SWOT and PEST Analysis of Indias Telecom Sector

SWOT and PEST Analysis of Indias telecom SectorINTROIndian telecom industry beings fastest maturement industry(last three forms 42%) and adding billions of customer monthly and reach to agree of more than 700 million customer mark in the end of year 2010. It is the most kinetic industry and found on the tough opposition, value war emerged in the 3rd quarter of 2010. It has lowest tariffs in the manhood and highest telephone density. It also suffers from highest churn rate 2% and 5% for prepaid and prepaid respectively. It also has lowest ARPU (average revenue per user). It is second largest network in the world (in terms of number of subscriber 1st china) The wireless argonna has become so dominant that it is has almost made the landline mapping dormant with no impudentlyly happenings/activities/ engine room in that domain of telecommunication service. A look at their contribution to the total telephone run shows the rapidly change face of the telecommunication indus try in India. This sea change has been caused by a number of parts varying from reduction in tariffs and cost of mobile handsets to change in g everywherenment policies to mindset of the world- bulky public.Market StructureIndian telecommunication market is divided into a total of 23 circles, which allow 4 metros, and 19 former(a) circles. These circles are further classified into A, B and C type of circles base in the certain economic parameters and revenue potential. Circles were categorized as A,B, C based on the revenue potential as per the 1st auction in 1995.Total Market Size US $ 60 Billiontelecommunication Services can be broadly classified under 3 heads Telephone, Broadcasting and Internet.An exponential growth in the number of subscribers has been witnessed over the recent years with the annual growth going as high as 47%.Indian tariffs are very low in resemblance to world standards.The COMPANIES which I am going to analyze is top 5 as per the market share shown by above tableBHARTI AIRTEL imageVODAFONEBSNLAIRCELPEST ANALYSISIt is the frame work designed to assess the big environment of any country, organization or community. It is basically include the chase four factors but now days it extends further to PESTELED the extension denotes as ENVIROMENT -LEGAL-ETHICS-DEMOGRAPHICS.This digest tries to find all details related to its four heads, which has any(prenominal) meaning to line of products and affect line of credit organization activities.it is the part of remote epitome while conducting strategic psychodepth psychology for business. It is useful tool to understand business growth opportunities and if any previous decline why was decline. With the increase of competition and fast changing global scenario each firm is doing this to be dynamic in its position. policy-making FACTORSGOVERNMENT TYPELABOUR LAW,FREEDOM OF PRESS, RULES OF LAW, BUREAUCRACY, depravityTRADE RESTRICTIONS/ TARIFFSPOLITICAL STABILITYECONOMIC FACTORSECONOMIC GROWTH provoke RATESEXCHANGE RATESINFLATION RATEBUSINESS vibration STAGESOCIAL FACTORCULTURAL ASPECTSBUYING BEHAVIOR commonwealth GROWTH RATEAGE DISTRIBUTIONINCOME DISTRIBUTIONLEVEL OF instructionTECHNOLOGICAL FACTORRATE OF OBSOLESCENCERD FACILITIESSPEED OF TECHNOLOGICAL TRANSFERPOLITICAL FACTOR- these factors are related to the politics of the country, it has huge electric shock as India has next environment before 1991 and its difficult or impossible to set up a business.Government type the watercourse UPA government of India is progressive and spare which laying path to economic developmentSWOT ANALYSISIt denotes skill -WEAKNESS-OPPERTUNITY- bane and this proficiency used to analyze a company during strategic planning. This technique is credited to Albert Humphery who led a convention at Stanford University in the mid-sixties and 1970s using data from Fortune 500 companies.BHARTI AIRTEL Bharti airtel limited is a lead story global telecommunications company with tradi ng operations in 19 countries crossways Asia and Africa. The company offers mobile voice data services, fixed line, high drive wideband, IPTV, DTH, turnkey telecom resolutenesss for enterprises and national international long distance services to carriers. bharti airtel has been ranked among the six best performing technology companies in the world by business week. bharti airtel had 200 million customers across its operations.STRENGTHBharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services as well as many other telecommunications services to both domestic and corporate customers.Other endorseholders in Bharti Airtel include Sony-Ericsson, Nokia and Sing Tel, with whom they hold a strategic alliance. This means that the business has accession to knowledge and technology from other parts of the telecommunications world.The company has covered the replete(p) Indian nation w ith its network. This has underpinned its large and rising customer base.WeaknessesAn often cited genuine weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone brass actually worked. So the start-up business had to outsource to industry experts in the field.Until tardily Airtel did not own its own towers, which was a particular strength of approximately of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.The fact that the Airtel has not pulled off a deal with southeastern Africas MTN could signal the lack of any real emerging market coronation opportunity for the business once the Indian market has become mature.OpportunitiesThe company possesses a customized version of the Google search engine which get out enhance broadband services to customers. The tie-up with Google can only enhance the Air tel brand, and also provides publicizing opportunities in Indian for Google.Global telecommunications and in the altogether technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with blackberry bush telegraphless Solutions.Despite being forced to outsource much of its expert operations in the early days, this allowed Airtel to work from its own blank poll of paper, and to question industry approaches and practices for example replacing the Revenue-Per-Customer illustration with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and out-of-door villages and towns.The company is investing in its operation in 120,000 to 160,000 small villages all year. It sees that less well-off consumers may only be able to fall in a few tens of Rupees per call, and also so that the business benefits are ascendable usi ng its Matchbox strategy.Bharti Airtel is embarking on another(prenominal) joint venture with Vodafone Essar and Idea cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of Indias network towers. IPTV is another potential new service that could underpin the companys long-term strategy.ThreatsAirtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the scholarship trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential leveraging of South Africas MTN in May 2008. This opened the door for talks mingled with Reliance Communications Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market.Bharti Airtel could also be the target for the takeover mint of other global telecommunications players that wish to move into the Indian market.VODAFONE- Vodafone Essar is the Indian hyponym of Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular emancipation for Mumbai. The company now has operations across the country with over 127.34 million customers. In a survey conducted by Indias tip business weekly, Vodafone Essar was awarded just about Respected Company in the Telecom Sector for 2010.Vodafone is one of the worlds leading international mobile communication root wordSTRENGTHPresence in many countries and backed by number one telecom country.provider of 3G and blackberry services and business solution.Number one gainer out-of-pocket to M NP 50,000 customer.WEAKNESSTHREATOPPORTUNITIESEmerging markets and expansion abroadInnovation product and services expansionGrowing data business and 3G auctioningVAS as a means to increase ARPU (big boss, Zoo Z00)Growing Enterprise solution market (10.2% in 2009 anticipated)Large capital can be raise by listing Vodafone on Indian Stock Exchange(IPO)Tower share-out business with Indus TowersiDEA- idea is the 3rd largest mobile services operator in India, in revenue terms, and recorded a subscriber base of over 78 million as on end November 10. It became a pan-India merged GSM operator covering the entire telephony landscape of the country, and expanded its NLD and ILD operations in FY 2010. During the year, Idea increased its revenue market share by over 1%, despite stiff tariff war in the market. The company has won license to offer 3G services in 11 service areas, which generate over 81% of the companys total revenue. Ideas 3G services will be launched in the year 2011.STRENGTHW EAKNESSTHREATOPPORTUNITIESAIRCEL The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities Investments Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis Communications holding a majority stake of 74% .Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader a position it has held since.STRENGTHWEAKNESSTHREATOPPERTUNITIESBSNL Bharat Sanchar Nigam Ltd. formed in October, 2000, is Worlds seventh largest Telecommunications Company providing comprehensive range of telecom services in India Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Presently it is one of the largest leading public sector unit in India.STRENGTHWEAKNESSTHREATOPPERTUNITIESIndustry- pestel, porter, 7sFirm- swot,sap,etop,competitor, internal,externalpestelexternal factorexternal factoretopindustry analysiscompetitors analysiscompetitors analysismraketing analysisinternal factor analysisswotpestelexternal factorexternal factoretopindustry analysiscompetitors analysiscompetitors analysismraketing analysisinternal factor analysisswotpestelexternal factorexternal factoretopindustry analysiscompetitors analysiscompetitors analysismraketing analysisinternal factor analysisswot