STRATEGIES FOR IDEA CELLULAR The Idea Cellular Limited falls in the question mark quadrant of BCG matrix

and in the Highattractive and Strong Competitive strength category as per the GE Matrix. Thus they need to formulate some strategies to try capturing some market share, growing and building their brandimage as well as brand value. Market penetration The company enters where the products and the market already exists. IDEA being a questionmark that means it is competing in a high growth market but with a relatively low share compareto its competitors. Market penetration can be done by attracting competitors customers thatimplies increase in market share. The strategy that IDEA can adapt under market penetration is toa t t r a c t n o n - u s e r s a n d c o n vi n c e t o u s e t h e i r p r o d u c t mo r e o f t e n . T h e y a r e d i f f e r e n t m a r ke t p e n e t r a t i o n s t r a t e gi e s l i ke c u t t i n g p r i c e , i n c r e a s e i n p r o mo t i o n , a n d c r e a t i n g i n n o v a t i ve distribution tactics. The target should be in such a way that IDEA sales volume relative to itscompetitors should be high as expressed in percentage. IDEAs present market share is about 12%, and competitors like airtel, Vodafone, and bsnl have a market share of about 31, 23, and 19 percent respectively. Though telecom industry is growing rapidly every year, there is always alittle increment in the percentage of sales for IDEA. To overcome this problem and to occupy thecompetitors position we recommend following strategies. Increasing the mobile circles which are at present are only 11, so there is always a need toexpand its services. Target the rural segment in India which is expected to grow by 15% every year Launch different types of packages as per the requirements for different segments of thecustomers Provide more high end services like GPRS, mobile internet services Collaboration with different service providers on global basis to provide better facility tocustomers on roaming. Tracing out the search patterns which are left untapped by the competitors to reveal newmarkets. Backward Integration In July 2008 Swedish equipment supplier entered into a contract to provide technology Ericsson Mobile organizer to Idea cellular enabling its subscribers to serveemail facility on its cell phones. Forward Integration Company operate approximately 589 Idea n U and other showroomswhich supplement the distribution channels and provide customer service. Horizontal Integration: I d e a a c q u i r e d t h e M o d i f a mi l y s s t a ke o f 4 0 . 8 % i n s p i c e w h i c h ultimately in a way increased the market share of Idea. This can be seen as horizontal integration

Strategic Alliance 1)Product alliance

Idea should form product alliance with a company that has a strong brand image andcarry a promotion for one another. E.g. Acer in collaboration with Ferrari launched Acer Ferrari laptops which are catering to high end niche segment having high specifications and high prices. 2) promotional Alliance: Idea should form promotional alliances in collaboration with big movie houses or bigretail brands to promote their products. Recently SONY Viao had a promotional alliancewith James Bond latest movie Casino Royale.

CORPORATE LEVEL STRATEGY

CORPORATE STRATEGY MTS primary goal is to be the leading communication operator in india, providing its customers withmobile and high internet access at home and on the move. For this company is trying to move beyond themobile access.The development of MTS beyond mobile access is part of our strategic initiative 3i . Companys direction is basically based on three main principles: IntegrationInternetInnovation Integration In integration company is basically trying to develop new pipelines and customer touch points.companyaims to provide comprehensive integrated service portfolio for all of their customers.communicationneeds ,through both fixed line and wireless access.the networks and platforms company is developingwill create a seamless and unsurpassed user experience. Internet For internet facilities company is trying to offer universal connectivity to its customers because customerincreasingly expects faster and broader connectivity. company is trying to create smarter pipelines so thecustomers can realize full benefits of todays technology and to compete with other brands. Innovation Differentiating MTS from its competitors by offering a unique mix of products and services,MTS willoffer exclusive devices ,distinct packages and services.