Qualcomm
Qualcomm is an American global semiconductor company that designs and markets wireless telecommunications products and services. It was founded in 1985 and introduced its first product OmniTRACS, a satellite-based data messaging service used by trucking industry to manage its fleet. Its breakthrough innovation happened in 1989 when it introduced CDMA technology for mobile networking. Since then Qualcomm has been a pioneer in CDMA and GSM based chipsets. “Snapdragon” is the flagship Qualcomm chipset which features in most high-end android and windows mobile phones. The company is headquartered in San Diego, California, United States. Qualcomm has offices in India. Global Structure The focus is on Qualcomm Technology Initiatives, formerly called Qualcomm CDMA Technologies which is the core business of Qualcomm manufacturing wireless solutions (chipsets) for smartphones and routers. Qualcomm follows a functional structure for its administrative units and a divisional structure for its business units. Bangalore Development Centre The scope of this project is the Bangalore Development Centre (BDC) which is an autonomous internal unit of Qualcomm. BDC was inaugurated in 2005 and as of now, is the largest R&D facility of Qualcomm outside San-Diego. BDC mainly focusses on MSM’s and MDM’s which are the system and modem chipsets in Qualcomm’s product range. The Bangalore division is led by a Vice President, who manages a group of 7 Senior Directors who head different functions [Cores, Post Silicon Engineering (PSE), Design, Software, Design Verification (DV), Information Technology (IT) and Human Resources]. It has ~3000 employees of which 2300 are full-time employees and 700 are contract workers from firms like Wipro, Sicon tech, Innovian technologies etc. Our analysis of the organizational structure is based on the PSE team which has 239 full time and 53 contract employees.
Ashritha Karnam
Pizza Hut Overview
Pizza Hut entered India in 1996 with a USP of “dining experience”. To penetrate the market, Pizza Hut redefined their recipes to suit the Indian tastes. For Pizza Hut, India is one of the most important markets. Currently, they have 360 restaurants across 100 cities and they plan to increase their stores to 700 by 2022 riding the wave of growing popularity of western fast-food in the country. The Yum! Restaurants-owned pizza chain runs a franchise model in the country, where investments come from franchise partners. In 2014, they ramped up aggressively and opened over 80 restaurants. Now they are in consolidation and stable phase of the business. Pizza Hut is focused on growing its online sales, which has seen a rise since the demonetisation move in November. More than 35% of the orders are home delivery. Pizza Hut’s market share is 27%. Pizza Hut’s market share is decreasing since 2010 as there are new entrants in India in this sector and its direct competitor – Dominos is expanding and indirect competitors such as McDonald, KFC, etc. are investing and growing rapidly. Pizza Hut sells pizzas, pasta, garlic bread and other fast food items. But it has positioned itself as a dining restaurant and not a fast food restaurant. It has a lot of competitors and the fast food market in India is growing very rapidly. Pizza Hut has opened 100 new outlets, its revenue has increased. But its market share has not increased in the ratio of its increase in revenues and the reason for this is the competitors have expanded their businesses and there are many new entrants in this sector.
SWOT Analysis
SWOT Analysis of Pizza Hut Strengths: a. Brand name: It has been around for more than 50 years now and is a well-known brand. Pizza hut has a Premium positioning in customers’ mind because it was the first entrant to start pizza franchise in India. b. Flexible and big menu: Pizza Hut has a large pizza menu providing customers with many options. Apart from pizzas, it serves a variety of food such as pasta, wings etc. c. Sustainable advantage: Pizza Hut maintains excellent ambience in the outlets and serves high quality of food, due to which it charges higher prices. This, in turn, helps them earn good margins. d. Sound financial situation and international turnover: It is a part of the largest restaurant chain in the world with over 20000+ franchises. Weaknesses: a. High price: People like to eat low-cost pizzas and look for cheaper options available. b. No presence in small cities: In order to maintain its brand image, pizza hut is losing the turnover that it can generate by being present in small towns. Opportunities: a. Increase digital presence: Pizza Hut does not have a very strong presence on digital platforms. It should spend more on online/ social media marketing. b. Expansion: Get into Tier II cities where it can serve more customers. Threats: a. Too many competitors: Threat from the competition can decline the market share for Pizza Hut
Industry overview - Aviation
The aviation sector in India can be broadly divided into 2 segments based on benefits desired namely low cost (economic benefit) and full service (experiential benefit). In domestic routes two thirds of the traffic flies on Low cost carriers. There are 4 major players in the low cost segment due to which heavy pricing competition prevails in this segment. This poses an unsustainable model for some airlines while providing huge opportunities to others due to the different cost structures. The low cost segment is highly price sensitive and there is low brand loyalty. Customers may switch to other brands easily if price differentiation is huge. Also if the price differentiation is low other features come into picture. The full service carriers offer better in-flight service such as complimentary food & drinks and in-flight entertainment. Hence it is expected to charge higher than the low cost carriers. However, due to such a high price sensitivity in Indian market the price difference is low. This also reduces the expected service differentiation offered at base prices. The full service carriers offer little better service quality for normal tickets and they offer premium cabins at much higher prices. Also both low cost and full service segments can be further subdivided into international and domestic. Most low cost airlines including SpiceJet have very little presence in international routes. This is an area where SpiceJet can focus since establishing itself in International routes will lead to higher brand recognition. Profitability is significantly higher on international routes. Also brand loyalty is higher in international routes.
