MTS Market Share Increase Joint Venture Smartphone

Business and Management
(HL)
May-2012
Research Project
“Can MTS (CDMA) card, a brand of
SISTEMA increase its market share by creating
a joint venture with a smartphone company?”
Candidate name: Abhilash Manatkar
Candidate number: 003563 -001
Word count: 1797

Abhilash Manatkar Candidate Session Number – 003563 - 001 Page 2
Acknowledgments
I would specially like to thank Regional Marketing Manager Mr.
Naket, the manager of the MTS outlet in Sitabuldi in Nagpur for
providing information on MTS CDMA in Nagpur and for his help in
providing the required information and his precious time for the
interview.
I would also like to thank my supervisor, Mr Prabhuling Swami for
his guidance.

Contents
Contents
Acknowledgments...................................................................................................................................2
Contents..................................................................................................................................................3
Research Proposal...................................................................................................................................4
Action plan..............................................................................................................................................5
Executive Summary.................................................................................................................................6
Introduction ............................................................................................................................................7
Methodology /Procedure .......................................................................................................................8
Main Results / Findings ..........................................................................................................................9
 What are Smart Phones?........................................................................................................9
 Results of analysis and evaluation of the Survey.................................................................10
 What is skype?.................................................................................................................15
 Analysis and evaluation of the interview with the Regional Marketing Manager...............16
 Analysis and Discussion .......................................................................................................17
 SWOT ANALYSIS.................................................................................................................17
 Force analysis ......................................................................................................................18
Conclusions and Recommendations .....................................................................................................19
Bibliography and References................................................................................................................20
Appendices............................................................................................................................................21
 Interview ..............................................................................................................................25

Research Proposal
“Can MTS (CDMA) card, a brand of SISTEMA
increase its market share by creating a joint venture
with a smartphone company?”
This question was been created by the thinking of CDMA sim cards
are not performing well in the market and facing many problems so
what are the problems and solution after analysing all I found this
question
In this project I used 2 analyses that are Force Field analysis and
SWOT analysis
Problems likely to be encounted and possible solutions:
Possible Problems:- Solutions:-
Interview questions will help my
project and will it give me the
right way to move.
Before going to interview I will
take the analysis of the
questionnaire ask to the people
that it will make clear the idea
about the next step

Action plan
Date Activities Modifications
3 November 2011 Topic Selection
4 – 10 November 2011 Making questionnaire
11 – 15 November
2011
Started research
16 – 28 November
2011
Collected questionnaires
29 – 30 November
2011
Teacher’s guidance on
analysis of questionnaire
1 – 8 December 2011 Did researching (On
Questionnaires answers)
9 December 2011 Confirm interview Date &
Time
10 – 11 December
2011
Making interview
questions
Modified in
Topic
13 December 2011 Conduct the interview with
Regional Marketing,
Manager Naket
1 – 5 January 2012 SWOT & FORCE analysis Modified research
content
6 January 2012 Completed the project for
1st
draft
7 January 2012 Check the draft
9 January 2012 Submitted the 1st
draft
10 - 14 January 2012 Slightly modified
the analysis as
teacher replied on
draft
15 January 2012 Completed the project for
2nd
draft
25 January 2012 Submitted the project final
Word count: 268

Executive Summary
MTS (CDMA) a brand of Sistema Company is currently offering the
lowest call rate in CDMA technology, but, it still has a very small
market in India. The main reasons being:
1) It has not been promoted it’s product beyond a certain limit.
2) The handsets in which CDMA sim cards are used are not
competent with their GSM counterparts owing to the lack of
applications and functions.
The company can increase their market share by creating a joint
venture with the smart phone company, Android. Considering this
question, I have conducted secondary and primary research which
included an interview with a MTS outlet manager, Regional
Marketing Manager Naket and questionnaires.
Initially, after getting the data from the questionnaires, I believed that
entering into a joint venture with Apple would be a good idea, but,
after the interview, I came to a conclusion that a lot of people simply
ticked Apple, when offered a choice simply because of the status it
implies. Thus, after analysing everything I came to a conclusion that
tying up with HTC Android would be a better decision
Word count: 184

