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project on MTS project on MTS Document Transcript

  • Business and Management(HL)May-2012Research Project“Can MTS (CDMA) card, a brand ofSISTEMA increase its market share by creatinga joint venture with a smartphone company?”Candidate name: Abhilash ManatkarCandidate number: 003563 -001Word count: 1797
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 2AcknowledgmentsI would specially like to thank Regional Marketing Manager Mr.Naket, the manager of the MTS outlet in Sitabuldi in Nagpur forproviding information on MTS CDMA in Nagpur and for his help inproviding the required information and his precious time for theinterview.I would also like to thank my supervisor, Mr Prabhuling Swami forhis guidance.
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 3ContentsContentsAcknowledgments...................................................................................................................................2Contents..................................................................................................................................................3Research Proposal...................................................................................................................................4Action plan..............................................................................................................................................5Executive Summary.................................................................................................................................6Introduction ............................................................................................................................................7Methodology /Procedure .......................................................................................................................8Main Results / Findings ..........................................................................................................................9 What are Smart Phones?........................................................................................................9 Results of analysis and evaluation of the Survey.................................................................10 What is skype?.................................................................................................................15 Analysis and evaluation of the interview with the Regional Marketing Manager...............16 Analysis and Discussion .......................................................................................................17 SWOT ANALYSIS.................................................................................................................17 Force analysis ......................................................................................................................18Conclusions and Recommendations .....................................................................................................19Bibliography and References................................................................................................................20Appendices............................................................................................................................................21 Interview ..............................................................................................................................25
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 4Research Proposal“Can MTS (CDMA) card, a brand of SISTEMAincrease its market share by creating a joint venturewith a smartphone company?”This question was been created by the thinking of CDMA sim cardsare not performing well in the market and facing many problems sowhat are the problems and solution after analysing all I found thisquestionIn this project I used 2 analyses that are Force Field analysis andSWOT analysisProblems likely to be encounted and possible solutions:Possible Problems:- Solutions:-Interview questions will help myproject and will it give me theright way to move.Before going to interview I willtake the analysis of thequestionnaire ask to the peoplethat it will make clear the ideaabout the next step
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 5Action planDate Activities Modifications3 November 2011 Topic Selection4 – 10 November 2011 Making questionnaire11 – 15 November2011Started research16 – 28 November2011Collected questionnaires29 – 30 November2011Teacher’s guidance onanalysis of questionnaire1 – 8 December 2011 Did researching (OnQuestionnaires answers)9 December 2011 Confirm interview Date &Time10 – 11 December2011Making interviewquestionsModified inTopic13 December 2011 Conduct the interview withRegional Marketing,Manager Naket1 – 5 January 2012 SWOT & FORCE analysis Modified researchcontent6 January 2012 Completed the project for1stdraft7 January 2012 Check the draft9 January 2012 Submitted the 1stdraft10 - 14 January 2012 Slightly modifiedthe analysis asteacher replied ondraft15 January 2012 Completed the project for2nddraft25 January 2012 Submitted the project finalWord count: 268
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 6Executive SummaryMTS (CDMA) a brand of Sistema Company is currently offering thelowest call rate in CDMA technology, but, it still has a very smallmarket in India. The main reasons being:1) It has not been promoted it’s product beyond a certain limit.2) The handsets in which CDMA sim cards are used are notcompetent with their GSM counterparts owing to the lack ofapplications and functions.The company can increase their market share by creating a jointventure with the smart phone company, Android. Considering thisquestion, I have conducted secondary and primary research whichincluded an interview with a MTS outlet manager, RegionalMarketing Manager Naket and questionnaires.Initially, after getting the data from the questionnaires, I believed thatentering into a joint venture with Apple would be a good idea, but,after the interview, I came to a conclusion that a lot of people simplyticked Apple, when offered a choice simply because of the status itimplies. Thus, after analysing everything I came to a conclusion thattying up with HTC Android would be a better decisionWord count: 184
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 7IntroductionSistemas History:Sistemas ownership structure was formed in 1993. During this yearthe acquisition of the main assets in telecommunications, high-tech,tourism, trade, oil and oil products, construction and development wascompleted. Sistema Shyam Tele Services (SSTL) is a joint venturecompany between Sistema {LSE: SSA} of Russia and Shyam Groupof India. Sistema is the majority shareholder in this joint venture witha 73.71% equity stake, along with the Shyam Group, holding a23.79% stake and the rest 2.5% being public partake. For the firsttime in India, courtesy of MTS (brand of Sistema), customers acrossMaharashtra & Goa can now avail ½ paisa/second tariff plan for“LIFETIME’ on all local calls without any condition and then also thesale was less and the main reason was that it is in CDMA supportedcard.1So, I am researching on MTS the brand of Sistema can tyingwith a HTC smart phone company will increase the Indian marketsize.“Can MTS (CDMA) card, a brand of SISTEMA increase itsmarket share by creating a joint venture with a smartphonecompany?”1http://www.mtsindia.in/corporate/downloads
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 8Methodology /ProcedureIn this research project I used the following procedure to study thebusiness carefully and collect the primary and secondary information:• Primary Research: - I conducted an interview of the RegionalMarketing Manager, Mr. Naket, in a MTS outlet in Sitabuldi, Nagpurand I made questionnaires which contributed to the data collection.• Secondary Research: - Data collection through internet, differenttextbooks of IB and other material.
