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Introduction

Broadband in India:

Broadband is regularly growing in the Indian market. There are many


players in the broadband market which are providing broadband to corporate
and direct to home. To increase broadband connectivity Indian government
issues Broadband policy. The broadband policy includes the definition, the
technology and other important aspect of broadband in it. In India there are a
large number of people who are using internet but the number of people who
use broadband is much smaller than it. But now broadband is growing at a rapid
rate in India, the main reasons for the growth of broadband are: -

 Broadband policy and other initiatives by the IT and Telecom Ministry


encourage increased adoption.
 A monthly broadband subscription costs as little as 199 rupees (US
$4.50).
 A second factor is the IT Telecom Ministry initiative to make computers
available for purchase under 10,000 rupees (US $226).
 Today broadband usage in India is growing at 20% per month.

Wireless in India:

As broadband wireless access grows, the WLAN network gear sector


will exceed $275 Million by 2011-12 (not including embedded chips), up from
the current $23.1 Million in India. The combined Wi-Fi market (described as
consisting of WLAN networking gear, systems integration, professional
services and not including embedded devices and laptops) is expected to exceed
$744 million by 2012.

Future of Wireless Technology: -

 As the industrial requirements are increasing day by day there goals are
also aiming the sky, so to fulfil their goals and objectives they require
reliable communication between their departments. So future of wireless
technology is bright because this is the new and the reliable technology.
 In future the wireless devices will require less power, so it will finally
reduce the implementation and maintenance cost.

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 In future the reliability and the performance of the wireless devices will
increase due to regular improvement in the technology.
 As it becomes more popular and advance it will come with more data rate
support and low maintenance and implementation cost.

Challenges:

The challenges that confront in the wireless technology are:

 Technology
1. Interference
2. Security
3. Power
 Collaboration
1. R&D Funding
2. Integration of Components
 Culture
1. Workforce/Corporate attitude
2. Societal attitude
 Regulations
1. Interoperability
2. Spectrum Policy
 Cost
1. Value proposition

In today‟s industrial environment the main requirement is that all the


departments in an organisation should perform efficiently and effectively. For
this purpose there should be a regular communication between all the
departments to share important information among them. For this purpose all
the organisations are willing to build a system or network which can support the
desired requirement.

Broadband Internet in SMEs’:

Broadband in SMEs is a huge requirement in India. Many SMEs in


India are still using the traditional method of wired technology. The
technological advancement like wireless broadband would be a revolution to
them. SMEs like small factories and plants prefer the broadband connection that
gives them Hi-speed internet with a secure and reliable network. By the same
time they have to pay a lot for it. Hence wireless technology is a better choice in
these sectors. With the help of wireless technology, SMEs can get Hi-speed

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internet with a more prolonged and reliable connection and they can use the
technology efficiently to maintain stability in the growth of their organization.

Objective of the study:

 To know the internet connectivity and its status in the small and
medium enterprises basically in schools, colleges, small plants and
factories, hotels etc. Also it is very important to know about the service
quality provided by their current ISP.

 To analyse the data collected from the customers and relate them with
the parameters of Sify and make a suitable decision according to their
requirement.

 To promote for Sify Wireless broadband connection in the SMEs and


generate leads for the company.

 To make a detailed analysis of the research with the PLC, Ansoff‟s


matrix, BCG and SWOT analysis.

 Finally, to get the corporate experience by meeting the corporate heads


and to take and implement their advice and suggestions for personal
benefit in future.

Methodology:
Research Procedure:
 First the company gave me a brief overview of itself and explained
about the SME project with a presentation which I would do during my
summers.

 After explaining, they gave me the regions where I could do the


research.

 To begin with the project, first I did the secondary research from the
internet to know about the SMEs present in those areas.

 Then I divided the whole area of survey into small subzones so that I
can cover each one of them. I also prepared a weekly schedule so that a

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certain zone could be covered by the allotted time mentioned in the
schedule.

 Then I made a certain sample size where I should target as sample size
is an important parameter based on which the final decision is taken
whether the data taken are related with each other or not.

 Then I directly met with the customers and did a research on the internet
connectivity and its status. This research helped me to know about the
quality of service provided by their respective ISPs.

 Then I did a research on the number of organizations interested for the


wireless connection and based upon that I made a hypothesis whether it
would be feasible for my company to set up their product in that
particular segment or not.

Method of data collection:

There are many methods of data collection in a survey. These are basically
divided in two main types of methods. These are: -
1. Primary data collection.
2. Secondary data Collection.

Primary data collection

It is the method of data collection in which the marketers collect the data
very first time or we can say that the collected data is fresh or first-hand data.
We can collect primary data by: -
 Directly by the customer.
 By observation method.
 By telephonic Interview method.
 By e-mailing the queries & etc.

Secondary data collection

It is a method of data collection in which the collected data is not fresh


data, i.e. data is collected from the report of any research, from internet or from

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any government offices etc. These types of data collection methods are basically
used when the sample size is very large.

In this particular survey I have used the primary data collection method to
collect the data. In this particular method I directly went to meet to the
customers and collected data.

