This document provides a case study analysis of Idea Cellular. It summarizes Idea Cellular's mission, strengths, weaknesses, opportunities, threats, and growth strategies. Idea Cellular has over 36 million customers and operates in 25 countries with over 100,000 employees. The analysis identifies Idea Cellular's attractive existing footprint in India and innovative strategies as strengths, and high debt and revenue reliance on mobile services as weaknesses. It also outlines opportunities for growth through increasing subscribers and disposable income. Threats include intense competition and changing regulations. The document then analyzes Idea Cellular's strategic positioning and growth through organic and inorganic strategies.

1. Case Study Prepared by:
Group 4
Amar Pal Singh
Apoorv Kr. Sharma
Arun Semwal
Idea Cellular Gaurav Khatri
Dipendra Raj Tomar

2. Introduction
• Customer base of over 36 million.
• Customer service and innovation.
• Part of Aditya Birla Group.
• Operates in more than 25 countries.
• Over 100000 employees from 25+ nationalities.
• Started with equal share of-
– Tata
– Birla
– AT&T Wireless

3. Mission
“We will delight our customers while meeting their
individual communication needs anytime anywhere.
We survive because of our customers.”

4. SWOT Analysis

5. Strengths
• Attractive existing footprints in 11 circles out of 23
circles in India.
• Original licensee in 7 of the established circles.
• Strong distribution channel and good relations with
parent company.
• High quality network structure.
• Innovative strategies to attract customer attention.

6. Weaknesses
• The company’s debt to equity ratio is high.
• The company’s revenues are derived solely from
mobile services.
• The PAT margin is decreased.

7. Opportunities
• Increasing number of subscribers.
• Opportunities of economies of scale and high
customer value.
• The disposable income of middle class is increasing.

8. Threats
• Intense competition.
• Alternative technologies like Imax, VOIP ( Skype ).
• Market demand may slow down.
• Govt. rules and regulations.

9. Porters 5 Forces Analysis
• Threat to new entrants
• Suppliers bargaining power
• Threat of substitutes
• Customers bargaining power
• Rivalry among existing competitors

10. Strategic Groups in Telecom Sector
• Firms can be grouped on two parameters.
– Brand Identification
– Specialization

11. Idea’s Strategic Groups
• The bargaining power of strategic group against the
customer is high.
• Ideas placed in mid specialization and mid brand
category.
• The height of mobility barrier due to scale of
economy is moderate.

12. Risk faced by Idea
• Risk of other firms entering its strategic group.
• Risk of factors reducing the mobility barrier of the
Airtel’s strategic groups .
• Risk that accompany investment design to improve
the firms position by increasing the mobility barrier.

13. Future Outlooks of IDEA
• Movement towards higher strategic group.
• Gaining access to large number of users.
• Tremendous potential exploitation.

15. Organic and Inorganic Growth
• Revenue increased both ways.
– Organic growth, Inorganic growth.
– First to launch GPRS & EDGE.
– Acquisition of Escotel, RPG Cellular, Andhra
Pradesh operations of TATA cellular.
– Expanding in terms of geography.
– Operates in more than 11 circles.
– Growth and market share increment through
innovative schemes.
– Introduction of new value added services.

16. Acquisition History
• 2000 – Merger with TATA cellular.
• 2004 – Acquired RPG in Madhya Pradesh.
• 2004 – Acquired Escotel.
• 2008 – Acquired Spice (Punjab & Karnataka).

17. Functional Level Strategies

18. Marketing Strategies
• Focus on numbers.
• Use of celebrities.
• Aditya Birla Brand.

19. Operational level Strategies
• Choosing "Core competency” for working.
• Outsourcing rest of the work.
• Strategy partnership with companies
– Infrastructure needs.
– Software needs.
• Partnership with Companies
– NOKIA SIEMENS
– ERICSON
– IBM

20. Conclusion
• Highly competitive market.
• Not lagging far behind in terms of brand and
specialization.

21. Thank you…