CHAPTER - 1

Introduction

 Concept of Reliance communica

 An Overview of current Market Scenario
 Brief Study of the Organization
 Organizational Set-up
(1) CONCEPT OF RELIANCE COMMUNICATION
Anil Ambani: Telecom person of the year 2007

His marketing strategy has made millions of Indians happy, they got the best mobile tariffs in the
world-local call costs at 15 paise/minute, and STD call at 40 paise/minute

NEW DELHI, INDIA: When the VOICE&DATA jury, comprising eminent professionals from
the telecom field, met in Delhi in June to choose the Telecom Person of the Year 2007, the five-
hour selection process was steamy.

The reason was obvious: The telecom sector is growing faster than any other segment and
naturally their CEOs have a lot to crow about. The jury had to select one from three CEOs, who
had made it to the final list through nominations from the industry and the initial scrutiny.
Among the three, one of the main contenders was a young CEO. The jury decided that he should
come back next year to try and win the coveted award. The list now had two names-both CEOs
of two well-known companies. The pivotal difference between the two: one is an entrepreneur
and the other is not so popular, as his credit is shared among a number of his big daddies.

Following a five-hour closely held, hotly debated discussion, the name was announced: Anil
Dhirubhai Ambani, chairman of Reliance Communications. Anil Ambani joined Reliance
Industries (currently promoted by his brother Mukesh Ambani, following their split) in 1983 as
co-chief executive officer. Forbes ranked him number 104 among the World's Richest People in
2006. The Ambani family faced criticism when it announced its ambitious plans to build a
countrywide telecom network, as its prior expertise lay in commodities-textiles and
petrochemicals- business only. Apart from that telecom needs a service-oriented mindset, critics
felt. What they did not remember was how the family had served its millions of shareholders.

Policies in India are made in line with Ambani's vision, says an industry expert. His business
acumen and closeness to politicians assisted him in making it to the Rajya Sabha in June 2004, as
an independent member. Ambani chose to resign voluntarily on March 25, 2006.
The same association with politicos gave him negative returns too when the Mayawati
Government in Uttar Pradesh put a spanner on his ambitious plans to build a 1,200-acre SEZ.

Media sees his aggression when he announces financial results for the Reliance ADA group of
companies, and when he attends the annual general meetings and faces questions from
shareholders. When he meets the press, he has answers to all their questions. He also remembers
to call select journalists by name.

To merchant bankers he, who has already contributed immensely to the financial reforms
of the country, is one of the financial wizards of the world. May be because of his expertise, he
gave up in the race to grab Hutchison Essar stake, after indirectly jacking up the valuation. His
negotiations with the Qualcomm chief are also a folk theory now.

How did Ambani become the VOICE&DATA Telecom Person of the Year 2007? What
are his personal and organizational achievements in the recent past?

His path-breaking marketing strategy that was put in by the strongest team of telecom
professionals the country has ever seen has made millions of Indians happy as they got the best
mobile tariffs in the world. The aggression resulted to adding to his already swollen kitty. Every
hour India will be adding around 20,000 new mobile customers and Reliance Communications
over 4,000. When mobile telephony first began in India, a local call cost Rs 16 per minute; an
STD Rs 50; and a call to the US Rs 100 per minute. With Reliance Communication’s pioneering
price initiative, a local call now costs a mere 15 paise per minute, STD 40 paise, and a call to the
US costs less than Rs 2 per minute. The presence of Reliance Communications is making the
competition in India panicky. Global telecom forces will also shortly start feeling the heat.
Ambani has also recently announced his Rs 1,200 crore buyout of Yipes Holdings.

