Beruflich Dokumente
Kultur Dokumente
of
Telecommunication and
Tele Services Industry
By
Aditya V 17MB03
Kavin Kumar B 17MB22
Kiran Kumar S 17MB35
Introduction
1. Apple Inc is a global company which is committed to bringing the best user
experience to its customers through its innovative hardware, software and services.
The Company’s business strategy leverages its unique ability to design and develop
its own operating systems, hardware, application software and services to provide its
customers products and solutions with innovative design, superior ease-of-use and
seamless integration.
2. Selected financial data of the company with regards to its global sales as
obtained through Annual 10-K report of Apple is as shown in the picture below:-
3. India as a market, along with middle east, features in Europe segment of sales
where growth of 10% is registered. Apple India sales registered a 17% increase for
the year 2016-17 as compared to 53% in the year 2015-16. The drop can be attributed
to Demonetisation and GST woes, but the company has declined to comment on it.
5. Apple India is having 2.5% market share in smart phone shipments in India.
Xiami leads the pack with 26 % followed closely by Samsung at 24%. India premium
smart phone segment( INR 30000/- and above) grew by 20%, based on counter point
research data in Jan 18, which is a heartening prospect for Apple Inc.
6. Another interesting factor which can be gauged from the sales report is
significant rise in contribution of Services in overall revenue. Apple services include its
own operating system on a plethora of mobile communication devices that include
Iphone, IPad, Iwatch etc and also services like Apple Pay and Apple Maps.
7. Windows, Google and Amazon dominate this services space in India. Apple is
still at a very nascent stage and is analysing Indian market to increase its presence in
Services market of India.
(b) Understand business model and strategies being employed by Apple Inc
to increase its presence in India both in Tele Communication and Services.
(c) Understand the business model of India, its ecosystem and consumer
behaviour wrt Tele Communication and Services in India.
9. We are using Porter’s five point scale and in addition added Exit barriers and
Government actions as additional factors to be considered in arriving at overall
attractiveness.
10. Weightage of each Factor in Seven Point Scale. Each of the points are given
weightage based on their relative importance to the Apple Inc. The relative weightage
is as tabulated below:-
Summary
11. The overall attractiveness score for Apple Inc to promote its products and
services in India stands at 3.2785 which can be graded as above average.
(a) Capture young minds right from college days by offering products at
relatively cheaper rates. Build brand loyalty and slowly expand market.
(b) Bargain for concessions, tax breaks aggressively. Analyse the market
over a period of time and slowly increase capacity.
(c) Use Indian talent in services like Apple Pay and Apple maps to increase
revenue through services globally.
(e) Build up retail stores to improve better distribution and carry out forward
integration in a phased manner.
13. Tele communication Industry including services in India has a huge potential.
The CAGR is highest in the world. The demographic distribution and penetration of
smart services by Digital India, Demonetisation and GST only ensures consistent
growth in this sector in the years to come. The Industry is different from other markets
around the world where in the service provider like BSNL, RJIO, Airtel, Vodaphone
are separate from hardware manufacturers like Apple,Samsung, Xiomi,huwei,Oppo.
The services sector gives another dimension with another set of players like Google,
Amazon and Windows. Overall it is a complex three dimensional market.
References
14. The study group delved largely on the following references to bring some sense
to its arguments.
(a) Investor Relations K-10 Annual report published by Apple for the year
2017.