Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
On
SWOT ANALYSIS OF RELIANCE COMMUNICATION WITH
COMPETITOR IN DHANBAD AND SURROUNDING OFFICE
OF
REL IA NC E CO MM UN IC ATIO N L TD.
DH AN BAD
PROJECT REPORT
Submitted by
Anand Prasad Gupta
Reg No. – PO7BA005
MBA (Marketing & HR)
Session : 2007-2009
Chapter – 3 Methodologies
Research problem
Research Objective & sub- objective
Information Requirement
Choice of Research Design
Research Instrument used
Sampling Technique used & Sample size
Field Work
Chapter – 5 Conclusions
Conclusion
Finding
Chapter – 6 Suggestions
Appendices
Anand Prasad Gupta 2
Bharath University
2007-2009
Bibliography
Questionnaire
ACKNOWLEDGEMENT
Date : Anand
Prasad Gupta
Place : Dhanbad
PREFACE
A project is a scientific and systematic study of real issues on a problem with the
application of management concept and skills. The study can deal with small or
big issues in any division of an organization. It can be case study where a
problem has been dealt with, through the process of management. The essential
equipment of a project this that, it should contain scientific collection of data,
analysis and interpretation of data leading to valid conclusion.
This project report tends to give a sharp picture of the telecom industry.
DEDICATION
TO
Anand Prasad Gupta 5
Bharath University
2007-2009
MY PARENTS
WHOSE
CHAPTER - 1
Introduction
His marketing strategy has made millions of Indians happy, they got the best mobile
tariffs in the world-local call costs at 15 paise/minute, and STD call at 40
paise/minute
The reason was obvious: The telecom sector is growing faster than any other segment
and naturally their CEOs have a lot to crow about. The jury had to select one from
three CEOs, who had made it to the final list through nominations from the industry
and the initial scrutiny. Among the three, one of the main contenders was a young
CEO. The jury decided that he should come back next year to try and win the coveted
award. The list now had two names-both CEOs of two well-known companies. The
Anand Prasad Gupta 7
Bharath University
2007-2009
pivotal difference between the two: one is an entrepreneur and the other is not so
popular, as his credit is shared among a number of his big daddies.
Following a five-hour closely held, hotly debated discussion, the name was
announced: Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil
Ambani joined Reliance Industries (currently promoted by his brother Mukesh
Ambani, following their split) in 1983 as co-chief executive officer. Forbes ranked
him number 104 among the World's Richest People in 2006. The Ambani family faced
criticism when it announced its ambitious plans to build a countrywide telecom
network, as its prior expertise lay in commodities-textiles and petrochemicals-
business only. Apart from that telecom needs a service-oriented mindset, critics felt.
What they did not remember was how the family had served its millions of
shareholders.
Policies in India are made in line with Ambani's vision, says an industry expert. His
business acumen and closeness to politicians assisted him in making it to the Rajya
Sabha in June 2004, as an independent member. Ambani chose to resign voluntarily
on March 25, 2006.
The same association with politicos gave him negative returns too when the Mayawati
Government in Uttar Pradesh put a spanner on his ambitious plans to build a 1,200-
acre SEZ.
Media sees his aggression when he announces financial results for the Reliance ADA
group of companies, and when he attends the annual general meetings and faces
questions from shareholders. When he meets the press, he has answers to all their
questions. He also remembers to call select journalists by name.
How did Ambani become the VOICE&DATA Telecom Person of the Year 2007? What
are his personal and organizational achievements in the recent past?
His path-breaking marketing strategy that was put in by the strongest team of telecom
professionals the country has ever seen has made millions of Indians happy as they
got the best mobile tariffs in the world. The aggression resulted to adding to his
Anand Prasad Gupta 8
Bharath University
2007-2009
already swollen kitty. Every hour India will be adding around 20,000 new mobile
customers and Reliance Communications over 4,000. When mobile telephony first
began in India, a local call cost Rs 16 per minute; an STD Rs 50; and a call to the US
Rs 100 per minute. With Reliance Communication’s pioneering price initiative, a local
call now costs a mere 15 paise per minute, STD 40 paise, and a call to the US costs
less than Rs 2 per minute. The presence of Reliance Communications is making the
competition in India panicky. Global telecom forces will also shortly start feeling the
heat. Ambani has also recently announced his Rs 1,200 crore buyout of Yipes
Holdings.
