SWOT Analysis for telecom sector (considering a single player) in

rural India…

Strengths Weaknesses
Business strategy & plans

Opportunities
1. Huge customer potential – teledensity is 48% and rural
teledensity is only 21% Threats 1.strategies
Current Poor telecom
infrastructure
Core competencies
2. Late adopters of new technology compared to
2. FDI allowable limit in this sector has been increased other countries
•Adequate
from 74% demand
to 100% for Ciprofloxacin, due •Possibility
3. Strongof tough
market competition
regulation from
by Government of India
to its
3. effectiveness
High ROI in curing wide range other domestic players.
4. Difficult to enter and sustain operations due to
4. Lower land acquisition cost huge financial investments
of infections with
5. Liberal policy almost
adopted by Govtnil side effects
of India
•Possibility of China making inroads in
•Vast potential for the product in India the Cipro market (however quality will be a
considering poor hygiene standards, roadblock for China)
Opportunities Threats/ Challenges%
rising
1. A hugepopulation andmillion
population – 720 outbreak
people inof natural
630,000 1. Highly competitive market (10-12 players) and
calamities likemillion
villages across 3.2 floods.
square miles shortage of bandwidth
2. A massive economy – over 50% of India’s total 2. Government bias towards BSNL (eg 3G auction),
GDP. There are almost same number of middle to wrests initiative from other players
high income households in rural areas (21.16 mn) 3. Revenue challenges – Rural India can pay for
as urban India (23.22 mn) mobile services, but only around $2 per month
3. A parallel economy – with the same needs as developed 4. Installation and maintenance of GSM networks
markets but a reduced ability to pay is highly challenging
4. A booming economy – with the consumer durables 5. Poor infrastructure for approaching villages
market, for example, growing at 25% per year
(vs 10% nationally)