Instruments Used:

Basically for this project, I took the help of following instruments:

 Survey questionnaire
 The Sify information brochure
 Direct approach to customers instead of using any secondary mediums
like telephones or internet.

Survey questionnaire is a very important instrument for any researcher to


collect the requisite information. The questionnaire helps him to get a brief
knowledge about a particular subject. With the help of questionnaire, he can
make further analysis and able to make a decision and categorize each factor
present in the questionnaire in a proper manner. I used the Sify wireless
broadband survey questionnaire where each questions carry equal weightage
that helped me to take my decision in the end.

Apart from the questionnaire, another important tool I used was Sify
Information Brochure. It involves all the benefits of Sify and its wireless
connection that was sufficient for a customer to get a brief idea.

I used the simple form of data collection by direct approach to the


customers. Direct approach to the customers, meeting with them and get the
relevant data are always fruitful than using any secondary medium like internet
and telephone. This also shows the marketing skills of a researcher. Direct
approach to the customers also creates interest among them about the particular
subject.

Tools and techniques of analysis:

The technique I used to analyse the data is the Chi-square test. In Chi-
square test, I assumed a hypothesis based upon which I was able to make a

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suitable decision whether the data taken are related or not. The purpose of using
the Chi-square was the sample size of 70 which is greater than 30.

Based on market share and market growth of wireless broadband in


relation to the company, I have used BCG matrix, PLC, Ansoff‟s analysis and
SWOT to get an overview of its current position in India.

Apart from that I have also used the software tool like Microsoft Excel
which was very useful for arranging the data in tabular form. It made my work
so simple that I hardly used any other instruments which I was using during
primary data collection.

Literature review
The Background

Sify Technologies Limited is a major ISP


company based in Chennai, India. It is a large internet network provider in
India, with a wide array of internet based services. In January, Sify
Technologies unveiled a new corporate identity.

The new logo is a reflection of Sify's outlook and nature of business: a


fresh, vibrant and eco-friendly green signalling a new, paper-free world,
counterpoised by a business-like, dependable grey. The fonts are distinctive and
futuristic. In graphic terms, the dot over the 'i' in the name has moved forward,
and stands for the Company's promise to keep its customers and stakeholders
ahead.
For the promise of "Keeping you ahead" reiterates Sify's focus on
technology, innovation and new services aimed at keeping customers in the lead
by giving them a competitive edge using Sify's services.

This is probably one of the first Indian companies to take a stance on


eco-friendliness. Oddly, Xerox which unveiled their new logo today also chose
a lower case text for the name.

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Sify began its commercial operations in April‟98. It was registered as
Sify Limited and now it is Sify Technologies Limited. Now Sify has a license of
Category A of service provider. That is Sify is operating in whole India.

Purpose & vision of Sify

Purpose

Sify‟s purpose is to make a qualitative difference to the lives of millions of


people and organisations by harnessing the power of India and of the Internet.
Sify will do this by empowering them with the potential of the Internet and by
leveraging the capabilities of Indian Knowledge Resources.

Vision

Sify‟s vision is to be the dominant and profitable India centric Internet


Company by:

 Building on India's unique advantages.

 Being the leader in terms of market share, quality, revenue, growth and
gross margins.

 Adding value to our stakeholders: namely investors, customers, peers and


associates.

 Being enablers and catalysts of the Internet for positive change.

The Company and its product line:

About Sify Broadband

Sify is India‟s pioneer & leader in Internet, Networking and e-Commerce


services, and the first Indian Internet company to be listed on the Nasdaq
National Market in the US. It provides integrated end-to-end solutions for both
corporates & consumers, with a range of products and services delivered over a
common Internet backbone infrastructure.

Everything that Sify has done or achieved since its beginning, commercial
operations in April 1998 stems from its Purpose and Vision. A key aspect is

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Sify being an enabler and catalyst of the Internet for positive change in India- a
responsibility that we continue to carry.

Sify began by developing India's first TCP/IP network and offering multiple
services on a common backbone infrastructure for an integrated Internet,
networking and e-Commerce business model. This was the first such business
model in the world, and appropriate for catalyzing the growth of the Internet
and networking in an infrastructure starved market. It also enabled a virtuous
cycle, where each business supported the other, while catalyzing the market to
growth.

Fortune magazine, in their December 2000 issue, selected Sify (then


Satyam Infoway) as one of the world's ten hot technology companies to watch
out for based on this innovative business model. From the start of commercial
operations in April 1998, Sify has become the market leader in most lines of
business, winning global recognition for its expertise, performance, customer
focus and standards along the way. In doing this, Sify pioneered services and set
standards for the Industry in diverse areas.

Sify is a leader in every line of business and has won national and
international recognition for both market leadership and the quality of its
services. We are unmatched in Internet and network services expertise and
technology, with the best tools, software and processes in the business.

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Sify’s Internet Backbone in India

This is the backbone network of Sify through which Sify is operating in India.
The whole backbone network of Sify is based on ring topology.

