Marketing Environment IDEA Mobile Services

Company Profiles
Idea mobile services is one of India s leading GSM mobile services operator. Idea Mobile Services is a company that operates in 22 telecom circles in India. It is the 3rd largest GSM company in India behind Airtel and Vodafone and ahead of state run player BSNL. It is a part of the Aditya Birla Group, India's first truly multinational corporation. The group operates in 25 countries.

 In 1995, it came into existence as a joint business enterprise in between Aditya Birla Groups, Tatas and AT and T by appending Wings Cellular, Tata Cellular and Birla AT and T communication. IDEA offers seamless coverage to roaming customers traveling to any part of the country, as well as to international traveling customers across over 200 countries. Cellular offers basic voice and short message service (SMS) services to high-end value added and general packet radio service (GPRS) services, such as Blackberry, Datacard, Mobile TV and Games. IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in the Telecom sector, 2010

Macro Environment
The growth of telecom sector is very fast in India. Indian telecom industries have third highest position in the globe. At present there are 225 millions mobile subscribers.

Political factors
Government is giving special attention to the private sectors. TRAI is the government body for telecom industry which controls all service providers. In India out of 100 people 1.38 people have telephone, but set target is 6 people per 100. It means there is requirements of more 45 millions connections which cost around 60 billion US$. In today s condition there is political stability is in favor of the telecom industries.

Economical factors
India comes under growing economy. India was also less affected by recession than other developed countries. So there are more chances of continuous growth for India. Telecom industry contributes 1% to GDP. Therefore, the economic condition of India is good for the telecom sector.

Social factors
The telecom industry has brought revolution in the societies of India in the field of communications. It is decreasing the cost and the time period for the transfer of messages. In 2005 there were 110 millions connections which increased to 250 millions in 2007 which proof people eagerness to adopt new medium of communication.

Technological factors
Technology has its own value in telecom companies. Adapting new technology like 3G has become the mode of survival for the companies. Sooner the company adopts the technology greater opportunity it enjoys.

Legal factors
Telecom companies in India are controlled by government there are bodies like ministry of communication and IT which make rules for these companies. Indian Telecom policy in 1994 encourages foreign and private investment which became more liberalize in the form of Indian Telecom policy in 1999.

Environment factors
Environment play important role for the existence of the company. It includes culture, behavior, demographic conditions which affects the company. It is important for the company to moulds itself according to the environment.

Porter five factors

Threat of Rivalry
Today there is lots of competition between telecom companies to be ahead of each other. Government companies like BSNL and MTNL. Privates companies like Tata, Reliance etc. Foreign companies like Vodafone, Spice etc.

Threat to New Entrants

Indian telecom companies facilitates opportunities to foreign companies in different fields like; satellite phone calls, 3G, international calls and value added services. In India big amount of players up-and-coming in the market national level from its state level existence like, Aircel, Virgin ,Spice, Idea , Vodafone

Threat of Substitute Product and Service

The services like; GSM, internet, VOIP, CDMA mobile, Wire line, broadband, carriers, VSAT, MPLS-VPN, etc. are provided by telecom industry. While talking about internet telephony, it is increasing as a good alternative. With cheaper rate it offers video conferencing just like Skype.

Bargaining Power of Customers

As it is offering services at cheaper rate, bargaining power of its customers is very low. But due to the launching of mobile services at cheaper rate by Airtel and other telecom companies, customers acquired many options. So, it could be bargaining power from the customer s point of view.

Bargaining Power of Suppliers

Idea cellular consumes iron, aluminum, electric for tower makings. It purchases these raw materials in bulk quantities that every suppliers wants to sell their product. Thus the bargaining power of suppliers is very less.

Micro Environment

Strength
Reputation of brand
Aditya Birla Groups operate in 25 countries and it is the owner of cellular. It is the Indian first MNC and also it is a part of 100 fortune companies.

Increase in profit margin with high rate Financial power

Current ratio and quick ratio of Idea were 1.38:1 and 1.3:1, respectively

Market share of Idea

It has huge market share, target audience and operations in many parts of India.

 Technology innovation used in Idea:

Idea cellular is the company which started the services of GPRS India and come up with new product like My gang and Idea radio.

Advertising and promotion in Idea:

Idea cellular does many promotional advertisements, and also uses Bollywood stars like Abhishek Bachan. The punch line WHAT AN IDEA SIR JI made idea very popular and was very effective.

Strategic agreement with other brands:

Idea cellular also has strategic agreement with companies like IBM and Oracle. It also has tie up with Nokia which shows that Idea is dedicating superior services (Idea Portal).

Weakness
No Broadband service:
Like other companies BSNL, Airtel, Tata, and Reliance Idea does not provide the broadband services.

Low coverage in India:

Presence across nation of Idea is low as compared to other companies like Airtel and Reliance. So there is a huge market available which Idea cellular is missing.

Market leader only in North India:

In North India Idea Cellular has very good market but on the other hand in south market share is very small. So other companies are benefiting this market.

 Direct to Home Service is not available:

Idea cellular does not provide DTH services to its customers whereas Reliance and Bharti Airtel provide DTH services.

Less market share in urban market:

In the rural market Idea Cellular has very good position that is 70% but in case of urban market it has less.

Opportunities
Increase number of cellular phones Starting of 3G services Nokia providing Idea the vendor atheist consultancy services Idea offers internet connectivity in 20 circles Idea joined IBM to integrate some IT work

Threats
Brand name of other companies Force by courts to reduce tariff New players promotional prices Increased network costs

Conclusion
Company should come up with new services like Tata Docomo has come up, Billing per pulse rate and increase its market share, It should provide fast GPRS, mobile internet services and provide good customer service. Company should target the rural segment. Company also can try to acquire or tie up with other companies such as Vodafone, Airtel etc. in order to catch up with the competition and growth of the industry.