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Professionalz
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Porter five factors:
Threat of rivalry:
Today there is lots of competition between telecom companies to be ahead of each other. There are government companies like BSNL and MTNL. Some private Indian companies like Tata, Reliance and some are foreign companies like Vodafone, spice.
Threat to new entrants:
Indian telecom companies facilitates opportunities to foreign companies in different
fields like; VPN, satellite phone calls, 3G, international calls and value added services.
Market for idea Growth Avenue:
Rural telephony.
Enterprise telecom service.
VAS (value added services)
3G
WiMAX
Infrastructure sharing
Virtual private network.
Managed services
In India big amount of players up-and-coming in the market national level from its state
level existence like;
Aircel
Virgin
Spice
Idea
Vodafone
Threatof substitute product and service:
The services like; GSM, internet, VOIP, CDMA mobile, Wire line, broadband, carriers,
ISP
MARKET SHARE (%)
1. BSNL = 45.2
2. MTNL = 19
3. SIFY = 8.9
3. SIFY = 8.9
4. BHARTI AIRTEL = 6.8
5. RELIANCE = 6.1
6. TATA PHOTON = 4
Social Attention
The telecom industry has brought revolution in the societies of India in the field of communication. It is decreasing the cost and the time-period for the transfer of messages. In 2005 there were 110 million connections which increased to 250 million in 2007 which proof people eagerness to adopt new medium of communication.
Technological Attention
Technology has its own value in telecom companies. Adopting new technology like 3G has become the mode of survival for the companies. Sooner the company adopts the technology greater opportunity it enjoys.
Legal Attention
Telecom companies in India are controlled by government there are bodies like ministry of communication and Information Technology which make rules for these companies. Indian telecom policy in 1994 encourages foreign and private investment which became more liberalize in the form of Indian Telecom Policy in 1999.
Environment Attention
Environment play important role for the existence of the company. It includes culture, behavior, demographic condition which affects the company. It is important for the company to mould itself according to the environment.
Idea Cellular:
Idea Cellular is nothing but a company (wireless telephony) that operates in around twenty two telecom circles i.e. in India. In 1995 it came into existence. It began as a joint business enterprise in between Aditya Birla Group, Tatas, and AT&T by appending Wings Cellular (that operated in UP, MP), Tata Cellular and Birla AT&T communications. At the starting it had just some degree of footprint in the field of GSM. In the year of 2004 Escotel acquisition provided Idea a properly pan India presence wrapping MP, AP, Goa, Gujarat, UP, Maharashtra, Chhattisgarh, Haryana, Delhi, West Bengal, Kerala, Rajasthan. It had won award of GSM Association for best billing as well as customer care solutions for two successive years.
Pestle Analysis:
The growth of telecom sector is very fast in India. Indian telecom industries have third
highest position in the globe. At present there are 225 million mobile subscribers.
Political Attention
Government is giving special attention to these private sectors. TRAI is the government body for telecom industry which controls all service providers. In India out of 100 people 1.38 people have telephone, but set target is 6 people per 100. It means there is requirement of more 45 million connections which cost around 60 billion US$. In today¶s condition the there is political stability is in favor of the telecom industries.
Economical Attention
Wealth of any country depends upon its economic condition. India comes under growing economy. India was also less affected by the recession than other developed countries. So there are more chances of continuous growth for India. Telecom Industry contributes 1% to GDP. Therefore the economic condition of India is good for the telecom sector.
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