Swot Analysis of Idea Cellular Sample

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Idea cellular. a portion of Aditya Birla group. is one of India’s taking GSM nomadic services operator. This telecom company has licences to run in all 22 service countries. Presently it is runing in 13 circles. Idea Cellular value-added services like GPRS. call conference. GSM. GPS and besides provides customized solutions harmonizing to concern specific demands. With a client base of 98 million as on August 2011. it is among top 25 telecom companies. Through amalgamation and acquisitions. Idea Cellular has received established service countries for nomadic operations. In January 2001 it merged with Tata Cellular. which had service country in Andhra Pradesh. In June 2001. through its acquisition of RPG Cellcom. it received Madhya Pradesh service country. In January 2004 it received service countries of Haryana. Uttar Pradesh and Kerala through its acquisition of Escotel Mobile Communication ( Escotel ) . In 2006 it became portion of Aditya Birla Group. Idea Cellular has acquired 40. 8 % interest in Spice Communication.

Idea has a web of over 70. 000 cell sites covering the full length and comprehensiveness of the state. Idea has over 3. 000 Service Centres serving Idea endorsers across the state. including 450 particular Experience Zones for 3G publicity. Idea’s service bringing platform is ISO 9001:2008 certified. doing it the lone operator in the state to hold this standard enfranchisement for all 22 service countries and the corporate office. MilestonesIt received the ‘CARE’ service in the ‘Best Charge or Customer Care Solution’ award at the GSM Association Awards in Barcelona. SpainIdea Cellular won an award for the ‘Bill Flash’ service at GSM Association Awards in Barcelona. Spain. Recent developments: Idea Cellular has tied up with Taiwan’s handset maker HTC offering two touch phone theoretical accounts aiming the premium section in India.

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The two Taiwan made theoretical accounts called HTC Touch Pro and HTC Touch Viva are based on Windows nomadic platform offer elegant touch screen experience. Idea Cellular has launched EDGE enabled USB Data card ‘Netsetter’ for prepaid and postpaid endorsers in Mumbai. This information card would be priced at Rs. 2. 490. It will supply anywhere-anytime cyberspace entree and is merely Data Card holding compatibility with multiple runing systems such as Windows 2000. XP. Vista. and Mac. Awards * Idea is the victor of ‘The Emerging Company of the Year Award’ at The Economic Times Corporate Excellence Awards 2009. * IDEA Cellular besides received the esteemed Avaya GlobalConnect Award for being the ‘Most Customer Responsive Company’ in the Telecom sector in the twelvemonth 2010. * It won the GSM Association Award for ‘Best Billing and Customer Care Solution’ for 2 back-to-back old ages. It was awarded ‘Mobile Operator of the Year Award – India’ for 2007and 2008 at the Annual Asian Mobile News Awards.

Management Details| Chairperson – Kumar Mangalam BirlaMD – Himanshu KapaniaDirectors – Ambrish Jain. Arun Thiagarajan. Biswajit A Subramanian. Gian Prakash Gupta. Hans Wijayasuriya. Himanshu Kapania. Juan Villalonga Navarro. Kumar Mangalam Birla. M R Prasanna. Madhabi Puri Buch. Mohan Gyani. P Murari. Pankaj Kapdeo. R C Bhargava. Rajashree Birla. Rakesh Jain. Sanjeev Aga. Shridhir Sariputta Hansa Wijayasuriya. Tarjani Vakil| Business Operation| Telecommunication – Service Provider| Background| Idea cellular. a portion of Aditya Birla group. is one of India’s taking GSM nomadic services operator. This telecom company has licences to run in all 22 service countries. Presently it is runing in 13 circles. Idea Cellular value-added services like GPRS. call conference. GSM. GPS and besides

SWOT Analysis:SWOT is a ready to hand mnemonic to assist corporate contrivers think about scheme. It stands for Strengths. Weaknesses. Opportunities and Threats. What are an organisation’s SWOTs? How can it pull off them in a manner that will optimize its public presentation? A 2nd four-letter acronym is sometimes brought into drama here: USED. How can the Strengths be Used ; the Failings be Stopped. the Opportunities be Exploited ; and the Threats be Defended against? The procedure starts by naming a firm’s attributes under the four headers ; a peculiar strength. for illustration. might be a dedicated work force or some presently valuable patent. These are so given tonss harmonizing to what is seen as likely to be the company’s concern environment over the following few old ages. If a recession is get downing and employees have to be laid away. a dedicated work force might be a failing. If a roar is about to get down. nevertheless. it will be a strength. The four characteristics can be divided along two chief dimensions:

• Internal/external. The internal characteristics are the company’s ain strengths and failings. Analyzing them is a affair of analyzing the province of the company. They are things that already be. The external characteristics are the organisation’s chances and the menaces to its future public presentation. These exist merely on the skyline. and they are less easy to measure and step. They arise from things like alterations in engineering. human ecology or authorities policy. • Positive/negative. The positive things are the strengths and chances ; the negative 1s are the menaces and failings. Strength:

1. Brand repute:

Idea cellular is a portion of Aditya Birla Group. a transnational havingoperations in 25 states. The repute of being the first Indian multinational and portion of 100fortune companies carries a batch of strength which Idea cellular enjoys being the portion of esteemed group.

2. Net income border has been increasing at high rate:

The net income border of Idea cellular in relation toits rivals like Bharati Airtel and Vodafone has grown comparatively about 4 % from 2006-07

3. Scheme in Global Context For Idea Cellular Ltd. Which was 11 % to 15 % in 2007-08. It is strength for the organisation as it is likely to give them acompetitive border.

