1. Case Study Prepared by:
Group 4
Amar Pal Singh
Apoorv Kr. Sharma
Arun Semwal
Idea Cellular Gaurav Khatri
Dipendra Raj Tomar
2. Introduction
• Customer base of over 36 million.
• Customer service and innovation.
• Part of Aditya Birla Group.
• Operates in more than 25 countries.
• Over 100000 employees from 25+ nationalities.
• Started with equal share of-
– Tata
– Birla
– AT&T Wireless
3. Mission
“We will delight our customers while meeting their
individual communication needs anytime anywhere.
We survive because of our customers.”
5. Strengths
• Attractive existing footprints in 11 circles out of 23
circles in India.
• Original licensee in 7 of the established circles.
• Strong distribution channel and good relations with
parent company.
• High quality network structure.
• Innovative strategies to attract customer attention.
6. Weaknesses
• The company’s debt to equity ratio is high.
• The company’s revenues are derived solely from
mobile services.
• The PAT margin is decreased.
7. Opportunities
• Increasing number of subscribers.
• Opportunities of economies of scale and high
customer value.
• The disposable income of middle class is increasing.
8. Threats
• Intense competition.
• Alternative technologies like Imax, VOIP ( Skype ).
• Market demand may slow down.
• Govt. rules and regulations.
9. Porters 5 Forces Analysis
• Threat to new entrants
• Suppliers bargaining power
• Threat of substitutes
• Customers bargaining power
• Rivalry among existing competitors
10. Strategic Groups in Telecom Sector
• Firms can be grouped on two parameters.
– Brand Identification
– Specialization
11. Idea’s Strategic Groups
• The bargaining power of strategic group against the
customer is high.
• Ideas placed in mid specialization and mid brand
category.
• The height of mobility barrier due to scale of
economy is moderate.
12. Risk faced by Idea
• Risk of other firms entering its strategic group.
• Risk of factors reducing the mobility barrier of the
Airtel’s strategic groups .
• Risk that accompany investment design to improve
the firms position by increasing the mobility barrier.
13. Future Outlooks of IDEA
• Movement towards higher strategic group.
• Gaining access to large number of users.
• Tremendous potential exploitation.
14.
15. Organic and Inorganic Growth
• Revenue increased both ways.
– Organic growth, Inorganic growth.
– First to launch GPRS & EDGE.
– Acquisition of Escotel, RPG Cellular, Andhra
Pradesh operations of TATA cellular.
– Expanding in terms of geography.
– Operates in more than 11 circles.
– Growth and market share increment through
innovative schemes.
– Introduction of new value added services.
