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  • Manikandan - K.Shankar - G.Yuvarajan - Srinivas Karthick: Group 7 1

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    The document discusses Porter's 5 Forces analysis of the wireless telecom industry in India. It analyzes the threat of competition as high due to the top 4 operators garnering 75% market share. Customer bargaining power is also analyzed as high due to lack of differentiation, cutthroat competition, low switching costs, and the impending impact of number portability. Supplier bargaining power is seen as low. The threat of substitutes from other communication technologies and services is viewed as high. The threat of new entrants is viewed as low due to high license fees, long gestation periods, spectrum and regulatory challenges, and high infrastructure costs.

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    The document discusses Porter's 5 Forces analysis of the wireless telecom industry in India. It analyzes the threat of competition as high due to the top 4 operators garnering 75% market share. Customer bargaining power is also analyzed as high due to lack of differentiation, cutthroat competition, low switching costs, and the impending impact of number portability. Supplier bargaining power is seen as low. The threat of substitutes from other communication technologies and services is viewed as high. The threat of new entrants is viewed as low due to high license fees, long gestation periods, spectrum and regulatory challenges, and high infrastructure costs.

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    2 views10 pages

    Manikandan - K.Shankar - G.Yuvarajan - Srinivas Karthick: Group 7 1

    Uploaded by

    nokiasix
    The document discusses Porter's 5 Forces analysis of the wireless telecom industry in India. It analyzes the threat of competition as high due to the top 4 operators garnering 75% market share. Customer bargaining power is also analyzed as high due to lack of differentiation, cutthroat competition, low switching costs, and the impending impact of number portability. Supplier bargaining power is seen as low. The threat of substitutes from other communication technologies and services is viewed as high. The threat of new entrants is viewed as low due to high license fees, long gestation periods, spectrum and regulatory challenges, and high infrastructure costs.

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    of 10

    BY

    •Manikandan
    •K.Shankar

    •G.Yuvarajan

    •Srinivas Karthick

    GROUP 7 1
    Porter’s 5 Forces

    GROUP 7 2
    1. Threat from Competition
    Wireless Market – Top 4 garnering 75% market share

    HIGH

    GROUP 7 3
    Competitor Analysis

      OP Margin Net Margin


    Company Sep-07 Sep-08 Sep-072 Sep-083
    Best OP Margins &
    Net Profit Margins Bharti 43.00% 38.00% 26.40% 19.30%
    among Peers Rcom 37.90% 31.60% 23.90% 13.20%
    IDEA 32.80% 26.60% 14.10% 6.50%
    MTNL 23.70% 22.90% 7.00% 6.80%
    Source: CMIE November 2008

    GROUP 7 4
    2. Customer Bargaining Power

     Lack of differentiation among Service HIGH

    Providers
     Cut throat Competition
     Low Switching Costs
     Number Portability will have –Ve Impact
     Businesses & Consumers

    GROUP 7 5
    Market Scenario

    Postpaid Vs Prepaid

    GROUP 7 6
    3. Suppliers Bargaining Power
    LOW

    GROUP 7 7
    4. Threat of Substitutes
     Landline DIMINISHING MARKET HIGH
     CDMA

     Video Conferencing
    BROADBAND
    SERVICES
     VOIP - Skype, Gtalk, Yahoo Messenger
     e-Mail & Social Networking Websites

    GROUP 7 8
    5. Threat of New Entrants
     Huge License Fees to be paid upfront & High gestation
    period
    LOW
     Entry of MVNOs & WiMAX operators

     Spectrum Availability & Regulatory Issues

     Infrastructure Setup Cost - High

     Rapidly changing technology

    GROUP 7 9
    THANK YOU !!

    GROUP 7 10

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