A Shift from Product Orientation to Customer Orientation Bsnl- Bharat Sanchar Nigam Limited

1935 Words Sep 17th, 2011 8 Pages
A SHIFT FROM PRODUCT ORIENTATION TO CUSTOMER ORIENTATION
BSNL- BHARAT SANCHAR NIGAM LIMITED

INTRODUCTION-
Alexander Graham Bell invented Telephone and he patented Telephone instrument in 1876. Indian Posts and Telegraphs department (P&T) was controlling the communication industry. In 1985, Indian P&T bifurcated into Department of Postal Service and Department of Telecommunication. After the corporatization of DoT in 2000, BSNL was formed. The control of telephone system of Mumbai and Delhi came under MTNL- Mahanagar Telephone Nigam Limited and telephone system control of Calcutta along with other cities had been transferred to BSNL- Bharat Sanchar Nigam Limited. It had been enjoying monopoly during the socialist period of Indian economy
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In addition to this, one of the major reasons behind surrendering landline connection was 1x6 rule introduced by Income Tax Department. Under this rule, many subscribers who were exempt from tax, had to file income tax return if they owned a telephone.
Not only from the mobile service providers, BSNL was also facing tough competition from new private landline operators. Many of BSNL’s customers who were under OYT (Own Your Telephone) scheme switched to private player to recover there deposit as there was significant difference charged by BSNL compared to the private players. All these situations BSNL could have controlled but it didn’t.

STEPS TOWARDS CUSTOMER ORIENTATION AND FORAY IN CELLULAR SERVICES

In 2000, mobile service has seen phenomenal growth. BSNL had to take step towards survival. It decided to launch its cellular service by April, 2002. But the launched delayed for few months. This resulted in loss of many prospective customer. CellOne (Post-paid) and Excel (Pre-paid) were launched in October, 2002. It was launched in two-phases. Within December, 2002 they launched the service in metro-cities and town in all the states and remaining areas were covered by December, 2003. It was the biggest cellular services till then in terms of networking and thus BSNL roped around 350,000 customers within the first 2 months of launch.

BSNL’S CUSTOMAR ORIENTED APPROACH &REVISED MARKETING STRATEGY

To strengthen its position in telecom
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