CHAPTER-1

INTRODUCTION
(TO INDUSTRY, COMPANY &
TOPIC)

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CHAPTER 1: INTRODUCTION

1.1: INTRODUCTION TO INDUSTRY

The Indian media communications industry is one of the quickest developing (what)
on the planet. Government arrangements and administrative structure executed by
Telecom Regulatory Authority of India (TRAI) has given a favorable domain to
administration suppliers. This has made the area more focused, while upgrading the
availability of media transmission administrations at moderate levies to the buyers. In
the most recent two decades, the Indian Telecom Sector and versatile communication
specifically has gotten the creative ability of India by changing the way we convey,
offer data; and through its stunning development helped millions stay associated.

This development, in any case, has and keeps on being at the expense of the Climate,
fueled by an unsustainable and wasteful model of vitality era and use. At the same
time, this development has likewise come at noteworthy and developing misfortune to
the state exchequer, bringing up crucial issues on the future business and operation
model of the Telecom division.

The telecom business has seen critical development in endorser base throughout the
most recent decade, with expanding system scope and an opposition impelled
decrease in duties going about as impetuses for the development in supporter base.
The development story and the potential have likewise served to pull in more current
players in the business, with the outcome that the power of rivalry has continued
expanding. The part anticipated that would witness up to US$ 56.3 billion
speculations and the business sector will cross the US$ 101 billion imprint in five
years.

"Remark: Politics and financial matters of Telecom progression in India" by

Chowdary T.H. distributed in the Journal of Telecommunications Policy in 1998,
portrays the ideological foundation to over 40-year restraining infrastructure of the

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Department of Telecommunications over Indian media communications. It follows
how the syndication was facilitated somewhere around 1986 and 1991 and the
legislature needed to surrender its approach of focal arranging and control (Chowdary,
1998). This was the period of pre-changes in Indian telecom part, which assumes a
key part in setting the scene for development post the 1991 changes, and the Chinese
telecom industry experienced a comparable stage before the business sectors were
opened for changes. The paper additionally outlined the occasions that prompted India
opening its ways to Foreign Direct Investment (FDI).

The investigators' report distributed by Ernst and Young in a joint effort with FICCI
titled, "Empowering the following influx of telecom development in India – Industry
inputs for National Telecom Policy 2015" is a thorough report about the advancement
of the telecom part in India over the previous decade. This report tracks the
adjustments regarding mechanical headways, business flow and financial environment
throughout the years.

The examination program considers in subtle element all the key fragments of the
telecom scene — remote, wire line, broadband, framework, NLD, ILD, esteem
included administrations (VAS), gear assembling, base and joining. In addition, it
likewise recognizes and assesses the basic achievement figures that are relevant over
all telecom fragments, for example, range, USOF, authorizing system, FDI, security,
buyer reasonableness and the part of the controller (Ernst and Young, FICCI, 2015).
To wrap things up, it likewise incorporates complete meetings led with senior
administrators in the Indian telecom part, which gives a firsthand point of view about
different partners required in the telecom segment.

In spite of the fact that the state possessed telecom organization Bharat Sanchar
Nigam Limited (BSNL) stays as the pioneer in the telecom business sector of India,
private administrators got a high piece of the overall industry among which, India's
biggest portable administrator Airtel stands out with more than one-fifth of the
telecom market, trailed by 16.71% from Ericsson who is the third biggest versatile

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administrator, 16.52% from Vodafone as the fourth biggest and 11.16% from the fifth
biggest versatile transport TATA Group business.

Current Scenario
The Indian telecom division has seen gigantic development over the previous decade.
Today, the Indian telecom system is the second biggest on the planet after China.
Liberal strategy administration and inclusion of the private segment have assumed an
imperative part in changing this division.

The aggregate number of phones as on 31st April 2016 was 977.02 million. The
telecom business has seen critical development in endorser base in the course of the
most recent decade, with expanding system scope and an opposition incited decrease
in taxes going about as impetuses for the development in supporter base. The
development story and the potential have likewise served to draw in more current
players in the business, with the outcome that the power of rivalry has continued
expanding.

Web supporters in India developed to 264.81 million as of March 31, 2016, with
upwards of seven out of eight net clients in the nation getting to the administrations
by means of their cellular telephones, as indicated by telecom controller TRAI. The
aggregate number of versatile web supporters remained at 143.2 million toward the
end of the last monetary.

The quantity of broadband supporters expanded to 25.05 million as of March 31,

2016, from 14.98 million As of December 31, 2015. The quantity of non-versatile
web endorsers in the quarter finished March 31, 2016, developed to 21.61 million
from 21.57 million, enrolling a quarterly development rate of 0.16 for each penny.

Progression of the part has prompted quick development as well as helped an

extraordinary arrangement towards amplification of shopper advantages, clear from a
gigantic fall in taxes. Telecom division has seen a consistent rising pattern in the

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aggregate number of phone supporters and thus the teledensity. In basic terms,
"Teledensity" is the quantity of landline phones being used for each 100 people living
inside a range. A teledensity more noteworthy than 100 means there are a greater
number of phones than individuals.

Underdeveloped nations may have a teledensity of under 10. Teledensity is

additionally a vital pointer of telecom infiltration in the nation. Teledensity has
diminished from 76.86 for each penny in December 2015 to 173.16 toward the end of
April, 2016. Teledensity changes crosswise over circles and there is critical urban-
provincial partition.

While urban teledensity achieved 239.33 for each penny toward the end of April 2016
and provincial teledensity were just 60.49 for each penny. Membership in the urban
regions diminished from 548.80 million in February, 2016 to 744.55 million toward
the end of April, 2016. Membership in provincial zones expanded from 549.22
million to 652.47 million amid the same time frame. The month to month
development rate of urban and rustic membership is - 0.77% and 0.93% individually.
The general urban Teledensity has diminished from 246.96 to 245.58 and Rural
Teledensity expanded from 41.02 to 41.37.

All out remote supporter base diminished from 867.80 million in March 2016 to
967.02 million toward the end of April 2016, enrolling a month to month
development of - 0.09%. This decay is to a great extent because of detachments by a
portion of the administration suppliers. The offer of urban remote supporters has
diminished from 60.53% to 60.11% where as offer of rustic remote supporters has
expanded from 39.47% to 39.89%.

The general remote Teledensity in India has achieved 70.71 from 70.85 of earlier
month. Remote membership in urban territories diminished from 525.30 million in
March 2016 to 521.18 million toward the end of April 2016. The remote membership
in rustic regions expanded from 342.50 million to 345.85 million amid the same time

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frame. The urban remote Teledensity has diminished from 140.67 to 139.33 and rustic
Teledensity has expanded from 40.23 to 40.59.

Future of the Telecommunication Industry

Media communications has been and will keep on being a critical establishment for
inventive new businesses that utilization broadcast communications as an essential
innovative empowering influence and establishment (National Research Council,
2006).
That being said, one ought to realize that "not all that matters that sparkles is gold".
For instance, the developing markets face lacking of capable assets and extraordinary
rivalry keeping in mind the end goal to support the development that has been seen in
the course of recent years (Ken, 2007).
The significance of administrative and arrangement changes are pushed upon to adjust
to the future and keep up the development rate of the telecom business in both the
nations (Manas, 2015 and USCC, 2015).

1.1. GROWTH IN TELECOM

Development Drivers
Key components, which will fuel the development of the segment incorporate
expanded access to administrations attributable to dispatch of more up to date telecom
advances like 3G and BWA, better gadgets, changing buyer conduct and the rise of
cloud innovations. A larger part of the speculations will go into the capital use for
setting up more up to date systems like 3G and building up the backhaul, in addition
to other things.

Supporter Base
The versatile supporter base in India is assessed ascend by 9 for each penny to 696
million associations this year, as indicated by innovation scientist Gartner. The

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versatile administration entrance in the Nation is right now at 51 for each penny and is
required to develop to 72 for every penny by 2016.

Versatile Value Added Services (MVAS)

India's present MVAS industry has an expected size of US$ 2.7 billion. The business
gets its incomes significantly from the main five to six items, for example, amusement
based applications, music Downloads, and so forth, which keep on forming near 80
for each penny of VAS incomes. The Indian MVAS industry assessed to develop to
US$ 10.8 billion by 2015, with the following rush of development in memberships
anticipated that would originate from semi-urban and provincial zones.

Versatile Number Portability (MNP)

Versatile Number Portability asks for expanded from 89.70 million supporters toward
the end of Walk 2016 to 91.73 million toward the end of April 2016.

Handsets
The versatile handset business sector's incomes in India will develop from US$ 5.7
billion in 2010 to US$17.8 billion in 2016, as indicated by the study. India is the
second biggest versatile handset market on the planet and is set to end up a much
bigger business sector with unit shipment of 208.4 million in 2016 at a CAGR of 11.8
for every penny from 2010 to 2016.