Achiever's Pride
Network expansion will give us the power to drive the market and stay ahead of the
curve," Ambani adds.
Reliance Communications is now among the three most valuable private sector
companies in India, and the five most valuable telecom companies in Asia. In the current
Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and
strengthen its network coverage across India and the rest of the world.
Reliance Communication’s One India, One Tariff plan allowed millions to connect across
India at just one rupee a minute. The company was the first one to break the Rs 1,000
entry-barrier with the launch of the lowest-cost classic brand handset at Rs 777.
As per its expansion plan, Reliance Communications will have the single largest wireless
network in the world, covering over 900 mn Indians or more than 15% of the global
population. It will cover 23,000 towns or every single Indian habitation with a population
of over 1,000. Reliance Communications will cover almost 100% of all rail routes,
providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters
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2007-2009
every day. It will also cover almost 100% of all national highways, and 84% of all state
highways, giving millions of users the power to talk, text, surf, play, chat or simply stay
in touch across nearly the entire length of India's 2,00,000-km-long road network.
Having achieved tremendous growth, the main challenge for Reliance Communications is
to improve quality of service and ARPU. Its enterprise business is also not in a position to
compete with the global majors. Stock market valuations may boost the fortunes of an
entrepreneur, but Ambani needs to address the issues faced by the growing mobile
customer base, especially in India, where bureaucracy takes pride in checking the
businessman.
The current network expansion undertaken by Reliance is the largest wireless network
expansion undertaken by any operator across the world.
It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone.
We will offer unparalleled value to create customer delight and enhance business
productivity.
We will also generate value for our capabilities beyond Indian borders and enable
millions of India's knowledge workers to deliver their services globally.
Chairman’s profile
Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani
(1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It
is India's foremost truly integrated telecommunications service provider. With a
customer base of over 36 million including close to one million individual overseas
retail customers, Reliance Communications ranks among the top ten Asian Telecom
companies. Its corporate clientele includes 600 Indian, 250 multinational corporations
and over 200 global carriers and owns and operates the world's largest next
generation, IP enabled connectivity infrastructure, comprising over 150,000
kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the
Asia Pacific region. For more information, visit:
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D
Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group,
An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is
credited with pioneering several financial innovations in the Indian capital markets.
He spearheaded the country’s first forays into overseas capital markets with
international public offerings of global depositary receipts, convertibles and bonds.
Under his chairmanship, the constituent companies of the Reliance ADA group have
raised nearly US$ 3 billion from global financial markets in a period of less than 15
months.
Shri Ambani has been associated with a number of prestigious academic institutions in
India and abroad.
In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha –
Upper House, Parliament of India, a position he chose to resign voluntarily on March 25,
2006.
• Voted ‘the Businessman of the Year’ in a poll conducted by The Times of India – TNS,
December 2006
• Voted the ‘Best role model’ among business leaders in the biannual Mood of the
Nation poll conducted by India Today magazine, August 2006
• Conferred ‘the CEO of the Year 2004’ in the Platts Global Energy Awards
• Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management
Association, October 2002
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2007-2009
• Awarded the First Wharton Indian Alumni Award by the Wharton India Economic
Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a
global leader in many of its business areas, December 2001
Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business and
Finance' and was introduced as the only 'new hero' in Business and Finance from India, June
1999.
CHAIRMAN
SENIOUR
V.P
V.P
DGM
AGM
SENIOUR
MANAGER
MANAGER
DUPTY
MANAGER
ASST.
