stel telecom strategy

8/8/2019 Stel telecom strategy

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Strategic Analysis of Strategic Analysis of S Tel IndiaS Tel India

Ranjeeth SubramaniamRamachanran SomasundaramSenapathy KumarSatish KumarNaveen Kumar Sathiyanarayanan



Company Overview

External Analysis

Internal Analysis

Organisational Purposes

Strategies

Recommendations

Competitive Strategy: Porter’s Generic framework/Bowman’s strategic clock

Development Strategy: Ansoff Matrix

Resources Resource Audit

Competencies Value Chain

Macro Environment

Micro Environment

PEST

Strengths&

Weaknesses

Opportunities&

Threats

Industry Life Cycle

Porter’s 5 forcesStrategic group analysis

Mission Statement

Agenda



S Tel an IntroS Tel Private Limited (S Tel), a new telecom operator inIndian marketplace, a joint venture between Siva Groupand Bahrain Telecommunications Company (Batelco)

S Tel has acquired Unified Access Services Licenses(UASL) and spectrum to operating in six Category Ccircles – Orissa, Bihar, Himachal Pradesh, North East,Assam and Jammu & Kashmir

These licenses will enable the company to provideUnified Mobile service, wireless broadband andinnovative Value Added Services (VAS) covering apopulation of over 226 million across these circlesHeadquartered in NCR region of Delhi, the companyplans to launch its mobile telephony service in Indiabefore close of 2009



Political factorsGovernment stability Taxation, employment

and safety lawForeign trade regulationRelationship betweengovernment and

organisation



Economical factors



Socio-Culturalfactors

Shifts in values andcultureChange in lifestyleConsumerismDemographic changesDistribution of income



Technologicalfactors

Government and industry focuson technological effortSpeed of change and adoption

of new technology The impact of the Internet



PEST Analysis



Porter’s Five Forces

Threat of

Substitutes

CompetitiveRivalry

Threa

t of newEntry

Buyer PowerSupplier Power

•Huge Start Up Capital

•Less Access to supplyand distribution channels•Complex legislation and

distribution channels

•11 operators in eachcircle•Some of them operatePan India•More innovative

differentiated product.

• Many operators so morethreat of substitutes.•Brand loyalty is less.•Performance of substitutes is also high

•Switching cost is less for the customers.

High Threat of SubstitutesHigh Competitive rivalry

Less Threat of New Entry High Buyer Power

•Due to high competition thebuyer have huge bargainingpower •Access to information is alsohigh



Strategic groupanalysis

NoofSubscribers

No of Circles

H i g h

L o w

Low High



Industry Life Cycle

Year Total Industry Sales



SWOT

Analysis



Opportunities• Good GDP and GDP per head growthrates

• TO start 3G Technology• Unemployment is reduced• Government focus on TechnologyDevelopment

• Change in Life Style



Threats

•Threats of new entrants•Threats of price war •Threats of New Govt rules•Threats of new Technology



Strengths•Previous experience in Telecom field•Have Raised Funds

•Good Marketing and Sales Strategy•Good relationship with the Distributorsand suppliers



Weaknesses

•Does not have its Own Network•Not in a good relationship with the

Govt•Not a Pan India operator

.



.

Strengths And Opportunities

•India ‘s GDP increases year after and hence there is a bright scopefor telecom industry in India•They have got enough money to bid for the 3G license

Weakness and Opportunities

•Since they don’t have their own network they can easily roll out by InfraSharing which is cost effective•Though not a PAN India operator, due to demographic changes its haslots of opportunities in Rural areas.

Strategic SWOTAnalysis



Strengths and Threats

•Using its past experience in running the Aircel telecom companyit can easily access the distribution channels to penetrate themarket.•Using strategic marketing skills and push strategies which itused in Aircel can easily overcome its substitutes.

Weakness and Threats

•They can later built their network which would reduce their cost and improve performance•They should start building good relationship with thegovernment in order to over come any sudden action or rules imposed by them.



Borrowing capacityInternal funds generationGlobal assets and liabilities

Taxation systems

Resource Audit

Financial

Organizational/Intangible

Customer, supplier and competitor

informationRelationships with suppliers,distributors and customersCustomer loyaltyOrganisation reputation



Physical

LocationsAgeRepairConfigurationComputer and communication infrastructureLand

HumanNo of Staff

ExperienceEducationAge distributionMotivationAttitudes and cultural awarenessRecruitmentFlexibility



Value Chain

Primary Activities• Operations

• Outbound logistics• Marketing & Sales

• Customer service

Secondary

Activities• Firm infrastructure• Human resource

management• Technology

development



Mission Statement In depth understanding of customer requirements and stayingconnected with the customer.Constantly benchmarking ourselves to scale new heights in

customer satisfaction.Building a culture of operational excellence and innovationthrough a driven and continually learning organization.First Time Right Approach, process discipline, Root cause analysisof problems identified and elimination of the root cause.

Upholding the highest ethical standards in our dealings andtransparency in our processes relating to customers, employeesand all stakeholders.Demonstrating our care for the community around us.



Mission Statement AnalysisComponents of a MissionStatement

Stel

1. Customers Staying connected with the customers

2. Products and Services Self Assessing on a regular basis bybenchmarking ourselves in order to meet thecustomer’s expectations and therebyupgrading our services.

3. Markets

4. Technology5. Concern for survival, growth andprofitability

Developing a culture of innovation andexcellence in operations by being drivenregularly and learning continuously .

6. Philosophy Right approach at First time by analysing theroot cause of the problem and thereby

eliminating7. Self-concept

8. Concern for public image Maintaining the transparency

9. Concern for employees



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Competitive strategies: Porter’s GenericFrameworks

B r o

a d

t ar g

et

N ar r ow t ar g

et

CompetitiveScope

Lower cost DifferentiationCompetitive

Advantage

StarsStars Question marksQuestion marksPost-paid servicePost-paid service

CASH COWSCASH COWS

Pre-paid servicePre-paid service

DOGSDOGS



Competitive strategy Differentiation



Recommendation

• Constant Allocation of part of the profit for promotionsas it is a key factor in the competitive arena.• Always be ready for any changes or consequencesdue to any Government rules or amendments.•They should be ready to handle political and economicissues.•Always maintain a debt equity ratio of 1:2• Concentrate more on the development and up-gradation of new technologies.

stel telecom strategy

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