Achiever's Pride
•

Undertook financial restructuring of Reliance communications

•

To spend Rs 16,000 crore to expand and strengthen network coverage

•

After expansion, Reliance Communications will have the single largest wireless
network in the world
•

Launched the lowest-cost classic brand handset at Rs 777

•

Subscriber base grew to over 28 mn during last fiscal, registering 60% growth
•

Total Revenue shot up to Rs 14,468 crore, an increase of 34%

•

Net Profit rises to Rs 3,163 crore, an increase of over 600%

•

Revenues of the wireless business increased by 46% to Rs 10,728 crore

•

Broadband achieved revenue growth of 123% to Rs 1,144 crore

•

Market capitalization crossed Rs 100,000 crore

•

Will add 23,000 more towers

•

Telecom services will be available in over 23,000 towns and 600,000 villages
•

Next generation DTH network will be launched before end of the year
Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal,
registering a 60% growth. This makes it one of the top two wireless operators in India.

"Economic growth in the future will be indexed to connectivity of millions of enterprise and
individual customers. Over the next few years, we will have over 100 million customers, making
us one of the top 5 telecom players in the world. In four years, we put up a total of 14,000 towers
across the country. This year alone we will add 23,000 more towers. Our wireless network is
currently available in 10,000 towns. By the end of this year, it will be available in over 23,000
towns and 600,000 villages," Anil Ambani said at the first annual general meeting of Reliance
Communications since the re-organization of the Reliance Group in June 2005.

"In four years of operations, we invested around Rs 32,000 crore. This year alone we will invest
over Rs 20,000 crore. At the end of this year, we will have covered over 90% of our population.
If Version 1.0 of the Indian telecom story was all about affordability, Version 2.0 will be about
reach. Our

Network expansion will give us the power to drive the market and stay ahead of the
curve," Ambani adds.

According to Ambani, the financial restructuring of Reliance Communications is the biggest

turnaround story in the history of corporate India. The inherited ownership structure of Reliance
Communications was complex. The reorganization has yielded a simple, fair, and transparent
ownership structure, and given Reliance Communications 100% ownership of all operational and
associate companies.

Reliance Communications is now among the three most valuable private sector
companies in India, and the five most valuable telecom companies in Asia. In the current
Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and
strengthen its network coverage across India and the rest of the world.
In addition to organic growth, Reliance Communications will leverage the advantages
derived from this impressive financial platform to explore and pursue any significant

opportunities available in the telecommunications sector. "We are currently evaluating a number
of inorganic opportunities in select international markets to further expand our footprint,"
Ambani said.

Reliance Communication’s One India, One Tariff plan allowed millions to connect across India
at just one rupee a minute. The company was the first one to break the Rs 1,000 entry-barrier
with the launch of the lowest-cost classic brand handset at Rs 777.

As per its expansion plan, Reliance Communications will have the single largest wireless
network in the world, covering over 900 mn Indians or more than 15% of the global population.
It will cover 23,000 towns or every single Indian habitation with a population of over 1,000.
Reliance Communications will cover almost 100% of all rail routes, providing seamless voice,
video, radio, and Internet connectivity to 14 mn commuters every day. It will also cover almost
100% of all national highways, and 84% of all state highways, giving millions of users the power
to talk, text, surf, play, chat or simply stay in touch across nearly the entire length of India's
2,00,000-km-long road network.

Having achieved tremendous growth, the main challenge for Reliance Communications is to
improve quality of service and ARPU. Its enterprise business is also not in a position to compete
with the global majors. Stock market valuations may boost the fortunes of an entrepreneur, but
Ambani needs to address the issues faced by the growing mobile customer base, especially in
India, where bureaucracy takes pride in checking the businessman
(2) AN OVERVIEW OF CURRENT MARKET SCENARIO

Reliance Communications (formerly Reliance Communications Ventures) is one of India's

largest providers of integrated communications services. The company has more than 20 million
customers and serves individual consumers, enterprises, and carriers, providing wireless,
wireline, long distance, voice, data, and internet communications services through a number of
operating subsidiaries. The company sells communications and digital entertainment products
and services through its chain of Reliance Web World retail outlets. The company's Reliance
Infocomm subsidiary provides wireless communications services throughout India. Reliance
Communications is part of the Reliance - Anil Dhirubhai Ambani Group.

