1. Case Study Prepared by:
Group 4
Amar Pal Singh
Apoorv Kr. Sharma
Arun Semwal
Idea Cellular Gaurav Khatri
Dipendra Raj Tomar

2. Introduction
• Customer base of over 36 million.
• Customer service and innovation.
• Part of Aditya Birla Group.
• Operates in more than 25 countries.
• Over 100000 employees from 25+ nationalities.
• Started with equal share of-
– Tata
– Birla
– AT&T Wireless

3. Mission
“We will delight our customers while meeting their
individual communication needs anytime anywhere.
We survive because of our customers.”

4. SWOT Analysis

5. Strengths
• Attractive existing footprints in 11 circles out of 23
circles in India.
• Original licensee in 7 of the established circles.
• Strong distribution channel and good relations with
parent company.
• High quality network structure.
• Innovative strategies to attract customer attention.

6. Weaknesses
• The company’s debt to equity ratio is high.
• The company’s revenues are derived solely from
mobile services.
• The PAT margin is decreased.

7. Opportunities
• Increasing number of subscribers.
• Opportunities of economies of scale and high
customer value.
• The disposable income of middle class is increasing.

8. Threats
• Intense competition.
• Alternative technologies like Imax, VOIP ( Skype ).
• Market demand may slow down.
• Govt. rules and regulations.

9. Porters 5 Forces Analysis
• Threat to new entrants
• Suppliers bargaining power
• Threat of substitutes
• Customers bargaining power
• Rivalry among existing competitors

10. Strategic Groups in Telecom Sector
• Firms can be grouped on two parameters.
– Brand Identification
– Specialization

11. Idea’s Strategic Groups
• The bargaining power of strategic group against the
customer is high.
• Ideas placed in mid specialization and mid brand
category.
• The height of mobility barrier due to scale of
economy is moderate.

12. Risk faced by Idea
• Risk of other firms entering its strategic group.
• Risk of factors reducing the mobility barrier of the
Airtel’s strategic groups .
• Risk that accompany investment design to improve
the firms position by increasing the mobility barrier.

13. Future Outlooks of IDEA
• Movement towards higher strategic group.
• Gaining access to large number of users.
• Tremendous potential exploitation.

15. Organic and Inorganic Growth
• Revenue increased both ways.
– Organic growth, Inorganic growth.
– First to launch GPRS & EDGE.
– Acquisition of Escotel, RPG Cellular, Andhra
Pradesh operations of TATA cellular.
– Expanding in terms of geography.
– Operates in more than 11 circles.
– Growth and market share increment through
innovative schemes.
– Introduction of new value added services.

16. Acquisition History
• 2000 – Merger with TATA cellular.
• 2004 – Acquired RPG in Madhya Pradesh.
• 2004 – Acquired Escotel.
• 2008 – Acquired Spice (Punjab & Karnataka).

17. Functional Level Strategies

18. Marketing Strategies
• Focus on numbers.
• Use of celebrities.
• Aditya Birla Brand.

19. Operational level Strategies
• Choosing "Core competency” for working.
• Outsourcing rest of the work.
• Strategy partnership with companies
– Infrastructure needs.
– Software needs.
• Partnership with Companies
– NOKIA SIEMENS
– ERICSON
– IBM

20. Conclusion
• Highly competitive market.
• Not lagging far behind in terms of brand and
specialization.

21. Thank you…