IDEA Mobile Services

8/6/2019 IDEA Mobile Services

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Marketing Environment

IDEA Mobile Services


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Company Profiles

Idea mobile services is one of Indias leading GSM

mobile services operator.

Idea Mobile Services is a company that operates in 22

telecom circles in India.

It is the 3rd largest GSM company in India behind

Airtel and Vodafone and ahead of state run player

BSNL. It is a part of the Aditya Birla Group, India's first truly

multinational corporation. The group operates in 25

countries.


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In 1995, it came into existence as a joint business

enterprise in between Aditya Birla Groups, Tatas and AT

and T by appending WingsC

ellular, TataC

ellular andBirla AT and T communication.

IDEA offers seamless coverage to roaming customers

traveling to any part of the country, as well as to

international traveling customers across over 200countries.

Cellular offers basic voice and short message service

(SMS) services to high-end value added and general

packet radio service (GPRS) services, such as Blackberry,Datacard, Mobile TV and Games.

IDEA Cellular has been recognized as the 'Most

Customer Responsive Company' in the Telecom sector,

2010


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Macro Environment

The growth of telecom sector is very fast in

India. Indian telecom industries have third

highest position in the globe. At present there

are 225 millions mobile subscribers.


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Political factors

Government is giving special attention to theprivate sectors.

TRAI is the government body for telecom industry

which controls all service providers. In India out of 100 people 1.38 people have

telephone, but set target is 6 people per 100. Itmeans there is requirements of more 45 millions

connections which cost around 60 billion US$.

In todays condition there is political stability is infavor of the telecom industries.


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Economical factors

India comes under growing economy.

India was also less affected by recession than

other developed countries. So there are morechances of continuous growth for India.

Telecom industry contributes 1% to GDP.

Therefore, the economic condition of India isgood for the telecom sector.


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Social factors

The telecom industry has brought revolutionin the societies of India in the field ofcommunications.

It is decreasing the cost and the time periodfor the transfer of messages.

In 2005 there were 110 millions connections

which increased to 250 millions in 2007 whichproof people eagerness to adopt new mediumof communication.


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Technological factors

Technology has its own value in telecom

companies.

Adapting new technology like 3G has becomethe mode of survival for the companies.

Sooner the company adopts the technology

greater opportunity it enjoys.


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Legal factors

Telecom companies in India are controlled by

government there are bodies like ministry of

communication and IT which make rules for

these companies.

Indian Telecom policy in 1994 encourages

foreign and private investment which became

more liberalize in the form of Indian Telecompolicy in 1999.


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Environment factors

Environment play important role for the

existence of the company.

It includes culture, behavior, demographicconditions which affects the company.

It is important for the company to moulds

itself according to the environment.


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Porter five factors


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Threat of Rivalry

Today there is lots of competition between

telecom companies to be ahead of each other.

Government companies like BSNL and MTNL. Privates companies like Tata, Reliance etc.

Foreign companies like Vodafone, Spice etc.


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Threat to New Entrants

Indian telecom companies facilitatesopportunities to foreign companies in different

fields like; satellite phone calls, 3G, internationalcalls and value added services.

In India big amount of players up-and-coming inthe market national level from its state levelexistence like, Aircel, Virgin ,Spice, Idea ,Vodafone


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Threat of Substitute Product and

Service

The services like; GSM, internet, VOIP, CDMA

mobile, Wire line, broadband, carriers, VSAT,

MPLS-VPN, etc. are provided by telecom

industry.

While talking about internet telephony, it is

increasing as a good alternative.

With cheaper rate it offers video conferencing

just like Skype.


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Bargaining Power ofCustomers

As it is offering services at cheaper rate,

bargaining power of its customers is very low.

But due to the launching of mobile services atcheaper rate by Airtel and other telecom

companies, customers acquired many options.

So, it could be bargaining power from the

customers point of view.


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Bargaining Power of Suppliers

Idea cellular consumes iron, aluminum,

electric for tower makings.

It purchases these raw materials in bulkquantities that every suppliers wants to sell

their product. Thus the bargaining power of

suppliers is very less.


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Micro Environment


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Strength Reputation of brand

Aditya Birla Groups operate in 25 countries and it is

the owner of cellular.

It is the Indian first MNC and also it is a part of 100

fortune companies. Increase in profit margin with high rate

Financial power

Current ratio and quick ratio of Idea were 1.38:1 and

1.3:1, respectively

Market share of Idea

It has huge market share, target audience and

operations in many parts of India.


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Technology innovation used in Idea: Idea cellular is the company which started the services

of GPRS India and come up with new product like Mygang and Idea radio.

Advertising and promotion in Idea: Idea cellular does many promotional advertisements,

and also uses Bollywood stars like Abhishek Bachan.

The punch line WHAT AN IDEA SIR JI made idea verypopular and was very effective.

Strategic agreement with other brands: Idea cellular also has strategic agreement with

companies like IBM and Oracle.

It also has tie up with Nokia which shows that Idea isdedicating superior services (Idea Portal).


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Weakness

No Broadband service:

Like other companies BSNL, Airtel, Tata, and RelianceIdea does not provide the broadband services.

Low coverage in India: Presence across nation of Idea is low as compared to

other companies like Airtel and Reliance. So there is ahuge market available which Idea cellular is missing.

Market leader only in North India: In North India Idea Cellular has very good market but

on the other hand in south market share is very small.So other companies are benefiting this market.


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Direct to Home Service is not available:

Idea cellular does not provide DTH services to its

customers whereas Reliance and Bharti Airtel

provide DTH services.

Less market share in urban market:

In the rural market Idea Cellular has very good

position that is 70% but in case of urban market ithas less.


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Opportunities

Increase number of cellular phones

Starting of 3G services

Nokia providing Idea the vendor atheistconsultancy services

Idea offers internet connectivity in 20 circles

Idea joined IBM to integrate some IT work


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Threats

Brand name of other companies

Force by courts to reduce tariff

New players promotional prices

Increased network costs


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Conclusion

Company should come up with new services likeTata Docomo has come up, Billing per pulserate and increase its market share,

It should provide fast GPRS, mobile internetservices and provide good customer service.

Company should target the rural segment.

Company also can try to acquire or tie up withother companies such as Vodafone, Airtel etc. inorder to catch up with the competition andgrowth of the industry.

Date post:	07-Apr-2018
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IDEA Mobile Services

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