The current network expansion undertaken by Reliance is the largest wireless network
expansion undertaken by any operator across the world.

It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm)
started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was
commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday,
though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line)
and convergent (voice, data and video) digital network. It is capable of delivering a range of
services spanning the entire infocomm (information and communication) value chain, including
infrastructure and services — for enterprises as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and

networks, truly bringing about a new way of life.

We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge
information and communication services affordable to all individual consumers and businesses
in India.

We will offer unparalleled value to create customer delight and enhance business
productivity.
We will also generate value for our capabilities beyond Indian borders and enable
millions of India's knowledge workers to deliver their services globally
(3) BRIEF STUDY OF THE ORGANIZATION
Chairman’s profile

Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-2002)
is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It is India's foremost
truly integrated telecommunications service provider. With a customer base of over 36 million
including close to one million individual overseas retail customers, Reliance Communications
ranks among the top ten Asian Telecom companies. Its corporate clientele includes 600 Indian,
250 multinational corporations and over 200 global carriers and owns and operates the world's
largest next generation, IP enabled connectivity infrastructure, comprising over 150,000
kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific
region.

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani,
48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance
Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources.

He is also the president of the Dhirubhai Ambani Institute of Information and

Communications Technology, Gandhinagar

An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited
with pioneering several financial innovations in the Indian capital markets. He spearheaded the
country’s first forays into overseas capital markets with international public offerings of global
depositary receipts, convertibles and bonds.

Under his chairmanship, the constituent companies of the Reliance ADA group have raised
nearly US$ 3 billion from global financial markets in a period of less than 15 months.

Shri Ambani has been associated with a number of prestigious academic institutions in
India and abroad.
He is currently a member of:
•

Wharton Board of Overseers, The Wharton School, USA

•

Board of Governors, Indian Institute of Management (IIM), Ahmedabad

•

Board of Governors, Indian Institute of Technology (IIT), Kanpur

•

Executive Board, Indian School of Business (ISB), Hyderabad

In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha – Upper
House, Parliament of India, a position he chose to resign voluntarily on March 25, 2006.

Select Awards and Achievements

•

Voted ‘the Businessman of the Year’ in a poll conducted by The Times of India – TNS,
December 2006
•

Voted the ‘Best role model’ among business leaders in the biannual Mood of the
Nation poll conducted by India Today magazine, August 2006
•

Conferred ‘the CEO of the Year 2004’ in the Platts Global Energy Awards
•

Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002
•

Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum
(WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in
many of its business areas, December 2001

Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business and
Finance' and was introduced as the only 'new hero' in Business and Finance from India, June
1999
(4) ORGANIZATIONAL SET UP

Reliance Communication Limited

CHAPTER - 2
Main Studies
 Introduction of the Topic
 Apply six sigma
 The problems being faced
 What does Company expect to do by solving the
problem
(1) INTRODUCTION OF THE TOPIC
What is SWOT Analysis?

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for
the development of marketing plans. It accomplishes this by assessing an organizations strengths
(what an organization can do) and weaknesses (what an organization cannot do) in addition to
opportunities (potential favorable conditions for an organization) and threats (potential
unfavorable conditions for an organization). SWOT analysis is an important step in planning and
its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is
to take the information from the environmental analysis and separate it into internal issues
(strengths and weaknesses) and external issues (opportunities and threats). Once this is
completed, SWOT analysis determines if the information indicates something that will assist the
firm in accomplishing its objectives (a strength or opportunity),

SWOT analysis is a general technique which can be applied across diverse functions and
activities, but it is particularly appropriate to the early stages of planning for a TIPD visit.
Performing SWOT analysis involves generating and recording the strengths, weaknesses,
opportunities, and threats relating to a given task. It is customary for the analysis to take account
of internal resources and capabilities (strengths and weaknesses) and factors external to the
organization (opportunities and threats).

SWOT analysis can provide:

A framework for identifying and analyzing strengths, weaknesses, opportunities and
threats.

