Ansoff Matrix Reliance Communication


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Ansoff Matrix Reliance Communication

  1. 1. Essentials of Marketing 2009-11 CDMA Cellular Service Providers Assignment-II (Ansoff Model of Reliance Comm.) Group III Submitted By: Siddhant Jain(9559637843/ Gaurav Ghai Neha R Isawe Puneet Khanwani Shivanshi Joshi Jitender Yadav
  2. 2. Ansoff Matrix To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the firm's present and potential products and markets (customers). By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations. Ansoff's matrix is shown below: Ansoff Matrix Existing Products New Products Existing Markets Market Penetration Product Development New Markets Market Development Diversification Ansoff's matrix provides four different growth strategies:  Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share.  Market Development - the firm seeks growth by targeting its existing products to new market segments.  Product Development - the firms develops new products targeted to its existing market segments.  Diversification - the firm grows by diversifying into new businesses by developing new products for new markets. Selecting a Product-Market Growth Strategy The market penetration strategy is the least risky since it leverages many of the firm's existing resources and capabilities. In a growing market, simply maintaining market share will result in growth, and there may exist opportunities to increase market share if competitors reach capacity limits. However, market penetration has limits, and once the market approaches saturation another strategy must be pursued if the firm is to continue to grow. Market development options include the pursuit of additional market segments or geographical regions. The development of new markets for the product may be a good strategy if the firm's core competencies are related more to the specific product than to its experience with a specific market segment. Because the firm is expanding into a new market, a market development strategy typically has more risk than a market penetration strategy.
  3. 3. A product development strategy may be appropriate if the firm's strengths are related to its specific customers rather than to the specific product itself. In this situation, it can leverage its strengths by developing a new product targeted to its existing customers. Similar to the case of new market development, new product development carries more risk than simply attempting to increase market share. Diversification is the most risky of the four growth strategies since it requires both product and market development and may be outside the core competencies of the firm. In fact, this quadrant of the matrix has been referred to by some as the "suicide cell". However, diversification may be a reasonable choice if the high risk is compensated by the chance of a high rate of return. Other advantages of diversification include the potential to gain a foothold in an attractive industry and the reduction of overall business portfolio risk. Sources: Market Penetration for Reliance Communications 1. Reliance Communications and Qualcomm Inc, planned to grow CDMA2000 technology in India. 2. Indian private telecom service provider Reliance Communications announced an alliance with Taiwan-based mobile phone maker HTC for developing next-generation CDMA-based mobile devices for Indian users. 3. Many innovative offers such as mobile TV services with over 13 news and TV channels using it as real time streaming technology. 4. RCOM has introduced an all-India long-validity pack for users of Reliance CDMA, which will bring down STD calling tariff by up to INR 0.30 per minute or lower. 5. The company plans to launch the combined GSM-CDMA service via a unified customer support center, which enables its subscribers to use the services on a single mobile handset. 6. RCOM promoting value-added services like ringtones, games and music downloads. 7. RCOM adopted a handset-driven expansion strategy to raise subscriber numbers in 2007. 8. RCOM offers different Local, STD and Roaming Plans to suit the needs of various market segments. 9. RCOM offers different Value Packs under Postpaid like STD Pack, Night Calling Pack, SMS Pack and Local Mobile Pack. 10. The company is introducing a host of sachet pricing plans for its various VAS offerings. This effort has paid rich dividends in the gaming services & now the company is extending the strategy across its entire VAS services. 11. RCOM has launched Lifetime Jaadu Pack that allows subscribers with lifetime validity to make local and STD calls at cheaper rates. 12. R-World: Magical world of information, communication, entertainment and utility services like Broadband Surfing, Camference, Digital Electronic News Gathering, Digital Services, eLearning, eRecruitment & Training, Online Gaming, Personal Financial Services, Ready-to- use Offices, Video Conferencing, Virtual Classroom. Market Development for Reliance Communications 1. RCOM announced its CDMA2000 network expansion, covering more than 20,000 towns in India.
