Indian Telecom Sector Strategy Project

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Indian Telecom Sector Strategy Project Powered By Docstoc
					Corporate Plan for AVG
to enter Indian Telecom Sector
                Indian Telecom Market

 Approx. 334.85 Million Telephone Customers


 Tele density is less than 30%.


 Second Largest Mobile Country.


 Fastest Growing Telecom Nation in the world –     growing @ 8-9
million connections per month.

 Compounded customer growth of around     40.68% p.a. for the last 5
years
                         Market Trends

 Rising Mobility, Declining fixed line.


 VAS emerging as major Revenue Earner.


 Growing popularity of Internet and Broadband.



       Approx. 77.18 million internet customers
       Approx. 3.87 million Broadband Customers
                    Growing Tele-density


 Teledensity has increased from 1.57 in March, 1997 to 29.08 in July
  2010

 Rural Teledensity is still much less than Urban Teledensity.

 As of March 2010, Urban Teledensity is 65.9 % and Rural Teledensity
  9.21%.
      Industry Analysis

 ENVIRONMENTAL SCAN
 SWOT ANALYSIS
 VALUE CHAIN ANALYSIS
Environment Scan
                  Environmental Scan

 Political Factors
     Political Opposition to participation by the private players
     Govt support to promote FDI in Telecom sector raising it to 74%
     Auctioning of spectrum

 Economic Factors:
     Cost of calls Being Driven Down
     Growing GDP
     Middle class consumer base growing due to accelerated economic
      growth
     Gross revenues for the sector have grown at compound annual rate
      of about 21% and stands at US $ 26 Billion – 34% contribution of
      Public Sector and 66% of Private Sector
                    Environmental Scan

 Socio-Cultural Factors:
     High End Phones becoming status symbol
     Due to Intimate family bonding in Indian Culture, there is need to
      remain connected
     Tech Savvy Generation

 Technological Factors:
     Equipped with New Technology
     Rapid Industrial growth rate induced by emerging technologies
      like WiMax, 3G, Number Portability etc.
     Strong Fibre Optic Network
     Utiilization of E- Commerce facilities
     Efficient Customer Care Services
                      Environmental Scan

 Legal Factors


     Publication/advertisement of tariff for consumer information shall
      contain minimum essential information.
     Websites of the service provider to contain complete details of the
      tariff plans as well as financial implications for various usage slabs.
     Customers to be informed in writing, within a week of activation of
      service, the complete details of his tariff plan.
     Quality of Service Standard bench marks to be ensured by Operators.
SWOT Analysis
                       SWOT Analysis
 Strengths:
   Enormous customer base in the wire less segment
   Decline in Tariffs

   The adoption of new technology

   India’s emergence as a leading destination for foreign investment
    with FDI ranging from 74-100%
   High return on investment

 Weaknesses:
   Weak Infrastructure - Huge initial fixed cost for service providers

   Huge costs for advanced technologies like Mobile Number
    Portability (MNP)
   Limited spectrum availability

   Huge initial investment

   Late adopters for new technology
                       SWOT Analysis

 Opportunities:
     Emerging Technologies: 3G,WiMax
     Tier-2, tier-3 cities can accommodate more players
     Rural Telephony
     Enormous potential in VAS
     World’s largest untapped mobile market
     Horizontal Integration

 Threats:
     Unhealthy Competition
     Declining ARPU
Value Chain
                        HR management - IT skilled work force, Telecom engineers, SCM
Supporting Activities

                        specialists Customer service & Telesales training, Franchisee management,
                        7,646 out of 23,789 employees in Mobile services, Owned retail staffing and
                                                                                                           M
                        training.
                                                                                                           A
                        Technology development - Creating a 3G enabled network, Launching M                R
                        commerce by tie ups with banks and credit cards.                                   G
                                                                                                           I
                        Procurement - Established a SCM network to acquire networking & Telecom            N
                        tools, Maintain long term relation with suppliers to provide handsets & services
  Primary Activities