This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple,
popular technique which can be used in preparing or amending plans, in problem solving and
decision making.

Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a desired
end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated
into the strategic planning model. An example of a strategic planning technique that incorporates
an objective-driven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and
SCAN analysis, has been the subject of much research.
Strengths: attributes of the organization those are helpful to achieving the objective. Weaknesses:
attributes of the organization those are harmful to achieving the objective. Opportunities: external
conditions those are helpful to achieving the objective. Threats: external conditions that is
harmful to achieving the objective.

SWOT analysis can be used for all sorts of decision-making, and the SWOT template
enables proactive thinking, rather than relying on habitual or instinctive reactions.

The SWOT analysis template is normally presented as a grid, comprising four sections, one for
each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free
SWOT template below includes sample questions, whose answers are inserted into the relevant
section of the SWOT grid. The questions are examples, or discussion points, and obviously can
be altered depending on the subject of the SWOT analysis. Note that many of the SWOT
questions are also talking points for other headings - use them as you find most helpful, and
make up your own to suit the issue being analyzed. It is important to clearly identify the subject
of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a
product, a proposition, and idea, a method, or option, etc.

Here are some examples of what a SWOT analysis can be used to assess:
•

a company (its position in the market, commercial viability, etc)

•

a method of sales distribution

•

a product or brand
•

a business idea
•

a strategic option, such as entering a new market or launching a new product

•

a opportunity to make an acquisition

•

a potential partnership
•

changing a supplier
•

outsourcing a service, activity or resource

•

an investment opportunity
RELIANCE COMMUNICATION LIMITED
APPLY SIX SIGMA
(2) PROBLEM BEING FACED
• Lack of communication between retailers and distributor
• Lack of improper distribution channel
• Co mpetito r s

• Not regular visit of DSE and Runner

• All retailers are not aware of new scheme of RCOM

• Lack of sales promotion and advertisement

• Retailer doesn’t get claim at proper time

• No visit of TSM or any other person to the retailer’s shop
(3) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE
PROBLEM
• Customer Satisfaction

• Retailer Satisfaction

• Increase in Sale

• Sales Promotion

• Proper Distribution Channel

CHAPTER - 3
METHODOLOGIES

 Research problem
 Research Objective & sub- objective
 Information Requirement
 Choice of Research Design
 Research Instrument used
 Schemes, Products & Sample size
(1) RESEARCH PROBLEM
 Collection of Data of other companies –Tata indicom, Airtel & BSNL
 Retailers some time gives wrong data
 Limitation of time and money
(2) RESEARCH OBJECTIVE
•

To know the demand of Rcom bundle offer along with LGRD 3000 and 6100 as Ill
as the demand of Rcom Bachat pack Sim in the market
• To help in development and introduction of new product
• To identify the company position among competitors
•

To determine those factors which persuade retailers for sale of RCOM

sims/product
• To find out which type of schemes retailers prefer and why?
• To study the effect of irregular supply on the sale of the product
(3) SUB OBJECTIVE
•

To compare the Airtel and Tata indicom Bundle offer with RDLG 3000,
3500 & 6100 for analyzing the status of RCOM Bundle Offer
•

To identify the Market share of RCOM

• To find out the basic problems of retailers

• To find out the performance of Distributor

• To find out the basic problems of Channel of Distributor

• To find out the Claims pending of Retailers

(4) INFORMATION REQUAREMENT
Complete Price structure of Rcom, Airtel & Tata indi.offer which includes

• Sim Processing Fees

• Discount Offered

• Schemes offered

• Service Tax

(5) SOURCES OF INFORMATION

• Data collected from the Company

• Secondary Data

• Internet

• Retailers

• Distributor
• Sales Executives

• Other Trainees (Runner)

(6) SCHEMES, PRODUCTS
RELIANCE PRODUCT

 Reliance Base Phone

 Reliance Mobile

 Reliance Data Card

 Reliance Voucher, E-Recharge

 Reliance PCO

 Reliance Broad Band

STD CALLING CARD