Behavioral Segmentation - For Air travellers
Business Travelers – The customers in this group are low on price sensitivity and prefer better in flight services since the cost of travel is borne by the company. Another major factor that effects the flying behavior is the flight timings and duration. The size of this segment is low, however this is a high profit segment. The customers in this segment tend to be more loyal. SpiceJet right now has low loyalty and grip on this segment. SpiceJet has recently introduced SpiceMax feature with better services and enhanced comfort for nominal fee to target customers in this segment. Also for SMEs (small and medium enterprises) who can tend to be more price sensitive in this segment SpiceJet offers discount and loyalty points to SME travelers to have customer retention in this segment. Vacation Goers – This is a rising segment for the aviation industry in India after the IT boom and creation of jobs hubs in Bangalore and Hyderabad. The employees in these IT companies have higher standards of living, limited holidays and more disposable incomes and hence prefer air travel during vacation. While going on vacations people usually go for family bookings. This segment is all for value for money. The customers in this segment need basic services and no irritability at low price. The usage rate is very seasonal and peaks during the vacation months. This segment sees a low to moderate amount of brand loyalty where a switch of brands happens only if the differentiation offered is significantly high. There are bulk and family booking discounts provided by low-cost carriers such as SpiceJet in order to target this segment. Urgent Travelers – These are people who travel for urgent medical/ family needs etc. These flyers are a small segment and due to the nature of travel tend to be more sensitive to time and duration. Price is usually secondary for these travelers. These customers have low brand loyalty due to the nature of their need. Students and Others – This segment is usually high on price sensitivity and relatively lower on most other attributes. The usage rate is relatively high and seasonal. The brand loyalty is relatively low because of the price sensitivity. The consumers in this segment has higher preference for SpiceJet due to low prices and frequent offers. SpiceJet as well as other low cost brands try and target this segment by offering student discounts currently.
Porter's Analysis Example
Porter's 5 Forces Analysis: Since Porter’s 5 Forces model covers virtually all aspects of strategy, it is one of the most powerful tools to understand company’s competitive position in the market. 1. Intensity of existing rivalry (Very High) a. Competitors engage in price competition: Pizza Hut competes with some global pizza chains such as Domino’s and Papa John. They all engage in fierce price discounting and coupons to increase their sales. b. Advertising expenditures are high and expected to grow: With such huge opportunity in the industry and high competitiveness, big global chains are spending hugely on advertising. c. Menu differentiation: Each of these pizza chain/outlets is trying to come up with innovative menus every now and then to attract new target markets. d. Competition from local pizza restaurants: Local pizza restaurants offer low prices and faster delivery to take competitive advantage. 2. Threat of New Entrants (Low) a. Major players in the industry (Dominos & Pizza Hut) have created a very strong brand loyalty. Though capital costs required to enter the industry are not very high, it’s really difficult for new entrants to compete with major players since existing firms are deterring entry by creating brand value and loyal customer base. 3. Threat of Substitutes (Moderate) a. There are many possible fast-food alternatives to pizza. The current trend of “healthier alternatives” to fast food also kicks in as a threat. But there will always be a certain segment of society who will only go for pizza. 4. Bargaining Power of Customers(Moderate) a. Customers rarely buy in volume: Every single customer is unlikely to purchase in large volume and thus contribute to a small proportion of sales. b. Pizza customers are more sensitive to price fluctuations and hence providers have less price controlling powers. 5. Bargaining Power of Suppliers (Low) a. Many competitive suppliers: Raw materials for this industry are commodity products such as flour and cheese and power of suppliers is weak. b. Vertical integration with suppliers: In order to maintain low costs and high-quality products.
