Competitve Strategy - Tata Docomo

Tata Docomo

Tata Docomo was established in November 2008 under the umbrella of Tata Teleservices Limited. Incorporated in 1996, Tata Teleservices operated and offered services limited to CDMA technology under the brand Tata Indicom. With a view to expand its business and enter the GSM market in India, the Tata Group chose to penetrate the GSM market by entering into a strategic alliance with NTT Docomo - a Japanese telecom giant. Today, Tata Teleservices Limited serves over 190 million customers across India with products ranging across telephony services including GSM, CDMA and 3G platforms offering mobile communication services, wireless desktop phones, Public booth telephony and wire-line data services under one unified and integrated brand – Tata Docomo.The Telecom market in India is highly fragmented with a large number of competitors (Exhibit 1). Tata Docomo has been very successful in penetrating and changing the face of the Indian Telecom market. Its success can be attributed to Tata Group’s successful combination of strategy, structure and performance to maximize profits and resource allocation. Since its inception, Tata Docomo has positioned itself in the industry as a market leader in bringing customer focused innovative products and services. It has also benefitted from strategic partnerships and alliances with suppliers as well as other firms under the Tata Group. Its tag line ‘Do the new’ is a mantra which is acknowledged and well received by its external as well as internal customers, i.e. employees. The following details give us comprehensive insight into the Telecom industry and its conditions including rivalry, entry and exit barriers along with buyer and supplier power. We will also gain an understanding on how Tata Docomo has been successful in mitigating its industry barriers and details into its competitive strategy.

Telecom Rivalry

The Telecom industry in India is highly fragmented has more than ten firms operating in this space with six...