MANAGER
MANAGEMENT
TRAINING
CHAPTER - 2
Main Studies
SWOT analysis is a basic, straightforward model that provides direction and serves as a
basis for the development of marketing plans. It accomplishes this by assessing an
organizations strengths (what an organization can do) and weaknesses (what an
organization cannot do) in addition to opportunities (potential favorable conditions for an
organization) and threats (potential unfavorable conditions for an organization). SWOT
analysis is an important step in planning and its value is often underestimated despite the
simplicity in creation. The role of SWOT analysis is to take the information from the
environmental analysis and separate it into internal issues (strengths and weaknesses) and
external issues (opportunities and threats). Once this is completed, SWOT analysis
Anand Prasad Gupta 16
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2007-2009
determines if the information indicates something that will assist the firm in
accomplishing its objectives (a strength or opportunity),
SWOT analysis is a general technique which can be applied across diverse functions and
activities, but it is particularly appropriate to the early stages of planning for a TIPD visit.
Performing SWOT analysis involves generating and recording the strengths, weaknesses,
opportunities, and threats relating to a given task. It is customary for the analysis to take
account of internal resources and capabilities (strengths and weaknesses) and factors
external to the organization (opportunities and threats).
This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple,
popular technique which can be used in preparing or amending plans, in problem solving
and decision making.
Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a
desired end state or objective, it runs the risk of being useless. A SWOT analysis may be
incorporated into the strategic planning model. An example of a strategic planning
technique that incorporates an objective-driven SWOT analysis is SCAN analysis.
Strategic Planning, including SWOT and SCAN analysis, has been the subject of much
research.
Strengths: attributes of the organization those are helpful to achieving the objective.
Weaknesses: attributes of the organization those are harmful to achieving the objective.
Opportunities: external conditions those are helpful to achieving the objective.
Threats: external conditions that is harmful to achieving the objective.
SWOT analysis can be used for all sorts of decision-making, and the SWOT template
enables proactive thinking, rather than relying on habitual or instinctive reactions.
The SWOT analysis template is normally presented as a grid, comprising four sections,
one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats.
The free SWOT template below includes sample questions, whose answers are inserted
into the relevant section of the SWOT grid. The questions are examples, or discussion
points, and obviously can be altered depending on the subject of the SWOT analysis.
Anand Prasad Gupta 17
Bharath University
2007-2009
Note that many of the SWOT questions are also talking points for other headings - use
them as you find most helpful, and make up your own to suit the issue being analyzed. It
is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis
is a perspective of one thing, be it a company, a product, a proposition, and idea, a
method, or option, etc.
Here are some examples of what a SWOT analysis can be used to assess:
Opportunity Threat
• Preference of GSM over • Political destabilization.
CDMA • New Entrants
• New Specialist Application • IT Development
• Rural Telephony • Market Demand
• New Market, Vertical, • Seasonality, Weather Effects
Horizontal
• Competitors` Vulnerabilities
• Competitors
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• Not regular visit of DSE and Runner
• Customer Satisfaction
• Retailer Satisfaction
• Increase in Sale
• Sales Promotion
CHAPTER - 3
Research problem
Research Objective & sub- objective
Information Requirement
Choice of Research Design
Research Instrument used
Schemes, Products & Sample size
Field Work
• To know the demand of Rcom bundle offer along with LGRD 3000 and 6100 as Ill
as the demand of Rcom Bachat pack Sim in the market
• To help in development and introduction of new product
• To identify the company position among competitors
• To determine those factors which persuade retailers for sale of RCOM
sims/product
• To find out which type of schemes retailers prefer and why?
