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reliance communication

reliance communication

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Published by diswas

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Published by: diswas on Oct 01, 2009
Copyright:Attribution Non-commercial


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AURA CONSULTANCYWe make business easyIt is a young enterprise started by 5 creative brain children, giving their best to make businesseasy. Here we have made a brief study on your organization Reliance Communication which is aflagship company of (i.e, The Anil Dhirubhai Ambani Group) which was established accordingto the founder of Reliance Late.Mr.Dhirubhai Ambani ‘s dream
to make agriculturepredominant India a digital India
. And which today is India’s one of the leadingtelecommunication service provider in India and has spread across the globe with its wide spreadservice since 2004.Reliance Mobile is an umbrella enterprise of the Reliance Communication. Reliance Mobileinitially started its operations providing. CDMA technology enabled cell phone service where thecustomers are bound to use a particular phone for a particular number and GSM service where inthe customers have a wide range of options available for selecting the cell phone and the network  provider. And in both the services customers are given high importance and plans are built on itwith prepaid and postpaid connections.
Business Model:
Reliance Communication (formerly Reliance Infocom), was set up
to make an India where thecommon man in urban as well as in rural area, would have access to affordable means of information-technology and communication, the tools of information and communicationavailable to all the individuals and businesses at affordable cost by creating customerdelight and enhancing the business productivity and by assisting India’s knowledge brainsdeliver globally.Core Business Model that relay on IT and IS:
Reliance Mobiles is the Pioneers of the CDMA Technology mobile services and has now enteredinto the GSM services, has captured the untouched rural Indian market through its low price and
 basic user friendly cell phone models and plans/schemes which is a contradiction in the industryas most of the industry players are busy capturing the diametrically opposite market segmentwho are actually capturing urban and upper segment. We understand Reliance Mobile is alsooffering a range of handsets specially designed to reach all economic classes at very reasonable price. This today, makes the telecommunications industry in India have a revolution in the waynation communicates and the networks which has brought in a new way of life style in India.Reliance Communications has made huge investments on the IT infrastructure by laying opticalfibers over 60,000 kilometers of a pan-India fiber optic backbone covering nearly 450,000villages and 77million subscribers by penetrating into the untouched market segment which has ahigh growth potential in the recent times.Reliance Communications has a reliable, high-capacity, integrated, and convergent digitalnetwork. It is capable of delivering a range of services spanning the entire information andcommunication value chain, including infrastructure and service for business as well as theindividuals. Apart from the enormous investment made into the IT infrastructure on which thewhole business process of Reliance Mobile is dependent upon there has been other InformationSystem on which the process is dependent upon such as Traffic Monitoring, Connection FraudManagement system, Management of billing systems, etc.
Mintzberg Classification :
According to Mintzberg`s classification
Reliance Mobile belongs to the
Divisionalized bureaucracy
as it is the combination of multiple machines and bureaucracies producing a different product or service like the CDMA technology based service or GSMtechnology based service with different plans and schemes which are all topped by one centralcompany “Reliance Communication” which can also be termed as the headquarter of RelianceMobile.Reliance Communications along with its well established Mobile phone service also providesWireless and with wire telephone network service, Big TV(DTH), integrated enterprise solution,village public telephone, BPOs, infrastructure business
under one roof hence we can classifythis organization as Divisionalized bureaucracy under Mintzberg Classification of Organizations
Porter’s Five ForcesBargaining power of suppliers
 Supplier concentration for infrastructure/inputs.Differentiation of inputsImpact of inputs on cost or differentiationSwitching costs of firms in the industryPresence of substitute inputs whereoptical fibers are used against copper ones 
 Access to inputsGovt.policies into industry.Very huge Capitalrequirements on theinfrastructure.Access to distribution of the service produced.
 -Exit barriers with high sunk costs-Exuberant Fixed costs/Value added-Intermittent overcapacity-Product differences-Brand identity
 -Switching costs to other service provider.-Buyer inclination tosubstitute like smart phones-Price-performancetrade-off of substitutes andcompetitors.
 Bargaining leverageBuyer volumeBuyer’s high information on productavailability.Brand identityHigh Price sensitivity

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