Videocon D2H Project Report
Videocon D2H Project Report
JSM
COMMERCE
COLLEGE
BALANGIR
PERSONAL MEMORANDA
DATE:
PLACE: BALANGIR
CHANDRA SEKHAR MEHER
ACKNOWLEDGEMENT
I would like thank Miss. Ankita Mishra, lecturer in Commerce for his
constant support to take decision during the course of my research.
My hearty thanks to entire faculty member of BCOM department for
their guidance during the work. I also thank my parent for their
support and blessing without which this project could not have been
completed. Indeed, i shall remain ever grateful to them.
DEPARTMENT OF COMMERCE
CERTIFICATE Associate professor in
COMMERCE.
Industry exposure is the most crucial part of the management studies in which
a student is able to synchronize his technical knowledge with practical
knowledge gained in the any of the organization.
I chose the project title “D2H a New Beginning in Videocon Industries Limited,
Agra” which is a great learning experience.
I hope that the words of projects will communicate the actual of experienced
gained with subtlety and precision, which is unapproachable, by any other
means.
“Anybody can do a work but very few can excel it and they are said to be
repository of expertise skills of that work”
CORPORATE PROFILE
To increase the existing market share the company has launched its consumer
retail chain DIGI World in major cities of India. There is availability of five major
brands of Videocon Group. These all brands have good image in the mind of
the consumers. These megastores have got good starting. There are almost 16
shops have been launched so for. Mr. K R Kim, CEO of Videocon Group has told
in an interview they are focusing on almost 200 shops all around in India.
COMPANY OPERATION
Videocon is the biggest Indian company. In consumer durables field this
company has great reputation in market and among customers. Other two
major players LG and Samsung are Korean player that rock entire Asia by their
technology. But in India, Videocon not only give them strong challenge but also
holding the 2nd position in this sector.
Now Videocon group is unfolding its wings to fly in the sky of the globe. For
this they are entering in the different segment also.
Transformers, Tuners
Sansui Electric Co. Ltd Audio Products ODM for Indian Market
and Colour TV
and Colour TV
[Link] N Dhoot
[Link] N Dhoot
Mr. K C Srivastava
[Link] Kumar Drabu
[Link]
Mr. S Padmanabhan
Maj. Gen. S C N Jatar
[Link] L Bongirwar
Mr. Didier Trutt (Nominee - Thomson S.A)
Mr. Johan G Fant (Nominee - AB Electrolux (Publ) )
Mr. B Ravindranath (Nominee - IDBI Limited)
Mr. Ajay Saraf (Nominee - ICICI Bank Limited)
As they are in many businesses with multiple brands so they have adopted
MATRIX STRUCTURE. For each and every department they have clear
guidelines. Job responsibilities are quite clear. All the employees are
accountable for their job. In this organization rule regulation are pre-defined
and flexible. E.g. In all branches all over India there is a Branch Marketing
Manager, he/she has to report two bosses one Branch Operation Head and
Regional Marketing Manager for his all activities.
FUNCTIONAL AREAS
As any other company this company has many functions each and every
function is very important for the organization. Major functional areas are
followings
Financials Functions
In this they practice all the function of the finance. But major are followings
Control over all cash inflows and outflows.
Taxation
Tight control over miscellaneous expanses
Marketing Function
In this they practice every possible thing which develop and build the image of
the company. Major activities are followings
Branding
Advertisement
Marketing Intelligence
About Competitors
About dealers, sub dealers and distributors
Measuring impact of the marketing activities like
Road shows
Canopies
Canter Activities
Dangler hanging, Postering and In-shopping
Advertisement in print & electronic media.
Taking feedback of the dealers and distributors about
advertisements.
Design new marketing ideas to create awareness and image
building.
Production And Operation
In this area they use only one slogan
Reduce cost, gain market but never compromise with quality
Major functions are followings
Control over inventories (not more than 3days)
Reduce wastage
As this company is eco friendly, so they practice it in their production
line also.
Energy efficiency
Use non conventional energy sources also (solar and wind energy)
Information Technology
Now information is the business, this line is in practice in Videocon. They
provide best possible information facility to their employee. They have
their own intranet network inside the organization. They have [Link].
