2. Presentation Outline
AN OVERVIEW OF ISP: BEAM CABLES
SWOT ANALYSIS OF BEAM CABLES
VALUE CHAIN ANALYSIS OF BEAM CABLES
VROI ANALYSIS OF BEAM CABLES
CONCLUSION
3. An overview of ISP:Beam cables
• It was started in 2006.
• It is a group company of ACT TV.
• Largest independent ISP in the region.
• It has a subscriber base of over 130,000.
• It has a growth rate of ~5% in number of customers.
• It is the pioneer of internet services through fiber in
India.
• Beam Fiber gives property developers the first of its
kind advantage by integrating Data, Voice,
Entertainment and Security services for their residents.
Unique solutions that help create a truly smart
community. Niche Market
4. SWOT Analysis of Beam Cables
Strengths
• Ability to change rapidly in dynamic marketplace.
• Intimate services for niche market
• Adept at dealing with problems and concerns of
customer
• Understanding and knowledge of customers features
tailored for the market
• Can take advantage of best tariffs in their area
5. Weaknesses
• Cannot offer bundled services.
• Purchasing behavior dependent on profit.
• No control over backbone.
• Difficult to make money without many business
subscribers.
Opportunities
• Long term contracts.
• Buyout
• Move into hardware/software sales
• Reselling from larger players
6. Threats
• Acquisition of company
• Not having capital to expand services
• Breakdown of peering agreements /business contracts
7. • Ability to change rapidly in dynamic • Cannot offer bundled services.
marketplace. • Purchasing behavior dependent on
• Intimate services for niche market profit.
• Adept at dealing with problems and • No control over backbone.
concerns of customer • Difficult to make money without many
• Understanding and knowledge of business subscribers.
customers features tailored for the
market
• Can take advantage of best tariffs in
their area
Strengths Weaknesses
Opportunities Threats
• Long term contracts. • Acquisition of company
• Buyout • Not having capital to expand services
• Move into hardware/software sales • Breakdown of peering agreements
• Reselling from larger players /business contracts
8. Value Chain Analysis of ISP: Beam
Cables – Primary Activities
Inbound logistics - LOW
• Inbound logistics add little to product value.
Operations - LOW
• The operations in ISP are relatively standard and add little to no value to the
product.
Outbound Logistics - LOW
• Outbound Logistics is low since they add litle value to the service. A customer
won’t quite care about leasing lines from one telco to another.
Marketing and Sales – HIGH
• Have a lot of value since, it’s the primary method for a customer to distinguish
between products.
Service - HIGH
• Service requirements are relatively high in the ISP industry.
9. Secondary Activities
Procurement - LOW
• Procurement is easy once there’s infrastructure in place, since a single long
lease from a telco is generally sufficient.
Human Resource Management – LOW/HIGH
• Human Resource management is not highly required other than engaging
‘technical’ employees and making it favorable for them to stay since these
employees are valuable and often poached by competitors.
Technology Development - HIGH
• Frequent changes in standard technology implies that Technology
Development is a necessary cost for an ISP.
Infrastructure - LOW
• Infrastructure is not very important for companies of the size of Beam Cables.
10. VRIO Analysis
• If a firm has resources that are:
– Valuable
– Rare, and
– Costly to Imitate and,
– The firm is Organized to exploit these resources
• Then the firm can expect to enjoy a sustained competitive
advantage.
11. Factors to look at in the VRIO
analysis:
• Ability to change rapidly in dynamic marketplace
• Intimate services for niche market
• Adept at dealing with problems and concerns of
customer
• Understanding and knowledge of customers features
tailored for the market
• Can take advantage of best tariffs in their area
12. VRIO Analysis of strengths of the
company:
Ability to change rapidly in dynamic marketplace. –Not Valuable
Intimate services for niche market – Valuable but not much
Adept at dealing with problems and concerns of customer – Not valuable
Understanding and knowledge of customers features tailored for the market – Not
Valuable
Can take advantage of best tariffs in their area – Very Valuable
13. Value Analysis of
• Can take advantage of best tariffs in their area
– This is a Valuable resource since it allows the
company to reduce the ‘low capital for service
expansion’ threat.
14. Rarity Analysis of
• Can take advantage of best tariffs in their area
– The resource is rare enough that perfect competition
has not yet set in.
– This resource thus falls under the category ‘Valuable
and Rare’, giving a temporary competitive
advantage.
15. Imitability Analysis of
• Can take advantage of best tariffs in their area
– The resource is not easily Imitable without heavy cost
offsets.
– This falls under the category of social complexity.
– The social relationships entailed in this resource is so
complex that most managers cannot really manage or
replicate them.
16. Organizational Analysis of
Can take advantage of best tariffs in their area
– This advantage is fully exploited by the ‘formalized’
organizational structure of ‘Beam cables’.
Editor's Notes
(i)Does not quite answer any threats on its own. Therefore, not very valuable.(ii) Of limited value since the service is for a niche market. However, this does get in some capital to expand services.(iii) Not valuable to the firm as such(iv) Not valuable to the firm as such(v) Valuabl