Reliance Communications Stategy Analysis

Description
This is a presentation reliance communication of strategy analysis.

Reliance Communications

An ADAG Enterprise

"Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians" Dhirubhai Ambani
December 27 2002 Hon'ble Prime Minister of India, Atal Behari Vajpayee e-inaugurates Reliance Infocomm
Reliance Communications An ADAG Enterprise

The Dream Realized

Reliance Communications

An ADAG Enterprise

Market Speak

Largest

Trusted

Consistent

Reliance Communications

An ADAG Enterprise

SWOT Analysis
Strengths Opportunities

? Brand Reliance ? Resource Back-up

? Untapped mass market by GSM operators due to higher connectivity cost ? Booming economy ? Need for affordable communication
Threats ? Government regulations and policies ? Cost of operating licenses ? Changing technology ? Competition in the industry

Weakness ? Public Perception of Reliance ? New to the Industry

Reliance Communications

An ADAG Enterprise

Michael Porters 5 Forces Model
Substitutes
High

Supplier
Very Low

Competitors
High

Buyers
High

New Entrants
Very Low

Reliance Communications

An ADAG Enterprise

Product Launch: Why CDMA ? Scenario that existed 1) Cost of GSM license very high 2) CDMA at fractional cost of GSM license Highlights Trusted Low entry cost : Applied for CDMA license across country 1)
?

?

Result : Launched Reliance India Mobile in Jan 2003

Consistent

Reliance Communications

An ADAG Enterprise

Cost Strategy ? A) Dhirubhai Ambani Pioneer Offer ? Low Connectivity Cost – 0.40p/min on 15sec pulse for outgoing calls R2R ? Highlights Lowest connectivity cost in Market Increase Reliance customer base ? Result : Created the Initial buzz B) Go Mobile for 501 – ‘Monsoon Hungama’ (promotion) Trusted Objective: Increase Market Share ? Highlights Appeal Mass Markets – low investment Bring down entry cost barrier – Rs 501 Stay Consistentahead of competition – introduce before Tata ? Result : Strategy Huge Success ? Enrollment of 1 million subscribers in 10 days
?

Reliance Communications

An ADAG Enterprise

?

Product Strategy Colour Handsets at Rs. 999/- only Objective : Retain Existing Customers and Acquiring New Customer

Highlights Reduce Colour Handset cost – Rs. 999/- onwards Trusted Target existing users of black and white phones Enticing new customers with new product offerings
? ?

Result : Strategy Success
Sale of 1 million Classic color phones in one week

Consistent
?

Reliance Communications

An ADAG Enterprise

?

Closeness Strategy Objective : To have pan India presence Highlights Largest network in the country – target rural market Direct Interface with customers to improve Customer Satisfaction – Through web worlds Trusted Result: Strategy Success Network spans 15,000 towns , 4 lakh villages and counting

?

?

?

?

Consistent

Reliance Communications

An ADAG Enterprise

Reliance Communications

An ADAG Enterprise

Ansoff’s Grid

P R O D U C T

NEW

Product Development (Affordable Color Phones)

Market Diversification

EXISTING

Market Penetration (Cost Strategy)

Market Development (Rural Market)

EXISTING
Reliance Communications

MARKET

NEW
An ADAG Enterprise

August 2007
Rank No 1 Market Share (Wireless/WLL) Bharti Airtel % Share 23.26%

2 3
4 5 6 7 8 9 10

Reliance Communications Vodaphone Essar
BSNL Tata Teleservices Idea Aircel Spice Telecom MTNL BPL Mobile

17.3% 16.95%
16.62% 9.39% 8.88% 3.79% 1.69% 1.46% 0.55%

Reliance Communications

An ADAG Enterprise

Largest

Trusted

Consistent

Reliance Communications

An ADAG Enterprise

Reliance Communications

An ADAG Enterprise

Thank You
Mobile Phone or …

?

?

? ?

?
? ? ? ? ?

?

A Device to talk to people A Device to message them. My Personal Secretary My News & Information Channel My Music System My Game Boy My Personal Astrologer My Calculator My Time Keeper My Personal Internet Café My Emergency Communication device

? ? ? ?

My Banker My Shopper My Television What else? (My remote? My Cook? My Doctor?)

TOMORROW

TODAY
Reliance Communications

The Right Angle!!
An ADAG Enterprise



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