STRATEGY FOLLOWS SIZE OR SIZE FOLLOWS STRATEGY

SECTORS: TELECOM BANKING

SUBMITTED TO:
PROF. ROOPA RAO

SUBMITTED BY
DHIRAJ BHANSALI (07) VIRAK GANDHI (11)

SECTOR TELECOM:

RELIANCE COMMUNICATION

INTRODUCTION
Reliance Group, an offshoot of the Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private sectors business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance Groups flagship company, Reliance Communications, is India's largest private sector information and communications company, which is the world's 15th largest mobile phone operator with over 150 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wire line), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain.

Reliance Communications Ltd. (commonly called RCOM) is an Indian broadband and telecommunications company headquartered in Navi Mumbai, India. The company has five segments: Wireless segment includes wireless operations of the company; broadband segment includes broadband operations of the company; Global segment include national long distance and international long distance operations of the company and the wholesale operations of its subsidiaries; Investment segment includes investment activities of the Group companies, and Other segment consists of the customer care activities and direct-to-home (DTH) activities.
"Overview" Reliance Communication. 15/01/2013 http://www.rcom.co.in/Rcom/aboutus/overview/overview_reliancegroup.html

STRATEGY FOLLOWS SIZE

In the initial stage they used size follows strategy because they were new in the market and wanted to capture the Indian rural and urban market by setting the strategy of providing incessant offering of Products and Services that are value for money and excite customers. But now as they have presence across 24,000 towns & 6 lakh villages, 28065 employees and 150 million subscribers they use

strategy follows size. Now Reliance vision is to leverage their strengths of

presence across India and a strong business network they want to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. Now because they have presence across 24,000 towns & 6 lakh villages, 28065 employees and 150 million subscribers they can make strategy accordingly. The strategies such as capturing new market opportunities, catering new segment, introducing new services in communication sector, etc. Now

reliance communication will make strategies considering the size they have. Reliance strategy is to create Focused participation in the entire value chain of telecom business and would also be participating in the new technological developments to provide one-stop shop for all communication needs which will be done through strategy follows size criteria.

STAGE OF LIFE CYCLE:

Reliance communication is operation into growth stage of life cycle. Communication industry is growing rapidly in India. There lies a huge opportunity in this sector. It has rapidly covered the Indian market by catering to across 24,000 towns & 6 lakh villages, and 150 million subscribers. It provides services such as CDMA, GSM, Wireless Phone, Wireless Terminal, BlackBerry, Roaming Broad Net, Reliance Landline, Reliance Net connect, R World, Reliance India Call, Reliance Passport Reliance IPTV, etc. It is constantly adding new products and services in its portfolio and growing its presence and market share in communication network. It has successfully been able to do this because the huge size of presence in rural as well as urban it has.

STRATEGIC DIMENSION
Reliance communication follows the Cost control strategy. Reliance always had a strategy of providing incessant offering of Products and Services that are value for money and excite customers. For this strategy to be successful they followed cost control strategy. Reliance controlled the cost as their 80 percent of administration and operation is centralised. Compared to the best telecom networks in the world we have deployed only half the number of people per 1,000 lines making our human resources the highest productive resource.

VARGHESE, SANGEEETH. "RELIANCE INFOCOMMS STRATEGY " Reliance Communication. 15/01/2013 http://www.cprsouth.org/wp-content/uploads/drupal/Sangeeth_Varghese.pdf

TECHNOLOGICAL CLASSIFICATION:
Reliance communication follows the intensive technology. Reliance communication contrasts infrastructure such as network towers, terminals, nodes and also sets call centres. After that transformation takes place where collection of terminals, links and nodes which connect to enable telecommunication between users of the terminals. Each terminal in the network has a unique address so messages or connections can be routed to the correct customers. Than customers also give feedbacks or complain to the reliance communication call centres and reliance communication interprets it and makes changes accordingly. Here in centralisation is high. Formalisation is high and complexity s low.