SWOT Analysis of Ncell

Strength

1) Largest market share

Ncell is the largest telecom services provider, having 43% of market share. It
had almost cross 80 lakhs customer around the country.

2) Strong Distributation Network

With the equal distribution of customer all over the country it has
established 14 Ncell center in the major cities of the country that gives full
phase customer services. Besides there are hundreds of Ncell shop all over
the country.

3) Brand Identity
Strong advertisement and promotion of Ncell are one of the strong
strength. Every new scheme it offers increases sale of Ncell. Thus it is strong
brand identity.

Weakness

1) High Advertisement Cost

Ncell is paying high cost for its advertising agency. There is a significant
increases in the advertising budget.

2) Difficulty In Understanding Local Cultural

Ncell is the international company operating with the global strategy so it is
difficult for them to understand local cultural as well as other telecom
company such as NTC, UTL etc.

Opportunities

1) Large Domestic Market

There are huge market development opportunities in urban region of Nepal.
At present it only has a market share of 43%. This can expand to be a
market leader.

2) Untapped Rural Area

With the present of 83.4% of the total population living in the village of
Nepal, the Nepalese rural market is something of high importance for Ncell.
3) Diversification
Though Ncell has entered into the internet services sector it has much more
scope in the other segment as well as it can diversify itself with the industry
or in any other related industry such as cell phones.

Threat

1) High Competition
Ncell is facing high competition mainly from NTC and other company
it has entered into a price war as NTC is giving tough competition to
Ncell SIM card and internet services.

2) Changing Consumer Demand

The trend in demand of the telecom services are changing.
Consumer today is more aware of product and services available.
They demand quality of product at low cost.

3) Political Instability
Nepalese government is still delaying for full phase of constitution
implementation in such condition it is several threat to Ncell because
of change in the government policy, regulation is changing
frequently there is effect in the performance of Ncell.