This Presentation is all about Environmental Analysis of a Telecom Company. I have included both the factors i.e. Micro and Macro Environment. I have taken a example of Vodafone Company in the slides.

1. ENVIRONMENTAL ANALYSIS OF
TELECOM COMPANY
SHUBHAM KHEDEKAR

2. MICRO ENVIRONMENT

3. VODAFONE INDIA
• Vodafone India, is an Indian subsidiary of UK-based
Vodafone Group plc.
• In February 2007, Vodafone Group entered into Indian
market by acquiring the 67% stakes in Hutchison Essar.

4. • M-Paisa is targeted as a vehicle for microfinance
institutions
• Vodafone has also been active in m-Health from a
philanthropic perspective.
• Known for best marketing strategies.

5. MICRO
ENVIRONMENT
SUBSTITUTES

6. SUBSTITUTES
• Landline
• CDMA
• Video Conferencing
• VOIP - Skype, Google talk, Yahoo Messenger
• E-Mail & Social Networking Websites

7. SUPPLIERS
MICRO
ENVIRONMENT
SUBSTITUTES

8. SUPPLIERS
OUTSOURCING VENDORS FEATURES
Network Out-sourcing and
Maintenance
• Ericsson
• Nokia Siemens Networks
• Ease in network planning
• Usage and network quality
Information Technology • IBM
• Amdocs
• Pricing and Payments
• Service Delivery Platform
• Billing Service
Infrastructure • Indus Towers • Increased sharing Infrastructure
• Reduced Capex Spend
Call Center • Mphasis
• IBM Daksh
• Enhanced Customer Experience
• Scalable business needs

9. MICRO
ENVIRONMENT
SUPPLIERS
SUBSTITUTES
COMPITITORS

10. COMPITIORS
23.65
17.86
16.54
10.39
8.78 7.61 6.85
3.98 3.68
MARKET SHARE OF TELECOM SERVICE PROVIDERS

11. MARKETING
INTERMEDIARIE
S
MICRO
ENVIRONMENT
SUPPLIERS
SUBSTITUTES
COMPITITORS

12. MARKETING
INTERMEDIARIES
Vodafone India’s unique distribution capabilities
•Zonal structure
•Associate distributor model
•Exclusive rural retail-mini stores

13. • Management information tools at the
individual POS (Point of Sale) level
• Cell site-based analysis and geo mapping
• Best practice sharing
between circles

14. NEW ENTRANTS
MICRO
ENVIRONMENT
SUPPLIERS
SUBSTITUTES
MARKETING
INTERMEDIARIE
S
COMPITITORS

15. NEW ENTRANTS
•Huge License Fees to be paid upfront & High
gestation period
•Entry of MVNOs (Mobile Virtual Network
Operator) like Aerovoyce & WiMAX operators

16. •Spectrum Availability & Regulatory Issues
•Infrastructure upgrade Cost – High
•Rapidly changing
technology
• Jio with VOLTE
Technology

17. CUSTOMER
S MICRO
ENVIRONMENT
SUPPLIERS
NEW ENTRANTS
SUBSTITUTES
MARKETING
INTERMEDIARIE
S
COMPITITORS

18. CUSTOMERS
•COSUMER:
Prepaid
Post-paid
•Lack of differentiation among Service Providers

19. • Number Portability will have negative Impact
• Churning out and Churning in

20. MACRO ENVIRONMENT

21. TECHNOLOGY
MACRO
ENVIRONMEN
T

22. TECHNOLOGY
• Driven by 3G and 4G services.
• Increasing MOU (Minutes Of Use) and Data usage.
• Liberalization of spectrum and convergence of
network, services and devices.

23. • Merger with Idea will help to accelerate
• Rapid growth rate induced by emerging technologies.
• Strong Fiber Optic Network

24. SOCIAL
MACRO
ENVIRONMEN
T
TECHNOLOGY

25. SOCIAL
• Growing young population.
• Change in Lifestyle.
• Increment in services which includes digital television, voice
and high-speed internet services and various social
application.

26. • Building awareness and connecting people.
• Exploitation of young minds, too compulsive, and
sometimes too much information.

27. POLITICA
L
MACRO
ENVIRONMEN
T
SOCIAL
TECHNOLOGY

28. POLITICAL
• The Government of India cut license fees by up to 20 per
cent for operators.
• The Government has been proactive in its efforts to
transform India into a global telecommunication hub.
• Relaxed FDI (Foreign Direct Investment) Norms.

29. • The Government recently revised the M&A ( Mergers &
Acquisition) guidelines for the telecom sector.
• Vodafone was embroiled in a $2.5 billion tax dispute with
the Indian Income Tax Department

30. ECONOMIC
MACRO
ENVIRONMEN
T
SOCIAL
POLITICA
L
TECHNOLOGY

31. ECONOMIC
• The Indian Telecom industry has been playing an important
role in the world economy and global revenues
• India’s telecom service revenue was USD$140 billion in
2015
• GDP contribution – 6.5% in 2015

32. • Vodafone India had a total revenue of ₹425
billion (US$6.6 billion) in 2015.
• Falling call charges rates with
more utility.

33. LEGAL
MACRO
ENVIRONMEN
T
ECONOMIC SOCIAL
POLITICA
L
TECHNOLOGY

34. LEGAL
• “Telecommunications” falls under the legislative
competence of the Union government and the Parliament
and not the States.

35. • The India Legal Framework is provided by:
1. The Indian Telegraph Act 1885.
2. The Wireless Telegraphy Act 1933.
3. The Cable Television Network (Regulation)
Act1996.
• In 2012, India changed its Income Tax Act and made sure
that any company is not able to avoid tax by operating out
of tax-havens.

36. • In May 2012, Indian charged Vodafone about ₹20000 crore
(US $3.3 billion) in tax and fines
• The Telecommunication Regulatory Authority of India
(TRAI) lies in the bidding process for the grant of cellular
licenses.
• TRAI imposed Rs 1050 crore penalty on it for not giving
interconnectivity to Reliance Jio.

37. THANK YOU