SWOT Analysis is really of import tool for analysing the overall place of the concern and the environment at which operates. SWOT stands for Strengths, Weakness, Opportunities, and Threats.
SWOT Analysis can be farther explained as 2 factors
1. Internal Factors which accumulates Strengths, failing of the organisation.
2. External Factors which accumulates Opportunities and Threats.
SWOT Analysis for S Tel is explained below.
& A ; middot ; Strengths
* S Tel has more than 1 million clients ( Feb 2009 ) in Himachal Pradesh which is astronomically a record figure among the telecom companies in that part.
* It is the largest cellular supplier in India particularly in C circle countries, and besides supplies broadband and telephone services – every bit good as many other telecommunications services to both domestic and corporate clients.
* The company has covered the full C circles of the state with its web. This has underpinned its big and lifting client base in the rural countries.
* Greenfield web to hold best coverage for GSM web
* More figure of value added services ( VAS )
* Public showed involvement on the promotional offers of STel.
* It was offered at really low monetary values that even a common adult male could offer.
* Strategic confederation with Batelco company who are specialized in 3G engineering.
* Maintains a debt equity ratio of 1:2
* Good distribution web compared to rivals
* Financial place: STel is in good fiscal place compared to other operators. It has got 200 million dollars as FDI investing from Batelco.
* Good selling schemes and competitory pricing methods
* It boasts of superior quality merchandise and strong trade name name.
& A ; middot ; Failings
* An frequently cited original failing is that when the concern was started by Batelco and Shiva group, the concern has small cognition and experience of how a cellular telephone system really worked. So the start-up concern had to outsource to industry experts in the field.
* Until late S Tel did non join forces with trust telecommunications for holding its transmittal towers, which was a peculiar strength of some of its rivals such as Airtel, Aircel, Hutch etc. Towers are of import if any company wishes to supply broad coverage nationally.
* Very less mean gross per user ( ARPU )
* Not a pan India operator. It merely operates merely in 6 hundred circles of India.
* Did n’t seek a manus in the CDMA engineering while all other rivals have one.
& A ; middot ; Opportunities
* Global telecommunications and new engineering trade names see S Tel as a key strategic participant in the C circle parts telecom market.
* Despite being forced to outsource much of its proficient operations in the early yearss, this allowed S Tel to work from its ain clean sheet of paper, and to inquiry industry attacks and patterns – for illustration replacing the Revenue-Per-Customer theoretical account with a Revenue-Per-Minute theoretical account which is better suited to India, as the company moved into little and distant small towns and towns.
* The company is puting in its operation in 120,000 to 160,000 little small towns every twelvemonth. It sees that less comfortable consumers may merely be able to afford a few 10s of Rupees per call, and besides so that the concern benefits are scalable – utilizing its ‘Matchbox ‘ scheme.
* STel has the biggest chance to take part in the 3G engineering and Wimax engineering.
* C circle where STel operates has 80 % of untapped telecom market.
* There is a batch of range for market variegation.
* Opportunity to go a planetary participant
& A ; middot ; Menaces
* S Tel and Aircel seem to be holding an on/off relationship. As trade name telecom operators like Airtel, Aircel, Hutchison has been eyeing on rural countries, S Tel needs to regularly revise its schemes so as to stand against these trade name telecom companies.
* The rapidly altering gait of the planetary telecommunications industry could allure S Tel to travel along the acquisition trail which may do it vulnerable if the universe goes into recession.
* S Tel could besides be the mark for the coup d’etat vision of other planetary telecommunications participants that wish to travel into the Indian market.
* Government regulation which frequently keep altering
* Rivals pricing scheme methods
* Mobile figure portability ( MNP ) : It is biggest menace where the current clients of STel will keep the same figure but will travel on to other web.
* STel should seek to convey some alterations in its merchandises and services. Since telecom
industry in India is really competitory, STel has to believe about improvizing its merchandises, and convey new advanced services for the clients.
* STel can present Video naming installations as portion of it Value added services which none of its rivals have tried.
* Though STel has assortment of merchandises aiming all sections, it should seek to present more attracting merchandises for the Youth section.
* They should besides convey in postpaid installations and aim the corporate sectors by presenting Closed user group ( CUG ) service.
Topographic point and Distributions:
* STel should spread out its operation to Pan India instead than non curtailing merely to C circles.
* They should make over on the distribution channel rather frequently depending upon the gross revenues demand
* They can besides present place bringing installations in chief metropoliss to ab initio get down with.
* More figure of mercantile establishments near schools, colleges, Parkss, shopping promenades, temples, etc which makes more convenient for the people.
* Allocate less figure of yearss for stock glade to the distributers and retail merchants
* STel should hold some concealed cost for its merchandises and services instead being transparent as they have adopted really low pricing scheme.
* After making maximal Numberss of clients, STel should increase its monetary value in order to increase its Average gross per user ( ARPU ) .
* Company must ever go on their intensive promotional activities throughout their service
* They must concentrate in advancing more on their gross bring forthing merchandises.
* They must work on the scheme of publishing free SIM cards and coining money in recharge cards and top ups.
* They should ever seek to set up their Brand name and maintain up the reputes.
* They should supply more gifts to retail merchants on accomplishing the mark, as they are really of import in forcing the merchandises.
* Create new commercial advertizements every 6 months to remain in the spotlight.
* Constant Allocation of portion of the net income for publicities as it is a cardinal factor in the competitory sphere.
* Always be ready for any alterations or effects due to any Government regulations or amendments.
* They should be ready to manage political and economic issues.
* Always maintain a debt equity ratio of 1:2