A Strategic Management Case Study

DTH Industry
Reach the remote corners of the World
Broadcasting Station , satellites , encoders , multiplexers , decoders and
receivers
The service provider leases Ku band transponders on the satellite
Small dish Antenna , STB
In India since 2001
Licence Fee
Restrictions like Foreign equity of 49 %

DTH Industry
First Mover - Dish TV in 2003 by Essel Group
DD+ Direct in 2004
In 2005 , DTH licenses given to 4 companies including TATA Sky
DTH making inroads into rural and remote areas
Niche Urban homes - Interactive Innovative content in demand

Industry Analysis
All service providers reporting losses
New players regularly entering the fray
Tata Sky showed a loss of 1100 crores in 2007-08
Direct to Loss TV
Potential Market for DTH is high and totals 71 Million households
Too big opportunity to Ignore
Challenges - IPTV , Mobile TV

Leased all 12 Ku Band transponders on

INSAT 4A

Tata Sky
Company Overview

More than 300 Channels with 7 day

listings of programs
Interactive series includes Active
Games , Active Music , Active Manager ,
Dance Studio etc
Options like Parental control , guide ,
favourites , Multi TV

Tata Sky basic starts at Rs 1600

Tata Sky
Company Overview

Other offerings include Tata Sky + and

Tata Sky 4K

Tata Sky
Vision & Mission

Vision - Connecting every television

home , empowering every television
viewer and revolutionising home
entertainment.

Mission - Revolutionize by offering

superior quality picture and sound.

Tata Sky
Corporate Strategy

To focus on best service delivery to

customers by focusing on right
technology implementation at the
right time.

Brand Positioning - Distinctive Image

Rising Costs , Downward Pricing
pressure

Tata Sky
Current Situation

Fastest growing DTH Service

Provider
Marketing Budget is 15% of sales
Tie Ups with ITCs e-Choupal and
Godrej Aadhar gives it Wider rural
reach

Satellite - INSAT 4A
Business Support Software - NDS
Billing - Comverse Kenan FX

Tata Sky
Technology Partners

Digicomp - Thomson and Humax

IT - Oracle , IBM , Cisco
System Integration - TCS
Service Support - TATA Business
Support Service

Tata Sky

Environmental Analysis

Porters 5 Force Model

Bargaining Power of Suppliers

Tata Sky
Activity 1

Bargaining Power of Buyer

Threat of Substitutes
Threat of New Entrants
Competitive Rivalry

Porters 5 Force Model

Bargaining Power of Suppliers - Very
High

Tata Sky
Activity 1

Bargaining Power of Buyer - High

Threat of Substitutes - Very High
Threat of New Entrants - Low
Competitive Rivalry - Very High

SWOT Analysis
Activity 2 - Identify Strengths , Weaknesses ,
Opportunities and Threats

Strengths
Leverage on Brand TATA and high Brand Recall
Superior Picture Quality
Customer Service
Rural penetration
Interactive Channels and Program guides
Technological expertise with its arm SKY
Innovative Product offering

Weaknesses
Second mover after Dish TV which has highest market share
Cannot match free services as that of DD
Dependency on Broadcasters
Litigation Issues

Opportunities
Larger disposable Income with India
Tapping Niche markets with better service & Products
Expansion of Distribution Network
Cap on FDI Increased from 49 to 74 percent
Reduction in license fee from 10 to 6 percent
CAS made compulsory
Growing demand for Quality for service in the DTH
Increase in the number of TVs Sold

Threats
IPTV will provide superior technology if implemented
Cable STB provide easy switching
Increasing Internal competition
Dependency on CPE suppliers
High dependence on transponders on ISRO
Dependency on broadcasters for channel content

Questions ?
Poch dala toh life Jinga lala

Rakib Zahoor

Thank You

Basit Rashid