Description
The objective of this is ppt is about telecom industry analysis.
Strategy for the Telecom Industry
Telecom recent trends
?Total 706.37 mil subscribers (56% teledensity) ?18.18 mil Subscriber addition (MoM)
Market share Aug
Source:TRAI
SWOT ANALYSIS
? Huge Customer potential ? High Growth Rate ? Allowed FDI limit ranging from 74% to 100% ? Liberalization efforts by Govt. ? Lower capital expenditure
Strengths
? Poor Telecommunication Infrastructure ? Late adopters of New Technology ? A market strongly regulated by Government. ? Difficult to enter because of requirement of huge financial resources.
Weakness
? 3G Telecom services and 4G services ? More Quality Service ? Value added Services
Opportunities
? Telecommunication Policies ? Declining Average Revenue Per User ? Partiality on the part of the Govt.
Threats
PESTLE ANALYSIS
PESTL Analysis
Political Economic Social technologic al New costly technologies High switching costs legal Ministry of telecom TRAI GDP Lifestyle changes consumerism FEMA
Per capita disposable income
Cut throat competition leading to violations Consumer protection act
DOT
Interest rates (3G)
Age distribution
R & D, Patents
Forex rates
Political factors
?Ministry of telecom ?TRAI ?DOT ?Other laws
MARKET DOMINANCE
?Leader: Bharti Airtel
?Challenger: Reliance Communications
?Follower: Vodafone ?Nicher: Loop Mobile
BCG MATRIX
BCG Matrix
Market share(%) Airtel BSNL Vodafone RCOM IDEA Aircel 30 15 24 4 15 9 Growth(%) 5 -14 13.7 -3.5 12.5 37.2
Source: Voice and Data
HIGH
LOW
Aircel
30 % 25% HIGH20%
Idea
TRADITIONAL BCG MATRIX
Business growth Rate
15%
10 % 0%
Vodafone
Airtel RCOM
BSNL
1.2 5x
10 x
Relative Market share wrt Airtel
0.5x 0.4x 0.3x 0.2x 0.1x
10 -15% % LOW 20 % 25 0% %
2x
1x
GE model
H I G H
Loop RcommBharti
airtel
Vodafone
Industry attractive ness
L O W
LOW
Business strength
HIGH
5 Forces of competition
HIGH HIGH
HIGH
LOW
Very HIGH
Bargaining power of suppliers
?NSN, ericsson, Huawei (Few and large) H I G H
?Equipments are critical for business
?High switching costs ?Government controlling the spectrum allocation
Threat of new entrants – Entry barriers
?Economies of scale – Very High ?Product/service differentiation – Insignificant Modera ?Capital requirements – Very high te ?Switching costs- very high ?Brand pull ?Government policy - 74% FDI, lottery auctions ?Expected retaliation - low
Bargaining power of customers
?Very low switching costs ?MNP
H I G H
Threat of substitute
?VOIP,skype, social networking ?Satellite phones
L O W
VIRU
Criteria for sustainable competitive advantage
Capability
Bharti Airtel Reliance Communications Vodafone Loop
Valuable
Brand equity
GSM + CDMA
Focus on core business
Focus on high ARPU market
Costly to imitate Pan India presence
Rare Unique
Pan India presence
Global presence
Financial Muscle NA Temporary competitive advantage
NA
Quality of service NA Temporary competitive advantage
relationship with Tower partners subsidiary Rural market share Sustainable Competitive advantage NA Temporary competitive advantage
Value Chain Analysis
Airtel Vodafone Reliance Communicat ion
Outsourced
Loop Mobile
Operations
Outsourced
Partially Outsourced
No
Marketing & Sales
Service
CC
Owned by Company
CC
Owned by Company
CC
Owned by Company
CC
Owned by Company
CC- Core Competency
Value Chain Analysis contd…
Airtel
Firm Owned by Infrastructure company HRM Engineering workforce outsourced Managed by Equipment Manufacturer company
Vodafone
Owned by company Partly Outsourced Managed by Equipment Manufacturer company
Reliance Communication
Owned by company Engineering workforce outsourced Managed by Equipment Manufacturer company
Loop Mobile
Owned by company No
Technology Development
Managed by Equipment Manufacturer company
BUSINESS LEVEL STRATEGIES
Airtel
? Business process Management ? Process innovation and continuous improvement through people involvement ? Problem investigation by “Fact based –Root cause analysis. ? Customer defined- Business process ? Result oriented approach ? Past Experience-”What went wrong and what can go wrong” ? Quantifiable purpose of the process and key result area. ? Clearly defined target customers ? Positioned Airtel as inspirational and life style brand
Reliance
? Network superiority
? Brand equity
? Channel strength ? Customer service excellence
? Our people
Vodafone
? Revenue stimulation and cost reduction ? Deliver strong growth in emerging markets
? Innovate and deliver on customers? total communication needs ? Actively manage our portfolio to maximize returns
? Align capital structure and shareholder returns policy to strategy
Loop mobile
? Loop mobile offers innovative services celebrating Ganesh Chaturthy. ? Loop mobile launches super 6 pack daily plans for prepaid ? Loop mobile introduces unlimited GPRS for Rs. 89. ? Loop mobile adds more fun to your weekends with fun day service.
