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Category Archives: Organization vs. Strategies

Zong’s M9

01 Mar

The overall industry analysis shows that Pakistan is one of the countries with a huge untapped potential for telecom growth and have an attractive investment environment. Business Monitor International (BMI) graded Pakistan as main destination for telecom development in Asia region. Overview of caller sector indicates that rivalries among the competitors are high. All the service providers are competing each on multiple dimension such as low price, innovative packages, active efforts to improve service quality and also by better customer service. Telenor, Warid, Ufone, Mobilink and Zong all have attractive packages nearly in Paisa’s and coverage in almost every city with franchise and Sales and Customer service Centers in the Pakistan. Using all media vehicles cellular service provider heavily bombarded customers with promotional activities by means of  timer checks, Jingle promotions and sponsorship in famous TV programs.

 

In this fierce competition the lagger puffed up with its M9 opened fired at all the players and their package offers. Yes its M9.M9 plan form Zong,  from its very first launch taunting at Ufone, Mobilink and Telenor. We can call it tri-taunt called ULINKNOR. Ulinknor is one place that claims to think about U and reshaping lives by devising tariffs as all of them consider relevant.

 

In the beginning of the year 2011, M9 plan is the first aggressive attempt from the smallest market player in the telecom sector in term of market share. Not a surprise that customers want to walk away to a new world of freedom and choice. Zong M9 not only put forward an industry primary service of its kind but also turn into industry’s first brand to punch other operators in one shot. Opening from RS 0.90 per min to Rs 2.20, provides 12  plans differentiating each other in tariff plans. With M9 user can not only choose their own M9 calling plan as well as free benefits as daily free minutes based on previous usage. Apart from call rates, each package plan in M9 includes all basic vale added service such as SMS,GPRS, bundle offers and other VAS. M9 plan  vigorously added services in all his call plan  as others service provider offered these separately in their product folio. M9 plan  includes super free number, late night offer, voice bundles, Sms bundles,  Gprs bundle starting from hourly base. Validation of these services vary form daily  to monthly subscriptions.

 

 
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Posted by on March 1, 2011 in Organization vs. Strategies

 

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Bharti Airtel Limited traditional approaches and strateges to capture the telecom market

19 May

In early 2008, Bharti Airtel Limited (BAL), still dominated the Indian telecom market and was the world’s tenth leading telecom company, was also preparing itself to reproduce its achievement in some other emerging markets. BAL has established itself as the leader in the market by differentiating itself with its focus on building a strong brand through innovation in sales, marketing, and customer service, and an innovative cost-effective business model. BAL’s unique business model had become the benchmark for emerging markets. Despite average revenue per user is quite low compared to other markets but it was viewed as an attractive market in respect of mobile penetration. BAL had responded to investing heavily in expanding its network, technology, and marketing. It was trying to cover all segments of the population from the tech-savvy youth population who coveted the latest value-added services to the bottom of the pyramid segment who would be satisfied with a low cost offering. Bharti Airtel Limited has managed to work with the best of domain specialists globally and emerge as a world class entity. Some of the traditional approach/strategy adopted to capture the market.

Market entry strategies:

  • Bharti Airtel Limited entered in to technical collaboration with Siemens German engineering firm for push button telephones. Purpose was to enter in the telecom sector for wit limited geographical limits with hand set and the service of telecommunication (BCL provide service to BTV).
  • Created brand “Airtel” object was to focus on building Brand to differentiate themselves for other player of telecommunication.
  • Multi-branding strategy was used to capture different segment of market object was multi segment approach by Bharti Airtel Limited.
  • Acquisition made by Bharti Airtel Limited are JT, sky cell , Spice cell object was to build to take over all local player to build themselves from  bottom to prepare themselves for future competition.
  • Earlier Penetration pricing was used to target the premium segment of customer of the sector.
  • Corporate branding strategy adopted to diversify profits and future investment (Agro business, retail, insurance and broadcasting etc.

Strategic partnerships/ Shareholders / Technology and Capital strategies:

  • Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.
  • Warburg Pincus  a celebrated PE investor held a stake for a substantial period of time and was instrumental in providing Airtel support in its early stages.
  • Temasek the Singapore based investor holds a considerable stake in Bharti Airtel Limited.
  • Bharti Airtel Limited was also affiliated with Singapore Telecom for providing partnership campaign and investment.

Outsourcing strategies:

  • Ericsson was given the permission to provide, manage and maintain the equipment as well as provide quality assurance in Airtel‘s then 13 mobile circles.
  • IBM was given the permission to handle the back office requirements of Airtel’s presence in India

Operational strategies:

  • Higher emphasis on ARPU/min – stark contrast with other operators who concentrate on ARPU only.
  • Aim to be become a one stop shop for all telecommunication services under the Bharti umbrella.
  • Exploring opportunities in international markets.
  • Hived off tower infrastructure into a separate entity.
 
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Posted by on May 19, 2010 in Organization vs. Strategies