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TATA DoCoMo
Tarun Kandarpa Suraj Jain Saurabh Thadani Srikanth Konduri Tushar Gupta Nikhil Gupta Anirudh Verma
returns because the cost of competition is quite high. A highly competitive market results from:
i) Many players of about the same size; there is no dominant firm ii) Little differentiation between competitors products and services iii) A mature industry with very little growth; companies can only grow by stealing customers away from competitors
There are majorly 3 types of players in the telecom industry:i) State owned players. (BSNL and MTNL) ii) Private Indian players. (Reliance comm, Tata comm, Bharti Airtel) iii) Foreign invested companies. (Vodafone, Idea cellular)
players in circles leading to reduced tariffs which have hurt major operators, as they will be unable to recover their high capital investment costs.
India into the next league of telecom supremacy by providing technologically advanced services at an affordable cost. On the private side, there has been a tough competition between Bharti Airtel and Vodafone each having a market share of 30 % and 24% respectively. Idea cellular, Reliance comm and Aircel are also in the race but they lack in the infrastructure when compared with Vodafone and Bharti Airtel
of suppliers is medium. If the company doesnt own tower infrastructure, then bargaining power of provider is high. Medium cost of switching since changing the hardware would lead to additional cost in modifying the architecture Limited pool of skilled managers and engineers especially those well versed in the latest technologies IT Vendors bargaining power is high as the telecom technical support and innovation is highly dependent on such suppliers. A lot of technical assistance provided by NTT DoCoMo.
much differentiation Bargaining power of wholesalers/retailers is also high. Switching cost very low Number portability to add to the bargaining power
-> perfect
competition Factors that limit entrance : High loyalty of existing customers. High fixed costs and difficult access to finance. Scarcity of resources. Already existing very low tariff rates. Government restrictions or legislation. New technology provides entry for foreign entrant. M&A in telecom sector are giving to new entrants. Bharti zain, uninor-unitech and telner, Aircel- maxis and reddy FDI has made it third largest sector.
Threat of Substitutes
Non-Traditional Alternatives:
Online Chat Email Satellite Phones VoIP Internet Telephony
substitutes. Cable TV and satellite operators now compete for buyers and internet telephony, delivered by ISPs and not telecom operators. Price performance trade off is very high. Overall threat of substitutes is between Low to Moderate level.