It gives employee to work from house and give direct contact to the
head office. Company provides enough facility to its employees to work
inside and outside of the organization. These facilities make them
efficient and faster to work proper and within given time. For all other
information they have Videoconworld .com also. It is the biggest source
of information for internal and external customers. This site does not
only give the proper information about the company but also give
information about industry as well as. They have trend analysis of the
industry which gives the visitors more satisfy to visit the site.
Human Resource
As this company is stiff challenge from their competitors so they are
focusing to recruit people with passion of work for organization and they
must have combination of creativity and knowledge of how to
implement plan properly.
Selection of right kind of people for right kind of job
Training
Creating positive atmosphere for work
Enrich employee efficiency for productivity
Rate employee for their performance
Time to time development program for employee
Others
There are few more functional areas also which are supporting other
major functional areas.
Logistic
This company follows ISO 9001 as its quality tools as they are work in
very competitive environment so there is very less chance of error. By
implementing ISO standards they are able to reduce the cost of its
product to give competition to its competitors. They never forget that
safety and health concern about its employees. So they can work in such
atmosphere which enhances their productivity.
VIDEOCON IN CONSUMER DURABLES
Chapter
1. Introduction
5. Marketing
6. Innovation
9. Appendices
Chapter-1
Introduction
Overview of the Industry
Every city in the India had a complex web of co-axial cables running through
the streets with a new breed of entrepreneurs called as cablewallahs or Local
Cable Operators (LCO) taking in charge of distribution. The film industry was
shocked by this sudden growth and there were even organized protests for
calling off the Cable TV industry. There were simply too many cable operators
in the country and the channels had a difficult time in getting its returns as the
existing system was a non-addressable and the operators could simply give a
reduced number of subscribers to amass profit. This lead to the emergency of
a new breed of firms called as Multi System Operators (MSO) who had heavy
financial muscles to make capital investments. . The MSO industry became
highly monopolistic which warrants government participation to ensure
competition.
Later on, the United Front Government had issued a ban on use of ku band
transmission. After a change of government, the ban got lifted finally in 2001
and TRAI issued the guidelines for operating DTH. Country’s first private DTH
license was awarded to Dish TV in 2003 which started operations in 2004.
PrasarBharati also started its product DD-Direct+.
DTH Digital TV system receives signals directly from satellite through the dish,
decodes it with the Set-Top Box and then sends stunningly clear picture and
sound to TV which is the business under taken by some companies by
observing the rate of growth and scope for business & opportunity in the
Indian market which has 120 million viewers of TV.
With the Indian economy growing at a GDP growth rate of 7.4%, there is a
sense of growth prevailing everywhere. The average Indian’s disposable
income and purchasing has risen to never before levels. The Indian
entertainment and media industry is not far behind. It is currently estimated at
a worth of Rs.450 billion with a CAGR of 18% over the next 5 years. Terms
which were alien to Indian’s like capital DTH, digital cables, IPTV are suddenly
finding presence in the country’s journals.
Private players: Dish TV, Tata Sky, Sun direct, Big TV, Airtel digital TV, Videocon
d2h
DD DIRECT+
Doordarshan is the public television broadcaster of India and a division
of PrasarBharati, a public service broadcaster nominated by the Government
of India. It is one of the largest broadcasting organizations in the world in
terms of the infrastructure of studios and transmitters. Recently, it has also
started Digital Terrestrial Transmitters. On September 15 2009, Doordarshan
celebrated its 50th anniversary.
National telecasts were introduced in 1982. In the same year, color TV was
introduced in the Indian market with the live telecast of the Independence Day
speech by then Prime Minister Indira Gandhi on 15 August 1982, followed by
the 1982 Asian Games being held in Delhi. Now more than 90 percent of the
Indian population can receive Doordarshan (DD National) programmes through
a network of nearly 1400 terrestrial transmitters and about 46 Doordarshan
studios produce TV programs today.
