Swot Analysis of Rcom

Topics: Mobile phone companies of India, Reliance Communications, Reliance Anil Dhirubhai Ambani Group Pages: 2 (372 words) Published: September 22, 2010
SWOT analysis of RCOM in 2006:

Strengths:
* Strong brand recognition
* Well Integrated operations
* Significant execution and technological capabilities
* Strong distribution channel ( RWorld, FLAG Telecom )
* Unified License obtained by RCom in 8 circles

Weaknesses:
* Low ARPU compared to competitors
* Weakness in Rural Market
* Low capabilities in Ethernet and application delivery services

Opportunities:
* Low penetration Rates
* Strategic Alliances ( FLAG)
* Global expansion due to resource based acquisition of FLAG * Huge GSM subscriber base (76.67%) with economies of scale for GSM operators * Telecom policy in more in favor of GSM than CDMA

* Higher ARPU in GSM sector

Threats:
* Increasing competition with domestic players
* Decreasing ARPU due to competition
* High regulation in Indian Telecom sector
* Changing political scenario could change Regulations
* High switching costs for customers to move to GSM

Indian Telecom Industry in 2006

* India’s Telecom Network had 203 million connections
* Third largest in the world and the second largest among the emerging economies of Asia * One of the key sectors responsible for India’s resurgent India’s economic growth ( 1% of GDP ) * Contributed 30 percent to India’s total service tax revenue * Liberal Government policies to provide easy access to telecom equipment and fair regulatory framework * Robust growth in Tele-density (11.4% in 2006)

* Increasing preference to wireless service compared to landline ( 93 million users in 2006 ) * Increasing participation of private players. 57% share of Industry by PSUs * Great opportunities in GSM. 70% Technology market share of GSM IN 2006 * A liberal licensing scheme was set up to increase Internet penetration across the country with 10.83 million subscribers in Dec 2006. Reliance communication had a 10.32% subscriber base in Dec 2006 * The...
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