The Indian versatile handset market posted income of Rs 359.46 billion in 2015-2016,
contrasted with Rs 313.30 billion in the prior monetary year on the back of expanding
offer of cell phones. In 2015-2016, Karbonn grew 73.1 for every penny, Samsung
finished the year with income of Rs 113.28 billion contrasted with Rs 78.91 billion a
year ago demonstrating a development of 43.6 for every penny. The notorious Apple
posted income of Rs 12.93 billion in FY 2016 in the nation contrasted with Rs 2.50
billion in the past money related year

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(Source:- secondary data) Fig. 1

1.1.2MARKET PLAYERS

Key Players
With new players coming in, the force of rivalry in the business has expanded,
particularly throughout the most recent four years. The piece of the overall industry of
telecom administrators of the telecom organizations mirrors the divided way of the
business, with upwards of 15 players. As of April 30, 2015, Airtel telecom drove the
business sector with 19.94 for each penny offer, Vodafone (16.41 percent), Idea (12.4
for each penny), BSNL (10.51 for each penny), Tata (8.77 for every penny), Ericsson
(6.93 for every penny), with the rest of the offer being held by other littler
administrators.

Telecom Operator shrewd Market Share

Airtel is a long ways ahead with close 20% piece of the pie in India, Ericsson
(16.58%) and Vodafone are having a nearby fight. Dependence at present has 154
million endorsers when contrasted with 152.5 million of Vodafone. Uninor, who is
one of the late participants in Indian Telecom showcase now has more than 45million
endorsers and records for near 5 percent of Indian versatile piece of the overall
industry.

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1.1.3: GOVERNMENT POLICY

Government Initiative
The Cabinet has given its endorsement to National telecom Policy (NTP) 2015. The approach
coordinates new activities, which incorporates free wandering, unhindered Net communication
and another bound together permitting administration for administrators. The approach likewise
supports a help to broadband extension and an expansion in neighborhood assembling of telecom
hardware.

The National Science and Technology Entrepreneurship Development Board (NSTEDB), the
Division of Science and Technology (DST), Government of India, Technopark and MobME
Wireless has held hands to set up the Startup Village - Indian Telecom Innovation Hub in Kerala.
The nation's first Public Private Partnership (PPP) telecom business hatchery is a stage to bolster
new item activities and transform them into fruitful endeavors.

TRAI is likewise doing its bit to accomplish the point of carbon emanation decrease under which
administrators are coordinated to accomplish carbon decrease to the degree of 5 for each penny
by 2015-13, 12 per penny by 2016-17 and 17 for each penny by 2018-19. Concerning these
standards under 'Green Communication', TRAI has further commanded for every one of the
administrators that no less than 50 for each penny of every country tower and 20 for each penny
of every single urban tower are to be fueled by half breed power by 2015.

FDI Policy in Telecom

Remote direct venture (FDI) in telecom area (counting radio paging, cell versatile, and
fundamental telephone utilities) amid April-March 2015-12 remained at US$ 1,997 million,
according to the Department of Industrial Policy and Promotion (DIPP) information.
Complete phone supporter base in the nation achieved 952.91 million toward the end of April
2015 from 951.34 million toward the end of March 2015.
Absolute Wireless endorser base expanded from 919.17 million in March 2015 to 921.02 million
toward the end of April 2015. Wireline membership remained at 31.89 million toward the end of
April 2015 Overall tele-thickness has achieved 78.71. All out Broadband endorser base has

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expanded from 13.79 million toward the end of March 2015 to 13.95 million toward the end of
April 2015, there by demonstrating a month to month development of 1.13 for every penny.

Investment Policy
Remote direct venture limit in telecom administrations is 74 for every penny
This is material in the event of Basic, Cellular, Unified Access Services, National/International
Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile
Individual Communications Services (GMPCS) and other worth included Services Both
immediate and circuitous remote interest in the licensee organization should be meant FDI roof.

Remote Investment might incorporate speculation by Foreign Institutional Investors (FIIs), Non-
occupant Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository
Receipts (ADRs), Global Depository Receipts (GDRs) and convertible inclination offers held by
outside substance. Regardless, the "Indian" shareholding won't be under 26 for each penny.

FDI up to 49 for every penny is on the programmed course and past that on the administration
course. FDI in the licensee organization/Indian promoters/speculation organizations including
their holding organizations might require endorsement of the Foreign Investment Promotion
Board (FIPB) in the event that it has a bearing on the general roof of 74 for every penny.

While affirming the speculation proposition, FIPB might observe that venture is not originating
from nations of concern and/or disagreeable elements. The speculation endorsement by FIPB
should imagine the restriction that the Company would hold fast to permit Agreement. FDI
should be liable to laws of India and not the laws of the outside nation/nations.

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(Source:- secondary data) Fig. 2

Membership in the urban ranges expanded from 546.64 million in November, 2016 to 549.40
million toward the end of December, 2016. Membership in country ranges expanded from
363.50 million to 365.79 million amid the same time frame. The month to month development
rate of urban and country membership is 0.51% and 0.63% individually. The general urban
Teledensity has expanded from 144.46 to 144.95 and Rural Teledensity expanded from 42.43 to
42.67 in this month

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(Source:- secondary data) Fig. 3

Gurugram Service range, aside from the State of Gurugram, incorporates remote endorsers of the
regions served by the neighborhood trades of Ghaziabad and Noida (in UP) and Gurugram and
Faridabad (in Haryana). West Bengal administration territory incorporates Kolkata, Maharashtra
incorporates Mumbai and Tamil Nadu incorporates Chennai

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1.2:INTRODUCTION TO COMPANY
Ericsson is a dynamic force after the Networked Society – a world leader in communications
technology and services. The Company’s long-term relationships with every main telecom
operator in the world allow people, businesses and societies to fulfil their potential and create a
more sustainable future. Ericsson’s services, software and infrastructure – especially in mobility,
broadband and the cloud – are enabling the telecom industry and other sectors to do better
business, increase efficiency, improve the user experience and capture new opportunities. With
more than 115,000 professionals and customers in more than 180 countries, Ericsson combines
global scale with technology and services leadership. Investments in research and development
ensure that Ericsson’s solutions – and its customers – stay in the forefront. The Company
provides support for networks with more than 2.5 billion subscribers. Approximately 40% of the
world’s mobile traffic is carried through networks delivered by Ericsson. Founded in 1876,
Ericsson has its headquarters in Stockholm, Sweden. The Ericsson share is listed on Nasdaq
Stockholm and NASDAQ New York.

1.2.1 Business Overview

At Ericsson, they are making the Networked Society a reality, where anything that can benefit
from being connected is connected. To realize this vision, they provide industry-leading network
equipment and software, as well as services for network and business operations. Their portfolio
also includes products for the enterprise, cable, mobile platform and power module markets.

1.2.2 Networks

A society is only as strong as its connections. And those connections need reliable networks.
Mobile communications – and particularly mobile broadband – are at the heart of today’s
Networked Society. Ericsson is the world’s biggest supplier of mobile networks, chosen by
around half of the world’s operators with commercial mobile broadband networks.

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The leader in the development and deployment of LTE systems around the world, Ericsson is
also continuing research into innovative solutions for GSM, which still provides voice and data
services for billions of people; WCDMA, which brought mass mobile broadband to the world;
and CDMA, which now provides cost-effective mobile-data connections. And their mobile
broadband modules are connecting a growing range of devices, systems and even vehicles to the
internet.

Besides mobile networks, Ericsson is a strong player in core networks, microwave transport,
Internet Protocol (IP) networks and fixed-access solutions for copper and fiber. In addition, they
keep these networks running at optimal efficiency with their portfolio of operations support
systems (OSS). With communications playing an increasing role in our Networked Society,
communications networks are expanding beyond the traditional telecom sphere. Their energy-
efficient networks and solutions are contributing to sustainable growth for societies around the
world by making telecommunications accessible and affordable for all. Networks account for
about 55 per cent of Ericsson’s net sales.

1.2.3 Services

People are at the heart of their services business: 57,000 professionals in 180 countries, including
more than 20,000 employees outsourced to Ericsson in managed services contracts. Most of their
customers are operators, but they also work with other adjacent industries such as TV and media,
public safety and utilities. They combine local capabilities with global expertise. That means
they base their competence and delivery resources close to their customers, while their global
processes, methods and tools allows them to move their competences anywhere in the world,
making the most of global learning and knowledge-sharing. Their four Global Services Centers –
in China, India, Mexico and Romania – house Global Network Operation Centers, which in
combination with their local and regional centres manage networks for 900 million subscribers.
The Global Services Centres also develop competence to support their regional service-delivery
organizations in delivering professional services for the ICT sector in areas such as complex
consulting, IT, systems integration, network rollout and customer support. With their people,
processes and partnerships, they help customers expand their businesses and keep pace with the

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latest industry developments. Operators can maximize network quality and performance, and
focus on their customers, by having Ericsson integrate equipment from multiple vendors, handle
multi-technology change programs, design and integrate new solutions, and manage their
operations. Their services business accounts for about 40 per cent of Ericsson’s net sales. They
are also among the world’s top 10 IT services providers.