? Mumbai based loop mobile to go PAN India very soon
? Loop mobile inches closer to Vodafone in Mumbai GSM network test ? Loop mobile launches reply all SMS service with SMS Gupshup ? Loop mobile launches „SMART PAID? in Mumbai
CORPORATE LEVEL STRATEGIES
Bharti Airtel
?Acquired Telecom Seychelles ?Selling towers Business to Bharti Infratel
?Contract made with IBM for IT
?Launched data services in Thailand & Malaysia
Vodafone Essar
?Launching iPhone4 in India ?Deal with IBM ?Sold China mobile stake for $6.6bn
?Plans sell-off of French Assets ?Rolled out 30 different commercial ads
Reliance Communication
?Gets $2.2bn,10yr. Etisalat Deal ?Ordering equipments from ZTE ?Plans 26% stake sale, may go for Infratel
Loop
?BPL goes for Brand makeover ?In talks to sell majority stake
?Aircel, in talks to acquire Loop Mobile
?To invest $75mn in its Mumbai Ops
INTERNATIONAL STRATEGY
Bharti Airtel
Acquisition- Kuwait based Zain Group's mobile operations ? Bharti has a presence in 18 countries across Asia and Africa with a customer base of over 180 million ? Bharti is now among the five largest mobile operators in the world Acquisition- Warid Telecom ? Entry into Bangladesh (70% stake) ? the first Indian telecom operator to enter Bangladesh's mobile market ? Teledensity is at 32% so there is large potential for further coverage
Strategic Alliance- US based Cisco ? . Bharti Airtel brings strengths of market leadership and product expertise in network connectivity ? Cisco brings value through its IP-based capabilities, strengths in next-generation network solutions, and enterprise and SMB channels. ? This allinace will target the burgeoning Indian managed services market.
Reliance Communications
Wholly owned subsidiary- Yipes ? A key step in Reliance Communications plan to move up the value chain and closer to its customers in the Global Data business. ? Reliance entered the lucrative US enterprise data market and was better able to serve its international customers directly in that market Strategic Alliance with Getjar - GetJar will offer Reliance Communications its extensive catalog of over 65,000 free mobile applications. - Reliance Communications customers will have access to thousands of applications ranging from games, social networking, sports, entertainment and productivity applications
Vodafone
?Acquisition- Vodafone bought a controlling stake in Hutch-Essar ?Wholly owned subsidiary- ZYB a privatelyowned company based in Denmark
doc_250766349.ppt
The objective of this is ppt is about telecom industry analysis.
Strategy for the Telecom Industry
Telecom recent trends
?Total 706.37 mil subscribers (56% teledensity) ?18.18 mil Subscriber addition (MoM)
Market share Aug
Source:TRAI
SWOT ANALYSIS
? Huge Customer potential ? High Growth Rate ? Allowed FDI limit ranging from 74% to 100% ? Liberalization efforts by Govt. ? Lower capital expenditure
Strengths
? Poor Telecommunication Infrastructure ? Late adopters of New Technology ? A market strongly regulated by Government. ? Difficult to enter because of requirement of huge financial resources.
Weakness
? 3G Telecom services and 4G services ? More Quality Service ? Value added Services
Opportunities
? Telecommunication Policies ? Declining Average Revenue Per User ? Partiality on the part of the Govt.
Threats
PESTLE ANALYSIS
PESTL Analysis
Political Economic Social technologic al New costly technologies High switching costs legal Ministry of telecom TRAI GDP Lifestyle changes consumerism FEMA
Per capita disposable income
Cut throat competition leading to violations Consumer protection act
DOT
Interest rates (3G)
Age distribution
R & D, Patents
Forex rates
Political factors
?Ministry of telecom ?TRAI ?DOT ?Other laws
MARKET DOMINANCE
?Leader: Bharti Airtel
?Challenger: Reliance Communications
?Follower: Vodafone ?Nicher: Loop Mobile
BCG MATRIX
BCG Matrix
Market share(%) Airtel BSNL Vodafone RCOM IDEA Aircel 30 15 24 4 15 9 Growth(%) 5 -14 13.7 -3.5 12.5 37.2
Source: Voice and Data
HIGH
LOW
Aircel
30 % 25% HIGH20%
Idea
TRADITIONAL BCG MATRIX
Business growth Rate
15%
10 % 0%
Vodafone
Airtel RCOM
BSNL
1.2 5x
10 x
Relative Market share wrt Airtel
0.5x 0.4x 0.3x 0.2x 0.1x
10 -15% % LOW 20 % 25 0% %
2x
1x
GE model
H I G H
Loop RcommBharti
airtel
Vodafone
Industry attractive ness
L O W
LOW
Business strength
HIGH
5 Forces of competition
HIGH HIGH
HIGH
LOW
Very HIGH
Bargaining power of suppliers
?NSN, ericsson, Huawei (Few and large) H I G H
?Equipments are critical for business
?High switching costs ?Government controlling the spectrum allocation
Threat of new entrants – Entry barriers
?Economies of scale – Very High ?Product/service differentiation – Insignificant Modera ?Capital requirements – Very high te ?Switching costs- very high ?Brand pull ?Government policy - 74% FDI, lottery auctions ?Expected retaliation - low
Bargaining power of customers
?Very low switching costs ?MNP
H I G H
