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SWOT and PEST analysis of 3g market in India

A marketing management assignment work

By Nishant aggarwal

A.G.B.S.

M.B.A (1st year)

Section A

Submitted to Ms. Kirandeep kaur

SWOT= strengths, weakness, opportunities, threats. What is swot analysis?


SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a Project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from fortune 500 companies.

PEST- political, economic, social, technological What is PEST analysis?


PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

3g spectrum
3G or 3rd generation mobile telecommunications is a generation of standards for mobile phones and mobile telecommunications services fulfilling the International Mobile Telecommunications-2000 (IMT-2000) specifications by the International Telecommunication Union.Application services include wide-area wireless voice telephone, mobile,internet access, video calls and mobile tv, all in a mobile environment. To meet the IMT-2000 standards, a system is required to provide peak data rates of at least 200 Kbits/s.

SWOT analysis

1. strengths

The cooperation of the companies has helped in keeping a curb on suppliers and hence kept the prices low. (suppliers are strictly controlled and are forced to cut prices under the pressure from the alliance of the market leaders and their cross border partners.

Cellular evolution to high data rates. Good peer- to- peer communication system.(u torrents and other systems run better)

speed up to 10 mbp/s. Good integration with the old 5 ghz WLAN.( able to coexist with old systems)

2. Weaknesses Fear of brain damage from the microwaves among the users. Bluetooth can also be used for banking now but there is a sense of insecurity among the users whether the Bluetooth is a secure enough mode of communication for credit card numbers and other sensitive information. Poor infrastructure is a big problem. Many companies are not well equipped to be able to provide seamless services. Poor, vague and ill enforced laws for consumer data protection in India makes it easy for hackers to attack the ill prepared companies. There arent strict laws.

3. Opportunities New business market has opened for the Bluetooth. In fact Sony Ericsson has already opened a special division and its own research facility for the RnD in this field at the Lund, Sweden. A new market has opened for the wireless marketing as the technology has advanced and wireless internet services have reached the common households now. Wireless internet have become more common lately. A new frontier for mobile phone companies. The demand of mobile internet have reached a new high and hence the market of costly smart phones have seen a new height because now customers demand a phone that can work as efficiently as their laptops and whose processing speed is as fast as the speed of their 3g internet connection. Cost of internet services have been cut down hence a wider customer base have become open. Now a personal internet connection is not for just the rich and the upper middle class. 4. Threats The 3g licenses costs a fortune and hence there is a threat of debt looming over the providers of the 3g service. They are under the pressure to milk the money fast.

If the customer mentality is traditional and they are hesitant or insecure of trying out the new technology then there is a threat of no or low sale which ultimately pushes the company back in debt.

Pest analysis
1.

Political Regulations are not so detailed when it comes to user data security hence companies are not very enthusiastic towards security and the punishment laws against the hackers are not very stringent. Infrastructure is sturdy with the big names entering into the market but there is still a lot that has to be done to provide seamless quality service. If signals are still not strong in several areas then how is it possible to use 3g ? There are bans on the usage of phones in certain circumstances. Jammers are specifically put in many

govt. and private premises for security purposes. This defers the users who frequent those premises. There are campaigns against the usage of phones as the microwaves are considered unhealthy for the human beings. There is no political stance against such campaigns hence companies suffer from negative publicity.

2. Economic

The cost of 3g licenses in India was an obscene 67718.95 crore rupees. That puts the companies under a lot of pressure to make this a profitable purchase. Companies are under a lot of competitive pressure to keep their prices at the lowest in order to retain and expand their customer following. Mobile number portability at this time is a huge problemin terms of competition.

Worldwide recession poses as a major threat .

If recession wasnt enough, this is a recession in a 3rd world country, where the buyers are as it is rare, choosy and demanding.

3. Social

Health issues are a major concern. The campaign against microwaves is damaging from social as well as economic perspective.

Demographically speaking there arent many users of 3g, there are millions of subscribers for sure but there arent many buyers for 3g. Most people use the low cost cells just for making calls. Indian lifestyle is still evolving towards becoming a leisurely lifestyle but most of the Indians still prefer to live an economic and cost conscious lifestyle which doesnt need to have 3g spectrum in their phones necessarily. Although this means that future of 3g market is hopeful.

4.

Technological There is still a lot that can be done to improve the performance of services in India. There is a problem of upgrading of hardware and software and the proper functioning between new technology and old stuff There are still not enough devices that can support all the facilities provided by the 3g systems. Eg. Mobiles not able to handle mms services or efficient browsers and hardwares absence.

Conclusion

Lots of untapped market potential but there is a need of great developments in nearly every field/factor (PEST) Consumer mindset also needs to be changed, it needs to be made into a more adventurous. There is a need to develop customers who use their cellphones for more then just pick and cut calls.