Presented by Group 9:

Asmita Sinha (PGFB1311)

Paridhi Bathwal (PGFB1329)
Ram Kumar Sain (PGFB13)
Rishi Sharma (PGFB13)
Supreet Gupta (PGFB13)
Public Company
Incorporated in 1995
Industry: Telecommunications
Headquarters: Santa Cruz, East Mumbai
Chairman: Kumar Mangalam Birla
Products: Mobile Telephony, Wireless Broadband
Revenue: US$ 265 billion (2013-14)
Net Income: US$19.68 billion
Total Assets: US$ 5.33 billion
Employees: 6481
Parent Companies: Aditya Birla Group (49.05%)
Axiata Group Berhad (19.96%)
Providence Equity (10.06%)
VISION STATEMENT
To be a premium conglomerate with a clear focus on
each of the business.


MISSION STATEMENT
To deliver superior value to our customers,
shareholders, employees and society at large.
Strength
Skilled workforce
Weakness
Small business
units
High loan rates
are possible
Opportunity
Growing economy
Global market
Constant increase
of income level
Venture Capital
High demand for
3G Services
Threats
Tax changes
Rising cost of raw
materials
Growing
competition
Increase in labor
cost
Increase in rate of
interest
Finance Minister, Arun Jaitley has allocated Rs. 500
Crores to build the Infrastructure as per National Rural
Internet & Technology Mission

In Budget 2014-15 it has been decided to start Kissan
T.V. to farmers to give them information on new
farming techniques, organic farming and water
conservation

According to PWC, the Government should pay more
attention in many key areas in the Telecom Sector
Who it serves?
VIP Customers
Corporate Customers
Platinum Customers
Gold Customers
Silver Customers
Medium Value Customers
Low Value Customers
What it provides?
Mobile Telephony
Wireless Broadband
How it differentiates and
sustain competitive
advantage?
Price affordability
Hires famous personalities for promotion
Only Company that offers special
package for ladies
Internet facilities on Budget Handsets
Idea Cellular PCO
Roaming Facilities at affordable charges
How it makes money?
More focus on 3G / Internet
Services
Improved Customer Services
How it serves?
ECONOMIC FORCES

With a subscriber base of nearly 898 million, India has the second-
largest telecom network in the world.
The sector's revenue grew by 13.4 per cent to reach US$ 64.1 billion in
FY12.
Wireless and wire line revenue increased at a compounded annual
growth rate (CAGR) of 10.4 per cent to reach US$ 39.1 billion over FY06
13
Revenues from the telecom equipment segment in FY12 stood at US$
23.5 billion as compared to US$ 23.4 billion in FY11.
SOCIAL, CULTURAL, DEMOGRAPHIC, AND NATURAL
ENVIRONMENT FORCES

With 70 per cent of population staying in rural areas, the rural
market will be a key growth driver in coming years.
Telecom penetration in the nations rural markets is expected to
increase to 70 percent by 2017 from the 41.0 percent as of March
2013.

POLITICAL, GOVERNMENT, AND LEGAL FORCES
The Government of India plans to cut license fees up to 33 per cent for
operators that cover services for over 95 per cent of the residential
areas in a calling circle.
The issuance of several international and national long-distance
licenses has created opportunities and attracted new companies into
the market.
The government has also allowed foreign direct investment (FDI) of up
to 74 per cent in basic and cellular, unified access, national/international
long distance, and V-Sat services as well as public mobile radio trucked
services.
FDI of up to 100 per cent is permitted for infrastructure providers
offering dark fibre, electronic mail and voice mail.
TECHNOLOGICAL FORCES
The mobile application (app) market is expected to expand at a CAGR
of 70.4 per cent during 201215 and reach US$ 100 billion.
The segments growth is expected to be driven by rising mobile
connections and availability of low-range smart phones.
Over 100 million apps are downloaded every month across different
platforms such as iOS, Blackberry, Nokia, and Android.
Idea Airtel Vodafone
Reliance telecom
CSFs Wt Rating Wtd Score Rating Wtd Score Rating Wtd Score Rating WtD
Score
Market Share 0.15 2 0.30 4 0.60 3 0.45 1 0.15
Brand Image 0.15 3 0.45 4 0.60 3 0.45 2 0.30
Financial Position 0.10 4 0.30 4 0.40 3 0.30 3 0.30
Service Quality 0.08 3 0.24 4 0.32 4 0.32 1 0.08
Customer Loyalty 0.06 2 0.12 2 0.12 2 0.12 2 0.12
Sales Channel (Distributor, Outlets) 0.10 4 0.40 3 0.30 4 0.40 2 0.20
Global Exposure 0.05 3 0.15 4 0.20 4 0.20 1 0.05
Org. Culture(Awards) 0.08 4 0.32 3 0.24 2 0.16 3 0.24
Sale growth 0.05 3 0.15 4 0.20 3 0.15 2 0.10
Promotions (advertisement) 0.06 3
0.18
3
0.18
4
0.18 3 0.18
Management. experience 0.07 3 0.21 4 0.28 3 0.14 3 0.21
Company Image
0.05 3 0.15 4 0.20 3 0.15
2 0.10
Total 1 2.97 3.64 3.02 2.03
Key Internal Factors: Weight Rating Weighted Score
STRENGTHS:
Idea Cellular Dominates 70% of rural market 0.08 4 0.32
Indias 2
th
largest telecom service provider 0.07 3 0.21
Technological innovation like Indias first GPRS service provider 0.09 4 0.36
Brand reputation like SBU of Indias first multinational group 0.06 3 0.18
Superior inventory turnover ratio and current ratio 0.08 4 0.32
Strong advertising and promotion 0.07 3 0.21
Excellent Debt Equity ratio and therefore financial agencies easily provide loan to the company. 0.08 4 0.32
Increase in service operational and network areas 0.07 3 0.21
Profit margin increasing at healthy rate 0.06 4 0.24
Strategic Alliance such as with IBM, Oracle, Nokia
WEAKNESS:
Target only North India 0.09 1 0.09
Net operating profit ratio is decreasing 0.09 2 0.18
No presence in Broadband or internet service 0.09 1 0.09
Increase in the operating cost 0.09 2 0.18
Not a player of Direct To Home Service 0.02 1 0.02
TOTAL 1 2.93
IFE MATRIX
KEY EXTERNAL FACTORS: WEIGHT RATING WEIGHTED SCORE
OPPORTUNITIES
1. Growth in market size 0.2 4 0.8
2. Scope for new and innovative service 0.1 2 0.2
3. Opportunities for Mergers and acquisition 0.05 2 0.1
4. Growth in rural market 0.15 3 0.45
5. Higher disposable income of consumers 0.1 2 0.2
THREATS
1.Price sensitive Unorganized market 0.1 4 0.4
2. Production malpractices 0.1 2 0.2
3. Competition 0.15 3 0.45
4. Disputes with retailers 0.05 2 0.1
TOTAL 1 2.9