Through Michael Porter’s Five Forces Analysis

Presented By- Anubhav Bhushan

MOBILE INDUSTRY

Major Players

State owned companies - BSNL, MTNL

Pvt. Indian owned companies-Reliance, Tata Tel

Foreign invested companies-Vodafone, Idea, Spice

Existing Competitive rivalry

Service provider are the main driver whereas

equipment manufacturers are witnessing growth

and decline in successive quarter as sales is

dependent on order undertaken by companies.

Negotiating power of buyer

2008 September 2009BSNL 19% 12%

Bharti AIRTEL 23% 24%

Reliance 17% 19%Vodafone 16% 18%

TATA Telecom Service Limited

10% 10%

IDEA 9.6% 11%

Others 5.4% 1%

Market share of operator till September 2009

Role of supplier is almost negligible

Mobile handset supplier

Nokia, Sony Ericsson,Motorola,Siemans

Some companies have their own like Reliance

and Tata indicom

Tie up with other companies like Reliance have

tie up with Samsung and LG

Negotiating power of supplier

Optical fibre supplier, Aluminium supplier

- Bargaining power is limited

Software service provider-

TCS,INFOSYS,WIPRO have bargaining power

Negotiating power of supplier Contd.........

Various opportunities for foreign companies in various

areas such as- 3G, international long distance call, Value

added service

3rd largest sector to attract FDI in post liberalisation era

Large no. Of player are emerging in the market on the

national level from its state level existence such as-

Aircel, Virgin, Spice, Idea, Uninor

Threat from new entrants

Wide range of service are available-

VoIP ,Broadband carrier.

Internet telephone- Emerging as the best option

Substitute to product

INTERNET SERVICE PROVIDER

MARKET SHARE

BSNL 45.2%

MTNL 19%

SIFY 8.9%

Bharti AIRTEL 6.8%

RELIANCE 6.1%

Market share of internet services

Perfect competition

Differentiation practice by different player

various offer

free issue of SIM

Less call rate

Relative strength and weakness

BSNL -- Network in every nook and corner, network busy

Airtel

Nature of Industry

SWOT Analysis

Huge wireless subscriber potential.

One of the fastest growing sector.

Consumers are ready to pay for cutting edge services.

FDI limit are 74%.

Strength

Wide scales of consumer churn in this sector. Now the

number portability is coming up so it will increase the

consumer churn rate.

Value Added Services (VAS) is restricted because of

literacy and language problems.

Problem of limited spectrum availability and the issue of

interconnection charges between the private and state

operators.

Weakness

To offer more VAS on GSM, CDMA.

Language independent services. E.g. sending

the message in local language, information

available in local language.

Foreign investments in form of equity or

technology.

Opportunities

Weak Intellectual Property Rights (IPR).

Threat of low cost service providers.

A huge initial fixed cost is required to make a

mark in rural markets. Achieving break-even

under these circumstances may prove to be

difficult.

Threat

Strength Weakness

BSNL Presence every nook & corner

Network busy

Airtel Presence every nook & corner

Call rate high

Reliance Large number of offer

Network connectivity

Strengths & weaknesses

Growth rate - CAGR of around 15%

Launch of advanced telecom service like 3G and IPTV

will advance the growth of industry.

5.5 million Indians are signing up each month.

GSM subscriber base increases by 13.7 million in

January

Emerging Trend

Thank You

Sharad Taori

Email - asset@taorigroup.com

Web - www.taorigroup.com

Mobile No. 9326178348

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