                                                                                                           M
                                                                                                           A
                                                                                                           R
                                                                                                           G
                                                                                                           I
                                                                                                           N
                          Primary Activities

                                                       Marketing &
      Input           Process            Output                      Post Sale
                                                         Sales



•Network
                    Infrastructure
Infrastructure
                     Development
Nokia-Siemens,
CISCO, INTEL          Network
                     Integration                                        Public
•Software and                        •GSM Services   • Strong
content provider                                     Channel          Corporate
                                     •VAS            Distribution
                    Competitive
IBM, INFY TCS,                                                       Businesses
                     Position
AFFLE, On Mobile,                    •Fixed Lines    •Market
India Times,                                         Innovators         SME’s
Hungama Mobile,                      •Broadband
Mauj , One 97 IMI     Capable                                         Institutes
MOBILE.               Supplier

•Finance

•Licenses               Start
Corporate Strategy for AVG
                      Vision & Mission

 Vision:


  To bring superior communication services to enhance its customers' lives
  and businesses



 Mission:


     Serving customers in a manner that is simple and personalized, by
      efficiently and creatively harnessing leading edge technology
     Delivering a brand of service experience that is reliable and enchanting.
Strategic Objectives for AVG
                Market Share Growth

 Aggressive advertisements. Reaching consumer via media and personally.


 Providing more and more value added services at aggressive price.


 Entering into each other’s dominance area through aggressive marketing


 Must try to pass the benefit to consumers if any provided by the
  government like reduction in tax or surcharge etc.

 Should negotiate with suppliers for low price and to reduce the fixed cost
  and pass this benefit to consumer for large base.
                 Market expansion plan


 Sales Growth with Existing Product
     Tele density is only 26%
     AVG should make market strategy to tap the remaining market
      which is not covered yet

 Sales Growth with New Products
     Most of the mobile users are unable to use value added services due to costly
      mobile set
     High dependence on reduction in price of handset so that more value added
      services will be used by customer and will result in more profit.
     3G has been just launched but it is very costly and not well marketed yet
     Lowering the price and well marketing is needed for 3G to increase the profit
Strategy in Implementation
             Organizational Structure
                                     CMD



                    Head AVG India         Head International
                                           Business Group



President                     President        President        Executive
               President                                        Director HR
Enterprise                    Mobile           Tele-media
               DTH
Service                       Services         Services
                                                                Exe. Director
                                                                Finance

                                                                Executive
                                                                Director Supply

                                                                Director IT

                                                                Director Legal
                                                                & Assurance
             Organizational Structure


 Primarily divisional structure with shared support functions


 CEO in touch with all the divisional heads


 Flexible to add or divest any division (e.g. broadcasting)


 No duplication of support functions for all divisions
               Supply & Infrastructure



 Infrastructure partially outsourced due to extensive capital requirements
     Towers
     Routers
     Optical fiber cable network


 Strategic alliances to be formed with established operators for coverage
  outside circles and roaming services
              Technology & IT Strategy

 Technology to integrate superior Value added services
     Pocket Internet
     Multiplayer gaming
     Mobile TV
     Video calling
     Bill payments


 IT investments required to achieve better customer service and
  operational efficiency
     DQ (Directory Enquiry), IVRS (Interactive Voice Response System)
     Accounting and billing systems
     Complaint handling and
     Operational efficiency
Recommendations for AVG

 Product innovation at regular basis


 Highest standards of customer service


 Providing Value added services


 Keeping price according to market level


 New ways of advertising to make strong presence among competition
Recommendations for AVG

 Keep on pressurizing government to make the policies unfavorable to
  the substitute product

 Negotiate with suppliers for high quality service or raw materials


 Invest more in self Research & Development activity rather than
  depending upon foreign suppliers to tackling the threats of substitute
Thank You !!!

				
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