Dish TV
Dish TV is the first private DTH satellite television provider in India,
using MPEG-2 digital compression technology, transmitting using NSS Satellite
at 95.0. Dish TV's managing director and Head of Business is JawaharGoel who
is also the promoter of Essel Group and is also the President of Indian
Broadcasting Foundation and [Link] Chandra is the Chairman of Dish TV.
Dish TV is a division of Zee Network Enterprise (Essel Group Venture). EGV has
national and global presence with business interests in media programming,
broadcasting & distribution, speciality packaging and entertainment. Zee
Network incorporated dishtv to modernize TV viewing. By digitalizing Indian
entertainment, this enterprise brought best television viewing technology to
the living room. It not only transmits high quality programmes through
satellite; but also gives a complete control of selecting channels and paying
Tata Sky
Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital
compression technology, transmitting using INSAT 4A at 83.0°. Tata sky is
incorporated in 2004; Tata Sky is a JV between the TATA Group and STAR. Tata
Sky DTH endeavors to offer Indian viewers a world-class television viewing
experience through its satellite television service. VikramKaushik is present
CEO of Tata Sky Ltd. The TATA Group is one of India's largest and most
respected business conglomerates. It comprises 93 operating companies in
seven business sectors and diversified group: information systems and
communications, engineering, materials, services, energy, consumer products
and chemicals. The TATA Group has operations in more than 40 countries
across six continents and its companies export products and services to 140
nations.
The Group and its enterprises have been steadfast and distinctive in its
adherence to business ethics and their commitment to corporate social
responsibility. This is a legacy that has earned the Group the trust of many
millions of stakeholders in measure few business houses anywhere in the
world can match. The SKY brand, owned by the UK-based British Sky
Broadcasting Group, brings to TataSky the reputation of more than 20 years
experience of satellite broadcasting. SKY is well known for the innovative
products and services launched by BSky, such as DTH broadcasting in 1989,
digital satellite broadcasting in 1998, interactive television services in 1999 and
the SKY+ personal video recorder in 2001. Tata Sky joins an international group
of DTH businesses that includes platforms as far apart as the UK and Italy in
Europe, and Mexico and Brazil in Latin America. Tata Sky Ltd is the First Indian
DTH provider to be awarded the ISO 27001:2005 accreditation, the ultimate
benchmark for information security. The assessment for the certification was
conducted by Intertek Systems Certification, the management systems
registration business unit of Intertek Group plc and is accredited by several
internationally-recognized accreditation bodies worldwide.
In October 2008, Tata Sky announced launching of DVR service Tata Sky+ which
allowed 45 hours of recording in a MPEG-4 compatible Set Top Box. The
remote is provided with playback control keys and is being sold with special
offers for existing subscribers. Tata Sky was selected as a SUPER BRAND for
the year 2009-2010 by an independent and voluntary council of experts known
as Super brands Council. It is the only Indian DTH to have won this distinction.
Sun Direct
Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital
compression technology, transmitting using INSAT 4B at 93.5°E. It is the
country's first MPEG 4 technology DTH service provider. Sun Direct is a DTH
service in India headquartered in Chennai, Tamil Nadu. Sun Direct TV was
registered in February 16, 2005. However, the failed launch of INSAT 4C
resulted in a lack of transponders, delaying the launch. The service was finally
launched on December 2007 after availability of transponders from INSAT 4CR.
Because of the lowest pricing of any DTH in India Sun Direct spread rapidly all
over the country. On December Sun Direct was launched in Mumbai and
announced its pan India launch. By 2009 it became leading DTH provider with 3
million subscribers. This makes it 4th largest DTH service provider of India. In
April 2009 Sun Direct officially launched its High-Definition service in India.
Sun Direct uses the latest MPEG-4 based technology to increase broadcast
capacity.
Sun Direct provide next-generation services in fast-growing and emerging
markets quickly and efficiently. Sun Direct selected Oracle based on its
convergent multi-service capabilities and proven real-time scalability allowing
it to consolidate billing operations, enables powerful new service offerings and
improves visibility into customer information across services.