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 9Main Results / FindingsWhat are Smart Phones?A smartphone is a high-end mobile phone which combines thefunctions of a personal digital assistant (PDA) and a mobilephone. Todays models typically also serve as portable mediaplayers and camera phones with high-resolution touchscreens,web browsers that can access and properly display standardweb pages rather than only mobile-optimized sites, GPRS,Wi-Fi and mobile broadband access. The term smartphone isusually used to describe phones with more advancedcomputing ability and connectivity than a contemporaryfeature phone, although the distinction can be vague and thereis no official definition for what constitutes the differencebetween them. The definitions also shift over time since manyphones that are considered feature phones today can havecapabilities that exceed those of phones that had beenpromoted as smartphones in the past.22http://en.wikipedia.org/wiki/Smartphones
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 10Results of analysis and evaluation of the Survey Do you like to use smart phones?The survey says 99% people prefer smartphone as it is moving with fashion. Do you use CDMA sim cards?The survey says 85% people prefer GSM and just 15% people prefer CDMA so it shows that weshould increase are marketing by a tying up or making any other idea. If CDMA would prefer morethan it would be benefit to the tie up or then we could increased the tie up by any idea of call rate orinternet like Skype0%20%40%60%80%100%120%YES NoDo you like to use smart phones?0%20%40%60%80%100%YES NODo you use CDMA sim cards?
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 11 Which one do you use 3G for video calling or 3X for speedily internet?As the survey says that people want to use speedily internet at 72% and 28% would like to use 3Gvideo calling so it is a pulse point to the company because MTS CDMA card can’t use 3G videocalling but gives the speed of 3X in internet. What would you prefer to use.As we get more percentage (%) in apple (35%) the most and then Android (29%) as this both systemhas cover half of the market so it shows that if MTS tie up with apple or android to be in benefit.0%20%40%60%80%3G 3XWhich one do you use 3G for videocalling or 3X for speedily internet?0%10%20%30%40%Apple Android Black Berry Windows MobileWhat would you prefer to use?
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 12 Which of the following options would you prefer as your call rate?The survey says that as MTS has the lowest rate of call 0.50 p/sec which is biggest pulse point forcompany as people like it and will give a great response to tie up by low call rate. which company CDMA card would you like to buy was asked to check the brand name ispopular in public or notSurvey says that in all CDMA Sims cards brand the MTS brand name is little bit equal to each other’sbut at the last and we have to increase it because it is prefer last.0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%Rs. 1/min Rs. 0.50/min 1 p/sec 0.50p/secWhich of the following options would youprefer as your call rate?0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%TATA IndicomRelianceMTSOthersWhich company CDMA card would you liketo buy
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 13 Which company Smart Phones do you like more in this with the help of pie diagram we cancome to know that Apple (25%) and HTC (20%) and it became 45% covers half of the marketof smart phone.Survey says that MTS the brand of Sistema Company has to tie up with the Smart Phones then theyhave to tie up with Apple.Apple, 25.00%HTC, 20.00%Black berry,15.00%LG,4.00%Samsung, 18.00%Motorola,6.00%Sony Ericsson,12.00%
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 14 Do you use Skype3on your Smart Phones?Survey says that more people use skype and if we use it in the tie up we can solve a problem of 3Gvideo calling. Do you need to travel out of India a lot to make people awry of CDMA benefits?Here the survey says that because we were having pulse point that MTS is CDMA it can be use allover the world the people who prefer to travel a lot all over the world.3On page 150.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%YES NODo you use Skype on your Smart Phones?0.00%20.00%40.00%60.00%80.00%100.00%120.00%YES NODo you need to travel out of India a lot?
