Idea Cellular is the 4th largest wireless carrier in India with 100 million customers and a 12% market share, though it faces bargaining power from customers and suppliers due to competition from other carriers offering cheaper services. New entrants like 4G and substitute technologies also pose threats. Direct competitors with similar service offerings and significant market share include Airtel, Tata Docomo, and Uninor.

1. IDEA CELLULAR FOVE FORCE MODEL ANALYSIS
Submitted by: Shubhadeep Ghosh
Introduction of Idea Cellular:
4th largest wireless carrier in India with 100million customers.
Has 12% of market share all over Indian telecom industry.
Gained 10,31,380 customers after launching MNP (mobile Number Portability) and before 31st
August,2011.
Bargaining power of Customers:
1. As it is offering services at a cheaper rate, buyers bargaining power is very low.
2. As it is offering internet service (3G and 2G) at a cheaper rate, the customers want to switch to
idea because of video conferencing (e.g. Skype, Viber), messaging clients (E.g. Whatsapp).
3. Idea is the only telecom. Company to provide unlimited 3G connection at Rs.949.
4. Due to launching mobile services at cheaper rate by Airtel, DOCOMO, Uninor and after
launching MNP (Mobile Number Portability) , buyers have more choice and their bargaining
powers became high.
Bargaining Power of Suppliers:
1. For tower making Idea Cellular consumes Irons, aluminum, electric wires in bulk quantities, so
the suppliers want to supply these materials to Idea cellular.
2. Idea has a Tie-up with Nokia, so there is less bargain power of Nokia.
Threat of new entrants:
1. VPN
2. Satellite phone calls
3. 4G (upcoming threat as it is not launched in India)
Threat of substitute products:
1. CDMA mobiles, as they can offer plans at cheaper rate with lower cost.
2. Wi-Fi : As most of the offices and complexes have Wi-Fi facility, consumers like call from the
other VOIPs (Voice Over Internet Protocol) like Skype, Google talk, free messaging etc.
3. BSNL VSAT (very small aperture terminal) technology.

2. 4. MPLS (Multi Protocol Label Switching) gives network operators a great deal of flexibility to divert
and route traffic around link failures, congestion, and bottlenecks.
5. BroadBand.
6.
Competitor Analysis:
Market Share of Idea in telecom industry is 12%.
Direct Competitor (As they offers almost same types of tariff plans and connections):
o Airtel (Market share 19 %)
o TATA DOCOMO (9%)
o Uninor (5%)
Indirect Competitor
o Vodafone (16%)
o Reliance (17%)
o Aircel (7%)
o BSNL (11%)
Narrowed Competitor
o MTS
o Virgin Mobile