Ami Kothari
Palak Sood
Swathi Velisetty
amikothari10@jbims.edu
PalakSood09@jbims.edu swathivelisetty09@jbims.edu
+91-9820672221
+91-98925 97890
+91-98205 62709
Jamnalal Bajaj Institute of Management Studies
Environment Analysis - Porter’s 5 forces
Bargaining Power of Supplier - High
DTH relies on three major suppliers: Customer Premise Equipment – Satellite dish, Set top box and Access card, Ku Band Transponder and content.
Bargaining power of DTH operator with CPE supplier has increased due to supply. Transponder is provided by Astrix, ISRO hence dependency exists and due to no regulations in channel pricing, DTH operators are at mercy of Broadcasters.
Bargaining Power of Buyer-High
Consumer has the power to choose in this industry with variety. Unless players can differentiate against each other, the market shall remain mostly homogeneous. Customers will have high bargaining power and will be influenced by costs versus services.
Threat of Substitutes- Medium
DTH faces major competition from Terrestrial, Cable & IPTV.
Doordarshan is world’s largest Terrestrial broadcaster with over 1400 transmitters and covering 88% of
India geographical area. They offer Digital service in collaboration with BBC resources. This wide reach and low cost approach are offset by its lack of attractive content.
Cable TV operates in 2 modes: CASwhich requires separate set top box and Non Addressable system. The cost varies from Rs. 100 – Rs. 350 to customers depending upon location. Due to its phenomenal reach, there is bound to be a resistance from Local Cable operators.
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IPTV is service where television signals are digitally sent over Telecommunications line. MTNL & BSNL plan to tap this line. Even with strict regulations (not yet enforced) it is a considerable threat due to its new level of interactivity.
Threat of New Entrants- Low
With 7 players in the DTH space, threat of new entrants is relatively low