BIG TV
Reliance BIG TV is a DTH satellite television provider in India based in Navi
Mumbai, using MPEG-4 digital compression technology, transmitting using
MEASAT-3 91.5°east. It is the 5th DTH service launched in India. Reliance BIG
TV limited is a part of Reliance Communications Ltd., a subsidiary of Reliance
Anil DhirubhaiAmbani Group founded by the Late DhirubhaiAmbani, the Indian
business tycoon and owned by his son Anil Ambani. BIG TV started operations
from 19 August 2008 with the slogan "TV hoTho BIG Ho" ("If you have a TV,
make it BIG"). It currently offers close to 200 channels and many interactive
ones, 32 cinema halls (i.e. Pay Per View Cinema Channels) as well as many
Radio channels. The company plans to increase the number of channels in the
near future to 400 and begin High Definition (HD) broadcast. It is the first Pan-
India DTH provider that uses MPEG-4 for broadcasting. There are also plans to
introduce services like i-Stock, i-News and other such interactive services in the
future.
Reliance BIG TV was launched on August 19, 2008 with the sole aim of
providing the consumer with quality and enriched home entertainment service
at value-driven pricing. Reliance BIG TV's launch in August was probably the
biggest roll-out in home entertainment ever and deployed the most advanced
MPEG4 technology that enabled them to deliver best quality digital audio-
video to the consumer. It also got prepared for the future when Hi-Definition
TV will be launched in India because only MPEG4 technology can support HD
TV and not MPEG2 which is used by the earlier entrants in the DTH industry.
Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500
towns in India. This was literally unheard of in the DTH industry. They had
effectively out-stripped the competition here. When it came to pricing –
packaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months of
free subscription. They also introduced 32 Pay-Per-View Movie Channels, the
highest by any DTH player.
Airtel digital TV
BhartiAirtel Limited is the flagship company of Bharti Enterprises and is India’s
largest integrated and the first private telecom services provider with a
footprint in all the 23 telecom circles. As India's leading telecommunications
company, the Airtel brand has played the role of a major catalyst in India's
reforms, contributing to its economic resurgence. Airtel since its inception has
been at the forefront of technology and has steered the course of the telecom
sector in the country with its world class products and services.
Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign
'Come Home to the Magic. Since then it has launched 2 other campaigns: ‘Stars
come home’ (March 2009) and ‘DTH Picture Clarity (August 2009) has
increased its channel base to 183+ channels. Airtel digital TV is now amongst
the fastest growing DTH brands in the country and is available across 5000+
towns in India. It has also been ranked as the best DTH service by “Living
Digital” magazine.
Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a
bright future in Indian market as the people are getting more attracted
towards DTH because of its quality and affordability.
Videocon d2h
Videocon d2h is a DTH satellite television provider in India based in Mumbai,
using MPEG-4 with DVB S2 digital compression technology
Passed under Sec. 21 of the Companies Act, 1956, the name of the Company
was changed to Videocon Leasing & Industrial Finance Limited on 14th
February, 1991. The Company received a fresh certificate of incorporation
from the Registrar of Companies, Gujarat at Ahmedabad on 14thFebruary,
1991.
Videocon d2h launched May 1, 2009. it came with a very good strategy for
selling both of its electronic products like TV’s DVD’s along with the new set
top box. This is offering direct to TV with out any set top box also. Only the
antenna is enough, it also came with DVD which is connected directly to the TV
or antenna is connected to DVD which gives a best quality of out put.
Chapter-2
Set-Top-Box.
Head-Antenna.
Cable
DVD
Remote
LCD TV/PLASMA TV/CATHODE RAY TV/LED TV
Product description
SET-TOP-BOX:
The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology.
Head-antenna:
Cable:
DVD:
One of the recent entrants into DTH industry is vediocon. This came with set
top box with DVD
ACCESS CARD:
The access card is another important thing in the set top box setup
Where the access card will receive the signals directly from satellite trough
head top antenna
LCD TV:
Some companies are offering the whole set of LCD TV with DTH connection
Remote:
A compactable remote for both SET UP BOX and TV is used in operating both
TV and Set top box.
Complimentary Goods
LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plastic
and paper which are used for recharge cards.
Substitutes
Local Cable Operators, Inter-Net which is bringing many facilities like live TV
channels, along with the net browsing, Theaters, radio stations, I pods .
