Marketing strategy of vodafone india assignment

PEST Analysts Political Avoidance was embroiled in a $2. 5 billion tax dispute with the Indian Income Tax Department over its purchase of Hutchison Cesar Telecoms services in April 2007. Avoidance Group Pal. Entered India in 2007 through a subsidiary based in the Netherlands, which acquired Hutchison Telecommunications International Lad’s (ITIL) take in Hutchison Cesar Ltd (HELL)-?? the Joint venture that held and operated telecoms licenses in India. The dispute had been whether or not the Indian Income Tax Department has Jurisdiction over the transaction.

In January 2012, the Indian Supreme Court passed the Judgment in favor of Avoidance, saying that the Indian Income tax department had “ no Jurisdiction” to levy tax on overseas transaction between companies incorporated outside India. In 2012, India changed its Income Tax Act retrospectively and made sure that any company, in similar circumstances, is not able to avoid tax. Economic The net revenue of Avoidance India as of March 2012 was RSI 321, 844 million. Total number of subscribers that Avoidance caters to was equal to 150. 46 million. The total voice usage minutes that Avoidance carried was 680, 611 million minutes.

This works in favor of Avoidance. Product customization: Buyers are more interested in an organization that can provide customized products for them. Thus in case of telecoms a buyer is happy with that service provider who provides tailor-made plans. Low switching cost: This can have both positive and negative impact on Avoidance. Customers willing to switch to Avoidance will have an easy switch. Suppliers Power The suppliers bargaining power has increased influence over on the profitability of the company.

There is a price war happening between different mobile operators, so even the suppliers are chosen carefully so that they do not drag down the profitability of the company. Mobile tower companies: There are two types of tower companies in India – telecoms owned tower companies, independently telecoms tower companies. Out of these 72% of the towers are owned by the telecoms. Simi card manufacturers: Simi cards for Avoidance are mostly manufactured in India. The company doesn’t procure Simi cards from a single supplier to avoid delays Mobile phone handsets: There are two types of handsets used CDMA and GSM.

While 14 users have bill less than that of 300. Only 3 users spend more than 1000 per month on mobile use. Monthly usage of people. The survey reviled that about 34% have been using there present connection for less than 3 months. 41% have been using their connection for more than 15 months. Therefore people do not tend to change their service provider very frequently. Duration of using the present service provider On talking about view point of people about their reaction to advertising campaign of Avoidance 53% found it nice while only 5% found it average. 2% found the campaign to be very good. Reaction of respondent to advertising campaign of Avoidance From the analysis of data it has been found that most of the people prefer Avoidance cause of its good coverage area. Also other factors like great tariff plans and the zoo zoo ads have played an important role. Few respondents also preferred Avoidance for its internet packs. While coverage area plays a vital role zoo zoo ads have been successful for young population ranging between age group of 20-30 and also in comparatively older population of 40-50.

The survey also studied the shortcomings of Avoidance. The response of respondent as to why not they prefer Avoidance was also recorded. It was found that Why not Avoidance It was seen that though Avoidance had great coverage area people felt that inactivity was weak. Also it was seen as expensive and lack good and attractive packs for customers. It was also seen that few respondent were reluctant to change their present service provider. Thus to increase its market share Avoidance needs to work on its connectivity and efficiency.