Competitor Analysis of Ncell

Introduction:
Competitor analysis in strategic management is an assessment of the strength and weakness of
current and potential competitors. This analysis provides both an offensive and defensive
strategic context through which to identify opportunities and threats. Competitor profiling
coalesces all of the relevant sources of competitor analysis into one framework in the support of
efficient and effective strategy formulation, implementation, monitoring and adjustment.
Competitor analysis is an essential component of corporate strategy. This analysis explores the
strength and weakness of current and potential competitors of Ncell.
Ncell is the first private operator of mobile communication services in the G! standard in
Nepal. Ncell was established as pice Nepal "rivate #imited in $%%&. 'ts first service was
launched under the !ero !obile brand on eptember (), $%%*. pice Nepal "rivate #imited was
ac+uired by Teliaonera in ,ctober $%%- and the famous !ero !obile brand became Ncell. The
Ncell brand is committed to bring the people under h the common brand image of the
Teliaonera companies. Ncell will focus on innovation, raise the standards of the
telecommunication services and make the mobile market more competitive for the benefit of
customers. Ncell is committed to for developing country.s economy and infrastructure, building
best/in/class networks and bringing people in the remotest areas of Nepal within the reach of
communication.
Teliaonera has supported Ncell to continue expanding coverage, enhancing +uality and bringing
new, efficient and easy/to/use services to the people of Nepal. Ncell is working towards
connecting everyone in Nepal through Ncell network, providing high +uality, modern and cost
effective services and creating value for customers and partners.
Currently Ncell products include prepaid and postpaid G! mobile services and internet service,
blackberry solutions.
1
The Competitors
Nepal Telecom
0ormer Nepal Telecommunications Corporation was transformed into Nepal 1oorsanchar
Company #imited in $%%&. The registered trade mark of the company is Nepal Telecom. This is
the pioneer company to launch telecommunication services in Nepal. There are several products
and services of the company in different segment of market. The must known services include
"TN service, postpaid and prepaid G! mobile service, C1!2 service, email service, internet
service etc. The company is strong competitor in G! mobile segment of Ncell.
United Telecom Limited
3nited Telecom #imited 43T#5 is a joint venture of !ahanager Telephone Nigam #imited
4!TN#5, Telecommunications Consultants 'ndia #imited 4TC'#5, Tata Communication #imited
4TC#5 and Nepal 6entures "rivate #imited. The former three are 'ndian companies and Nepal
6entures "vt. #td is the only Nepalese company. The company provides voice service, !,
voice !, internet through 3'! and lease line etc.
Nepal Satellite Telecom Private Limited
Nepal atellite Telecom "vt. #td is providing G! service in Nepal under 7ello Nepal 8rand. 't
is the third company providing G! service but first company to start the service from rural part
of Nepal. The company is operating its services in !id/9estern :egion of Nepal and going to
expand throughout the country. Currently the company is delivering fixed line G! service and
pre and postpaid G! services.
Key Success Factor and an!in"
Network +uality, network coverage, new service, infrastructure, aggressive marketing, branding
and rebranding and employee performance were considered as the key success factor for
competitor analysis in this industry. 9eight was assigned on the basis of relative importance of
these factors in the industry. :elative weight of Ncell and its competitors have been shown on
the following matrix.
Key Success Factor Weig
ht
Ncell Nepal
Telecom
UTL Hello Nepal
Rati
ng
Weig
ht
Ratin
g
Weig
ht
Ratin
g
Weigh
t
Ratin
g
Weig
ht
1. Network uality !."! # $.% & 1.# ' $.1 ' $.1
$. Network !.$! & 1.$ ( 1.# % !.# % !.#
$
)o*erage
". New Ser*ice !.$! & 1.$ ' 1.% % !.# " !.&
%. +n,rastructure !.1- & !.( ( 1."- " !.%- $ !."
&. .ggressi*e
/arketing
!.1! ( !.( ' !.' % !.% % !.%
'. 0ran1ing an1
Re2ran1ing
!.!" # !.$% ' !.$1 - !.1- & !.1#
#. 3mployee !.!$ ' !.1% - !.1! & !.1$ & !.1$
Total &.(# '."& %.#$ %.-!
2fter analy;ing above matrix, the nearest competitor is Nepal Telecom. Nepal Telecom is better
in network coverage 4rating < out of (%5, new service 4rating ) out of (%5, and infrastructure 4<
out of (%5. Ncell is better in Network +uality 4- out of (%5, aggressive marketing 4< out of (%5,
branding and rebranding 4- out of (%5 and employee performance 4) out of (%5. The overall
weight of Nepal Telecom is slightly higher than Ncell. 3nited Telecom #imited and 7ello Nepal
are far behind than Ncell.
8ased on the competitor analysis, Ncell has competitive advantage on network +uality,
aggressive marketing, branding and rebranding and employee performance. Ncell should focus
on sustaining these competitive advantages and also should focus on innovation for new
competitive advantages. 'ncrease in network coverage, infrastructure development and new
service innovation are the areas where Ncell should improve.
"