Chapter-3
The DTH service market in India has emerged as one of the most lucrative
markets which have successfully resisted the impacts of the current economic
slowdown. The slowdown has certainly proved a boon for the Indian DTH
industry as people have now started to cut on their entertainment expenditure
and instead of viewing movies at theatres, they are preferring to stay at home
with their television sets.
With the Indian economy growing at a GDP growth rate of 7.4%, there is a
sense of growth prevailing every where. The average Indian’s disposable
income and purchasing has risen to never before levels. The industry is
anticipated to add nearly 5 Lakh subscribers per month during 2009 and the
numbers are forecasted to surge further at a CAGR of around 30% through
2012, "Indian DTH Market Forecast to 2012". 20% annual growth is being
witnessed in the DTH sector in India with over 8.5 million households having
digital pay-TV.
A report attributes that the anticipated growth to the efforts of DTH industry
players who are all trying to lure viewers by cutting down prices as well as
offering perks even though it translates into loss of Rs 1,600-2,000 on each
new subscriber acquired by them. They have started to offer a number of
value-added services such as 'movie on demand', live recording of TV content,
matrimonial match-making, etc.
Pattern of Growth
The big game is all about shaping up grandiose plans to master the winning
rules to garner as much portion of the Indian DTH pie as possible by a handful
of players. Since the DTH space denotes big value, akin to the space occupied
by television and telephony, inter-firm rivalries have thrown up price wars,
discount schemes, procurement of transponders, ambitious targets for
improving the subscription base, popular bouquet of channels, set top boxes
with superior quality of videos, improving content, etc as a desperate means to
entice the Indian viewer.
The analysis that can be made is though the economic cycles is not continues
and it was in boom then when the industry started and now just the economy
is in recovering stage from the recession. Interesting factor is that all the
industries are hit seriously buy the rescission but DTH industry has reported
growth continuously but only it has slowdown the rate of its growth. Now the
industry is growing at 20% for every annum.
Growth Determinants
Demand constraints and SCAR are the factors which effects the growth of the
industry. Growth determinant and high TV sales increase the chance for more
sales of set top box which will effect the growth. When the facilities of the
products increase it acts as a growth determinant.
The entertainment channels and the news channels players increase the
growth to opt the DTH. Some of the DTH players are bringing innovative plans
like live shopping, broad band, and etc will act as growth determinants.
Chapter-4
The costs incurred by the DTH players is mainly on its technology, satellite dish,
set top box accessory cards, Ku band transponders in the satellites, customer
premise equipment(CPE). The launch of satellites is another huge cost which
the DTH plays shares the transponders. And it costs them much than any thing.
Another cost incurred is on operating cost.
Economies of Scale
Economies of scale may be utilized by any size firm expanding its scale of
operation. The common ones are purchasing (bulk buying of materials through
long-term contracts), managerial (increasing the specialization of managers),
financial (obtaining lower-interest charges when borrowing from banks and
having access to a greater range of financial instruments), and marketing
(spreading the cost of advertising over a greater range of output in media
markets).
Cost Advantages
2] Better storage
Economies of Scope
An economic theory stating that the average total cost of production decreases
as a result of increasing the number of different goods produced.
Often, as the number of products promoted is increased and the DTH players
used, more people can be reached with each rupee spent. These efficiencies
do not last, however; at some point, additional advertising expenditure on new
products will start to be less effective (an example of diseconomies of scope).
If a sales force is selling several products they can often do so more efficiently
than if they are selling only one product. The cost of their travel time is
distributed over a greater revenue base, so cost efficiency improves.
There can also be synergies between products such that offering a complete
range of products gives the consumer a more desirable product offering than a
single product would. Economies of scope can also operate through
distribution efficiencies. It can be more efficient to ship a range of products to
any given location than to ship a single type of product to that location.
Value added
Many players are using this DTH as the basis and giving many value added
services to the customers. Some of the players are giving best valued services
to the customers like Airtel gives live-news, home shopping, live gaming, broad
band, horoscope, radio, and etc. Tata sky is giving recording for more than 4
hours, and came with a differential strategy of Tata sky+ with other facilities.
