1. PORTERS
5 FORCE & 3 GENERIC STRATEGIES
WITH RESPECT TO
Presented by : Samuel David Mandal
Amity Business School

2. • Joint venture between Maxis Communication of
Malaysia (74%) and Apollo Hospital Enterprise Ltd of
India (26%)
• Founded in1999
• Headquarters : Gurgaon
• GSM Market share : 9.42% (sep 2010)
• Revenue : Rs 4028 cr (approx ttm)
• Revenue growth 9.36% QoQ Industry : 5.7% QoQ
• Subscribers 4.65 crores
• Present in 21 circles out of 23 telecom circles
Presented by : Samuel David Mandal
Amity Business School

3. Presented by : Samuel David Mandal
Amity Business School

4. COMPETITIVE RIVALRY WITHIN
INDUSTRY
• With 13 players and 6-7 operators in a circle Indian
market is overcrowded
• Already India has the lowest call rates and still we have a
Hard Price War.
• High innovation leading to high costs
Presented by : Samuel David Mandal
Amity Business School

5. THREAT OF NEW ENTRANTS
LOW
• Huge License Fees
• Long gestation period
LOW
• Spectrum and regulatory issues
• Entry of MVNOs and WiMax providers
LOW
• Infrastructure set up cost high
• Rapidly changing technology
Presented by : Samuel David Mandal
Amity Business School

6. BARGAINING POWER OF CUSTOMERS
Price sensitive environment leading to lowering of call and data rates
Low switching costs
Implementation of Number Portability
Lack of differentiation among service providers
HIGH
Presented by : Samuel David Mandal
Amity Business School

7. BARGAINING POWER OF SUPPLIERS
AREA SUPPLIERS FEATURES
Network Maintainance Nokia Siemens Lower operational cost
Information Technology Hewlett-Packard Lower operational cost
Passive Infrastructure BSNL Tower sharing, Higher
revenue
Call centre Aegis BPO, HindujaTMT Lower operational cost
Presented by : Samuel David Mandal
Amity Business School

8. THREAT OF SUBSTITUTES
LOW
• Landline
• CDMA
HIGH
• Video Conferencing
• VoIP
ENHANCER
• E-mail
• Social Networking Sites
Presented by : Samuel David Mandal
Amity Business School

9. COST LEADERSHIP
Offering lower call and data rates
Low cost pricing strategy
Lower operational cost
* $ 400 million agreement with Datacomm
* 10 year Passive tower
sharing with BSNL
* Billing, Data management
outsoucing deal with Hewlett-Packard
Presented by : Samuel David Mandal
Amity Business School

10. * Social Initiative Campaign
*Stand out from a cluster of competitors
*Instant brand recall
*Ad Agency - Dentsu
Targeting 3G Market for non-
voice revenue
Targetting Chennai and Tamil Nadu
Pan India visibility through IPL
DIFFERENTIATION
Presented by : Samuel David Mandal
Amity Business School

11. Ooops....“Caught in the Middle”
* Following different strategies together
* Low cost but not best cost
*Good differentiation strategy
140150160
169 148 150 145 144
89
18
29
23.99
15.02
14.71
9.42
8
Market Share
Airtel
Vodafone
Idea
BSNL
Aircel
Others
Presented by : Samuel David Mandal
Amity Business School

12. Operator Customers Spending ARPU Spend
Aircel 3,30,51,307 6449.46 92 1954
Airtel 9,02,58,820 12,295.46 162 1363
Idea 5,57,16,026 5768.59 139 1035
Analysis of Spending on 3G Licence in
relation with competitors
Presented by : Samuel David Mandal
Amity Business School