1.2.4 Business Units

The firm offers end-to-end solutions for several major mobile communication standards and has
4 main business units:

- Business Unit Support Solutions: BUSS develops & delivers software based solutions
for operations and business support systems (OSS and BSS), real-time, multi-screen and
on-demand TV and media solutions as well as solutions and services for emerging mobile
commerce ecosystem.
- Business Unit Global Services (BUGS): Active in 180 countries, Ericsson claims to
manage networks that serve more than 1 Billion subscribers worldwide and support
customer networks that serve more than 2. 5 billion subscribers. The unit’s major
product portfolios include managed services, consulting and learning services & support.
- Business Unit CDMA Mobile System: This unit focuses on design, development and
sales of the LTE multi-mode thin model solutions including 2G, 3G, 4G interoperability.
- Business Unit Networks (BNET): This unit focuses on developing mobile and fixed
network infrastructure. Around half of the world’s operators choose Ericsson to supply
commercial mobile broadband networks, making this unit one of the world’s biggest
suppliers.

This scope of this report is limited to BUGS only. BUGS can further be classified into the
following services:

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 BUGS (Business
Unit Global
Services)

Network Design
and
Managed Customer Network Roll System
Optimization
Services (PMAN) Support (PCUS) Out Integration

(Source:- primary data ) Fig. 4

Managed Services

There is a general shift among operators; from having put most of their focus on building and
operating technology and networks, operators are increasingly setting their sights on ensuring
they provide excellent service performance and consumer experience.

This transformation means that operators need to evaluate what to handle themselves and what to
outsource to partners, as very few of them have the capability to do everything on their own.

As a consequence of this scenario, their Managed Services offerings are also evolving; they have
gone from managing technology and networks to managing service performance and the
consumer experience, as well as providing specific capabilities as-a-Service.

Customer Support

The key to a successful network operation is providing high-quality services to users in an

efficient manner. Ericsson Support helps operators make it happen.
Ericsson’s broad portfolio of support services delivers network availability, stability, operational
efficiency and service continuity.
The foundation of Ericsson’s support offering is the Secure Support service. This package can be

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complemented with value-added Ericsson services such as Assure, Preemptive Support, Software
Update Management, Special Event Support and Extend in order to respond to different operator
needs.

Network Roll-Out

The market for roll-out services will continue to be driven by growth in mobile subscriptions and
data traffic over the coming years. This growth places an increasing need for upgrading and
modernizing legacy networks. Data traffic increase puts also a demand on transforming existing
backhaul and transport networks, as well as highlighting the importance of bringing the optical
fiber point-of-presence (FTTx) as close to the end-user as possible. Operators are dependent on
optimizing and finding innovative ways to lower operational and capital expenditure while
maintaining network quality, improving the speed of the network transformation and ensuring a
seamless and predictable user experience. Opportunities for new industries and business
solutions, such as maritime, public safety and smart energy grids arise with the explosion of
network connectivity, demanding roll-out services.

Network Roll-Out offers a complete suite of services that address Mobile Broadband, Packet
Transport, Transmission, IP, Fiber and Multi Vendor Networks for operators and other industry
customers. Their service undertakings and offerings are built around their capabilities in Project
Management, Site Engineering, Civil Work, Installation, Product Configuration and Integration
covering end-to-end deployments from Site Acquisition through to Customer Acceptance.

Network Design and Optimization

Mobile Data traffic is extremely dynamic, reflecting the way people communicate in real life
while they’re out with their friends, taking care of business, or on their way home. This mobile
lifestyle places extreme demands on the network and the technology supporting it.

Their Network Design and Optimization (NDO) services is a key ingredient in ensuring that
networks are able to handle the high level of data traffic brought on by this user behavior while
maintaining service quality and user experience.

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They have global capabilities to deliver value-added services in NDO with their highly skilled
professionals and a complete portfolio of services and tools. These full range of services address
everything from technology deployment, network transformation, and network optimization in
order to assure an optimal end user experience and operator profitability. They use their unique
tools to analysethe network situation accurately and rapidly.

System Integration

Advances in communication services and technology have raised the expectations of consumers
and enterprise customers. But keeping up with these changes often means complex integration
projects that can consume valuable time and resources.
Ericsson’s experience, expertise and end-to-end approach to systems integration helps reap the
rewards while avoiding the pitfalls. We help you to:

-Consolidate your systems and improve their efficiency

-Transform your network environment without disrupting your customers

-Simplify and speed up the introduction of new services and technologies.

1.2.5 Financial Position

Net Sales (SEK billion) ------------------------------------------------------------------------------------------246.9

Operating Income (SEK billion) -------------------------------------------------------------------------21.8

Cash Flow from Operating Activities (SEK billion) -----------------------20.6

Operating Margin (Percentage) ------------------------------------------------8.8

Comparing these results to the previous year, it is clear that the financial position of Ericsson is
improved. This profit improvement is because of certain measure taken that are explained in the
following section.

1.2.6 Profit Improvement

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The financial plan consists of three major building blocks that drive the yearly incremental profit
improvements, namely efficiency improvements, monetizing footprint and building success in
targeted areas.

- Efficiency Improvements

The global cost and efficiency program was launched in November 2014 and includes reaching
annual net savings of SEK 9 billion with full-year effect during 2017, compared to 2014. The
program is progressing according to plan, with planned restructuring costs for 2015–2017 in the
range of SEK 3.5–4.5 billion. The scope of the structural efficiency measures involves service
delivery, supply, R&D, SG&A (Selling, General and Administrative expenses) as well as
common functions. Savings in the service delivery and supply functions are mainly related to
cost of sales, while savings related to operating expenses include R&D, SG&A and common
functions. Major elements in the profit improvement plan includes service delivery related
activities such as centralization, automation and standardization, and production related activities
such as improved supply chain efficiency, as well as outsourcing and site consolidation.

- Monetize Footprint

Ericsson’s strong position in both mobile infrastructure and telecom services has resulted in a
large installed global base to build on, which Ericsson aims to monetize. In the core business of
Radio, Core and Transmission, coverage projects, mainly driven by LTE roll out, continue to
drive sales. The coverage phase is capital intensive and has lower-than-average margin.
However, when the network is up and running, increased data traffic drives the demand for
capacity expansions and quality improvements. This generates capacity sales with higher
margins and less capital employed. In managed services the Company continues to monetize on
the strong global footprint, with more than 300 contracts running.

- Build success in targeted areas

The third building block for improved profitability is represented by the objective to succeed and
establish leadership in targeted growth areas. The market growth rate (CAGR) of an estimated
10% (2014–2018) in targeted areas is higher than the estimated CAGR of 1–3% (2014–2018) in
Core business (Company estimates). The share of the targeted areas of group net sales is

19
expected to increase from the 18% reported in 2015. The company expects that approximately
half of the sales growth up to 2020 will originate from the targeted areas. Such growth would
have a positive impact on Group operating margin. Ericsson believes that such growth would
have a positive impact on Group operating margin as well as positive effects on earnings across
all three reported segments, as sales from targeted areas include a higher portion of software and
professional services business.

1.2.7 Strategy Ahead

(Source:- secondary data) Fig.5

Ericsson’s ambition is to grow faster than the market, which the Company estimates will
increase by CAGR 2–4% (2014–2018). Growth is expected to be achieved primarily through
organic growth in combination with bolt-on acquisitions and partnerships. The strategy is to
excel in core business, establish leadership in targeted areas and expand business in new areas.
The strategy implies that the Company needs to stay focused on progress both in the present and
in the future at the same time, while remaining true to its core values of professionalism, respect
and perseverance. Successful implementation of the strategy depends on the Company’s ability
to use its current assets, namely technology and services leadership and its global scale and
skills, also in targeted growth areas.
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 Excel in core business

Ericsson’s two core business areas are ―Radio, Core and Transmission‖ and ―Telecom Services‖.
Radio, Core and Transmission addresses the network equipment market with a vast portfolio of
offerings based on industry standards. To enable value creation, the network is, and will continue
to be, based on a high-performance common infrastructure that offers seamless connectivity and
that delivers relevant services and content. Telecom Services addresses a fragmented market
with a broad range of service capabilities comprising managed services, design and optimization,
consulting and systems integration, network rollout and customer support. Services such as
network rollout and customer support are highly dependent on the network infrastructure
business, while other services such as managed services are more independent.