Big TV is giving live with Big movies, Dish TV is giving live TV on the wheels, and
many other value additions.
Logistics
DTH industry follows a good logistics which is as similar to the logistics which
are used buy automobile industry, for the effective management of the DTH
industry.
Labour
Labours are included in every activity of the business, most of the people
working are not daily labours, they are employed and paid monthly in the form
of salary. DTH requires skilled labor like management executives,
administrators, software engineers, sales executives and attorneys.
Chapter-5
Marketing
Market segmentation, marketing strategies, marketing practices and marketing
concepts specific to the industry
DTH uses different marketing strategies for promotion and sales of its product.
It gives advertisements with their brand ambassadors which attract customers,
door to door selling, on the phone selling, discount and offer sales, packages,
etc
Some of the companies like Tata sky is having Super Star Amir khan as brand
ambassador and Airtel is having many film stars like kareenakapoor,
[Link], saifali khan, etc. Dish TV is also having Super Star Sharuk khan as
the brand ambassador.
Sun direct also uses southern actress for their brand promotion. Marketing
practices are the decisions taken by the manufacturing company to increase
sales, expand themselves into many areas etc. Successful marketing practices
bring sale up, while unsuccessful marketing practices have no impact on sale or
negatively impact [Link] concepts specific to the industry is primarily
targeted at a niche segment who buy the TV sets from the electronic retail
chains.
Chapter-6
Innovation
Types of innovation, concepts of innovation relevant to the industry, source of
innovation, rate of innovation and economies of scale.
There are many sources of innovation for this industry as mentioned in the
above, the technology and the people are the main sources for the innovation.
Customer’s opinions and their needs can be served by providing a service
which is matching to their needs and requirements. In this days every
company setups its own R&D in its own company with very intelligent people
for meeting the expectation op the customer.
Digital TV, the DTH service from Airtel, has announced India’s first skin
integration innovation on its EPG screen in partnership with Yahoo. Yahoo
takes forward its latest brand campaign “YOU” in this first of its kind
partnership where an online portal will use DTH as a medium to promote itself.
The ‘Electronic Programming Guide’ screen on Airtel digital TV is now
completely integrated with Yahoo India’s homepage. Customers will find a
message ‘Fill your home page with all the things that make YOU’ when they log
onto to the EPG screen. A prompting ‘Red Button’ will take them to a
dedicated landing page that elaborates the offerings on Yahoo India’s new
home page. The ‘YOU’ campaign enables users to customized the home page
as per their liking and empowers them with the choice to integrate social
applications such as Facebook with their Yahoo homepage. This whole idea
was conceived by NetworkPlay, right from design elements to execution and
thanks to Mindshare for buying into the idea and flawlessly helping people
execute it.
Internet Browsing charges will be charged as per your Photon+ tariff plan and it
would be applicable while viewing Photon TV. These charges would be over
and above the subscription charges for the Photon TV. (approximate data
usage is 1-2MB per Min).
Rate of innovation in this sector is growing at a faster rate in the recent years
where as it is not very impressive before this period. The reason for this is the
fair competition between the all players in this DTH industry. It led to the
development of new products in this sector which also led to the
diversification of products as there is abolition of entry of foreign industries
into Indian industries initially. It also made the industries in this sector to
establish their own R&D departments for successful product innovations like
Airtel Live, Vediocon d2h.
The brand loyalty for each and every company is very high, so there is no need
of lot of costs to be pored in marketing and promotion of the service and
product.
Every function that is performed by the players is a well planned and executed
properly.
So in all the areas those players are using the expertise people in the industry
and performing operations in DTH industry very economically.
Chapter-7
Competitors
Every company has its own goal, every company wants to achieve and full fill
its goals, many companies like the big players in the industry wants to grab
most of the market share. Some of the companies want to achieve 10million
customer base by 2010 they are Dish TV, Tata sky, Sun direct, BIG TV etc.
Generic strategies were used initially in the early 1980s, and seem to be even
more popular today. They outline the three main strategic options open to
organization that wish to achieve a sustainable competitive advantage.
In the case of media products, means they should be offered at a price lower
than their competitors’ but with as good benefits, or, the unique benefits the
media products offer can over-offset the premium.
