Reliance is the second-largest mobile operator in India, one of the fastest-growing mobile markets. Though there is still much growth potential in India, Reliance also wants to become a global player, using its expertise in making money from lower-spending customers to give it advantage.
SWOT Analysis
Strengths
Mobile Communications Arm of a Large, Well-Funded, Well-Connected and Ambitious Indian Conglomerate
Economies of Scale From Large Subscriber Base
Expertise in a Business Model That Allows It to Maintain High Profitability From Lower-Yielding Subscribers
Weaknesses
Cost Structure Disadvantage With Subscribers Spread Across Two Different Mobile Networks
Low ARPU Compared With Competitors
Weakness in Rural Markets
Brand Positioning
Limited Availability of Value-Added Services
Opportunities
Aggressive Move Into the Rural Market
Use Upcoming Mobile Number Portability as "Launching Pad" to Grab Market Share of Higher ARPU Users — and Ramp Up Focus on Data Revenue
Overseas Investments
Lease Spare Capacity on Its CDMA Network to Mobile Virtual Network Operators
Threats
Quicker Than Expected Slowing of Growth in the Indian Marketplace
Mobile Number Portability Risks Accelerating Churn of Subscribers From CDMA to GSM
New Competitors
Implication for Company Being Profiled
Company Overview
Methodology
Reliance Communications Ltd. (commonly called RCOM) is an Indian Internet access (commonly called "broadband") and telecommunications company headquartered in Navi Mumbai, India. RCOM is India's second largest telecom operator, only afterBharti Airtel. It is the 15th largest mobile phone operator with over 150 million subscribers. Established in 2004, it is a subsidiary ofReliance Industries.
The company has five segments:
Wireless segment
Broadband segment (Internet access operations)
Global segment: national and international long-distance operations (and the wholesale operations of its subsidiaries)
Investment segment: investment