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8/3/2019 Global Startegy Analysis of ECI
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ECI Telecom
International Business Strategy
Group 8
Roll No 01 Abhijit Chattopadhyay
Roll No 03 Aditya Chauhan
Roll No 12 Anand Singh
EPGDIB (VSAT) 2010-2011
Course Coordinator K Rangarajan, Indian Institute of Foreign Trade
(IIFT), NewDelhi
Trimester -III
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Table of Content
Executive Summary.3
Introduction..........................3
ECI Global Business Locations. .............5
Industry Segment....... 6
Solution & Services....... ..7
Value Chain.. .. 7
Competitive Requirements 8
Globalisation Ambition.10
International Marketing Strategy.11
Global Strategy...12
Recommendations... .13
Conclusion..15
References..... 15
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Executive Summary
In this report we are analyzing ECI Telecom Global Business Strategy. ECI Telecom and
its current position in market, type of industry, types of service offering to customer, its
key differentiators, its international marketing approach, competitive requirement andglobalization ambition etc. We are also analyzing ECI Telecom Global Business strategy
and its impact on firm performances.
At last based on analysis giving some recommendations for ECI Telecom.
Introduction
ECI Telecom Ltd is a global telecom networking infrastructure provider headquartered
in Petah Tikva, Israel. It provides communications platforms and solutions to carriers
and service providers, cable/multiple system operators, wireless/cellular service
providers, utilities and carrier of carriers, and government and defense entities
worldwide. The company focuses on solutions for multi-play services, business
services, voice services, wireless, cellular backhaul, optical networking, Carrier Ethernet
networks, TDM to Ethernet evolution, migration to all IP, network security, carrier of
carriers and wavelength services.
ECI Telecom is a provider of advanced telecommunications networking solutions to
carriers and service providers in the world. Founded in 1961, ECI is privately owned.
ECIhas global reach and is headquartered in Israel with R&D centers in Israel, India,
China and the USA, and over 35 regional sales and service centers around the world.
ECI's sales and profit grew dramatically during the first five years of the 1990s.
Revenues increased over 500 percent, from $74 million in 1990 to over $450 million in
1995, while net income skyrocketed from $3 million to $87.9 million.
ECIs revenues exceed $600 Million annually and the Company has enjoyed year-on-year revenue growth for the past several years.
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ECI Telecom Employees
ECI has more than 2,500 employees in 24 offices worldwide.
Awards & Recognition
In July 2010, Infonetics Research validated ECIs top position in the Indiantransmission market, with 25% share of the countrys metro optical network
hardware market.
Also in 2010, ECI's 9710 Carrier Ethernet switch/router (CESR) platform wasnamed a 2009 Cable.TMCnet.com Product of the Year by Technology Marketing
Corporation (TMC).
As part of the iSMART Consortium, ECI was a Light Reading 2009 Top Pick,Telecom Software (EMEA), for Dynamic Spectrum Management Level 3 (DSM
L3), which aims to extend the useful life of copper networks for high-speedbroadband. Top Picks are the communications technologies, services and
products that Light Readings editors think best indicate where the
communications industry is headed in the next 12 months
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ECI Global Business Locations
ECI has over 200 active customers in over 70 countries, including most of the world's
major and most advanced telecommunications providers, as can be seen from the chart
below:
ECI works to service all customers through the Company's local sales forces and local
partners.
ECIs products, solutions and services are offered under 1Net, a comprehensive
framework for optimized transition to next-generation networks. 1Net is our customers
Path for Growth. 1Netaddresses our customers' challenges and needs as they transition
to next-generation networks, mitigating risks and optimizing migration.
ECI offers a full range of support and maintenance services including full project
implementation, maintenance and support services, network planning, design and
diagnostics, and turnkey solutions for end-to-end networks combining third party
solutions.
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Industry Segment
Telecom Equipment industry broadly categories into four segments Network
Equipment Vendors, Handset Equipment Vendors, Test & Measurement Vendors and
Independent Software Vendor.ECI belongs to Network Equipment Vendor segment.
Broad areas of offerings, of the network equipment vendors industry
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Solutions & Services
Transport Multi-service provisioning and transport platforms from access to core,
supporting legacy TDM/packet technology to IP/MPLS functionality, fully integrated
with WDM/ROADM optics.Carrier Ethernet Carrier-grade metro transport and IP/MPLS solutions and
platforms.
Broadband Access Multi-service access nodes for broadband access delivery of voice,
video and data.
Network Management Unified network management for end-to-end metro access to
long haul provisioning.
Services Network lifecycle services including network planning and design,implementation and integration, maintenance, optimization and operations. Managed
services sourcing strategies and end-to-end turnkey programs.
Value Chain
A value chain is a chain of activities for a firm. ECI value chain mainly comprises of
R&D, Inputs, Assembly, Distribution, Sales and Services.
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Generic Value Chain Map
Functions such as R&D, Sourcing, Assembly, and Distribution have been subdivided tobetter reflect the shifting functions of value in the map. As software has become a more
important component, many of the value functions reflect portions related to software.
Competitive Requirements
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Being a Network Equipment company Global and Local forces are high i.e
Competitive requirements are high for ECI.