4. Fiscal strength:

The current ratio and the speedy ratio of Idea Cellular ( Current Assets/CurrentLiabilities ) is 1. 38:1 and 1. 3:1 which show they can change over their assets in to hard currency easy and pay their current liabilities. In the same manner their on the job capital is $ 1. 5 billion which showsthat they have immense hard currency for day-to-day bases operation and fiscal plants. If we talk about their stockholder financess which include general modesty and equity portion capital is $ 23 billion and entire long term debt is $ 6 billion which is less than their capital. so it helps them to acquire loan easy.

5. Market portion:

The overall market portion of Idea cellular is increasing at a healthy rate. It iscurrently runing in an industry which is expected to turn at a rate of 1. 3 $ trillion in revenueaccording to a US based research bureau ( Insight research corporation New Jersey ) . Thus we caninfer from this fact that Idea cellular has a immense mark audience. as it has expanded its operationsin about all parts of India. 6. Technology invention:

Bing the first participant in the telecom industry to get down GPRS services inIndia. and even get downing alone merchandises. such as ‘My gang’ and ‘Idea radio’ . the technologicalinnovation of the organisation can move as strength to the company in the long tally.

7. Strong advertisement and publicity:

Idea cellular is known in the industry for its aggressive promotional and advertisement techniques. such as holding Abhishek Bachan. a celebrated Bollywoodstar as portion of its advertisement clout line ‘What an thought Sir Ji’ proved effectual in transporting out the promotional runs throughout the state.

8. Strategic confederation:

Idea cellular has strategic confederation with IBM and Oracle. Both have a alone trade name image for supplying best in category package solutions like CRM ( Customer RelationshipManagement ) and OLAP ( Online Analytical Processing ) . It has besides tie ups with taking nomadic manufacturers like Nokia. This shows that the organisation is dedicated towards supplying superior services to its clients.


1. No presence in Broadband or internet service:

BSNL. Airtel. Reliance communications. Tata. all of them offer broadband services. Reliance communications every bit good as Tata are now offering high broadband entree through Data cards. It therefore adds value to their several trade names. Not being a broadband service supplier is hence a large failing for them.

2. Less PAN India presence:

Idea cellular limited has a low PAN ( Presence across state ) India presence every bit compared to its challengers Airtel and Reliance communications. Airtel and Reliance have ever been the first 1s in spread outing their operation efficiently as compared to other participants in the industry.

3. Target merely North India:

Idea Cellular is the market leader in North India. but they have asmall market portion in South India. Now late it has made its presence in Tamilnadu.

4. Not a participant of “Direct to Home Service” :

Idea cellular is non a participant of DTH services. Players like Reliance and Bharti Airtel have a strong presence in DTH services. Looking at thefuture chances of DTH services the giants like Tata. Airtel and Reliance who are the leadingmobile service suppliers in the state have entered the sphere of DTH. The DTH industry isexpected to touch a base of 40-50 million endorsers by 2015.

5. Not a large participant in urban market:

Idea Cellular is considered as rural market leader but theydo non hold good market portion in urban country. They have 70 % market portion in rural country and 32 % market portion in urban country.


1. Increasing figure of cellular phones2. Get downing of 3G services3. Nokia supplying Idea the vender-atheist consultancy services 4. Idea offers Internet connectivity in 20 circles5. Idea joined IBM to incorporate some IT work Increase in the figure of nomadic phone is an chance for Idea because it can be a ground of addition in consumers of services. 3G engineering is a new engineering in nomadic universe. It is dearly-won to setup but once it is setup so it gives net income in the sense of velocity. quality and coverage. Peoples are besides traveling to the 3G. Today Nokia is besides fabricating Mobile with 3Gfunctioning. Nokia is assisting thought in their concern theoretical accounts. efficaciously of systems. and engineerings.

Menaces:1. Brand name of other companies2. Force by tribunals to cut down duty3. New Players Promotional monetary values4. Increased web costs5. Decline of ARPU: There are many other companies like Airtel. Vodafone which has really repudiated trade name image and are possible menaces for thought. Force by the tribunals to cut down duty has resulted in lowering of service revenue enhancement of service supplier. New participants like Aircel started one paisa per second. as a consequence it become really hard to cut down call rates. but for endurance in market it is necessary to make. Adopting new engineerings in the web is dearly-won and increases the cost monetary value. Harmonizing to ABI research ARPU of telecom including India is falling. 6. Menace of competition:

Today there is tonss of competition between telecom companies to be in front of each other. There are authorities companies like BSNL and MTNL. Some private Indian companies like Tata. Reliance and some are foreign companies like Vodafone. spice. 7. Menace to new entrants:

Indian telecom companies facilitates chances to foreign companies in different Fieldss like ; VPN. satellite phone calls. 3G. international calls and value added services.

Market degree Fahrenheit or thought Growth Avenue:1. Rural telephone.2. Enterprise telecom service.3. VAS ( value added services )4. 3G5. WiMAX6. Infrastructure sharing7. Virtual private web.8. Managed services

In India large sum of participants energetic in the market national degree from its province degree being like ;

1. Aircel2. Virgin3. Spice4. Vodafone

8. Menace of utility merchandise and service:

The services like ; GSM. cyberspace. VOIP. CDMA Mobile. Wire line. broadband. bearers. VSAT. MPLS-VPN. etc. are provided by telecom industry. While speaking about cyberspace telephone. it is increasing as a good option. With cheaper rate it offers video conferencing merely like Skype.

9. Dickering Power of Customer:As it is offering services at cheaper rate. dickering power of its clients is really low. But due to the launching of nomadic services at cheaper rate by Airtel and other telecomcompanies. clients acquired many options. So it could be dickering power from the customer’s point of position.

10. Dickering Power of Suppliers:Idea cellular consumes Fe. aluminium. electric wires for tower devising. It purchases these natural stuffs in majority measures that every provider wants to sell their merchandise. Thus the bargaining power of providers is really less.

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