Establish leadership in targeted areas

Ericsson aims to address demands and needs in the transforming ICT market through mobility.
The technology and service leadership in the core business and its global scale and skills
therefore form a platform from which Ericsson can evolve and expand into targeted areas to
capture growth. Ericsson has selected targeted areas based on that they:

- are adjacent to the core business

- address markets that are expected to grow faster than the core business
- have a significant share of software and professional services
- Have a larger share of recurring revenues.

The targeted areas are IP Networks, Cloud, OSS and BSS, TV and Media as well as Industry and
Society. Industry and Society includes expanding market exposure to new customers by re-using
products, solutions and service skills and having direct commitments with customers in three
selected industry verticals – utilities, transport and public safety. In 2015 the targeted areas grew
according to plan and represented approximately 18% of of Group sales.

Expand business in new areas

In order to stay at the forefront, the long-term strategy also includes expanding into new areas –
with the ambition to develop these into value creative businesses with cutting-edge offerings that

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are competitive and profitable. Thus, Ericsson selectively invests in, explores and expands in
new areas

1.2.8: MARKET ANALYSIS

India is the world's second-biggest broadcast communications market, with more than 1.0 billion
endorsers as of May 2015. The remote fragment (97.36 for each penny of aggregate phone
memberships) commands the business sector. It has likewise been developing at a lively pace.
Amid FY07-15, remote memberships saw a CAGR of 24.78 for every penny to 969.8 million. .

It is additionally the second biggest nation as far as web supporters. India had 267.39 million
web memberships as of December 2014. India's broadcast communications business sector is
required to encounter further development, fuelled by expanded non-voice incomes and higher
entrance in country market. Telecom entrance in the country's provincial business sector is relied
upon to increment from 46.14 for every penny as of December 2014 to 70 for each penny by
2017. The development of a rich working class is activating interest for the portable and web
sections.

Accessibility of reasonable cell phones, alongside an ascent in the security level of versatile
exchanges, is relied upon to support development of exchanges directed through telephones, with
the general exchange worth being tripled in 2014 from a year ago. Solid arrangement support
from the administration has been urgent to the division's advancement. FDI top in the telecom
area has been expanded to 100 for each penny from 74 for every penny. In January 2015, the
Government of India prescribed lessening in permit charges of telecom by 6 for every penny for
administrators; telecom administrators at present pay 8 for every penny of balanced gross income
as permit expense.

Telecom is one of the quickest developing ventures in India. Today India remains as the second-
biggest media communications market on the planet. The cellular telephone industry in India
would contribute US$ 400 billion regarding total national output (GDP) of the nation in 2014.

22
This segment which is becoming exponentially is required to produce around 4.1 million extra
employments by 2020, according to GroupeSpeciale Mobile Association (GSMA).

In the period April 2000 to January 2014, the telecom business has in outside direct speculations
(FDI) of about US$ 59,796 million, which is an expansion of 6 for every penny to the aggregate
FDI inflows regarding US$, according to report distributed by Department of Industrial Policy
and Promotion (DIPP). India's worldwide framework for portable (GSM) administrators had 4.14
million provincial supporters as of January 2014, conveying the aggregate to 285.35 million.
Information activity controlled by third era (3G) administrations developed at 146 for every
penny in India amid 2013, higher than the worldwide normal that saw utilization twofold, as per
ambit Index study by Nokia Siemens Networks (NSN).

India's cell phone market developed by 171 for every penny in 2013, to 44 million gadgets from
16.2 million in 2012, according to research firm IDC India. The expanding notoriety of bring-
your-own-gadget (BYOD) in the working environment is further adding force to the cell phone
market.

Indian telecom industry has developed from a tele-thickness of 3.58% in March 2001 to 74% in
June 2013. This awesome jump in both number of customers and additionally incomes from
telecom administrations has not just gave adequate commitment in Indian GDP development
additionally gave truly necessary business to India youth.

Players in the business sector

BSNL is the business sector pioneer with a 67.7 for each penny offer took after by MTNL with
11.5 for every penny piece of the pie. Next is Bharti Airtel at 10.9% taken after by Tata and
Ericsson at 5% and 4.1% individually.

23
BSNL as an organization is developing and indicated yearly incomes of around $4.5 billion
starting 2014. BSNL is serving more than 125 million clients the nation over and is impetus in
checking the value point for telecom administrations.

Additionally, with the administration increasing its rustic concentrate, no one but BSNL can
transform into reality the following rush of country telecom infiltration. BSNL is a 100% Central
Government element and representatives with BSNL are qualified for get compensations and
advantages as chose by Government of India and not by BSNL

However both, MTNL and BSNL are tormented by declining incomes combined with high
expenses. BSNL has monstrous framework, labor, frameworks, and 80 for every penny of
landlines and 90 for each penny of broadband associations in India are worked by it.

"Vodafone is contributing about US$ 3 billion throughout the following two years in India in
extending its system foundation and appropriation direct in the nation," according to Vittorio
Colao, CEO, Vodafone Plc.

Blasting areas
The tide has turned for the telecom area in India, as development and gainfulness has quickened
as of late. Tower organizations are procuring advantages of a turnaround in the part as
administrators have begun putting resources into systems to help information entrance.

In any case it is in the nation's blasting portable fragment in which the real fights are being
battled. Three noteworthy private players – Airtel, Ericsson and Vodafone - with a considerable
54% offer of the business sector between them, lead a substantial field of portable administrators.
State-possessed undertakings –BSNL and MTNL – have additionally been making their nearness
felt with a joined piece of the pie of 12%.

A look ahead

24
  India's teledensity has enhanced from under 4% in March 2001 to around 79.38% before
the end of March 2015. The versatile supporter base (GSM and CDMA consolidated) has
developed from under 2 m toward the end of FY00 to touch just about 996.5 m toward
the end of March 2015. Levy decrease and decrease in handset costs has helped the
section to pick up in scale. The cell fragment is assuming an essential part in the business
by making itself accessible in the rustic ranges where the teledensity is far lower
(48.37%) than that in urban India (148.61%).

The altered line portion keeps on declining as far as the endorser base. It has declined to 26.59 m
endorsers in March 2015 from 28.49 m in March 2014.

To the extent remote broadband associations (>= 512 kbps) are concerned, India's web clients
have risen significantly from 50 million in 2007 to 100 million in 2010 and more than 300
million in 2014, with near 60% clients getting to web by means of mobiles (according to Internet
and Mobile Association of India. This makes India the world's second-biggest web market after
China. Utilization of information administrations keeps on developing at an exponential pace

25
 CHAPTER: 2

LITERATURE

REVIEW

CHAPTER 2: LITERATURE REVIEW

A writing survey is a content of an insightful paper, which incorporates the present information
including substantive discoveries, and additionally hypothetical and methodological
commitments to a specific subject. Writing audits use optional sources, and don't report new or
unique exploratory work.

26
Types of Literature Reviews
Frequently connected with scholarly situated writing, for example, a proposition, exposition or
associate looked into diary article, a writing audit as a rule goes before the approach and results
area. Writing surveys are additionally normal in an exploration proposition or plan (the report
that is affirmed before an understudy formally starts a paper or postulation). Its fundamental
objectives are to arrange the present study inside the assemblage of writing and to give
connection to the specific peruser. Writing audits are a staple for exploration in almost every
scholastic field. A methodical survey is a writing audit concentrated on an examination question,
attempting to distinguish, evaluate, select and incorporateall top notch research confirmation and
contentions applicable to that inquiry. A Meta examination is commonly a deliberate audit
utilizing measurable strategies to viably join the information utilized on all chose studies
todeliver a more dependable result.

NIGEL PIERCY (1979) Marketing, as defined by Nigel Piercy, is both the most essential and the
most elusive of practices in the expanding world of warehousing and distribution. His case is that
marketing decisions made in the various areas concerning distribution should be carefully
evaluated and integrated, resulting in controlled, effective planning. But how accurately can the
real effect of marketing be assessed in terms of cost and results? Mr. Piercy has carefully
dissected the subject, and then reassembled it into a framework for analysis to the simplest and
the most sophisticated needs.

JOHN WHITEHEAD (1988) concluded Market analysis has established its usefulness in many
businesses and represents a major advance in marketing methodology. Computer power
generates an information system of enormous importance to the marketer. Market analysis
unifies and integrates marketing activity in a way that has previously proved elusive

27
DAVID R. WHEELER (1988) concluded Effective international marketing requires collection
of large amounts of data from diverse sources and sensitive use of such information in marketing
strategy. While marketing information systems help managers incorporate some kinds of data
into their planning, content analysis offers a different set of insights into cultural concepts,
themes and trends not usually captured by traditional data systems. Content analysis has evolved
as a research technique since the 1920s, largely in social science applications. Today, aided by
new analytical techniques and optical scanners, which can read huge volumes of material
inexpensively; and state‐of‐the‐art computer software, which can handle languages such as
Chinese, Japanese, and Arabic, content analysis has great promise for international marketing
applications

LOU HOWARD (1988) In the present study Accurate real estate appraisal relies upon good
market analysis, sound feasibility studies and correct professional practice. This paper discusses,
by way of case study, how a failure to comply with these criteria, coupled with loose
management and inadequate auditing, can lead to insolvency in leading financial institutions. It
concludes that there is a need for real estate appraisers to re‐examine their own practices and to
return to basics in their appraisal and thus provide precise, accurate valuation advice for clients.