2. Differentiation
3. Focus
Focus strategy is also known as a 'niche' strategy. The clutter of ads has now
spilled out on the number of channel availability due to which people are spoilt
for choice. Thus Niche channels are the only way to maintain viewer loyalty.
TATA Photon plus is more niche oriented.
SWOT Analysis
STRENGHT
Brand name
WEAKNESS
Skilled labour
Satellite technology
Signals
Viewer migration.
OPPORTUNITY
Technology
Distribution
Innovation
Value adding
THREAT
Economic downturn.
Climate
Radio
Cinema halls
New entrants
The five forces which one must consider to analyse any industry are the rivalry
between the firms within the industry being analyse, the bargaining power of
buyers, the bargaining power of suppliers, the threat of substitute products or
services, and the threat of new entrants (also known as barriers to entry). They
are also shown in the diagram below. Initially propounded by Harvard Business
School Professor Michael Porter, the Five Forces framework has been accepted
as a strategic framework which one can apply to analyse any industry.
Threat of substitutes
DTH gives stiff competition from the terrestrial, cable & IPTV. As per the
industry estimates, there are 130 million TV homes of which 71 million are
served by cable and around 6 million served by DTH with the remaining taken
by terrestrial transmission. As IPTV is a new entrant there is not much data on
its subscriber base.
Comparing of the satellite Dish, Set Top Box with the necessary Access Card,
the Ku band transponders are obtaining satellites and content. With India set
to overtake Japan as Asia’s largest DTH by next year, the bargaining power of
India DTH operators with CPE suppliers have been steadily increasing.
Bargaining power of buyers
With enough operations to choose both from the point of alternate mediums
like cable, IPTV and terrestrial broadcast and from the point of increasing DTH
operators, the consumer is at his will to decide. Customers will continue to
have a high bargaining power until DTH platforms try to differentiate them as
superior players with better content and clarity.
With 3 operational players and 4 players in the queue, inter firm rivalry is quite
high.
While Dish TV is planning to spend Rs. 850crs over the next 3 years, the rival
TataSky is willing to spend Rr.2000crs over the medium term. The companies
have also set ambitious targets with Dish TV aiming to reach 5 million
subscribers in the next 18 to 20 months while Tata sky aiming to reach
8million subscribers in the next 18 to 20 months while Tata sky aiming for 8
million subscribers by 2012.
With already 7 player’s space in the DTH space, threat of new entrants is low.
There is already enough competition which will discourage new firms to enter
this business. While getting a licensee is relatively easy, the barriers to entry
are high when it comes to pricing of CPE and getting the required transponder.
There is a definite, first mover advantage.
Analysis of the Industry using Porter’s value chain model
Porter’s value chain analysis is considered with the value analysis of the several
functions of the DTH industry, it makes to understand the importance of this
model to develop and add on value to the present features of the industry and
it’s functioning.
market share relative to the largest competitor, hence the name” growth
share”.
Under the BCG GROWTH-SHARE MATRIX, as an industry matures and its
growth rate declines, a business unit will become either a cash cow or a dog,
determined solely by whether it had become the market leader during the
period of high growth. While originally developed as a model for resource
allocation among the various business units in a corporation, the growth-share
matrix also can be used for resource allocation among products within a single
business unit.
In the DTH industry when the market share is obtained then it is automatically
treated as the market leader, and also it needs maximum market share to
extent, when the market is not in incremental state then the growth rate of
the industry will retain. Again this industry follows all the variables in the all
areas till the both will come into normal level.
Chapter-8
Critical Success Factors
Appendices
MEDIUM 2008
TV 40.7
PRESS 46.9
RADIO 3.2
CINEMA 0.7
OUTDOO
R 6.8
INTERNET 1.7
GROWTH RATE OF ADVERTISEMENT REVENUE IN DIFFERENT MEDIUM:
Yes 55
No 45
Market share
yes
45% no
55%
Would you be interested in dealing with
Videocon D2H ?
Yes 65%
No 35%
May Be 0%
70
60
50
40
Series1
30
20
10
0
yes no may be
Which of the following brands is the
first choice of the customer ?
