must be made available to the customer for easy accessibility & for quick solving of customer complaints.
The prepaid cards must be available very easily so as to provide convenience to the customer & thus need to have a number of distribution outlets very these prepaid cards are easily collected.
Another key factor would be the aggressive advertisment & promotion campaign of the company. During the cricket world cup 2003 the maximum advertisment was done by Reliance Mobile followed by BSNL.
This would capture the mind of the general public about the features of the product & it’s pricing.
Another key factor would be the promotion activities of the company. How quickly are they able to come out with new innovative packages & features & different pricing strategies to woo the customer.
The companies except for Reliance are not looking for a process of backward integration that is manufacturing of mobile phone handset.
Headline cellular companies not to set up shop
The recently announced excise duty cut on cellular handsets will not have any immediate impact in the domestic market, though it could encourage manufacturing here in the longer term. However, handset vendors, who depend on imports, do not see manufacturing as a real possibility till the authorised market achieves critical mass. Reliance is one company that is likely to benefit from the move, when it starts manufacturing handsets. At present, the company is importing CDMA handsets for its limited mobility rollout, but plans to manufacture them at a later stage in Kutch, Gujarat.
At present, grey market accounts for 70% of the cellular handsets sold in the country. While all leading global handset manufacturers Nokia, Samsung, Sony-Ericsson, Motorola and Siemens have presence in India, their role is restricted to that of distribution and sales. It is felt that legitimate handset sales may increase significantly if they are manufactured locally. "The government may be trying to push one of the big manufacturers like Nokia to start manufacturing here," said analysts. The Indian Cellular Association had recommended that the import duty on handsets be reduced to 5% as against the existing 14% (10% basic customs duty and 4% special additional duty). Instead, the Budget has reduced the excise duty from 16% to zero.
According to Pankaj Mahindra, president, Indian Cellular Association (ICA), "The reduction in excise duty does not benefit vendors or consumers in any way because there is no manufacturing in India at present. The move may encourage existing vendors to look at manufacturing in future, but that is dependent on several factors."
Another key factor is the tie up between the various players to network facility sharing. It means that BPL may use the network of Hutch for providing network facility for it’s users if its users moves from Mumbai to Gujarat where Hutch has the network facility.
The most important Primary Activity concerning this Cellular service providers sector is Operations and players can derive a huge competitive advantage from this activity of the value chain. The stronger the network of the company the higher would be the sales as one of the key factors affecting purchase of a cellular provider is the Network of the company & whether the customer can catch the frequency at various locations.
A key factor is also customer service. The quick the response time for answering the customer queries & taking action on it better would be the customer satisfaction & it will also lead to higher word of mouth publicity & sales. A number of customer service outlets must be made available to the customer for easy accessibility & for quick solving of customer complaints.
The prepaid cards must be available very easily so as to provide convenience to the customer & thus need to have a number of distribution outlets very these prepaid cards are easily collected.
Another key factor would be the aggressive advertisment & promotion campaign of the company. During the cricket world cup 2003 the maximum advertisment was done by Reliance Mobile followed by BSNL.
This would capture the mind of the general public about the features of the product & it’s pricing.
Another key factor would be the promotion activities of the company. How quickly are they able to come out with new innovative packages & features & different pricing strategies to woo the customer.
The companies except for Reliance are not looking for a process of backward integration that is manufacturing of mobile phone handset.
Headline cellular companies not to set up shop
The recently announced excise duty cut on cellular handsets will not have any immediate impact in the domestic market, though it could encourage manufacturing here in the longer term. However, handset vendors, who depend on imports, do not see manufacturing as a real possibility till the authorised market achieves critical mass. Reliance is one company that is likely to benefit from the move, when it starts manufacturing handsets. At present, the company is importing CDMA handsets for its limited mobility rollout, but plans to manufacture them at a later stage in Kutch, Gujarat.
At present, grey market accounts for 70% of the cellular handsets sold in the country. While all leading global handset manufacturers Nokia, Samsung, Sony-Ericsson, Motorola and Siemens have presence in India, their role is restricted to that of distribution and sales. It is felt that legitimate handset sales may increase significantly if they are manufactured locally. "The government may be trying to push one of the big manufacturers like Nokia to start manufacturing here," said analysts. The Indian Cellular Association had recommended that the import duty on handsets be reduced to 5% as against the existing 14% (10% basic customs duty and 4% special additional duty). Instead, the Budget has reduced the excise duty from 16% to zero.
According to Pankaj Mahindra, president, Indian Cellular Association (ICA), "The reduction in excise duty does not benefit vendors or consumers in any way because there is no manufacturing in India at present. The move may encourage existing vendors to look at manufacturing in future, but that is dependent on several factors."
Another key factor is the tie up between the various players to network facility sharing. It means that BPL may use the network of Hutch for providing network facility for it’s users if its users moves from Mumbai to Gujarat where Hutch has the network facility.