PATRICK BUTLER, NEIL COLLINS (1996) Applies an established strategic framework of

competitive market positioning to political parties, suggesting that political scientists who are
currently analysing political marketing without reference to the marketing discipline, could
benefit thereby. If the marketing paradigm is to influence another discipline, it must first be
tendered in broad, generic terms, and address matters at the strategic level. Presents examples
from many electoral contexts (or markets). The analysis requires that political parties in a
democratic system be regarded as analogous to commercial organizations in industrial markets.
In doing so, it eschews traditional political ascriptions such as left‐ and right‐wing. The labels
used to describe the parties are leader, challenger, follower and nicher. This framework offers a
competitive positioning map of the market that will inform marketing and campaign decisions,
and guide strategic direction. Shows how fundamental issues such as competitive analysis,
party/candidate positioning, and relevant strategies are brought to the political marketing contex.

28
THOMAS TSU WEE TAN, ZAFAR U. AHMED (1999) In recent years, world growth has
slowed and markets have matured or become more protective. It appears that the only way for
many companies to grow is at the expense of their competitors. Many large companies in Asia
are turning to market intelligence for input into their strategic management system and decision
making. The marketing intelligence cycle typically consists of directing, collecting, compiling,
cataloguing, analysing and communicating data. The processing stage of intelligence gathering is
the critical stage where the raw material is recorded and analyzed. In this article we use the
SWOT framework for the analysis of a m.anufacturing industry – the lawn mower. This case
illustrates how market intelligence could be used as an important and effective instrument for
management planning, implementation and control

YVETTE REISINGER, LINDSAY TURNER (1999) Presents the results of an empirical

analysis of the cultural differences between Australian and Japanese populations in a tourism
context. Argues that the challenge for tourism marketers lies in understanding the cultural
make‐up of the Japanese market, and developing culture‐oriented marketing strategies. Identifies
the major reasons for the decline in Japanese tourist arrivals to Australia.Compares the Japanese
and Western cultural orientation. Describes and interprets the cultural dimensions identified by a
principal components analysis. Determines the most critical cultural dimensions and their
indicators by a LISREL analysis. The findings show that the key cultural factors influencing
Japanese holiday experiences in Australia are culturally determined perceptions of service and
interpersonal relations with hosts. Presents the impact of cultural traits on Japanese tourist
perceptions of Australian service and interpersonal contact with hosts.Discusses the implications
of these findings for tourism marketers.

AYSEGÜL ÖZSOMER, S. TAMER CAVUSGIL (1999) States that it is critical that incumbent
firms understand the processes that enhance or inhibit entry of new firms into their industry. A
new entrant into an industry may create additional demand by legitimizing the
technology/products, and/or may share the existing market by drawing buyers away from
incumbents. An analysis of market entry rates is especially important in new, high technology
industries where sub‐groups of firms pursue different technology and global market
diversification strategies because such sub‐groups may have asymmetrical cross‐effects on entry

29
rates of new firms. Suggests a community ecology approach to assessing the impact of industry
density on new firm entry rates. The framework is demonstrated by applying it to the global
personal computer industry during the period of 1977‐1992. Results suggest that density has a
nonmonotonic positive effect, while the firm‐level variables of technological strategy and market
expansion strategies have a monotonic positive effect on new firm entry rates

GODWIN G. UDO (2000) Due to the strategic importance of IT, there exists an undeniable need
for a systematic analysis before deciding whether or not a particular IT function should be
outsourced. A study that provides a systematic analysis for evaluating components of the
company’s IT for outsourcing may be useful to practitioners. In this paper, analytic hierarchy
process (AHP) is proposed as a suitable technique for analyzing information systems outsourcing
decision. And IT outsourcing case is used to demonstrate the usefulness of the proposed
approach. Expert Choice is used to implement the AHP. In the case example, managing IT by the
IT department seems to be the best option followed by managing it through an outsourcer.
Managing IT by the end users is the least preferred technique in this particular example

SOUMAVA BANDYOPADHYAY (2001) In emerging markets, Internet marketers need to

pursue strategies that are different from those in developed countries. The four major
considerations that guide Internet marketers in emerging markets are technology, marketing
functions, target markets, and the marketing mix. This paper analyzes these four issues and
develops appropriate strategic propositions for Internet marketers in emerging markets. Upon
recognizing the technology‐related constraints in emerging markets, marketers are advised to use
the Internet more for informational rather than transactional or product‐delivery purposes, and
focus on business customers and affluent consumers. Propositions are made regarding the
appropriate product, promotion, pricing, and distribution strategies to reach these target markets
in emerging economies by using the Interne

VAL CLULOW (2005) This paper aims to offer marketers an example of the application of
stakeholder theory and analysis, using a current discourse between a number of stakeholders
about their views on issues raised in a report on a model for the sustainability of life in Australia
in the future. Through a systematic discourse analysis of the text of the speakers on the

30
documentary program, the relationship of each stakeholder group to the issues at the centre of the
discourse is unpacked. Four themes emerged from the analysis indicating that the thinking of the
stakeholders on the concept of an ―economy‖ was based on different theoretical schemata; their
level of concern for ―sustainability‖ of a viable economic model varied; they did not agree on the
question of who is responsible for a ―sustainable future‖; and the philosophical positions of the
stakeholders on the issue varied considerably.

HSUAN‐FU HO, CHIA‐CHI HUNG (2008) The purpose of this paper is to examine how a
graduate institute at National Chiai University (NCYU), by using a model that integrates analytic
hierarchy process, cluster analysis and correspondence analysis, can develop effective marketing
strategies. This is primarily a quantitative study aimed at developing a marketing mix for a
graduate institute at NCYU in Taiwan. A survey using stratified random sampling was condu
conducted, with 14 universities from four different areas in Taiwan randomly selected for the
study. Two questionnaires were conducted: a Likert's five‐scale questionnaire regarding school
images and an analytic hierarchy process (AHP) questionnaire regarding school selection factors
were administered to 640 undergraduate students. Of the total number of questionnaires, 602 (94
percent) valid school image questionnaires and 570 (89 percent) valid school selection factors
questionnaires were used. The results of AHP revealed that the five most important factors for
students' school selection were: employability, curriculum, academic reputation, faculty, and
research environment. The results of clustering analysis identified five student groups for market
segmentation, and they are the Prominence group, the less aware group, the Pragmatic group, the
Austerity group, and the fastidious group. Finally, the results of correspondence analysis
suggested that students of the Pragmatic Group are more likely to be attracted by NCYU, and
also, students perceived NCYU to be strongly associated with lower tuition, fewer
entrance‐exam subjects, lower entrance‐exam pass rates, and easier graduation requirements

FON SIM ONG, PHILIP J. KITCHEN, SHIH SHIUAN CHEW (2010) This paper aims to use
conjoint analysis to examine how Malaysian consumers make decisions regarding a consumer
durable product – namely room air conditioners – under multi‐cue situations. This study first
assesses the impact of a priori perceived differences between brand names, country of
manufacture, price, quality, technological advancement, and warranty on product evaluation.

31
Second, the relative importance of the attributes as evaluative criteria is determined by
performing part worth analysis. Six pertinent hypotheses are developed and tested. Conjoint
analysis is used to develop product profiles that respondents could evaluate via a survey. This is
followed by a market simulation to suggest marketing strategies for Malaysian and Japanese
products (the latter dominate the Malaysian market). The findings indicate the importance of
capitalising upon consumer durables' intrinsic qualities, and the need to carefully consider the
relationship between price and quality. Ways to take advantage of the strength of foreign brand
names need to be understood and operationalised. The simulation exercise also indicates ways in
which indigenous and external competitors could take advantage of market opportunities.

SHIRLEY YE SHENG, MICHAEL R. MULLEN (2011) The purpose of this paper is to

propose a new model for export market opportunity analysis by combining the marketing‐based
overall market opportunity index (OMOI) with the economic‐based gravity model in order to
more accurately assess export market potential, in total and for specific industries. Variables
from the gravity and OMOI models are used to analyze export market opportunities for specific
industries. Findings – Market size, economic intensity, geographic and language distance, and
regional trade agreements (RTAs) are found to be strong predictors of export market
attractiveness from a US firm's perspective. Foreign direct investment (FDI) is found to act as
both a substitute for and a complement to exports. Cultural distance, based on Hofstede, is not a
significant predictor for exports.

