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Strategy Analysis on BSNL

Date post: 16-Jul-2015
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GROUP 1

Introduction

• Bharat Sanchar Nigam

Limited (abbreviated BSNL) is India's oldest

and largest communication service provider and

is state owned telecommunications company

headquartered in New Delhi ,India.

History

• BSNL then known as the Department of

Telecommunications had been a near

monopoly during the socialist period of the

Indian economy.

• MTNL was present only in Mumbai and New

Delhi. During this period BSNL operated as a

typical state-run organization, inefficient, slow,

bureaucratic, and heavily unionised.

Mission And Vision

• VISION:

To become the largest telecom Service

Provider in Asia.

• MISSION :

To provide world class State-of-art technology

telecom services to its customers on demand at

competitive prices.

OBJECTIVES :To be a Lead Telecom Services Provider.

To provide

• Quality and reliable fixed telecom service to our customer and there by increase customer's confidence.

• Mobile telephone service of high quality and become no. 1 GSM operator in its area of operation.

• Point of interconnection to other service provider as per their requirement promptly.

Broadband customers base of 20 million in the country by 2010 as per Broadband Policy 2004.

Services• BSNL provides almost every telecom service in India.

Following are the main telecom services provided by

BSNL:

• Universal Telecom Services : Fixed wireline services

and landline in local loop (WLL) using CDMA

• BSNL Mobile

• Prepaid Mobile

• Internet

• Intelligent Network (IN

• 3G

Challanges• During the financial year 2008-2009 (from April 1,

2008 to March 31, 2009) BSNL has added 8.1 million new customers in various telephone services taking its customer base to 75.9 million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 62.3 million.

• Presently there is an intense competition in Indian Telecom sector and various Telcos are rolling out attractive schemes and are providing good customer services.

• Access Deficit Charges has been slashed by 20% by TRAI, w.e.f. April 1, 2009.[13] The reduction in ADC may hit the bottomlines of BSNL.

Solution

• A senior BSNL executive said the company is looking to have around 13 modules of what is called enterprise resource planning or ERP software. Besides finance, supply and HR functions, the software will be used to deal with materials and real estate management, ensure quality, derive business intelligence, and help operationalize an enterprise portal.

• “The ERP project is expected to get over by December 2009,” said the executive, who did not wish to be named because the plan to buy the software is not complete.

CLEAR TECHNOLOGY STRATEGY

• BSNL should go in for innovative products based on convergent

technology in order to acquire dominant market position.

• This can be achieved by

– Replacement of all the outdated technologies immediately,

– Redeployment of unutilized capacities should be considered first.

– Early deployment of cost effective wifi / wi max technologies

– Increasing the capital investment in convergent technologies even

if it renders certain in use technologies redundant.

• In spite of cost implications the alternatives of scaling/upgrading of

existing technology should not be considered since it will not yield

the desired results. Instead the focus should be on achieving dominant

market position through large-scale deployment of new technology

CUSTOMER ORIENTATION STRATEGY

• It will retain existing customers as well as to attract new customers

• Creating a Service-Oriented culture within the organization.

• Introducing flexible Registration Terms so that new customers are attracted.

• Educating the customer about services in detail and respective tariff structure

• Introducing service at door-step. • A successful loyalty programme becomes the driving

force in customer relationship management strategy

BSNL’S MARKETING STRATEGY NEEDS TO BE REDEFINED

• It should focus around Value Added Services, building strong distribution chain and differential treatment to premium/corporate customers

• Marketing is going to be the key to success –BSNL should come out with a variety of schemes for the end subscriber, both commercial and residential

Thank You


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