• To study the effect of irregular supply on the sale of the product
• To compare the Airtel and Tata indicom Bundle offer with RDLG 3000,
3500 & 6100 for analyzing the status of RCOM Bundle Offer
• To identify the Market share of RCOM
• To find out the basic problems of retailers
• To find out the performance of Distributor
• To find out the basic problems of Channel of Distributor
• To find out the Claims pending of Retailers
Complete Price structure of Rcom, Airtel & Tata indi.offer which includes
• Discount Offered
• Schemes offered
• Service Tax
• Secondary Data
• Internet
• Retailers
• Distributor
• Sales Executives
RELIANCE PRODUCT
Reliance PCO
Rs. 250 FREEDOM TARIFF, TALKTIME Rs. 147.5 AND VALIDITY 30 DAYS
RCVs
Rs. 888 F.T, TALKTIME RS. 888 AND VALI. OF 8 MONTHS
Rs. 399 Talk Time 175/ & Local On-net Unlimited FREE ( 30 days)
UN-
Rs. 499 Local Reliance Mobile & Reliance Smart Unlimited FREE ( 30 days)
LIMITED
Rs. 533 Talk Time Rs. 399.37 & Local On-net FREE B/W 11pm to 6am, ( 30 D)
E-
SMS Rs. 49 500 LOCAL SMS FREE & VALIDITY 30 DAYS
MARKETING VISITING & SURVEY – 17th June was my first day of summer
training in Reliance communication in Dhanbad. I met to satyakant sir. He took my
interview and selects me for summer training. Then he chose my mentor Mr. Rajeev sir
who guides me in summer training. After that I had to do my summer training under in
Rajeev sir.
First day I went Puja enterprises that have the Distributor ship of Reliance
Communication. Then after we met the Three DSR (Distributor Sales
Representative).Through the DSR we saw and got the all information about the market
and knew that how they work and how increase the goodwill of R. Communication.
They give the regular information about current scheme & plan. We saw that there were
more than 200 hundred small & big counters under the Puja enterprises.
NAME AREA
SASTY Station, Hirapur, Park market, Chiragora…..
SUNNY Police line, Steel gate, Koyla bhawan, Saraidhela…
It was my marketing visiting for the 7 days which was the great experienced work for
me. In this period I learnt some kinds of idea for increasing the sale, also I got
familiarized with those problems which generally come in the market for selling
purpose.
I got my 100% target. It was the good achievement for me and according to Mr.
Rajeev sir it was the much appreciated work which was done by me.
In the canopy we had to achieved a target and the target was to provide a latest offer to
the customer directly launched by RIM service by reducing the price of RS.299/- SIM
card only in RS.99/-.with Rs.50/- talk time (On-net) This offer was specially made for
customer not for retail shopkeepers .during the 7 days period of canopy we have to
only analyze the response of customer upon this offer. After that for the selling of SIM
we have to provide this offer in the main location of city or in the crowded area like
opposite side of Big Bazaar, near of City Centre, ISM gate, in campus of CMRI,
Govindpur, Hirapur Bazar, Dhaiya. I got the target for selling 50 SIM cards in a single
canopy. but I got very good response from the customer and I sold more than 50 SIM
card in a single canopy. That was also my good achievement and I knew how to sale
and provide service with product to customer.
50
45
40
35
30 18-25
25 28-35
20 36-45
15 Above 45
10
5
0
Percentage (% )
45
40
35
30
8000
25
8000-12000
20 12000-20000
15 > 20000
10
0
Percentage (% )
Percentage (%)
AirTel
RIM
BSNL
Smart
Tata indicom
Aircel
scale Percentage
Very good 20
Good 25
Satisfactory 40
Poor 10
Can’t say 5
Percentage
40
35
30
25
20 Percentage
15
10
5
0
Very good Good Satisfactory Poor Can’t say
The survey revealed that 40% of the respondents service RIM as satisfactory. This is a
telling comment. However the survey also found out that 20% and 25% of the
respondents service RIM as very good and good respectively. There were 5% of the
Anand Prasad Gupta 34
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2007-2009
respondents who had nothing to say about the RIM. This is due to low service
awareness and low penetration level.
RCOMM – 70%
AirTel
RCOMM
BSNL
Smart
Tata
Aircel
AIRTEL – 35%
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2007-2009
RCOMM – 19%
BSNL – 18%
SMART – 17%
TATA INDICOM – 9%
AIRCEL – 2%
Conclusions
Conclusion
Finding
RCOMM cellular ltd. An Anil Ambani Group of cos. Is very fast catching up with the market
by providing cheaper calling rates. The market strategies adopted by its executives are bearing
fruits and the company although being the Second one to enter the market of Bihar &
Jharkhand has found a suitable niche and recognition in the consumer. But this is not a thing
for self contentment as the survey reveals that in network, service and distributor, its place is
Anand Prasad Gupta 39
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2007-2009
very far behind to other competitors viz. Airtel, BANL, and Tata indicom etc. so to withstand
the competition resources mobilization and technological innovation on the part of cos. To
upgrade its quality of network and services is urgently called for.