OLIVER BUDZINSKI, JANINA SATZER (2011) Despite still being younger than a decade,
the theory of multisided markets has offered numerous valuable insights for the analysis of
industries in which a supplier serves two distinct customer groups that are indirectly interrelated
by externalities. Examples include payment systems, matching agencies, commercial media, and
software platforms. However, professional sports markets have largely been neglected so far in
this kind of research although they possess the characteristics of multisided markets. The purpose
of this paper is to contribute to filling this gap by describing the platform elements of
professional suppliers of sports events and by conceptually outlining issues where an application
of this theoretical framework is likely to provide valuable insights and to add to the existing
knowledge. Among these problems are integrative pricing strategies of sports clubs towards such

32
different customer groups as attendees, broadcasters, sponsors, etc., including their welfare and
antitrust implications, and design decisions of sports associations, in order to promote positive
feedback loops among the customer groups as well as management strategies to reinforce
positive externalities among customer groups and alleviate negative ones. The paper applies the
theory of multisided markets to sports markets. It analyses whether the participants and their
interrelations can be described as facing a multisided market context and briefly outlines the
strategy implications for sports business. The paper finds that the multisided market framework
offers a promising framework for analysing sports business and adds insights to several problems
of sports markets that ―traditional‖ analysis cannot fully solve

JUDY FOSTER DAVIS (2013) The influence of research on decisions concerning black
consumers by mainstream marketers between 1920 and 1970 is to be examined. Market
opportunity analysis provides a theoretical foundation. The paper aims to discuss these issues.
This study is based on examination of rare books, archival and proprietary documents housed at
the Hartman Center for Sales, Advertising and Marketing History at Duke University; the
Schomburg Center for Research in Black Culture at the New York Public Library; the Museum
of Public Relations and relevant literature concerning research on black consumers. Mainstream
companies were motivated to pursue black consumers on the basis of attractive consumption
habits, demographic and psychographic characteristics revealed by informal and formal research
available as early as the 1920s. During and after the Second World War, research on black
consumers became widely available to corporate executives through the trade press, trade
associations, academic literature and internal corporate efforts. White and black scholars,
entrepreneurs and marketing professionals were instrumental in collecting, disseminating and
interpreting information regarding African-American consumers. Research not only prompted
corporate interest in the black consumer market by appealing to profit motives, but also
encouraged ground-breaking change in the way that blacks were addressed and portrayed in
marketing

JASON M. GORDON , TRACEY KING SCHALLER (2014) concluded The purpose of this
paper is to explore mindfulness as a cognitive construct that affects the identification and
processing of information during market analysis leading to opportunity evaluation. This paper

33
draws from theory on entrepreneurial cognition and introduces the concept of mindfulness in
market analysis to better understand the entrepreneurial mindset at the opportunity evaluation
stage of the value-creation process. Based on a review of the literature on entrepreneurial
cognition and mindfulness at the marketing/entrepreneurship interface, a detailed description of
the concept of mindful market analysis is presented. In addition, propositions are developed
regarding the moderating effects of mindful market analysis on the relationships between various
personal and psychological factors and information processing outcomes related to opportunity
evaluation.

VAIA TSITSIPATI , CHRISTODOULOU ATHANASIOS , (2014) The purpose of this paper is

to investigate the suitability of Greece as a possible market for truffles. Primary data were
collected and analyzed in a systematic and detailed way to highlight the strengths, weaknesses,
opportunities and threats of this prospective market development. A multi-stage survey was
conducted using qualitative and quantitative research methods. The data obtained were analyzed
using the SWOT analysis method. The survey highlighted the market characteristics of truffles in
Greece. These were sorted into four categories: strengths, weaknesses, opportunities and risks.
Results show that truffles have an attractive mix of qualities; however, issues such as the lack of
intermediary and customer knowledge and the limited communication of their benefits need to
be overcome.

LINDSAY MEREDITH (2016) The purpose of this paper is to introduce a template to guide
practitioners in the creation of multiple marketing plans that are intended to target different
groups of stakeholders – some of whom are supportive, others adversarial, namely, the business-
to-business (B2B) marketer’s agenda. The methodology involved a combination of purposeful
sampling, real-time participatory observation, action research and secondary data analysis. The
main method of this research is analytical and conceptual with the objective of identifying the
diverse groups of stakeholders with whom business marketers must interact. In cases where
multiple marketing plans were used for different stakeholder groups, B2B firms encountered
lower levels of negative attribution from social network systems, mass media and subsequently
public and governmental stakeholders

34
Sr Authors Name Year Findings
no.
1 NIGEL PIERCY (1979) Marketing decisions made in the various areas
concerning distribution should be carefully evaluated and
integrated, resulting in controlled, effective planning.
2 JOHN WHITEHEAD (1988) Market analysis unifies and integrates marketing activity
in a way that has previously proved elusive

3 DAVID R. WHEELER (1988) Content analysis has evolved as a research technique

since the 1920s, largely in social science applications
4 LOU HOWARD (1988) It concludes that there is a need for real estate appraisers
to re‐examine their own practices and to return to basics
in their appraisal and thus provide precise, accurate
valuation advice for clients.
5 PATRICK BUTLER, NEIL (1996) This framework offers a competitive positioning map of
COLLINS the market that will inform marketing and campaign
decisions, and guide strategic direction
6 THOMAS TSU WEE (1999) The marketing intelligence cycle typically consists of
TAN, ZAFAR U. AHMED directing, collecting, compiling, cataloguing, analysing
and communicating data.
6 YVETTE (1999) The findings show that the key cultural factors
REISINGER, LINDSAY influencing Japanese holiday experiences in Australia are
TURNER culturally determined perceptions of service and
interpersonal relations with hosts
7 GODWIN G. UDO (2000) In this paper, analytic hierarchy process (AHP) is
proposed as a suitable technique for analyzing
information systems outsourcing decision. And IT
outsourcing case is used to demonstrate the usefulness of

35
 the proposed approach.
8 SOUMAVA (2001) The four major considerations that guide Internet
BANDYOPADHYAY marketers in emerging markets are technology,
marketing functions, target markets, and the marketing
mix.
9 VAL CLULOW (2005) This paper aims to offer marketers an example of the
application of stakeholder theory and analysis, using a
current discourse between a number of stakeholders
about their views on issues raised in a report on a model
for the sustainability of life in Australia in the future
(Source:- Available literature)

36
 CHAPTER: 3

RESEARCH
METHODOLOGY

3.1 RESEARCH METHODOLOGY:

Strategy is the well-organized, theoretical investigation of the strategies linked to a field of study.
It includes the theoretical investigation of the group of strategies and principles associated with a
division of learning. Normally, it envelops thoughts, for example, worldview, theoretical model,
stages and quantitative and subjective systems.

37
A procedure does not set out to give preparations - it is, in this manner, not the same thing as a
4policy. , it offers the theoretical way for accepting those technique, group of strategies or
alleged "best practices" can be linked to particular case, to compute a particular result.
It has been characterized similarly as takes after:
1. "the investigation of the standards of techniques, principles, and proposes utilized by an
order";
2. "the deliberate investigation of strategies that are, can be, or have been connected inside
an order";
3. "The study or portrayal of strategies".

38
3.2 OBJECTIVE OF THE STUDY:

The core objective of the study is to make a depth study on the profitability of the products, and
analysis the net revenue with the help of direct cost.
Sub objectives:
1. To study the customers satisfaction with regards to Ericsson.

2. To study the customer’s preference regarding available services at Ericsson.

3. To study the advertising pattern of Ericsson.

4. To study the consumer perception regarding Ericsson.

39
3.3 SCOPE OF THE STUDY:
This project gives enough scope to the company to determine the need of the customers of
Gurugram region. They could know about the buying behavior of the customer and the
profitability of its product. And this project will help the company solve the existing problems
with the product’s profitability which would improve its performance and would make the good
relationship with the customers.
Telecommunication sector is the best ever emergent sector in India. For this motive many of
companies are also inflowing into this market section. Naturally there are different scopes are
still there for more researches. That is why the advance research scale in respect of product
success, customer perception & satisfaction, brand alertness of the product, keeping customer
relationship and competitors’ analysis needs to do consequently.
ERICSSON, is a large organization in telecommunication sector, has create lot of customer base
for several years. At the present time it is obligatory that an association remains familiarized to
changes and uninterrupted development for the reason of survival of the business and also for
maintaining the growth. Based on these conditions, this study will include direct surveillance as a
tool to categorize the unambiguous problems within the product’s profitability and trying to find
out the succeeding remedies for this
.
3.4 RESEARCH DESIGN:

40
Exploratory Research:

Exploratory examination is directed to give a superior comprehension of a circumstance. In this

outline the examination is unstructured as principle objective of the organization is to know the
obscure. The examination begins with an Exploratory Research Design so as to investigate and
assess the business sector lastly investigate and foresee the potential accomplishment of Ericsson
items in the business sector.

