Cases

Developing and Implementing an Entry Strategy for a Telecom Company

Challenge

The client, an international telecom company was looking to enter the software and internet business as an effective means to build and sustain its shareholder value. The company appointed an international consulting firm and UC to jointly develop an entry strategy for the software and internet business. It wished to implement the strategy in a systematic and time bound manner.

Our Approach

To develop and implement an entry strategy for the client, UC adopted the following approach:

  • Conducted a diagnostic of the company’s capabilities and performance
  • Studied global and domestic trends and business models in the software and internet business
  • Estimated market metrics
  • Developed detailed industry structures for the software and internet businesses
  • Generated selection criteria and analysed preliminary options
  • Selected the following final options -
    • Providing e-Commerce solutions
    • Operating a trade service website
    • Extended enterprise resource planning (supply chain management, sales force automation etc)
    • Euro solutions
    • Y2K solutions
  • Developed high level entry plans for each of the options
  • Prepared detailed business plans for each of the following business areas -
    • Customer Analysis - segments, motivations, unmet needs etc.
    • Market Analysis - size, projected growth, profitability, entry and exit barriers, trends, key success factors etc.
    • Competitor Analysis - Identity strategic groups, performance, image, objectives, strategies, strengths, weaknesses etc. relative to the strengths of the promoters
    • Marketing Strategy - Products and services, target market, competitive advantage and positioning, sales strategy, distribution, pricing strategy, promotion strategy
    • Product Supply Strategy - Infrastructure requirements, potential partners, suppliers etc.
    • Organisation Plan - Organisation chart, personnel profiles, job descriptions, manpower requirements and cost
    • Financials - Assumptions, preliminary and preoperative expenses, profit and loss statement, cash flow statement etc.
    • Implementation Plan - Tasks, responsibilities, time frame
  • Initiated implementation.

Impact

The client received a detailed business plan, including the financials and suggested change in the organisation structure, in order to enter the software and internet business.