Introduction
Sistema's History:
Sistema's ownership structure was formed in 1993. During this year
the acquisition of the main assets in telecommunications, high-tech,
tourism, trade, oil and oil products, construction and development was
completed. Sistema Shyam Tele Services (SSTL) is a joint venture
company between Sistema {LSE: SSA} of Russia and Shyam Group
of India. Sistema is the majority shareholder in this joint venture with
a 73.71% equity stake, along with the Shyam Group, holding a
23.79% stake and the rest 2.5% being public partake. For the first
time in India, courtesy of MTS (brand of Sistema), customers across
Maharashtra & Goa can now avail ½ paisa/second tariff plan for
“LIFETIME’ on all local calls without any condition and then also the
sale was less and the main reason was that it is in CDMA supported
card.1
So, I am researching on MTS the brand of Sistema can tying
with a HTC smart phone company will increase the Indian market
size.
“Can MTS (CDMA) card, a brand of SISTEMA increase its
market share by creating a joint venture with a smartphone
company?”
1
http://www.mtsindia.in/corporate/downloads

Methodology /Procedure
In this research project I used the following procedure to study the
business carefully and collect the primary and secondary information:
• Primary Research: - I conducted an interview of the Regional
Marketing Manager, Mr. Naket, in a MTS outlet in Sitabuldi, Nagpur
and I made questionnaires which contributed to the data collection.
• Secondary Research: - Data collection through internet, different
textbooks of IB and other material.

Main Results / Findings
What are Smart Phones?
A smartphone is a high-end mobile phone which combines the
functions of a personal digital assistant (PDA) and a mobile
phone. Today's models typically also serve as portable media
players and camera phones with high-resolution touchscreens,
web browsers that can access and properly display standard
web pages rather than only mobile-optimized sites, GPRS,
Wi-Fi and mobile broadband access. The term smartphone is
usually used to describe phones with more advanced
computing ability and connectivity than a contemporary
feature phone, although the distinction can be vague and there
is no official definition for what constitutes the difference
between them. The definitions also shift over time since many
phones that are considered feature phones today can have
capabilities that exceed those of phones that had been
promoted as smartphones in the past.2
2
http://en.wikipedia.org/wiki/Smartphones

Results of analysis and evaluation of the Survey
 Do you like to use smart phones?
The survey says 99% people prefer smartphone as it is moving with fashion.
 Do you use CDMA sim cards?
The survey says 85% people prefer GSM and just 15% people prefer CDMA so it shows that we
should increase are marketing by a tying up or making any other idea. If CDMA would prefer more
than it would be benefit to the tie up or then we could increased the tie up by any idea of call rate or
internet like Skype
0%
20%
40%
60%
80%
100%
120%
YES No
Do you like to use smart phones?
0%
20%
40%
60%
80%
100%
YES NO
Do you use CDMA sim cards?

 Which one do you use 3G for video calling or 3X for speedily internet?
As the survey says that people want to use speedily internet at 72% and 28% would like to use 3G
video calling so it is a pulse point to the company because MTS CDMA card can’t use 3G video
calling but gives the speed of 3X in internet.
 What would you prefer to use.
As we get more percentage (%) in apple (35%) the most and then Android (29%) as this both system
has cover half of the market so it shows that if MTS tie up with apple or android to be in benefit.
0%
20%
40%
60%
80%
3G 3X
Which one do you use 3G for video
calling or 3X for speedily internet?
0%
10%
20%
30%
40%
Apple Android Black Berry Windows Mobile
What would you prefer to use?

 Which of the following options would you prefer as your call rate?
The survey says that as MTS has the lowest rate of call 0.50 p/sec which is biggest pulse point for
company as people like it and will give a great response to tie up by low call rate.
 which company CDMA card would you like to buy was asked to check the brand name is
popular in public or not
Survey says that in all CDMA Sims cards brand the MTS brand name is little bit equal to each other’s
but at the last and we have to increase it because it is prefer last.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Rs. 1/min Rs. 0.50/min 1 p/sec 0.50p/sec
Which of the following options would you
prefer as your call rate?
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%
TATA Indicom
Reliance
MTS
Others
Which company CDMA card would you like
to buy

 Which company Smart Phones do you like more in this with the help of pie diagram we can
come to know that Apple (25%) and HTC (20%) and it became 45% covers half of the market
of smart phone.
Survey says that MTS the brand of Sistema Company has to tie up with the Smart Phones then they
have to tie up with Apple.
Apple, 25.00%
HTC, 20.00%
Black berry,
15.00%
LG,
4.00%
Samsung, 18.00%
Motorola,
6.00%
Sony Ericsson,
12.00%

 Do you use Skype3
on your Smart Phones?
Survey says that more people use skype and if we use it in the tie up we can solve a problem of 3G
video calling.
 Do you need to travel out of India a lot to make people awry of CDMA benefits?
Here the survey says that because we were having pulse point that MTS is CDMA it can be use all
over the world the people who prefer to travel a lot all over the world.
3
On page 15
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
YES NO
Do you use Skype on your Smart Phones?
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
YES NO
Do you need to travel out of India a lot?

