Tech Mahindra

Presented By:

Leaders don't look behind, they don't look to the side;

they look ahead. So as far as I am concerned we are
looking to be the best telecommunication service
provider in the world. We have been recognized by
major agencies in the world as being amongst the top
and we are ranked with the best in the world. So we
benchmark not just with our peers here, but we
benchmark with the best in the world.

Anand Mahindra,
Chairman, Tech Mahindra Ltd.

Telecom sector

The telecom sector in India experienced a rapid

growth over the past decade on account of regulatory
liberalisation, structural reforms and competition

Besides, the growth in the service and IT and ITeS

sector also increased the prominence of the telecom
industry in India.

Telecom has emerged as a key infrastructure for

economic and consumer growth because of its
multiplier effect and the fact that it is beneficial to
trade in other industries

Types of telecom sector

Telecommunication service provider

Telecommunication equipment manufacturers

One of the largest business conglomerates in India

Incorporated as Mahindra & Mohammed on Oct 2nd 1945 by
Mahindra brothers & Ghulam Mohammed
Renamed Mahindra & Mahindra after Ghulam Mohammeds
exit in 1947
Over the next 60 years, it diversified its operations across
various sectors like automotive, farm equipment, trade &
logistics, hospitality, information technology, infrastructure,
financial services
US $ 6.7 billion group

1986 - Joint venture between Mahindra group &

British Telecommunications plc
Company was named Mahindra-British Telecom (MBT)

1960 - Indian government set up Department of Electronics (DOE)

1970 - The first software was exported by TCS
1980 - Industry managed to reach USD 12 million
Mid1980 - Emergence of new players like Infosys, Satyam, Mastek,
etc (body
shopping)
1991 - Shift from body shopping to working from offshore
Late 1990 - High growth : Y2K problem, STP scheme by govt.
2000 - Dot com bubble burst
2002 - Fastest growing IT market and captured 70% of IT
outsourcing market
2006 - Highend software services - BFSI, telecom, retailing and
automotive
segments
2008 - Global recession US companies slashed their IT spendings

IT Services.
R&D services.
BPO services.

Oracle Financial Services Software

MindTree Ltd.

MphasiS Ltd.

Patni Computer Systems Ltd.

Vakrangee Ltd.

Persistent Systems Ltd.

Hexaware Technologies Ltd.

 A very

clear focus on the

telecommunication industry
Achieved a clear objective & strategic
alignment by focusing on one segment

Clarity of goal
By enhancing business with existing clients

By client acquisition in long run.

By using geographic expansion.
By moving in TEM manufacturing segment.
By innovation of customized application
solutions.

YEA
R

DECISIONS

1986 Entered IT sector:

JV with British
2006 Telecommunicati
ons
2006 JV with Motorola
Inc. under the
brand name
CanvasM
Post Expand
2006 geographic
presence

REASONING

Strategic pre-emption Mahindra

wanted to enter into the business
-found the resource & expertise of
BT would enhance growth in
Indian Software Industry.
Field of telephone software was
booming and providing expertise
in that domain would decrease the
institutional voids
Incorporation of MBT GMBH
(Germany):Re-certified to ISO
9001:1994 by BVQI
Participation in Microsoft's
Sandbox: collaborative

RATIN
G

YEA
R

DECISIONS

2007 Acquired
iPolicy
Networks
Pvt. Ltd.
2009 Satyam
Acquisition

2009 Tie-up with

WIN

REASONING

Provided complimentary strong

security services capabilities.
It got a core competency different
from its existent core competencies.
Diversification
Acquire a better portfolio of
customers.
Opportunity to rationalize shared
functions
Global presence
Focuses on building a new platform
to provide increased functionality and
faster transactions
Will formulate a go-to-market
strategy in key territories particularly

RATING

VRIO framework
Resource

Valuab Rar Inimita Organisa

le
e
ble
tion

In depth Knowledge of
the telecom Industry
ISO 9001 by BVQI

Acquisition of Axes
technologies Inc.
CanvasM (joint venture
with Motorola)
Ipolicy networks private
limited (Acquisition)
Satyam Computers

Tech Mahindras
Management

Technology
Political
Changing
Stable Indian Government
technology
Strict laws regarding development
Open source
Anti Outsourcing Drive
Economic
Exchange Rate Fluctuations
STP and Fringe Benefit Tax
Social
Focus on Education in India

Environment
Fraud and scams
violence
Legal
Legally
Complaint(satyam
)

Bargaining Power of Buyers:

1. Given the large number of buyers, it is safe to
say that the customers control the this
industry
2. There are so many choices for a buyer (many
firms in this industry) and there are minimal
switching costs

Bargaining Power of Suppliers:

1. Suppliers are not "locked" into deals with
specific firms (contracts exempt), but most of
the relationships between the firms and
suppliers in this industry are well established.

Threat of New Entrants:

1. This industry is relatively attractive to
newcomers because of its rapid growth and
appealing customer base.
2. At the same time, the industry is unattractive
to newcomers because of the cost advantage
large-scale incumbents possess, the
significant amount of capital a new firm would
need

Threat from Substitutes:

1. There is not much of a threat from substitutes
to this industry, mostly because there aren't
true substitutes.

Rivalry Among Existing Players:

1. Large companies in this industry benefit from
economies of scale.
2. Products in this industry are well branded and
tend to have a strong customer base.

Management is a challenge Capabilities are

far broader than TM's own background
Legal Liabilities it has inherited from Satyam
Mahindra Satyam an I.T. project to provide
WC Football match details on mobile phones
Changing need of customers and changing
technology

Sustaining profits in a highly competitive

market.
Keeping pace with continuously evolving
technology and business models.
Introduction of new portfolios and faster
time to market.
Creating reliable and optimized networks.
Improving customer experience and
customer retention.

Reorganizing the Management structure.

Providing more world class services to
customer.
Bringing more innovations in IT project field.
Promotion of R&D activities in Telecom
Centers of Excellence.
Setting up of Telecom Entrepreneur
Development Center (TEDC) for promoting
entrepreneurship.
Using merger and acquistions

THANK YOU!!