BRIEF STUDY OF TELECOM INDUSTRY
Prepared By:
Abhishek PachisiaMBA - IT
Brief Introduction
Second Largest in the world based on number of users.
Lowest Call Tariff
Contribute to US$ 400 billion in terms of gross domestic product (GDP).
Supported by INSAT (Indian National Satellite System)
World’s Most Competitive and one of the Fasters Growing Telecom Market.
Top Companies are Airtel Vodafone Idea
Grew by 10.8% in FY 13-14.
Revenue Comparison - FY12-13 vs FY 13-14
Subscriber Shares – on March 31, 2014
Barrier To
Entry
Supplier Bargaining
Power
Customer Bargaining
Power
Substitutes
Rivalry Competitor
s
Porter’s Five Force Model
Barrier to Entry
• Capital/ Finance
• Telecommunication Licenses
• Established Service Providers
• Operating Skills
• Scarce Management experience.
• Loyalty to old Service Providers.
• ARPU Declining
• Access to Optical Fibre Network
Supplier Bargain Power
Click icon to add picture
• Can be:• Mobile Tower Companies
• SIM cards
• Mobile Phone Handsets
• Less Power
• Tower Companies• Telecos
• ITTC
• Limited Talented managers and engineers
Customer Bargain Power
• More Choices
• Lot of alternatives
• Lack of Interest to switch
• Sensible to Pricing
• No Differentiator as such.
• Competition between buyers
• Size and concentration of buyers
Substitutes
• Cable TV’s
• Broadband Internet Services
• Satellite Links
• Railway and Energy Utility Companies
• Internet Telephony
• Performance of Substitutes
Rivalry Competitors
• Concentration – Market Share
• Value Added Services
• Low Profits
• Ex: Airtel, Vodafone, Reliance, Idea
• Swift Obsolescence
• Global Presence
• Marketing Network
Barrier To
Entry
Supplier Bargaining Power
Customer Bargaining Power
Substitutes
Rivalry Competit
ors
Conclusion of Study
Thank
You