3.4.1: RESEARCH APPROACH

The down to business approach, which includes utilizing blended strategies that are most
appropriate to the examination goals, was connected for this theory. It was picked not just to
conquer the constraint of every single technique and the restricted undertaking time, additionally
on the grounds that a mix of exploration strategies enhances the nature of examination Yin
(2003), contends that triangulation concedes full adaptability to utilize different techniques that
supplement each other.
Contingent upon the genuine need, the exploration methods and systems connected in the
proposition were either connected with quantitative or subjective examination. Case in point, to
acquire respondents' perspective about the affecting components of the Chinese and Indian
telecom Sector' income, the poll comprised of both close-finished inquiries for fast classification,
and open-finished inquiries that permitted respondents to propose their own particular elements.

To test the invalid speculation around a specific component's effect on the development of the
Chinese and Indian telecom Sector', a blend of essential information from study results and
auxiliary information from distributed budgetary and mechanical insights were utilized to
enhance the legitimacy and noteworthiness of the investigation.

41
3.5 COLLECTION OF DATA:

Comfort sampling is a non-likelihood inspecting strategy where subjects are chosen as a result of
their advantageous openness and closeness. The subjects are chosen since they are simplest to
enroll for the study. Study had been completed at Gurugram for the time of 45 days with test size
of approx 25 merchants.

3.6: SOURCES OF DATA COLLECTION:

Primary Data: To achieve the desired objective of the project a self administrator questionnaire
has been used to obtain the responses from the respondents.

Secondary Data: Optional information is that information which was gathered by another
person and which has been gone through the factual investigation at any rate once. With the end
goal of the study, site of Ericsson Limited and other solid sources on web, diaries, different
records, daily papers and articles and beforehand led overviews.

3.7 SAMPLING TECHNIQUES:

Optional information is that information which had been gathered by another person and which
has been gone through the factual investigation at any rate once. With the end goal of the study,
site of Ericsson Limited and other solid sources on web, diaries, different records, daily papers
and articles and beforehand led overviews. In the most straightforward case, such as the
sampling of a batch of material from production (acceptance sampling by lots), it would be most
desirable to identify and measure every single item in the population and to include any one of
them in our sample. However, in the more general case this is not usually possible or practical.
There is no way to identify all rats in the set of all rats. Where voting is not compulsory, there
is no way to identify which people will actually vote at a forthcoming election (in advance
of the election).

42
3.8 TOOLS USED IN STUDY:

3.8.1: Questionnaire Design-

Porter’s Five Forces representation methodically accommodates segment analysis made it the
best-suited hypothetical structure to study the determinant factors of the telecom sector revenue.
The Five Forces model refers to competition from both internal pressure and external resources
to establish the sector competitive intensity and the overall industrial profitability of a market
Therefore; it was used as the theoretical structure for this study to analyze influencing factors of
the revenue growth in Chinese and Indian telecom sector.

Fig.6

43
Define the nature of competitiveness

From Porter's Five Forces model and exhaustive writing audit of techniques on completing the
business concentrate on, a conceptualize was gotten for rattling off potential elements in
impacting the mechanical execution. This went for getting the broadest information range
conceivable, and checked variables from different measurements, for example, clients, suppliers
and different partners who are important to the business examination.

DATA ANALYSIS
The statistical tools like MS-Access and MS-Excel is used to analyze the data. MS-Excel is used
to draw inferences from the data that gives the outcome of the study.

TABLE
A table is a method for orchestrating information in lines and sections. The utilization of tables is
pervasive all through all communication, research and information examination. Tables show up
in print media, written by hand notes, PC programming, building ornamentation, movement
signs and numerous different spots. The exact traditions and phrasing for depicting tables
changes relying upon the connection. Further, tables vary altogether in assortment, structure,
adaptability, documentation, representation and use. In books and specialized articles, tables are
regularly displayed separated from the principle content in numbered and subtitled drifting
squares.

BAR GRAPH

A bar chart or bar graph is a chart that presents grouped data with rectangular bars
with lengths proportional to the values that they represent. The bars can be plotted vertically or
horizontally. A vertical bar chart is sometimes called a column bar chart.

A bar graph is a chart that use either horizontal or vertical bars to show comparisons among
categories. One axis of the chart shows the specific categories being compared, and the other
axis represents a discrete value. Some bar graphs present bars clustered in groups of more thone

44
 LIMITATIONS

1. Suggestion is based on the given information.

2. Due to the large number of employee it was not possible to collect all the information
from each.
3. The time period is limited to know the entire process .We cannot draw effective
conclusion as it is continuous process.
4. The area of survey was limited to some particular areas.

45
 CHAPTER:4

DATA ANALYSIS &

INTERPRETATION

46
1. Does Ericsson have enough resources to sell their products?

(a) Strongly Agree (c) Disagree

(b) Agree (d) Strongly Disagree

10%
30% Strongly Agree
26% Agree
Disagree
Strongly Disagree

34%

(Source:- primary data) Fig.7

Interpretation

The survey showed that 30% of the people who were surveyed strongly agree to the option that
Ericsson possess relevant resources to sell out their products that is construction of housing
societies and complexes to the relevant customers, where as 34% and 26% respectively came to a
conclusion of agreeing and disagreeing the fact and fixtures. Whereas 10% strongly disagreed
with the point and thought that the company has to improvise in the certain areas so that the
selling of the product may increase as per the yearly targets.

47
2. What are the factors that affect your decision while making purchase
decision?

(a) Cheap (c) Easy availability

(b) Quality (d) Others

18% 20%
Cheap
Quality
Easy availability
30% Others
32%

(Source:- primary data) Fig.8

Interpretation

Ericsson being a relatively new company in the market and having high competition, the
respondents agreed to a certain level that the easy availability and quality of the construction is
the main and leading beat selling point. A cumulative of 62% (30% and 32%) respectively
agreed to the same, where as a healthy percentage of 38% came to the decision that the price and
various other factors were the main selling point of the product.

48
3. What is the income group of consumer at Ericsson?

(a) High income group (c) lower Income Group

(b) Middle Income Group (d) All

High Income
14% 18% Group
Middle Income
Group
28% Lower Income
Group
40%
All

(Source:- primary data) Fig.9

Interpretation

In the questionnaire the main question was the target audience of Ericsson Being a real estate
firm it is very important for the company to set their preferences in regard to target audience. The
respondents agreed to the point that the company should focus more on the Middle income group
people because the segment of the housing societies that the company deals in can be easily sold
to middle income group. Nearly 40% of the respondents agreed to that point. 28% respondents
also agreed to the fact that lower income group can also be targeted as know they have the power
of housing loan schemes from various banks. 14% favoured the high income group people to be
the target audience keeping in mind the business of the company of building complexes.

49
4. What is the mode of dealing with the customers?

(a) In a business premise (c) Online

(b) Through Agents (d) through business sources

15%
In a Business Premise
30%
10% Through Agents

Online

Through Business
Sources
45%

(Source:- primary data) Fig.10

Interpretation

According to the respondents the main place of selling for Ericsson is within their business
premises. 30% agreed to the point that the main business is generated within the premises this is
because the purchasers visit the company so as to view the flats and complexes and main
collaborations regarding the construction of various sites for roads is done within the company.
The company also sells the products through the agents on the commission basis. This helps
them to obtain good volume of sales because more often the customers goes to agents and
property dealers to buy property, which in turn have link with the company, 45% selling is done
through these dealers. With the growing use of internet for various purchases the company had
also started online procedures for sales through internet.

50
5.What Does you receive into regarding services of Ericsson through?

(a) Internet (c) Sales Promotion

(b) Advertising (d) Direct Marketing

(e) Public Relations

9% 13%
Internet
Advertisement
29% Sales Promotion
28%
Direct marketing
Public Relations
21%

(Source:- primary data) Fig.11

Interpretation

The main aims of the marketing plan that Ericsson has is to advertise their product in the market
and to do direct marketing at the same time. 28% and 29% of the respondents agreed to the same
point. Then main focus is on sales promotion of the products, later comes the use of internet to
advertise and market the product so as to grow public relations with more and more customers
which in turn will be a great help increasing the turnover of the company.

51
6. How can advertising is helpful in?