Telecom Industry
For the FY16, the Indian economic growth was 7.6% overpassing its economic rival China. There has been a steep decline in oil price globally and this has helped India reduce the import bill. Other factors which has led to the growth are the reforms undertaken by the Indian government in the field of agriculture, infrastructure, manufacturing and service sector. When the world economy was facing economic instability, India stood out as the bright spot due to the economic reforms and government reforms. As per the information shared by RBI, net FDI flows are positive while the fiscal consolidations have reduced the fiscal deficit to close to 4% of GDP as compared to 7.6% in 2009. The World Bank has projected the Indian economic growth to 7.9% in the next two years. The growth rate is projected to increase by 0.4% in 2017. Indian Telecom industry has grown at an exponential rate in the last decade in terms of revenue as well as subscriber base contributing around 1.94% to the country’s GDP3. Currently India ranks second in the telecommunication market in the world. This rapid growth can be attributed to the liberal policies of Indian government and the ease to market access of telecom equipment. As per the report shared by TRAI (March 2016)4, the Composition of Wired and Wireless Internet subscribers for the major telecom operators can be represented in the below chart5. As observed form the data, BSNL has the maximum share in Wired Internet share while Bharti Airtel leads in the Wireless Internet Subscriber segment. Spectrum Auction India’s spectrum auction in (held in Feb 2014 and March 2015) had a major impact on the telecom industry. Its success can both expand the market in volume terms, but shrink the market in terms of number of players. The big players might expand and survive while the smaller ones will join them or quit. In the latest auction ~77% of bids came from the major players- Bharti Airtel, Idea cellular and Vodafone. Reliance Jio has joined as the next big player increasing the total share of the 4 players to more than 86%6. Companies may end up leasing the spectrum to interested new players, which may lead to regulation by TRAI. The next auction is planned for Aug/Sept 2016 where the govt. is expected to auction around 2300Mhz. Reliance Jio is likely to be launched this year end with the new 4G network covering the spectrum of 800Mhz. RIL will play on low price and make the competition more intense and lower down the tariff.
Bharti Airtel Overview
Bharti Airtel Ltd is a global telecom company with its reach in 20 countries across Asia and Africa. It came into existence in the year 1995 as a Public listed company. It ranks 3rd globally in terms of subscribers, while in India it is the top ranked telecom operator. As per June 2016 report, the company has reached 358 million customers including all operations. As per the latest annual report (FYE Mar’16), segment revenue from external customers in India accounts to 93% of the total revenue. Airtel caters to several businesses. Primarily, it operates in Mobile services, Tele media and Airtel Business. Company has around 342 million plus mobile subscribers while 77 million wireless data customers in Asia and Africa. Mobile services contribute maximum to the company’s revenue followed by Telemedia and Airtel Business. Airtel constitutes around 21.1 % of the spectrum market share. It has gained 111.6Mhz of spectrum total consideration of INR 29,130 crores.
Idea Cellular - Overview
Idea is a mobile service (GSM) operator in India having roughly 72 million mobile subscribers. Services offered by idea are 2G and 3G services, ILD and NLD operations and ISP license. It caters only to the Indian market. It holds the sixth position in the world, based on the subscribers. On an average, it carries a traffic of more than 2 billion minutes a day. The primary segments are Mobility services, that provide mobile services, International long Distance(ILD) and Passive Infrastructure (PI). Mobility services occupy 90% of the revenue distribution. Idea Cellular has won the spectrum and is now ready to launch 4G services in 10 key markets. It has taken several steps towards the introduction of 4G LITE cross 1800Mhz starting from 2016. Accounting Policies: Idea creates provisions for debts due from the subscriber (total security deposits outstanding), which are unpaid for more than 90 days from billing date and/or other Bad debts. Provision for bad debts for Passive infrastructure sharing from other operators and Inter connect Usage charge are considered as dues if they are outstanding for more than 180 days of billing date. (except if amount is payable to the operator or if management thinks amount is recoverable). The spectrum auction in March 2015 was the single biggest factor which affected the balance sheet and cash flows of the Company. From a strategic viewpoint, this auction was a big milestone for Airtel as it bought new spectrum which has secured its future, while Idea mainly renewed its spectrum.
Checklist for elevator pitch
STEP 1: First write down all what comes up in your mind. STEP 2: Then cut the jargon and details. Make strong short and powerful sentences. Eliminate unnecessary words. STEP 3: Connect the phrases to eachother. Your elevator address has to flow natural and smoothly. Don't rush. STEP 4: Memorize the key points and practice your talk. STEP 5: Have you really answered the key question of your listener: What's in it for me? STEP 6: Create different versions for different business situations of your elevator speech.