stel telecom strategy
TRANSCRIPT
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Strategic Analysis of Strategic Analysis of S Tel IndiaS Tel India
Ranjeeth SubramaniamRamachanran SomasundaramSenapathy KumarSatish KumarNaveen Kumar Sathiyanarayanan
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Company Overview
External Analysis
Internal Analysis
Organisational Purposes
Strategies
Recommendations
Competitive Strategy: Porter’s Generic framework/Bowman’s strategic clock
Development Strategy: Ansoff Matrix
Resources Resource Audit
Competencies Value Chain
Macro Environment
Micro Environment
PEST
Strengths&
Weaknesses
Opportunities&
Threats
Industry Life Cycle
Porter’s 5 forcesStrategic group analysis
Mission Statement
Agenda
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S Tel an IntroS Tel Private Limited (S Tel), a new telecom operator inIndian marketplace, a joint venture between Siva Groupand Bahrain Telecommunications Company (Batelco)
S Tel has acquired Unified Access Services Licenses(UASL) and spectrum to operating in six Category Ccircles – Orissa, Bihar, Himachal Pradesh, North East,Assam and Jammu & Kashmir
These licenses will enable the company to provideUnified Mobile service, wireless broadband andinnovative Value Added Services (VAS) covering apopulation of over 226 million across these circlesHeadquartered in NCR region of Delhi, the companyplans to launch its mobile telephony service in Indiabefore close of 2009
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Political factorsGovernment stability Taxation, employment
and safety lawForeign trade regulationRelationship betweengovernment and
organisation
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Economical factors
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Socio-Culturalfactors
Shifts in values andcultureChange in lifestyleConsumerismDemographic changesDistribution of income
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Technologicalfactors
Government and industry focuson technological effortSpeed of change and adoption
of new technology The impact of the Internet
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PEST Analysis
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Porter’s Five Forces
Threat of
Substitutes
CompetitiveRivalry
Threa
t of newEntry
Buyer PowerSupplier Power
•Huge Start Up Capital
•Less Access to supplyand distribution channels•Complex legislation and
distribution channels
•11 operators in eachcircle•Some of them operatePan India•More innovative
differentiated product.
• Many operators so morethreat of substitutes.•Brand loyalty is less.•Performance of substitutes is also high
•Switching cost is less for the customers.
High Threat of SubstitutesHigh Competitive rivalry
Less Threat of New Entry High Buyer Power
•Due to high competition thebuyer have huge bargainingpower •Access to information is alsohigh
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Strategic groupanalysis
NoofSubscribers
No of Circles
H i g h
L o w
Low High
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Industry Life Cycle
Year Total Industry Sales
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SWOT
Analysis
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Opportunities• Good GDP and GDP per head growthrates
• TO start 3G Technology• Unemployment is reduced• Government focus on TechnologyDevelopment
• Change in Life Style
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Threats
•Threats of new entrants•Threats of price war •Threats of New Govt rules•Threats of new Technology
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Strengths•Previous experience in Telecom field•Have Raised Funds
•Good Marketing and Sales Strategy•Good relationship with the Distributorsand suppliers
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Weaknesses
•Does not have its Own Network•Not in a good relationship with the
Govt•Not a Pan India operator
.
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.
Strengths And Opportunities
•India ‘s GDP increases year after and hence there is a bright scopefor telecom industry in India•They have got enough money to bid for the 3G license
Weakness and Opportunities
•Since they don’t have their own network they can easily roll out by InfraSharing which is cost effective•Though not a PAN India operator, due to demographic changes its haslots of opportunities in Rural areas.
Strategic SWOTAnalysis
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Strengths and Threats
•Using its past experience in running the Aircel telecom companyit can easily access the distribution channels to penetrate themarket.•Using strategic marketing skills and push strategies which itused in Aircel can easily overcome its substitutes.
Weakness and Threats
•They can later built their network which would reduce their cost and improve performance•They should start building good relationship with thegovernment in order to over come any sudden action or rules imposed by them.
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Borrowing capacityInternal funds generationGlobal assets and liabilities
Taxation systems
Resource Audit
Financial
Organizational/Intangible
Customer, supplier and competitor
informationRelationships with suppliers,distributors and customersCustomer loyaltyOrganisation reputation
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Physical
LocationsAgeRepairConfigurationComputer and communication infrastructureLand
HumanNo of Staff
ExperienceEducationAge distributionMotivationAttitudes and cultural awarenessRecruitmentFlexibility
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Value Chain
Primary Activities• Operations
• Outbound logistics• Marketing & Sales
• Customer service
Secondary
Activities• Firm infrastructure• Human resource
management• Technology
development
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Mission Statement In depth understanding of customer requirements and stayingconnected with the customer.Constantly benchmarking ourselves to scale new heights in
customer satisfaction.Building a culture of operational excellence and innovationthrough a driven and continually learning organization.First Time Right Approach, process discipline, Root cause analysisof problems identified and elimination of the root cause.
Upholding the highest ethical standards in our dealings andtransparency in our processes relating to customers, employeesand all stakeholders.Demonstrating our care for the community around us.
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Mission Statement AnalysisComponents of a MissionStatement
Stel
1. Customers Staying connected with the customers
2. Products and Services Self Assessing on a regular basis bybenchmarking ourselves in order to meet thecustomer’s expectations and therebyupgrading our services.
3. Markets
4. Technology5. Concern for survival, growth andprofitability
Developing a culture of innovation andexcellence in operations by being drivenregularly and learning continuously .
6. Philosophy Right approach at First time by analysing theroot cause of the problem and thereby
eliminating7. Self-concept
8. Concern for public image Maintaining the transparency
9. Concern for employees
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Competitive strategies: Porter’s GenericFrameworks
B r o
a d
t ar g
et
N ar r ow t ar g
et
CompetitiveScope
Lower cost DifferentiationCompetitive
Advantage
StarsStars Question marksQuestion marksPost-paid servicePost-paid service
CASH COWSCASH COWS
Pre-paid servicePre-paid service
DOGSDOGS
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Competitive strategy Differentiation
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Recommendation
• Constant Allocation of part of the profit for promotionsas it is a key factor in the competitive arena.• Always be ready for any changes or consequencesdue to any Government rules or amendments.•They should be ready to handle political and economicissues.•Always maintain a debt equity ratio of 1:2• Concentrate more on the development and up-gradation of new technologies.