ENTRY OF RELIANCE IN THE TELECOMMUNICATION SECTOR

By:-Amulya KaliaAnupam GargKaran Garg

CONTENTS

• Introduction

• Porter 5 Forces

• STRATEGIES FOR TELECOM SECTOR

• SWOT Analysis

• Reliance Telecom

• RCOM Strategies

• REFERENCES

INDIAN TELECOM SECTOR

Rank in world in network size 3rd

Tele density (per hundred populations) 79.28

Telephone connections (In Million)

Fixed 929.37

Mobile 31.53

Total 960.9

Porter’s Five Forces

STRATEGIES FOR TELECOM SECTOR

• Scope - Business Portfolio

• Scope-Geographical

• Value Propositions

• Technology Platform

• Strategic Alliance Partner

• Mode of Entry

SWOT ANALYSIS• Strength1.Flexible plans 2.Good advertising 3.High brand visibility 4.Celebrity brand ambassadors 5.Ability to attract customers with various plans • Weakness1. Price competition from BSNL and MTNL 2.Untapped Rural Market • Opportunity1. Fast expanding cellular market 2.Latest and low cost technology 3.Untapped rural market • Threats1. New entrant's low price offering 2. Saturation point in Basic telephony service 3. Mobile Number Portability4. Other emerging modes of communication (basically the internet)

RELIANCE COMMUNICATIONS

RCOM STRATEGIES

• PRICING STRATEGY• “My vision is to provide the latest

telecommunication facilities to every Indian at the price of a post card” – Dhirubhai Ambani.

• Reliance Infocomm broke this mould with a tariff that is the most ambitious ever listed by a telecom company in India

• Free Incoming Calls

SALES AND MARKETING STRATEGY

• Internal Customers• 50,000 Employees and Millions of shareholders• During the annual general meeting the Reliance

Chairman offered shareholders a discount package

• In addition the shareholders were encouraged to promote Reliance Infocomm connections among their circle of influence

ADVERTISING

• Advertising was definitely a marketing strategy which complemented the unconventional channels of Reliance Infocomm

• Branded as IndiaMobile • Reliance Infocomm brand name embossed on

every handset gave it a unique mileage• Coincided with the Cricket World Cup

References

• TRAI, Highlights on Telecom Subscription Data as on 31st May 2012 (Press Release No. 143/2012)

• RELIANCE INFOCOMM’S STRATEGY AND IMPACT ON THE INDIAN MOBILE TELECOMMUNICATION SCENARIO by SANGEEETH VARGHESE

• Race to the Future: How Indian Telcos Have Made Their Initial Moves by Ranjan Das, TOI, 13 Mar, 2003