Creating the unique value proposition for the service based on mobile content also is attractive to potential partners who are necessary for the nationwide success of the company across India's broad geographic regions. This concentration on value-added services is also critical when the competitors to the proposed company are also taken into account. The following section provides insights into the competitive landscape in India for cellular and telecommunications.
Competitive Landscape and Analysis
The following is an analysis of the competitive landscape of providers that the proposed company will need to partner with in some cases, and compete with in others. Clearly the most important attribute of these partnerships strategies is attracting content providers who can sustain transfer rates at GSM level across India for extended periods of time to ensure the business model of the proposed company is feasible. Figure 2 provides an assessment of the competitive telecommunications landscape of the India, and illustrates the interrelationships in the market. Vodafone, at&T, Cognito, IBM, Verizon and T-Mobile all span multiple areas, illustrating their ability to scale across multiple roles in the value chain necessary to support the delivery of multimedia content.
Figure 2: India Telecommunications Competitive Analysis
Sources: AMR Research (et.al.); (Rahman, 136- 138) (Dasgupta)
An evaluation of service providers who have increased their breadth of coverage in India to alleviate risk is shown in Figure 3, Competitive Assessment of Mobile Solution Management Partners. The difference between the companies shown in Figure 2 relative to Figure 3 is that breadth of coverage over the telecommunications platform components as is shown in the latter diagram (Figure 2). Figure 3 shows that IBM, potentially a partner, also has a core business strength in partnering strategies, as does Computer Associates (CA) and Hewlett-Packard (HP). Nokia, the strongest competitor intent on creating their own launch strategy in India, needs to become the basis of comparison with regard to market execution performance.
Both of these analyses provide a useful foundation for analyzing who would be a potential infrastructure partner for the launch of the proposed new business.
Figure 3: Competitive Assessment of Mobile Solution Management Partners
Sources: AMR Research (et.al.); (Rahman, 136- 138) (Dasgupta) (Thiagarajan, et.al.) (Subhedar, 35-36)
Figures 2 and 3 illustrate that the Indian telecommunications market is maturing rapidly and the beginnings of consolidation are beginning to occur. In many industries consolidation is considered a precursor to pricing being used as the unique value proposition, yet in this case the consolidation of service providers forms the foundation of a reduction in risk. As Figure 2 shows, there is ample room for Joint Ventures (JV), a strategy that can significantly reduce the risk of launching the new company into an unfamiliar and untested market. As part of the risk mitigation strategy this will be the course of action the company takes going forward. Figure 4, Multimedia Cellular Devices Roadmap, shows the progression of services over the first four years of the venture's development. It is critical for the development of the Joint Venture partner with a technology provider capable of fulfilling the requirements of this product roadmap as well.
Organizational Structure at Launch
As the proposed business is focused on the development of a Joint Venture (JV) to gain the necessary insights while gaining the critical support necessary to operate the new business in India, it is recommended that the initial staff be 50 or less employees, with the following allocation of people per department.
First, the management team needs to include senior managers from the telecommunications industry who are well-suited for starting up entirely new operations throughout a third world nation. This includes previous experience throughout Asian countries and recognition of how chaotic the development of a new business in India can be. These senior managers also need to have a solid understanding and experience in working with the Indian government, specifically in the areas of legal and regulatory affairs, focusing on how to gain permission to operate while working to get an Indian national on the board of directors of the company, which is a core requirement. The senior management team must also have extensive experience in getting partnerships and Joint Ventures (JVs) created quickly in third world nations, yet also having the expertise in managing telecommunications requirements.
Reporting to the senior management team will be three departments, including Marketing & Sales, Operations, Finance and Accounting, Services, and Legal & Regulatory Affairs. These five departments each will be headed by a Vice President who has over twenty years of experience in the telecommunications industry,...
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