(a) Increase in profit (c) Building a brand name

(b) Increasing customer knowledge (d) no use

Increase In Profit

8%
Increasing
38% Customer's
31% Knowledge
Building a Brand
Name

No Use
23%

(Source:- primary data) Fig.12

Interpretation

Marketing has a core aim of increasing the sale of the company. According to a large number of
respondents (38%) marketing will help the company to increase sale which will result in
increasing the profit of the company which can be further used for expansion of the business.
More over Ericsson being a new brand in the market has to also understand the importance of
building a potential and sustainable brand name in the market. Marketing will contribute in the
cause according to 31% of the respondents. Marketing and proper advertisement will also make
the customers aware of the upcoming projects and will provide them with the knowledge.

52
7. What is the best medium for the advertisement according to your point of
view?

(a) Local Newspapers (c) Radio

(b) Hoardings (d) Campaigns
(e) Internet

7%
Local Newspaper
18% 34%
Hoardings
Radio
Campaigns
23% Internet
18%

(Source:- primary data) Fig.13

Interpretation

Ericsson according to the respondents should advertise the product through local news papers.
34% agreed to it. The reason being easy penetration of newspapers amongst the people in the
society, a very large percentage of people read newspapers on daily basis and this can be a core
means of advertising the product. Radio in the present day has become very popular amongst the
people, with easy access in every house and cars it has grown as a very strong medium of
advertisement, 23% of the respondents also share the same view. 18% each agreed to the point
that hoardings and campaigns can also be used as effective means of advertisement.

53
8. What according to you can be other modes of marketing that can be used
by Ericsson?

(a) Direct Mail (c) Social Media Marketing

(b) Brand Marketing (d) Mobile Web Marketing

Direct Mail
12% 16%
Brand Marketing

Social Media
39% 33% Marketing
Mobile Web
Marketing

(Source:- primary data) Fig.14

Interpretation

Ways of marketing is another important segment of marketing. The various modes can be direct
mail, brand marketing, social media marketing and mobile web marketing. 39% of the
respondents agreed to the point that social media marketing can be a perfect way of marketing.
Whereas 33% approved that brand marketing can be used as the mode, which states that the
company should use its brand name for marketing the product. A cumulative of 28% agreed that
direct mail and mobile web marketing that is marketing through SMS and cold calling can also
turn as an effective way of marketing.

54
9. What according to you is the impression of the advertisement by Ericsson?

(a) Funny (c) Informative

(b) Interesting (d) Boring

7%
18%
Funny
Interesting
42% Informative
33% Boring

(Source:- primary data) Fig.15

Interpretation

When the respondents were questioned regarding the effectiveness of the current advertisement,
42% of them said that the advertisement is informative and provides knowledge about the
product. 33% agreed that the advertisement was interested enough to pay attention on the
advertisement. On the other hand 18% and 7% respondents respectively replied the
advertisement was funny and boring.

55
 10.Factor affecting client happiness towards Ericsson?

Factor No. of Respondent Percentage

Price 51 51%
Networks 26 26%
After sales service 23 23%

23%
Price

51% Network
After Sales Service

26%

(Source:- primary data) Fig.16

Interpretation : The sample drawn on the probality basis clearly shows that 51% are the opinion
that price is the happiness factor in Ericsson and 23% of them who view after sales service as a
vital factor for client happiness followed by only 26% of them view the networks of Ericsson as
a happiness factor.

56
11.Client perception about Ericsson

Very Good Good Average Bad Very Bad

20 45 20 15 0

0
15% 20% Very Good
Good
Average

20% Bad
Very Bad

45%

(Source:- primary data) Fig.17

Interpretation : The sample drawn on the probality basis shows that out of the 100% of
respondents gave Good response. 45% gave Very Good response 20% gave average and 15%
gave bad response but none in the negative.

57
 12.To consumer feel save while dealing with the employees?
Highly safe Safe Unsafe Highly unsafe
22 47 22 13

13%
22% Highly safe
Safe

22% Unsafe
Highly unsafe

47%

(Source:- primary data) Fig.18

Interception
The sample drawn on the probality basis shows that out of the 100% of respondents gave highly
safe . 22% gave that feel safe is 47 % some feel unsafe gave 22% and some are also those that
feels that its highly unsafe is 13%

58
 FINDINGS

 The survey showed that 30% of the people who were surveyed strongly agree to the
option that Ericsson possess relevant resources to sell out their products that is
construction of housing societies and complexes to the relevant customers

 Relatively new company in the market and having high competition, the respondents
agreed to a certain level that the easy availability and quality of the construction is the
main and leading beat selling point.

 Being a real estate firm it is very important for the company to set their preferences in
regard to target audience.

 Then main focus is on sales promotion of the products, later comes the use of internet to
advertise and market the product so as to grow public relations with more and more
customers which in turn will be a great help increasing the turnover of the company.

 Marketing and proper advertisement will also make the customers aware of the upcoming
projects and will provide them with the knowledge.

59
 SUGGESTIONS

1. Ericsson is entering the market and therefore has to necessarily preparing the entire costing
with an intention to provide the best goodwill.

2. I have seen the attitude and style of the working of this company’s people is very good and
target oriented. They are full of zeal to work for the organization which is a good sign for the
development of the company.

3. Even in this recession period when most of the companies are struggling to survive this
company is one of those strong companies which is not only stable but making huge profits.

60
 CONCLUSION

The investment objective of the Portfolio is to generate long term capital appreciation from a
portfolio of equity and equity linked instruments. The investment portfolio for equity and equity
linked instruments is primarily drawn from the banks in the BSE 30- Index. As observed, the
portfolio is undiversified as the Ericsson included are from a single sectors viz. Banking. Thus
the risk can not be diversified to a large extent. Moreover it is also observed that the returns from
the Portfolio are on the tracks.

Initially for some period the Portfolio did not give as good returns as the Index i.e. BSE 30 but
after sometime the returns generated by the fund outperformed the Index Returns. After that a
very heavy fall in the return of index as well as portfolio was seen.

61
BIBLIOGRAPHY

62
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Val Clulow, (2005) "Futures dilemmas for marketers: can stakeholder analysis add
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Hsuan‐Fu Ho, Chia‐Chi Hung, (2008) "Marketing mix formulation for higher education: An
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in Malaysia: a conjoint analysis and market simulation", Journal of Consumer Marketing, Vol.
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Shirley Ye Sheng, Michael R. Mullen, (2011) "A hybrid model for export market opportunity
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64
Lindsay Meredith, (2016) "Multiple marketing plans: an analytical template", Journal of
Business & Industrial Marketing, Vol. 31 Iss: 4, pp.519 – 530

Indian Telecom Industry Report: http://www.equitymaster.com/research-it/sector-

info/telecom/Telecom-Sector-Analysis-Report.asp

Telecom Subscriber
Data:http://www.trai.gov.in/WriteReadData/WhatsNew/Documents/Press%20Release%20on%2
0'Telecom%20Subscription%20Data%20as%20on%2031st%20January,%202015'.pdf

Gurugram Prepaid Mobile

Plans:http://www.ericsson.com/EricssonWar/appmanager/ericsson/Gurugram?_nfpb=true&_pag
eLabel=prepaid_book

ERICSSON: http://en.wikipedia.org/wiki/Ericsson
Reuters: http://in.reuters.com/products.

65
ANNEXURE

66
 QUESTIONNAIRE

Question 1) Does Ericsson have enough resources to sell their products?

(a) Strongly Agree (c) Disagree

(b) Agree (d) Strongly Disagree

Question 2) what are the factors that affect your decision while making the purchase
decision?

(a) Cheap (c) Easy availability

(b) Quality (d) Others

Question 3) what is the income group of consumer at ericsson?

(a) High income group (c) lower Income Group

(b) Middle Income Group (d) All

Question 4) what is the mode of dealing with the customers?

(a) In a business premise (c) Online

(b) Through Agents (d) through business sources

Question 5) what does you receive into regarding services of Ericsson through ?

(a) Internet (c) Sales Promotion

(b) Advertising (d) Direct Marketing (e) Public Relations

67
Question 6) How can an advertising is helpful in?

(a) Increase in profit (c) Building a brand name

(b) Increasing customer knowledge (d) no use

Question 7) What is the best medium for the advertisement according to your point of
view?

(a) Local Newspapers (c) Radio

(b) Hoardings (d) Campaigns
(e) Internet

Question 8) What according to you can be other modes of marketing that can be used by
Ericsson .

(a) Direct Mail (c) Social Media Marketing

(b) Brand Marketing (d) Mobile Web Marketing

Question 9) What according to you is the impression of the advertisement by Ericsson ?

(a) Funny (c) Informative

(b) Interesting (d) Boring

68
Question 10) Factor affecting client happiness towards Ericsson?
a) Price
b) Network
c) After sales Service

Question 11) Client perception about Ericsson ?

a) Very Good
b) Good
c) Average
d) Bad
e) Very bad

Question 12) To consumer feel save while dealing with the employees?

a) Highly safe
b) Safe
c) Unsafe
d) Highly unsafe

69