Business Strategy

SWOT Analysis of BSNL

By Group 6

Ex MBA SIMS

STRENGHTS

• It has a competitive pricing policy.• BSNL provides continuous training, career advancement opportunities and a

self-motivated work environment to its employees. • BSNL has a corporate culture of mutual respect and is an excellent service

provider. • BSNL maintains solid partnerships with its customers.• Pan-India reach • Experienced telecom service provider • Total telecom service provider • Huge Resources (financial & technical pool) • Huge customer base • Most trusted telecom brand • Transparency in billing • Easy deployment of new services • Copper in last mile can be used for easy broadband deployment • Huge Optical Fibre network and associated bandwidth

 

WEAKNESSES:

• Although it is investing too much in R&D but its marketing skills are below average.

• Although it is growing very fast but at the same time it is losing its customers as well because the competitors are chasing close behind.

• Non-optimization of network capabilities • Poor marketing strategy • Bureaucratic organizational set up • Inflexibility in mindset (DOT period legacies) • Limited number of value added services • Poor franchisee network • Legacy of poor service image • Huge and aged manpower • Procedural delays • Lack of strategic alliances • Problems associated with incumbency like outdated technologies, unproductive

rural assets, social obligations, political interference, • Poor IT penetration within organization • Poor knowledge Management

OPPORTUNITIES:

• It can retain its customers by improving its marketing skills.• It can establish a world-wide knowledge-broadcast system via the

Internet.• The Group can strengthen and expedite research and development

in order to deliver products of top international standards.• Tremendous market growing at 20 lac customers per month • Untapped broadband services • Untouched international market • Can capitalize on public sector image to grab government’s ICT

initiatives • Diversification of business to turn-key projects • Leveraging the brand image to source funds • Almost un-invaded VSAT market • Fuller utilization of slack resources • Can make a kill through deep penetration and low cost advantage • Broaden market expected from convergence of broadcasting,

telecom and entertainment industry

THREATS:

• External factors like political instability and economic instability which are affecting the business environments.

• The other threat can be the market saturation in terms of business opportunities available in the conventional telecom business.

•  Competition from private operators • Keeping pace with fast technological changes • Market maturity in basic telephone segment • Manpower churning • Multinational eyeing Indian telecom market • Private operators demand for sharing last mile • Decreasing per line revenues due to competitive

pricing • Private operators demand to do away with ADC can

seriously effect revenues

Conclusion:

• India is huge market and none of service providers can dare to ignore its potential. That’s why Indian mobile service provider industry is growing leap and bounce for the last decade. This journey of 1 million to 50 million will keep it pace until each citizen in India will have his own mobile. Industry has many phases in its growth. Now mobile doesn’t mean a only a medium of communication.

Thank You

Facts

Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of the Nation, is certainly on a financial ground that's sound.

The Company has a net worth of Rs. 86,476 crores (US$ 19.26 billion), Authorized Equity capital of Rs. 10,000 crores (US $ 2.22 billion), Paid up Equity Share Capital of Rs. 5,000 crores (US $ 1.11 billion) and Revenue is Rs. 32,045 crores (US $ 7.13 billion) in 2009-10.

Revenues

Capital Investments

Cumulative Capital Outlay

Strategic Actions >>>

Alcatel-Lucent and ZTE are on the shortlist for BSNL's mobile network expansion deal in India

India state-run telecom company, Bharat Sanchar Nigam, has selected ZTE and Alcatel-Lucent for the supply of telecom equipment.

The shortlisted suppliers will bid for contracts for network infrastructure for 5.5 million mobile lines to the company. BSNL is studying the separate technical and financial bids and will take the decision by March 2011.

The contract will help the state-run company to add new users on its network. Under the expansion, it is planning to add 3.3 million lines in north India and 2.1 million in the east.

BSNL may take the equipment on lease or get the vendor to finance the deal. Apart from Alcatel-Lucent and ZTE, Huawei and Nokia Siemens Networks had also submitted bids to BSNL.

Ailing BSNL–Selling 30%Stake In late 2009, Prime Minister Manmohan Singh, worried about the steep decline in BSNL's

profitability over the years, called in Sam Pitroda along with banker Deepak Parekh to suggest measures for revival.

They in turn recommended a strategic 30% stake sale, staff cut by 100,000 and also raising funds from sale of its infrastructure, such as signal towers and real estate, to revive the flagging fortunes of state-owned BSNL. But former telecoms minister A Raja had failed to act on the Pitroda report despite the BSNL's board endorsing the same.

Raja had failed to act after the DoT's internal panel that looked into Pitroda committee's recommendations had said that BSNL's IPO must be deferred for two years to allow the telco to improve its performance and get the right valuation.

It had also rejected the Pitroda's committee's proposal to allow BSNL to bring in top professionals, including a CEO from the private sector, and said that "implementing such a move selectively for top-level positions, and also in just one PSU would have wider repercussions.“

The Telecom Commission, the apex decision-making body of the communication ministry, on Tuesday failed to take a final decision on a strategic 30% stake sale in state-owned BSNL, as suggested by a committee headed by technocrat Sam Pitroda.

The Telecom Commission met on Tuesday after new Communications Minister Kapil Sibal decided to get cracking on reviving ailing BSNL, which recently announced a loss of Rs 1,823 crore for the year to end-March, its first ever in its 10-year history as a corporate entity.

Top officials from Sibal's ministry met their counterparts from the finance ministry, Planning Commission, I-T, the department of Industrial policy & promotion amongst others on the issue, which ended inconclusively, officials aware of the development said.

Source : The Economic Times, India ; Dec. 01--NEW DELHI