Threat of substitute
?VOIP,skype, social networking ?Satellite phones
L O W
VIRU
Criteria for sustainable competitive advantage
Capability
Bharti Airtel Reliance Communications Vodafone Loop
Valuable
Brand equity
GSM + CDMA
Focus on core business
Focus on high ARPU market
Costly to imitate Pan India presence
Rare Unique
Pan India presence
Global presence
Financial Muscle NA Temporary competitive advantage
NA
Quality of service NA Temporary competitive advantage
relationship with Tower partners subsidiary Rural market share Sustainable Competitive advantage NA Temporary competitive advantage
Value Chain Analysis
Airtel Vodafone Reliance Communicat ion
Outsourced
Loop Mobile
Operations
Outsourced
Partially Outsourced
No
Marketing & Sales
Service
CC
Owned by Company
CC
Owned by Company
CC
Owned by Company
CC
Owned by Company
CC- Core Competency
Value Chain Analysis contd…
Airtel
Firm Owned by Infrastructure company HRM Engineering workforce outsourced Managed by Equipment Manufacturer company
Vodafone
Owned by company Partly Outsourced Managed by Equipment Manufacturer company
Reliance Communication
Owned by company Engineering workforce outsourced Managed by Equipment Manufacturer company
Loop Mobile
Owned by company No
Technology Development
Managed by Equipment Manufacturer company
BUSINESS LEVEL STRATEGIES
Airtel
? Business process Management ? Process innovation and continuous improvement through people involvement ? Problem investigation by “Fact based –Root cause analysis. ? Customer defined- Business process ? Result oriented approach ? Past Experience-”What went wrong and what can go wrong” ? Quantifiable purpose of the process and key result area. ? Clearly defined target customers ? Positioned Airtel as inspirational and life style brand
Reliance
? Network superiority
? Brand equity
? Channel strength ? Customer service excellence
? Our people
Vodafone
? Revenue stimulation and cost reduction ? Deliver strong growth in emerging markets
? Innovate and deliver on customers? total communication needs ? Actively manage our portfolio to maximize returns
? Align capital structure and shareholder returns policy to strategy
Loop mobile
? Loop mobile offers innovative services celebrating Ganesh Chaturthy. ? Loop mobile launches super 6 pack daily plans for prepaid ? Loop mobile introduces unlimited GPRS for Rs. 89. ? Loop mobile adds more fun to your weekends with fun day service.
? Mumbai based loop mobile to go PAN India very soon
? Loop mobile inches closer to Vodafone in Mumbai GSM network test ? Loop mobile launches reply all SMS service with SMS Gupshup ? Loop mobile launches „SMART PAID? in Mumbai
CORPORATE LEVEL STRATEGIES
Bharti Airtel
?Acquired Telecom Seychelles ?Selling towers Business to Bharti Infratel
?Contract made with IBM for IT
?Launched data services in Thailand & Malaysia
Vodafone Essar
?Launching iPhone4 in India ?Deal with IBM ?Sold China mobile stake for $6.6bn
?Plans sell-off of French Assets ?Rolled out 30 different commercial ads
Reliance Communication
?Gets $2.2bn,10yr. Etisalat Deal ?Ordering equipments from ZTE ?Plans 26% stake sale, may go for Infratel
Loop
?BPL goes for Brand makeover ?In talks to sell majority stake
?Aircel, in talks to acquire Loop Mobile
?To invest $75mn in its Mumbai Ops
INTERNATIONAL STRATEGY
Bharti Airtel
Acquisition- Kuwait based Zain Group's mobile operations ? Bharti has a presence in 18 countries across Asia and Africa with a customer base of over 180 million ? Bharti is now among the five largest mobile operators in the world Acquisition- Warid Telecom ? Entry into Bangladesh (70% stake) ? the first Indian telecom operator to enter Bangladesh's mobile market ? Teledensity is at 32% so there is large potential for further coverage
Strategic Alliance- US based Cisco ? . Bharti Airtel brings strengths of market leadership and product expertise in network connectivity ? Cisco brings value through its IP-based capabilities, strengths in next-generation network solutions, and enterprise and SMB channels. ? This allinace will target the burgeoning Indian managed services market.
Reliance Communications
Wholly owned subsidiary- Yipes ? A key step in Reliance Communications plan to move up the value chain and closer to its customers in the Global Data business. ? Reliance entered the lucrative US enterprise data market and was better able to serve its international customers directly in that market Strategic Alliance with Getjar - GetJar will offer Reliance Communications its extensive catalog of over 65,000 free mobile applications. - Reliance Communications customers will have access to thousands of applications ranging from games, social networking, sports, entertainment and productivity applications
Vodafone
?Acquisition- Vodafone bought a controlling stake in Hutch-Essar ?Wholly owned subsidiary- ZYB a privatelyowned company based in Denmark
doc_250766349.ppt