STRATEGIC BUISNESS MANAGEMENT
Written Assignment Format
Name: Faeyaz Fateh Due Date / Day: 7th Sept 2011 Class: 28th Batch (SBM B1) Roll No: 2804116 Subject: SBM
Assignment No: 02 Topic: Title of the Assignment: Carry out environmental analysis for telecom sector in India Signature: (Of the student):
Marks out of 15
Name (Of the faculty): Prof. Avinash Dhespande Signature: Date of Evaluation:
Remarks (By Faculty): ___________________ ___________________
STRATEGIC BUISNESS MANAGEMENT
ANALYSIS
The Indian telecommunication industry is the worlds second-largest in terms of number of subscribers, and the world's fastest growing market in terms of number of new subscribers. India had 851.70 million mobile phone subscribers at the end of June 2011. As the fastest growing telecommunications market in the world, India is projected to have 1.159 billion mobile subscribers by 2013. Several leading global consultancies estimate that India will become the world's largest mobile phone market by subscriptions by [Link] industry is expected to reach a size of INR344,921 crore (US$76.92 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly. In 2008-09 the overall telecom equipments revenue in India stood at INR136, 833 crore (US$30.51 billion) during the fiscal, as against INR115, 382 crore (US$25.73 billion) a year before. The Environmental Analysis of Telecom Sector:
Technology: The most popular standard for mobile phones in the world. Its promoter, the gsm association, estimates that 82% of the global mobile market uses this standard. Gsm is used by over 2 billion people across more than 212 countries. It is considered a second generation (2g) mobile phone system.
STRATEGIC BUISNESS MANAGEMENT
One of the basic concepts in data communication is the idea of allowing several transmitters to send information simultaneously over a single communication channel. This allows several users to share a bandwidth of frequencies. This concept is called multiplexing. Cdma employs spread-spectrum technology and a special coding scheme (where each transmitter is assigned a code) to allow multiple users to be multiplexed over the same physical channel. The technology intended for smart phones- multimedia cell phones. It provides 3mbps speed for downloading which is very high as compared to that of 2G technologies. It provides internet surfing, downloading, audio video conferencing, fax service and many other broad band applications. 3g technology was implemented in Japan for the first time in the world. Today the tech is serving 25 countries over more than 60 networks in Asia, Europe and USA. Most of the service provider has launched 3G Spectrum.
Government: The Government extends full support to industry through reform processes Policies are in place to safeguard the interests of service providers, as well as those of consumers.
Demographic: According to the 2001 census, about 54 per cent of the countrys total population was below 25 years of age. By 2013, another 200 million people will be joining the league, representing an exponential growth in the consuming classes. India will become a large consumer of world resources - be it natural or man-made, thereby offering numerous opportunities to marketers around the globe. Approximately 33 per cent of Indias population will be residing in urban areas by 2026, as against 28 per cent in 2001.
STRATEGIC BUISNESS MANAGEMENT
Economics: Size (number of handset shipment globally) to achieve supply chain scale and average selling price. Production efficiency (direct cost: total system costs, costs of goods sold). Overhead (R&D and selling, general and administrative expenses)