STRATEGIC MANAGEMENT OF ORGANISATIONS
A CASE STUDY OF BHARAT SANCHAR NIIGAM LIMITED
INTRODUCTION Bharat Sanchar Nigam Ltd (BSNL), the corporate version of erstwhile DOT, came to existence on 1st October 2000. Ever since the formation of BSNL, the Indian telecommunications scenario has been transforming itself into a multi-player, multi-product market with varied market sizes and segments. Within the basic phone service the value chain has split into Basic services, long distance players, and international long distance players.
BSNL’s POSITIONING IN TELECOM INDUSTRY To understand and suggest – how strategic management can help BSNL – the first thing is to understand the Telecom industry environment and the…show more content… The biggest challenge before BSNL is to acquire new subscribers and retain the existing ones. Price-based selling does not seem to be going very far now, as it has more or less peaked. Therefore, BSNL will now have to look for newer carrots to dangle. The reasons for high subscriber churning are not difficult to identify and are as follows –
- Delayed activation time
- Frequent change in tariff plans
- Information dissipation to subscribers about the new tariff plans and how they can opt for those
- No customization of services
- Customer support, especially in case of problems, is poor.
- Quality of network, which does not seem to improve despite competition.
2. BSNL has one big drag on its resource generation for future investments, namely, responsibility of providing telephone services in the rural areas. Though it has now been compensated for this obligation through