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 15What is skype?Skype is a proprietary voice over Internet Protocol service andsoftware application originally created by David Somekh, and ownedby Microsoft since 2011 this service allows users to communicatewith voice, video, and instant messaging over the Internet over anycountry. Phone calls may be placed to recipients on the traditionaltelephone networks. Calls to Skype to Skype service are free ofcharge, while calls to landline phones telephones and mobile phonesare charged via a debit-based user account system with different rate.Some network administrators have banned Skype on corporate,government, home, and education networks, citing reasons such asinappropriate usage of resources, excessive bandwidth usage, andsecurity concerns.4Skype will help to do video calling on the place of 3G5the MTSCDMA can use skype on 3X on the place of 3G GSM just they haveto give skype install in their smartphone and have to charge for thatbut at very low rate.4http://en.wikipedia.org/wiki/Skype5Page 11
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 16Analysis and evaluation of the interview with the RegionalMarketing ManagerThe views of Regional Marketing Manager and the costumer’s surveyin the survey it is shown that MTS is having lowest call rate and thenalso it is preferred at the last in the CDMA telecommunicationRegional Marketing Manager says that MTS brand has not promotedvery well and other product has more promotion but the survey isagree with Regional Marketing Manager but with less promotion thenetwork and outlet are also very less so it is prefer last then waypeople prefer GSM more than CDMA Regional Marketing Managersays People want to keep their status so they prefer GSM more but thesurvey says No it is not that GSM has more status and CDMA hasless but the handset which are made supporting to CDMA are nothaving more function and is not moving with the fashion if thehandset are not moving with fashion then the CDMA cards also can’tdo video calling but GSM can do which is fashion of today’s teen ageso can they have Skype in their phone Regional Marketing Managersays Skype do free video calling and if it is in mobile phones thenpeople prefer it more and company will not get more profit surveysays yes it’s true that company will not get more profit but if companywill charge it by some price for per month then the problem of videocalling will be solved costumers are preferring first Apple and secondandroid system choose in the survey so should MTS move with AppleRegional Marketing Manager says People choose apple to keep theirstatus and it has good functions but it’s very expansive so they preferandroid because it is having function with sufficient rate the survey is100% agree with Regional Marketing Manager sir that people try tokeep their status but the truth is different in some cases so they willprefer android more
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 17Analysis and DiscussionSWOT ANALYSISStrengths WeaknessInternal The brand is good andstrong in CDMA cards The lowest call rate intelecommunicationmarket It has 3X speed of Internet Good network tied upwith TATA DOCOMO The target of selling simcard is high to everyoutlet of MTS Online recharge CDMA sim carddon’t have 3G Less outlet all overIndiaOpportunities ThreatsExternal Can tie up with smartphones to increase theirmarket Can increase their outletmore in villages Make the people awakeabout the low price callrate There is lessmedia coverageand publicity Has to changewith fashion asusing smartphonesAs the brand is having more Strength of good network and high speedof internet and only 2 weaknesses CDMA sim don’t have 3G but asthe high speed internet then the video calling can be done by Skypeand more opportunities to move ahead.
