Internal Analysis of Beam Cables, HyderabadBY NARESH R SHAH

Presentation Outline

AN OVERVIEW OF ISP: BEAM CABLES

SWOT ANALYSIS OF BEAM CABLES

VALUE CHAIN ANALYSIS OF BEAM CABLES

VROI ANALYSIS OF BEAM CABLES

CONCLUSION

An overview of ISP:Beam cables• It was started in 2006.• It is a group company of ACT TV.• Largest independent ISP in the region.• It has a subscriber base of over 130,000.• It has a growth rate of ~5% in number of customers.• It is the pioneer of internet services through fiber in

India.• Beam Fiber gives property developers the first of its

kind advantage by integrating Data, Voice, Entertainment and Security services for their residents. Unique solutions that help create a truly smart community. Niche Market

SWOT Analysis of Beam Cables

StrengthsAbility to change rapidly in dynamic marketplace.Intimate services for niche marketAdept at dealing with problems and concerns of customerUnderstanding and knowledge of customers features tailored for the market• Can take advantage of best tariffs in their area

Weaknesses• Cannot offer bundled services.• Purchasing behavior dependent on profit.• No control over backbone.• Difficult to make money without many business

subscribers.

Opportunities• Long term contracts.• Buyout• Move into hardware/software sales• Reselling from larger players

Threats• Acquisition of company• Not having capital to expand services• Breakdown of peering agreements /business

contracts

•Acquisition of company•Not having capital to expand services

•Breakdown of peering agreements /business contracts

•Long term contracts.•Buyout•Move into hardware/software sales•Reselling from larger players

•Cannot offer bundled services.•Purchasing behavior dependent on profit.

•No control over backbone.•Difficult to make money without many business subscribers.

Ability to change rapidly in dynamic marketplace.Intimate services for niche marketAdept at dealing with problems and concerns of customerUnderstanding and knowledge of customers features tailored for the market•Can take advantage of best tariffs in their area

Strengths Weaknesses

Threats Opportunities

Value Chain Analysis of ISP: Beam Cables – Primary Activities

Inbound logistics - LOW• Inbound logistics add little to product value.

Operations - LOW• The operations in ISP are relatively standard and add little to no

value to the product.

Outbound Logistics - LOW• Outbound Logistics is low since they add litle value to the service. A

customer won’t quite care about leasing lines from one telco to another.

Marketing and Sales – HIGH• Have a lot of value since, it’s the primary method for a customer to

distinguish between products.

Service - HIGH• Service requirements are relatively high in the ISP industry.

Secondary ActivitiesProcurement - LOW

• Procurement is easy once there’s infrastructure in place, since a single long lease from a telco is generally sufficient.

Human Resource Management – LOW/HIGH

• Human Resource management is not highly required other than engaging ‘technical’ employees and making it favorable for them to stay since these employees are valuable and often poached by competitors.

Technology Development - HIGH

• Frequent changes in standard technology implies that Technology Development is a necessary cost for an ISP.

Infrastructure - LOW

• Infrastructure is not very important for companies of the size of Beam Cables.

VRIO Analysis• If a firm has resources that are:– Valuable– Rare, and– Costly to Imitate and,– The firm is Organized to exploit these

resources• Then the firm can expect to enjoy a sustained

competitive advantage.

Factors to look at in the VRIO analysis:Ability to change rapidly in dynamic marketplace

Intimate services for niche market

Adept at dealing with problems and concerns of customer

Understanding and knowledge of customers features tailored for the market• Can take advantage of best tariffs in their area

VRIO Analysis of strengths of the company:Ability to change rapidly in dynamic marketplace. –Not Valuable

Intimate services for niche market – Valuable but not much

Adept at dealing with problems and concerns of customer – Not valuable

Understanding and knowledge of customers features tailored for the market – Not Valuable

Can take advantage of best tariffs in their area – Very Valuable

Value Analysis of • Can take advantage of best tariffs in their

area– This is a Valuable resource since it allows the

company to reduce the ‘low capital for service expansion’ threat.

Rarity Analysis of • Can take advantage of best tariffs in their

area– The resource is rare enough that perfect

competition has not yet set in.– This resource thus falls under the category

‘Valuable and Rare’, giving a temporary competitive advantage.

Imitability Analysis of • Can take advantage of best tariffs in their

area– The resource is not easily Imitable without heavy

cost offsets. – This falls under the category of social

complexity.– The social relationships entailed in this resource

is so complex that most managers cannot really manage or replicate them.

Organizational Analysis of Can take advantage of best tariffs in their

area– This advantage is fully exploited by the

‘formalized’ organizational structure of ‘Beam cables’.

Thank You