DIZZ presentation

DIZZ MOBILE PHONE : 

DIZZ MOBILE PHONE MOSAIC CONSULTANTS NMIMS UNIVERSITY Mosaic Consultants NMIMS University

Market Overview : 

Market Overview World telecom market is expected to grow at 7% to reach USD 1.7 trillion by end of 2010 Asia is considered to contribute significantly to this growth European market is saturated African and South Asian markets are still developing and hence are emerging markets for telecom giants Stiff regulatory norms in terms of price and services in Asian markets

Top ten telecom companies of the world : 

Top ten telecom companies of the world

SWOT analysis : 

SWOT analysis

Strengths : 

Strengths Organizational strengths Listed company First mover advantage Strong shareholder confidence Operational strengths Operations in 17 countries across Europe, Asia and Africa Divisional formulation of annual and 5 year plans Establishment of call centers in each country IT systems are fully integrated with the vendors’ systems Procurement rights of mobile phone handsets with handset manufacturers Financial strengths Strong group revenues of 52,000 million Euros in the FY ended 30th June, 2008 100 % shareholding in mobile phone network operations in 3 European countries 75 % shareholding in a mobile phone network in Yee EPS for the FY ended 30th June 2008 was 0.511 Euros per share

Strengths : 

Strengths Qualitative strengths Best quality of service in Europe Strong customer base of 214 million customers Customer friendly Complete compatibility to 3G Appropriate pricing Human resource strengths Employee base of 19000 plus Excellent organizational structure Excellent management training scheme Performance related pay Excellent vendor relationships Marketing strengths Excellent brand position Divided marketing and advertising approach Over 110 different sponsorship contracts across 17 countries

Weakness : 

Weakness Operational weaknesses Absence of operations in few emerging markets Outsourcing of functions reduces quality Qualitative weaknesses Only basic customer service in Africa Human resource weaknesses Difficulty in measuring performance related pay

Opportunities : 

Opportunities Operational opportunities Penetrating African markets in a better way Penetrating other emerging markets in Asia and Africa Increasing the ARPU in saturated markets like the Europe Qualitative opportunities DIZZ should lobby strongly for the introduction of Market Number Portability(MNP) in the European markets

Threats : 

Threats Operational threats Saturation of the European market Increasing competition MVNO’s are an increasing threat to the organization Mobile phone hackers cause loss of revenue Financial threats Price pressure Competitive pricing resulting in decreasing margins

Tows matrix : 

Tows matrix

SO STRATEGIES : 

SO STRATEGIES Establishment of market specific call centers Employment of trained and highly motivated personnel to provide high standards of customer service Use of competitive pressure to its advantage Using the latest technologies to increase the ARPU in Europe Generation of large profits through excellent service in Yee Increase the ARPU and customer base in Africa through its strong marketing and pricing techniques Aiming DIZZ’s strong marketing campaigns towards increasing the usage of mobile phones in Europe, hence increasing the ARPU

ST STRATEGIES : 

ST STRATEGIES Use the strength of flexibility in pricing and strong service packages to avoid the threat of loosing customers due to competition Market its cheap ISD call rates in Europe as it can be a significant selling point. This will also minimize the above threat DIZZ can use its management training scheme to motivate the employees in countries outside Europe as well to minimize the employee turnover rate outside Europe

WO STRATEGIES : 

WO STRATEGIES Try and start operations in emerging markets of Australasia and South America To improve quality, instead of outsourcing certain functions, DIZZ can train their employees and perform specialized functions better Improve customer service in Africa, the lack of which is increasing the number of unhappy customers which can prove fatal Unwillingness of the company to raise finance through share exchange or rights issue for further acquisitions in emerging markets

WT STRATEGIES : 

WT STRATEGIES To avoid the threat of bad weather affecting signal strength in Europe, the use of old transmitters should be minimized Due to plenty of options available, customers can easily shift to other service providers. Employees should be effectively trained to provide excellent service

Dizz’s 5 Point Focus : 

Dizz’s 5 Point Focus Revenue stimulation (Increasing ARPU and mobile users) Cost reduction Upping quality standards Strengthening brand identity Innovation

Issues faced by dizz : 

Issues faced by dizz

Resignation Of CEO : 

Resignation Of CEO Effects African market operations Shareholders confidence Customer service Solutions CEO of Europe should not be asked to takeover the control A senior manager should takeover the control Global marketing director can be called in Strengths of the company will be affected

Top 10 Mobile using Countries : 

Top 10 Mobile using Countries

Regulator Threat In Yee : 

Regulator Threat In Yee Must DIZZ must invest 80 million € to upgrade the transmitters at Yee Avoid Should avoid pulling out of Yee Benefits 75% shareholdings in Yee 28 million customers Yee is expected to grow at 20% per year 3220 million $ are the estimated revenue for 2009

Error In The Upgrade Of Contracts Details Within CAS : 

Error In The Upgrade Of Contracts Details Within CAS Effects Agitated users due to poor customer service Loss of customers Solutions Floating fresh tenders Reassessing the bill amounts of customers with discounts to unsatisfied customers

Network Security : 

Network Security Effects Threat of system getting hacked Leakage of customer information Loss of customers Solutions Channeling IT funds for up gradation of network security Mobile data system can be implemented for better service and security

Proposals : 

Proposals

Financial Ratios : 

Financial Ratios BEFORE (2007-08) Interest Coverage Ratio 4.18 Operating Cost Ratio 73% Operating Profit Ratio 27% Net Profit Ratio 14% AFTER (2013-14) Interest Coverage Ratio 8.51 Operating Cost Ratio 71% Operating Profit Ratio 29% Net Profit Ratio 17%

conclusion : 

conclusion

STOP : 

STOP Outsourcing specialized functions in order to improve quality Shop in shop proposal because- Cost- 4,024,500 € per year Revenue- 2,250,000 € per year. Use of old transmitters affecting the service.

START : 

START Using 4G and Mobile Data service to increase ARPU in Europe Undertaking aggressive Marketing campaigns especially in Asia and Africa Increasing and updating its network security Further marketing of its cheap ISD call rates

START : 

START Sale of recycled phones in existing emerging markets The initiation of 80 million € proposal in Yee Sale of inexpensive handsets in Africa Sponsorship deals with global brands Acquiring competitors within the country

CONTINUE : 

CONTINUE Establishing call centers in the operating markets Providing management trainee schemes Proceeding with their current organizational structure Developing their domestic markets in Europe, Asia and Africa Investment of1,500 million € in I.T. over a period of 3 years

THANK YOU : 

THANK YOU