What is skype?
Skype is a proprietary voice over Internet Protocol service and
software application originally created by David Somekh, and owned
by Microsoft since 2011 this service allows users to communicate
with voice, video, and instant messaging over the Internet over any
country. Phone calls may be placed to recipients on the traditional
telephone networks. Calls to Skype to Skype service are free of
charge, while calls to landline phones telephones and mobile phones
are charged via a debit-based user account system with different rate.
Some network administrators have banned Skype on corporate,
government, home, and education networks, citing reasons such as
inappropriate usage of resources, excessive bandwidth usage, and
security concerns.4
Skype will help to do video calling on the place of 3G5
the MTS
CDMA can use skype on 3X on the place of 3G GSM just they have
to give skype install in their smartphone and have to charge for that
but at very low rate.
4
http://en.wikipedia.org/wiki/Skype
5
Page 11

Analysis and evaluation of the interview with the Regional
Marketing Manager
The views of Regional Marketing Manager and the costumer’s survey
in the survey it is shown that MTS is having lowest call rate and then
also it is preferred at the last in the CDMA telecommunication
Regional Marketing Manager says that MTS brand has not promoted
very well and other product has more promotion but the survey is
agree with Regional Marketing Manager but with less promotion the
network and outlet are also very less so it is prefer last then way
people prefer GSM more than CDMA Regional Marketing Manager
says People want to keep their status so they prefer GSM more but the
survey says No it is not that GSM has more status and CDMA has
less but the handset which are made supporting to CDMA are not
having more function and is not moving with the fashion if the
handset are not moving with fashion then the CDMA cards also can’t
do video calling but GSM can do which is fashion of today’s teen age
so can they have Skype in their phone Regional Marketing Manager
says Skype do free video calling and if it is in mobile phones then
people prefer it more and company will not get more profit survey
says yes it’s true that company will not get more profit but if company
will charge it by some price for per month then the problem of video
calling will be solved costumers are preferring first Apple and second
android system choose in the survey so should MTS move with Apple
Regional Marketing Manager says People choose apple to keep their
status and it has good functions but it’s very expansive so they prefer
android because it is having function with sufficient rate the survey is
100% agree with Regional Marketing Manager sir that people try to
keep their status but the truth is different in some cases so they will
prefer android more

Analysis and Discussion
SWOT ANALYSIS
Strengths Weakness
Internal
 The brand is good and
strong in CDMA cards
 The lowest call rate in
telecommunication
market
 It has 3X speed of Internet
 Good network tied up
with TATA DOCOMO
 The target of selling sim
card is high to every
outlet of MTS
 Online recharge
 CDMA sim card
don’t have 3G
 Less outlet all over
India
Opportunities Threats
External
 Can tie up with smart
phones to increase their
market
 Can increase their outlet
more in villages
 Make the people awake
about the low price call
rate
 There is less
media coverage
and publicity
 Has to change
with fashion as
using smart
phones
As the brand is having more Strength of good network and high speed
of internet and only 2 weaknesses CDMA sim don’t have 3G but as
the high speed internet then the video calling can be done by Skype
and more opportunities to move ahead.