70
60
50
40
30 Series1
20 Series2
10
0 Series2
Videocon
d2h Tata Sky Series1
Dish Tv
Airtel
Digital
Tv
Which of the following brands do you
think has the best margin ?
Dish Tv 40%
Airted Digital Tv
Dish Tv
Series2
Series1
Tata Sky
Videocon d2h
0 5 10 15 20 25 30 35 40
Which of the following brands has the
best after sales service ?
Videocon d2h 0%
Tata Sky 70%
Dish Tv 05%
Airtel Digital Tv 25%
70
60
50
40
Series2
30 Series1
20
10
0
Videocon d2h Tata Sky Dish Tv Airtel Digital
TV
Which of the following brands do you
think has the best name in DTH
service ?
Videocon d2h 0%
Tata Sky 74%
Dish Tv 04%
Chart Title
Series1 Series2
74%
0.8
0.6
0.4 22%
0% 4%
0.2
0 Series2
Videocon d2h
Tata Sky Series1
Dish Tv
Airtel Digital
Tv
What is the perception about the brand
videocon D2H ?
Very Good 0%
Good 50%
Average 30%
Below Average 20%
Market Share
Very Good Good Average Below Average
20
50
30
Which of the following brands gives
you the most sales volume in DTH
service ?
Dish Tv 20%
Airtel Digital Tv 30%
35
30
25
20
Series1
15 Series2
10
0
Videocon d2h Tata Sky Dish Tv Airtel Digital Tv
Having a good brand value in home
appliances & electronics / and best
aesthetics in satellite TV’s , to what
extant Videocon d2h will be accepted
by the customer ?
Very Good 0%
Good 45%
Average 20%
Below Average 35%
50
45
40
35
30
25 Series2
Series1
20
15
10
5
0
Very Good Good Average Below Average
Is recording feature required for
customer ?
Yes 15%
No 70%
May Be 15%
70
60
50
40
30 Series1
20
10
0
Yes
No
May Be
60
50
40
30 Series2
Series1
20
10
0
Very Good Good Average Below Average
Tata Sky
Very Good 90%
Good 10%
Average 0%
Below Average 0%
Very Good
Good
Average
Below Average
Dish Tv
80
70
60
50
40
Series1
30 Series2
20
10
0
Series2
Very Good
Good Series1
Average
Below Average
Airtel Digital Tv
70
60
50
40
Series2
30 Series1
20
10
0
Very Good Good Average Below Average
BIBLOGRAPHY
………………………………………………………………………………...
~ Monthly Turnover :-………………………………………………………..
Dealing in brands :-
Videocon D2H ………
Dish TV ………
1) Yes
2) No
1) Yes
2) No
3) May be
~ Which of the following brands is the first choice of the customer ?
1) Videocon D2H
2) Tata Sky
3) Dish TV
4) Airtel Digital TV
~ Which of the following brands do you think has the best margin ?
1) Videocon D2H
2) Tata Sky
3) Dish TV
4) Airtel Digital TV
~ Which of the following brands has the best after sales service ?
1) Videocon D2H
2) Tata Sky
3) Dish TV
4) Airtel Digital TV
~ Which of the following brands do you think has the best name in DTH
service ?
1) Videocon D2H
2) Tata Sky
3) Dish TV
4) Airtel Digital TV
1) Very Good
2) Good
3) Average
4) Below Average
~ Which of the following brands gives you the most sales volume in DTH
service ?
1) Videocon D2H
2) Tata Sky
3) Dish TV
4) Airtel Digital TV
~ Having a good brand value in home appliances & electronics / and best
aesthetics in satellite TV`s, to what extant Videocon d2h will be accepted by
the customer ?
1) Yes
2) No
3) May be
1) Yes
2) No
3) May be
Videocon D2H
1) Very Good
2) Good
3) Average
4) Below Average
Tata Sky
1) Very Good
2) Good
3) Average
4) Below Average
Dish TV
1) Very Good
2) Good
3) Average
4) Below Average
Airtel Digital TV
1) Very Good
2) Good
3) Average
4) Below Average