Topic1-AmartyaGhosh

Stake owned by a foreign player higher weight age is

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Unformatted text preview: od of dominance (in terms of becoming a market leader) may be replaced by an innovation or differentiation period. In order to identify the new MTYT players we have listed down the factors (premises) which would help us in the process. • Stake owned by a foreign player: Higher weight age is given to strategic equity like SingTel, Medium weight age to JV and Low weight age to no equity • National Presence: Network presence in circles (AirTel’s domination started with pan India presence) • Leadership/Innovation in new Product or Service: Here we are referring to a service which acts as a game changer Page 10 of 18 • Rural Appeal: A lower rural appeal or portfolio of services will make the player more inclined towards another emerging market as it may not find substantial number of customers in rural India The players identified for this purpose are the new 2G entrants. • TATA Docomo • Loop • Reliance GSM • Datacom • Aircel • Swan (Etilsat) • Uninor • Virgin Mobile India (GSM) • S Tel We conducted an exercise using AHP methodology to determine which Telecom player(s) is (are) best positioned to follow MTYT model and change the rules of the game. The results of the exercise are as follows: Player TATA Docomo Aircel Virgin Mobile (GSM) Total Score 0.182528736 0.151295019 0.142528736 Uninor Loop Reliance GSM Swan (Etilsat) S Tel Datacom 0.12183908 0.099417625 0.097072797 0.079295019 0.068950192 0.057072797 Table 2: Scores of the New Player in AHP exercise (in terms of Largest to Smallest) The above table indicates that TATA Docomo, Aircel, Virgin Mobile (GSM) and Uninor are the top 4 players which can be expected to follow the next steps of the MTYT model and enter the emerging markets through acquisition. Conclusion and Remarks The environment and conditions in which the Indian companies operate indicate that a legacy has been created which will make India dominate the world. Industries which involve heavy labor and technical aspects would definitely attract the interest of foreign companies and investors. The corporate India should look after the external factors which might work against them. However, the visit of different country leaders indicates that India would still be preferred Page 11 of 18 business partner. With this, the premises of the MTYT model have been developed through which we feel AirTel grew in the Indian market and is expanding in the emerging markets. It seems that the Indian Telcos are throwing bait at the well established global players and then are on route to dominate the new emerging markets. As an extension to our study, we would be interested to see if the model can be applied or customized to other sectors in India; especially the Insurance sector which has seen a lot of foreign player activity. It is now time that our country realizes which company would have the ability to dominate the world and invest in it further. Appen...
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This document was uploaded on 01/14/2014.

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