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 18Force analysisDRIVING FORCES RESTRAINING FORCESYES MOST OF THE PEOPLE NO, IT NEED 3G ANDUSE SMART PHONES MTS IS CDMA DON’T HAVE 3GCDMA HAVE 3X SPEED OF NETAND SMART PHONE IS USE FOR NET½ PAISA/SECOND TARIFF PLAN FORALL CALLS WITHOUTANY CONDITION By the force field analyses it is proved that the new tie up is thegood idea to increase the marketing. Driving Forces are the positive points of the brand which issaying that the benefit effect which will encourage the people tobuy MTS (CDMA) sim cards. Restraining Forces are the negative points of the brands which isonly one that not having video calling as MTS is CDMA it can’tdo video calling so to make it as a positive point in company canstart rent on skype by which they can do video calling.New tieup: - tie upwith smartphone willincreasethemarketing
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 19Conclusions and RecommendationsMTS (a brand of Sistema) can tie up profitably with android HTCsmart phones. I can conclude this after having acquired the results ofthe questionnaire which clearly show that MTS should tie up withapple smart phones. This is because most people prefer apple handsetsas a status symbol, a fact, which was later concluded with the helpregional marketing manager, that MTS will do better if it ties up withAndroid smart phones as android is the next best option chosen6in thesurvey because of its good functions with low price compared withapple. As HTC is the only brand which make the Android software inall handset of all brands, as MTS will tie up with HTC Androidhandsets it will be affordable to the company and customers.6Page 11
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 20Bibliography and References1. http://www.mtsindia.in/corporate/downloads/MTS%20offers%20ISD%20calls%20to%20Russia%20at%20just%20Rs.4.99%20per%20minute2. IBID BUSINESS AND MANAGEMENT BY PAUL HOANG -BOOK3. http://en.wikipedia.org/wiki/Smartphones4. www.sistema.com
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 21AppendicesNAME:-AGE:-(PLEASE PICK ONE OPTION IN EACH OF THE FALLING)RESIDENCE:-IN NAGPUR• OUT OF NAGPUR BUT IN INDIA• OUT OF INDIA1) DO YOU LIKE TO USE SMART PHONES?• YES• NO2) DO YOU USE CDMA CARDS?• YES• NO
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 223) WHICH ONE DO YOU USE?• 3G (VIDEO CALLING)• 3X (SPEEDILY INTERNET)4) WHAT WOULD YOU PREFER TO USE? (YOU CAN CHOOSE 2 ORLESS THAN 2)• ANDROID - OS• APPLE - IOS• BLACK BERRY - OS• WINDOWS MOBILE – OS5) WHICH OF THE FOLLOWING OPTIONS WOULD YOU PREFER ASYOUR CALL RATE?• 1 /MIN• 50 P/MIN• 1 P/SEC• 0.5 P/SEC
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 236) WHICH COMPANY CDMA WOULD YOU LIKE TO BUY? (YOU CANCHOOSE MORE THAN ONE OPTION.)• TATA INDICOM (1/MIN)• MTS (0.50 P/SEC)• RELIANCE (50 P/MIN)• OTHERS7) WHICH COMPANY SMART PHONES DO YOU LIKE MORE? (YOUCAN CHOOSE MORE THAN ONE OPTION.)• HTC• SAMSUNG• LG• MOTOROLA• SONY ERICSSON• APPLE• BLACKBERRY
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 248) DO YOU USE SKYPE ON YOUR SMART PHONE?• YES• NO9) DO YOU NEED TO TRAVEL OUT OF INDIA A LOT?• YES• NO10) IF YES, DO YOU USE THE SAME NUMBER SIM CARD?• YES• NO11) HOW MUCH INTERNET SPEED DOES YOUR CURRENT SIM CARDGIVE YOU?• 1X• 2X• 3X• 4X
  • Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 25InterviewMr. Naket Regional Marketing manager of MTS outlet IN QUESTIONNAIRE IT IS SHOWN THAT MTS IS PREFERRED ATTHE LAST AS IT IS HAVING LOW CALL RATE? WAY PEOPLE PREFER GSM MORE THAN CDMA? THE CDMA CARDS CAN’T DO VIDEO CALLING BUT GSM CANDO SO CAN WE GIVE THEM SKYPE IN THEIR PHONE. IN QUESTIONNAIRE I HAVE SHOWN THAT APPLE IS 1ST &ANDROID IS 2ND SYSTEM CHOOSE BY THE PEOPLE SO CANWITH WHICH ONE WE SHOULD MOVIE? WHAT FINANCE WILL BE NEEDED TO MAKE THIS TIE UP?