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THE TELECOM SLUGFEST…..cover story in BT …my response

THE TELECOM SLUGFEST

Dear Sir,

This refers to your very interesting Cover Story on the battle for India by THE BIG THREE. (BT dated April 23rd 2017)

It will be the biggest news story for 2017/2018 when we know who ultimately wins the telecom war. Indeed it will not be far fetched to say that this battle royale will be akin to the ancient Theory of Darwin related to the Survival Of The Fittest among the human species! May The Best Company Win!

To know which of these 3 giants has exceptionally better chances to come out a winner, we can make the use of the famous tool called SWOT (Strengths, Weaknesses, Opportunities and Threats) ANALYSIS.

Here are the SWOT analysis pictures for the three players for your extra views and comments:

RELIANCE JIO: SWOT Analysis

Strengths

1. Strong backing of parent company ie Reliance Industries backed up Mukesh Ambani

2. Excellent advertising and marketing of Jio helped the brand have a strong launch

3. Jio has brand ambassadors like Shahrukh Khan, Amitabh Bachchan which has helped reach out to masses

4. Innovative technology i.e. 4G LTE services along with VoLTE

5. Has a strong pan India presence with its operations in more than 22 circles

6. Jio apps are a unique feature offering movies, games, shopping, messenger, chat, news etc under one roof

7. LYF smartphones at affordable costs would also boost the brand Reliance Jio

Weaknesses

1. The ad campaign of Reliance Jio showing the PM was controversial

2. Late entrant in the India market, i.e. it would be challenging to increase market share significantly

Opportunities

1. The company can offer telecom, call, data services at competitive prices

2. Reliance Jio can promote exclusive services like apps to attract consumers

3. Focus on customer service and MNP can help the brand overcome competition

Threats

1. Once free services are over, people would not want to continue using Jio

2. Existing competitors have a strong presence, and a loyal customer base, which would be difficult to address to.

VODAFONE SWOT Analysis

Strengths

1.One of the most popular cellular service provider in India

2.One of the largest Telecom operator in the world

3. Only Indian operator, with VSNL, that has an international submarine cable

4. High brand visibility

5. Strong advertising with ZooZoo concept

6. Tieup with international sports like FormulaOne

Weaknesses

1. Price competition from BSNL and MTNL

2. Untapped Rural Market

Opportunities

1. Fast expanding cellular market

2. Latest and low cost technology 3.Untapped rural market

Threats

1. New entrant’s low price offering

2. Saturation point in Basic telephony service

3. Mobile Number Portability

IDEA SWOT Analysis

Strengths

1.Flexible plans

2.Good advertising

3.High brand visibility

4.Celebrity brand ambassadors

Weaknesses

1.Price competition from BSNL and MTNL

2.Untapped Rural Market

Opportunities

1.Fast expanding cellular market

2.Latest and low cost technology

3.Untapped rural market

Threats

1.New entrant’s low price offering

2. Saturation point in Basic telephony service

3.Mobile Number Portability

It is felt worthwhile to explain that while Strengths and Weaknesses are generally internal, Opportunities and Threats are external. What a company needs to do is encash its Strengths, overcome its Weaknesses, plan effective strategies to make optimum use of the Opportunities and decide game plans to  nullify the effects of Threats.

All said and done, it is also a given fact that looking to the size, population and geography of our country, all three giants can peacefully co-exist to share the benefits. Perhaps the adage  “ Jiyo Aur Jeenein Do” (Live and Let Live) needs to be slightly modified to: “ Jio aur Voda-Idea Ko Bhi Jeenein Do!”

J S Broca ,  New Delhi 110 003

12th April 2017