INTRODUCTION Bharat Sanchar Nigam Ltd (BSNL), the corporate version of erstwhile DOT, came to existence on 1st October

2000. Ever since the formation of BSNL, the Indian telecommunications scenario has been transforming itself into a multi-player, multiproduct market with varied market sizes and segments. Within the basic phone service the value chain has split into Basic services, long distance players, and international long distance players. BSNLs POSITIONING IN TELECOM INDUSTRY To understand and suggest how strategic management can help BSNL the first thing is to understand the Telecom industry environment and the stakeholders involved. Apart from having to cope with the change in structure and culture (government to corporate), BSNL has had to gear itself to meet competition in various segments basic services, long distance (LD), and International Long Distance (ILD), and Internet Service Provision (ISP), and Mobile services. With the advent of competition the private operators have been impacting the strategic matrix by influencing regulatory bodies, adopting intelligent media strategies, and by targeting the creamy layer of customers. While, political control over the public sector remains a contentious strategic issue in the country; with the formation of a company, the internal strategy of the BSNL board will be of gaining considerable autonomy. Labour unions are powerful internal stakeholders, as are the middle managers/ other staff that have the primary responsibility for customer care. The following stakeholders diagram gives an insight about the changing telecom industry environment for BSNL

FIG 1 - STAKEHOLDERS IN BSNLs STRATEGIC MANAGEMENT

ITU, ITU, Intern Intern Other Other Others ational ational Private Others Private teleco teleco operat operat media, mm o ors BSNL ors BSNL media, o genera industr s s genera industr yy l l custom y custom public, ers && public, ers channe consu BSN channe consu BSN l l mer mer LL LL partne organi partne organi Manuf IT, Manuf IT, BSNL rs, BSNL z zations zations rs, z acture Insura acture Insura Emplo PCOs Emplo PCOs rsrs of of nce, nce, etcyees eyees && etc e teleco Railwa teleco Railwa labor labor mm ys, ys, unions u u unions Regula g goods Bankin g Regula Bankin goods tors, g etc. tors, g etc. TRAI T TRAI industr T industr y using y using teleco teleco mm backbo backbo nen n ne BSNLs SWOT ANALYSIS The changing external environment for BSNL can be well captured by the Potters model diagram which shows that the industry structure has become bit unfavorable (Pl. refer exhibit- 1) In such an environment BSNL definitely requires to redefine its strategies. What is required is to identify the potential opportunities and threats implied by this changing environment for the BSNL. In changing trends, situations, and events gaining an accurate understanding of BSNLs strengths and limitations will help in better strategic management of organization. The SWOT analysis for BSNL is as follows BSNL SWOT ANALYSIS

Minist Minist ryry of of Comm Comm unicati unicati on && on IT I IT I

STRENTHS Pan-India reach Experienced telecom service provider Total telecom service provider Huge Resources (financial & technical pool) Huge customer base Most trusted telecom brand Transparency in billing Easy deployment of new services Copper in last mile can be used for easy broadband deployment Huge Optical Fibre network and associated bandwidth

WEAKNESSES Non-optimization of network capabilities Poor marketing strategy Bureaucratic organizational set up Inflexibility in mindset (DOT period legacies) Limited number of value added services Poor franchisee network Legacy of poor service image Huge and aged manpower Procedural delays Lack of strategic alliances Problems associated with incumbency like outdated technologies, unproductive rural assets, social obligations, political interference, Poor IT penetration within organization Poor knowledge Management

OPPORTUNITIES Tremendous market growing at 20 lac customers per month Untapped broadband services Untouched international market Can capitalize on public sector image to grab governments ICT initiatives ITEB service markets Diversification of business to turn-key projects Leveraging the brand image to source funds Almost un-invaded VSAT market Fuller utilization of slack resources Can make a kill through deep penetration and low cost advantage Broaden market expected from convergence of broadcasting, telecom and entertainment industry

THREATS Competition from private operators Keeping pace with fast technological changes Market maturity in basic telephone segment Manpower churning Multinational eyeing Indian telecom market Private operators demand for sharing last mile Decreasing per line revenues due to competitive pricing Private operators demand to do away with ADC can seriously effect revenues Populist policies of government like OneIndia rates