Force analysis
DRIVING FORCES RESTRAINING FORCES
YES MOST OF THE PEOPLE NO, IT NEED 3G AND
USE SMART PHONES MTS IS CDMA DON’T HAVE 3G
CDMA HAVE 3X SPEED OF NET
AND SMART PHONE IS USE FOR NET
½ PAISA/SECOND TARIFF PLAN FOR
ALL CALLS WITHOUT
ANY CONDITION
 By the force field analyses it is proved that the new tie up is the
good idea to increase the marketing.
 Driving Forces are the positive points of the brand which is
saying that the benefit effect which will encourage the people to
buy MTS (CDMA) sim cards.
 Restraining Forces are the negative points of the brands which is
only one that not having video calling as MTS is CDMA it can’t
do video calling so to make it as a positive point in company can
start rent on skype by which they can do video calling.
New tie
up: - tie up
with smart
phone will
increase
the
marketing

Conclusions and Recommendations
MTS (a brand of Sistema) can tie up profitably with android HTC
smart phones. I can conclude this after having acquired the results of
the questionnaire which clearly show that MTS should tie up with
apple smart phones. This is because most people prefer apple handsets
as a status symbol, a fact, which was later concluded with the help
regional marketing manager, that MTS will do better if it ties up with
Android smart phones as android is the next best option chosen6
in the
survey because of its good functions with low price compared with
apple. As HTC is the only brand which make the Android software in
all handset of all brands, as MTS will tie up with HTC Android
handsets it will be affordable to the company and customers.
6
Page 11

Bibliography and References
1. http://www.mtsindia.in/corporate/downloads/MTS%20offers
%20ISD%20calls%20to%20Russia%20at%20just%20Rs.4.99
%20per%20minute
2. IBID BUSINESS AND MANAGEMENT BY PAUL HOANG -BOOK
3. http://en.wikipedia.org/wiki/Smartphones
4. www.sistema.com

Appendices
NAME:-
AGE:-
(PLEASE PICK ONE OPTION IN EACH OF THE FALLING)
RESIDENCE:-
IN NAGPUR
• OUT OF NAGPUR BUT IN INDIA
• OUT OF INDIA
1) DO YOU LIKE TO USE SMART PHONES?
• YES
• NO
2) DO YOU USE CDMA CARDS?
• YES
• NO

3) WHICH ONE DO YOU USE?
• 3G (VIDEO CALLING)
• 3X (SPEEDILY INTERNET)
4) WHAT WOULD YOU PREFER TO USE? (YOU CAN CHOOSE 2 OR
LESS THAN 2)
• ANDROID - OS
• APPLE - IOS
• BLACK BERRY - OS
• WINDOWS MOBILE – OS
5) WHICH OF THE FOLLOWING OPTIONS WOULD YOU PREFER AS
YOUR CALL RATE?
• 1 /MIN
• 50 P/MIN
• 1 P/SEC
• 0.5 P/SEC

6) WHICH COMPANY CDMA WOULD YOU LIKE TO BUY? (YOU CAN
CHOOSE MORE THAN ONE OPTION.)
• TATA INDICOM (1/MIN)
• MTS (0.50 P/SEC)
• RELIANCE (50 P/MIN)
• OTHERS
7) WHICH COMPANY SMART PHONES DO YOU LIKE MORE? (YOU
CAN CHOOSE MORE THAN ONE OPTION.)
• HTC
• SAMSUNG
• LG
• MOTOROLA
• SONY ERICSSON
• APPLE
• BLACKBERRY

8) DO YOU USE SKYPE ON YOUR SMART PHONE?
• YES
• NO
9) DO YOU NEED TO TRAVEL OUT OF INDIA A LOT?
• YES
• NO
10) IF YES, DO YOU USE THE SAME NUMBER SIM CARD?
• YES
• NO
11) HOW MUCH INTERNET SPEED DOES YOUR CURRENT SIM CARD
GIVE YOU?
• 1X
• 2X
• 3X
• 4X

Interview
Mr. Naket Regional Marketing manager of MTS outlet
 IN QUESTIONNAIRE IT IS SHOWN THAT MTS IS PREFERRED AT
THE LAST AS IT IS HAVING LOW CALL RATE?
 WAY PEOPLE PREFER GSM MORE THAN CDMA?
 THE CDMA CARDS CAN’T DO VIDEO CALLING BUT GSM CAN
DO SO CAN WE GIVE THEM SKYPE IN THEIR PHONE.
 IN QUESTIONNAIRE I HAVE SHOWN THAT APPLE IS 1ST &
ANDROID IS 2ND SYSTEM CHOOSE BY THE PEOPLE SO CAN
WITH WHICH ONE WE SHOULD MOVIE?
 WHAT FINANCE WILL BE NEEDED TO MAKE THIS TIE UP?

MTS Market Share Increase Joint Venture Smartphone

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