Segments With Different Competitive Requirements
Even though competitive requirements for ECI is high but the company mainly
manufactures SDH and SONET technology based equipment. ECI has its rare presence
in IP and DWDM technology driven equipments.
IP and DWDM based equipments are not the core competences of ECI.
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Globalisation Ambition
ECI global ambition map shows that company is in between of Regional Dominant
Global player to Global player.
ECIs revenues exceed $600 Million annually and the company has enjoyed year-on-
year revenue from its foreign customers for the past several years which shows
company ambition to become a Global player.
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International Marketing Strategy
ECI Telecom is using Global High Share strategy. It shows company ambition to
faciliate its foreign customer and holistic approach to become a Global player in telecom
network equipment vendor segment.
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Global Strategy
As the partner for growth for telecom carriers and service providers worldwide, ECI
brings the 1Net framework to the market.
1Net focuses on customer needs to optimally transition to more competitive networks.1Net is the key to customer successful migration to next-generation networks.
1Net is based on three main principles:
Customer needs for an intuitive, scalable path for growth to support improvedtime-to-market.
ECI offering of holistic, integrated platforms, solutions and services. ECI ability to craft a unique solution, based on our in-depth knowledge of
customer requirements, our track record of innovation, the flexibility of our
offerings and ECIs financial stability.
ECI offering is customer Solution: A well-tuned orchestra of multi-functional
products.
ECI ability to answer customer Unique Needs: Flexible, state-of-the art offerings, with
a personal touch.
ECI Guarantee to customer: Lower TCO and investment risk mitigation.
Other Strategies
Making wireless backhaul a strategic asset and key competitive advantage. Create new opportunities while preserving your existing business and
infrastructure.
Leverage your network for new revenues with a one-stop wholesale solution.Benefits to Customer from the Global Strategy
By combining highly innovative products, solutions and services with a collection of
unique value propositions, with 1Net customer will enjoy winning results: Improved Execution: make customer business more pro-active, agile and
effective.
Reduced Costs: 1Net is about leveraging customer current investment whilepreparing customer for whats next to come.
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New Business Opportunities: ECI commitment is to facilitate new businessopportunities and service revenues.
Managed Risk:in todays uncertain markets, sustainability is a keyword 1Netis customer safe harbor Better Time to Market: once customers are ready to
move, 1Net is right behind him, ready to take him to the next level!
Recommendations
One of the challenges ECI is facing today includes coping with multiple and
simultaneous transitions of new technologies for IP based devices and DWDM
equipments, which are not the core competencies of the company and have huge
market potential of $3.8 billion. ECI must mitigate the pain and the risk associated with
these challenges, through a holistic approach to do strategic alliance or licensing of
technology with big player such as Cisco & Huawei (Fig for IP based equipment market
share).
Mobile data demands growing explosively, the key question ECI are facing today is
how to manage growth efficiently, cost-effectively and flexibly in an evolving 4G/LTE
network environment. In other words, how can ECI support more bandwidth at a lower
cost per bit to its customers? Such high-pressure demands make optimizing backhaul
operations as business-critical as investment in the wireless infrastructure itself. ECI
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need to be able to deploy quickly, address bottlenecks and cut the cost per bit. ECI
needs integrated, technology-neutral and 4G/LTE-ready solutions that can handle not
only mobile traffic, but also serve as converged infrastructure ready to support any
future business models customer may adopt.
ECI must focus on wireless business, which is one of the highly growing area of telecom
industry, with probable strategic alliance with Ericsson. With this alliance ECI can offer
all kind of telecom services under one umbrella. By doing so under one single
infrastructure, ECI can save on capex and reducing opex ( Fig for wireless market
share).
ECI must enhance access and transport networks will enable them to create, future-
proof revenue streams through next-generation applications, services, technology,
functionality and capabilities.
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Conclusion
ECI Telecom delivers innovative communications platforms to carriers and service
providers worldwide. ECI telecom provides efficient platforms and solutions that
enable customers to rapidly deploy cost-effective, revenue-generating services.ECI 1Net global strategic framework helps customers to manage risk, accelerate time-to-
market of new services, lower operational costs, improve deployment, enhance
profitability and generate new revenue opportunities with an integrated range of
solutions, platforms and services.
ECI's solution delivers on the necessary requirements for mission critical applications,
such as guaranteed low latency, high availability and managing the business services in
a way that makes it easy to deploy and supervise.
ECIs multi-play solution allows customer to offer their residential and business
customers a range of services, including voice, video and data, with a single point of
contact for integration and multi-play ecosystems.
ECI is one of the leading vendors in telecom industry. SDH & SONET technology based
equipments are the core competencies areas to ECI. The global SDH/SONET market
had become one of ECI's key divisions. The Company is enjoying year-on-year revenue
growth for the past several years and maintaining its leading position in SDH/SONET
global market since last few years.
ECI has begun to transform itself from a niche player in the telecommunications
equipment industry to a "global integrated network manager."
References
www.ecitele.com
www.indiaelectronicnews.com
www.wikipedia.org
http://www.ecitele.com/http://www.ecitele.com/http://www.indiaelectronicnews.com/http://www.indiaelectronicnews.com/http://www.indiaelectronicnews.com/http://www.ecitele.com/