Market access and growth is alright but the improvement of quality on the above counts is
necessity of the time.
Retailers Finding
Satisfaction: -
Most of the retailers i.e. around 74% of respondents are satisfied with RCOMM
brand, 10% of them push RCOMM brand to the customer and rest 16% retailers
are not satisfied with RCOMM brand due to claim pending and the distributor. The
retailers don’t get schemes communicated in time by distributor and distributor does
not provide RCV & e-Top properly.
Problems: -
Around 15% of the respondents that there is network problem with RCOMM, on
the other hand they found its competitors viz. Airtel, BSNL, TATA indicom network
connectivity of very good to good level.
Claim process:-
In case of RCOMM process is be claimed very belatedly i.e. almost 77% of the cases
take 60-90 days, where as in case of Airtel most of the i.e. 88% is being finalized in
time limit 0-30 days.
The claim process services of other competitors viz. AirCel, Smart, & Tata
Indicom are almost at par with the IDEA cellular ltd.
Chapter – 6
Suggestions
Appendices
Anand Prasad Gupta 41
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2007-2009
Bibliography
Questionnaire
Suggestions
On the basis of extensive study and research, here are some recommendation and
suggestion which may help the company to market the product and service more
profitability and increase its share in the Telecom market.
1. PROMOTIONAL ACTIVITIES
The company expand the budget allocation for promotional campaign in center
Bihar & Jharkhand. It has affected the sale service brand image of Reliance
especially in Jharkhand. Low supports in promotion have lead to fluctuation in sale
(3)Technical Expertise:-
The advertisement should show the companies expertise, experience and
pride in market the product service sale.
Media
A combination of print ads and TV commercial do a better job.
Local ads and publicity should be giving more stress. Hoardings, banners, wall
painting should be promoted, as some expenses are also beard by dealers. Ads
on Cable network result greater audience attention. Schemes, gift offers etc.
must be highlighted through Radio and Local newspapers.
2. SALES PROMOTION
Cash discount
Premiums
Financial schemes
3. OCCASIONAL DISCOUNT
As for as some hand set mobile product quality is concerned, there is an urgent
need of technical up gradation of Reliance mobile product line. It would be
beneficial for company to launch some colors mobile hand set with the some added
feature and minimum price.
BIBLIOGRAPHY
BOOKS
MAGAZINE
Anand Prasad Gupta 44
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2007-2009
Business Today
NEWSPAPERS
Economic Times
Hindustan Times
WEBSITE
www.COAI .in
www.AUSPI .in
Questionnaire
Kit 90%
V-top 40%
E-Recharge 90%
The survey revealed that 20% retailers have said that DSE visits once a Week, 50% retailers have
said that DSE visits twice a Week, 30% retailers have said that DSE visits thrice a Week.
Daily 9%
weekly 72%
In 15 days 18%
Monthly 1%
The survey revealed that 9% retailers keep daily stock, 72% retailers keep Weekly stock , 18%
retailers keep stock of 15 days and 1% retailers keep monthly stock.
The survey revealed that 31%, 95%, 18%, 25% retailers have problem with service level claim level,
product availability and product awareness respectively.
20 days 11%
30 days 25%
45 days 25%
60 days 39%
The survey revealed that 11%, 25%, 25%, 39% of the retailers are reimbursed by distributor at claim
level respectively.
Airtel 55%
Aircel 15%
BSNL 15%
Tata Indicom 30%
Smart 8%
The survey revealed that Airtel and Tata indicom are the major competitors of
RCOMM.
60%
50%
40%
30%
Series1
20%
10%
Anand Prasad Gupta 47
Bharath University 0%
2007-2009 AirTel BSNL Smart
7. If you have any problem then whom you will prefer to talk?
Distributor 10%
TSM 23%
DSE 67%
The Survey revealed that 10%, 23% and 67% retailers prefer to talk to Distributor,
TSM and DSE.