  4. 4. 2. RCOM with Research In Motion (RIM) offers the ultimate super-performer BlackBerry for people who need features like, E-Mails, access to work files, instant messaging, wireless internet along with basic features of a mobile phone. 3. Reliance Communications has undertaken the nationwide commercial roll-out of mobile conferencing service through its IP packet based Real-time Exchange System. 4. RCOM has introduced Global Call Card available in a range of denominations to suit individual calling needs and budget. It has also launched different zones calling cards such as US/Canada, Gulf, and South-East Asia calling card. 5. R-Globalcom bags work orders from 3 global retailers. 6. Reliance GSM service in J&K Product Development for Reliance Communications 1. RCOM has launched landline phone service with Post-paid and Pre-Paid plans. 2. RCOM offers comprehensive national and international long distance voice, video and data network services on an integrated and highly scalable platform. This business segments comprise Data, Voice, WiMAX and NLD. We have wholesale, enterprise and retail product offerings in each business segment. 3. RCOM offers the most comprehensive portfolio of enterprise voice, data, video, internet and IT infrastructure services. These services include: national and international private leased circuits, broadband internet access, audio and video conferencing, MPLS-VPN, remote access VPN, Centrex, toll-free services voice services for offices, voice VPN for corporates and managed internet data centre (“IDC”) services. It offers unique, value added products and services to large, medium and small enterprises for their communications, networking, and IT infrastructure needs across the country. 4. In February 2009 company launched 50 min STD pack in 35 Rs. on GSM. 5. Rcom also launched voice-based mobile navigation service. 6. Rcom launched a new format of Reliance mobile store in March 2009. 7. Rcom post-paid services for in U.P & Uttarakhand were also introduced for GSM. 8. Rcom to offer BlackBerry services for Rs. 299. Diversification for Reliance Communications Related Diversification: 1. Reliance Communications said it has acquired eWave World, a UK-based WiMax operator, Reliance Communications would soon launch 4G services globally and to that extent, will be investing $500 million through eWave over the next 2-3 years for acquiring and building WiMax networks across 50 countries, the source said. This acquisition will enable Reliance Globalcom to create the largest WiMax and broadband company in the world, banking on eWave World''s presence across Latin America, Central America and China among others 2. Rcom launched nationwide satellite TV services under the brand of Big TV Limited. These services are available on the Direct To Home (DTH) format to consumers in India. 3. Rcom has launched Reliance IPTV that brings the best, most interactive and personalised TV viewing experience. 4. KRIBHCO Reliance Kisan Limited, JV Company is the first of its kind to bridge urban-rural divide. The JV will leverage KRIBHCO's wide distribution network which covers 72% of the Indian population through 25,000 co-operative, 6,300 member co-operative and 60 "Krishi Seva Kendras" to promote rural telephony in India. The JV will market telecom & non-
  5. 5. telecom products and services in rural India which includes Reliance Mobile (GSM & CDMA) services and DTH services, products & services of Reliance Capital, Entertainment and other customised products for rural India. 5. Reliance Infratel (RITL), subsidiary of RCOM signed a long term agreement with Etisalat DB, a new wireless mobile services provider for sharing its telecom infrastructure. Reliance Infratel (RITL), subsidiary of RCOM signed a long term agreement with Etisalat DB, a new wireless mobile services provider for sharing its telecom infrastructure. Unrelated Diversification: Reliance also has its existence in the following sectors:  Reliance Entertainment:  BIG 92.7 FM  BIG TV  BIG Music  BIGFlix  BIGADDA  DreamWorks Pictures  Zapak  Adlabs Films  Jump Games (ParadoX Studios)  BIG Entertainment  BIG Cinemas  BIG Motion Pictures  BIG Animation (AniRights Infomedia)  BIG Music & Home Entertainment  Reliance Capital  Reliance Capital  Reliance Life Insurance  Reliance General Insurance  Reliance Mutual Fund  Reliance Money  Reliance Consumer Finance  Reliance Asset Reconstruction  Reliance Infrastructure  Reliance Power  Reliance Health  Reliance Natural Resources Limited  Reliance Technology Ventures  Zapak Gaming Portal  DA-IICT Also, Reliance broadband is set to offer timely quality healthcare facilities at very affordable rates to large sections of the Indian population irrespective of their geographical location. Sources: ,,,