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Product Line of Sify

Sify is basically a service provider. So the main products of Sify are the services
which it provides to its customers. Sify is mainly providing three types of
services. These services are: -

 Corporate Services
 Consumer Services
 International Services

Features of the products


Corporate Services & its features

Sify is the only integrated end-to-end eSolutions provider in India. We design


and develop a host of customised eCommerce and Network Connectivity
Solutions that connect your critical business systems and offer a seamless data
network directly with customers, suppliers, vendors and staff.

By ensuring uninterrupted and timely flows of information, Sify solutions help


in quicker decision making and sharpen your competitive edge by compressing
time to market as well as increase financial efficiencies that result from better
supply chain management and lower inventories.

Sify’s corporate services are:

Sify Enterprise Solutions Sify Enterprise Solutions is the corporate services


arm of Sify Limited, and is India's leading provider
of end-to-end corporate network.
Sify eLearning Sify eLearning provides unique end-to-end solutions
and dedicated services for corporates and eLearning
organizations.
Sify Hosting Sify comes with a product range that covers the four
Cs of cyberspace: connectivity, content, commerce
and community.
Sify Network Services Sify Enterprise Solutions is the first and only service
provider in India to be ISO 9001:2000 certified in
network operations.

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Sify Application Services An array of customizable Intranet and extranet web
applications, ranging from websites to workflow
automation and eBusiness applications.
Sify Security Services SifyGuardian provides a comprehensive suite of
Enterprise Assurance, Implementation &
Procurement and Managed Security Services.
SafeScrypt - Data Data Security solutions including encryption
Security Service technologies, strong authentication, data protection
and privacy, Digital Rights management and PKI are
offered by SafeScrypt, a SIFY subsidiary
Sify Infrastructure Sify‟s world class service operation centers deliver
Management Services 24/7/365 availability and scalability to your business
without your having to make high levels of
investment.
Forum ForumTM from SIFY is a revolutionary solution
addressing the need to establish seamless
connectivity with supply chain partners.
Search Engine Sify provides a complete range of search engine
Optimization marketing solutions in India and worldwide,
specialized in search engine optimization, ethical on-
page and off-page SEO strategies, niche keyword
phrase research, manual search engine submission,
natural link development, website ranking in major
search engines like Google, Yahoo! and MSN etc.

Sify’s Consumer Services & its features:

Sify Broadband Sify is India's largest provider of Broadband Services


to explore the true potential of the Internet.
Sify iway An extensive network of cyber cafes spread across
the metropolitan cities of India.
Sify Way2Talk Way2Talk is Sify's Internet Telephony service to
make calls across the world using a PC 2 Phone
Dialer.

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Sify Sify.com is a popular consumer portal with
comprehensive information, facilities and services
and information.
Sify imeet Video conferencing facility at the Sify iway. Why
just talk when you can now meet face to face.
Sify WiZone Sify wizone offers blazing internet speeds at upto 11
mbps local connectivity and upto 384 kbps to the
internet.
Sify gamedrome Sify has built on its growing online games business
by not only providing contents at its iWay chain & its
200 exclusive gamedromes.

International Services & its features


Sify has specialist capabilities in remote infrastructure management. This
is no ordinary claim. Over 1200 clients, including Whirlpool, GE, Gillette,
depend on us to run their business critical applications.

Today, clients use Sify's services to better align their IT operations &
processes to meet business objectives. By outsourcing day-to-day infrastructure
management to Sify, clients are able to unlock their in-house resource potential
for strategic work. They save up to 50% of current operational costs while
retaining complete control.

Sify leverages its deep expertise and proven transition & delivery
methodologies to provide proficient support. Our robust global service
infrastructure helps in supporting clients from offshore command centers, on a
24X7X365basis.

Outsource with confidence. Outsource to Sify.

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Data center management

Ensure operational efficiency and process


compliance, through constant monitoring and
management of your servers, databases, storage and
applications.

Network management

Achieve network optimization through monitoring


and management of your networks and network
devices, including performance.

Security management
Help protect your information and systems, by
ensuring availability, integrity, authentication,
confidentiality, and non-repudiation.

Marketing Strategies
Sify is an internet service provider and there are many players in the
market which are also providing Internet services so it is very important to
make marketing policies and strategies which are in favour of the organisation.
For this purpose Sify has its own marketing department with a dedicated team
which makes all the strategies. Since Sify is providing services to both
corporate and home users, so there are different strategies to reach these
customers.

In corporate Sify is mainly targeting to: -

 Different SMEs in the NCR and Delhi.


 Institutes, Colleges and Schools.

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To reach these customers, the marketing executives of Sify regularly visit
them and provide them information about its services at a reasonable cost.

For Consumer Services the main target of Sify is the Cable TV Operators
(CTOs). In today‟s environment almost every home has a cable TV connection
and CTOs are the people who have their own image and reputation in their own
area. So with the help of these CTOs Sify is reaching to its home users.

After creating its own image in the market Sify is also providing direct
connectivity to the home users by the mean of wireless connectivity.

Along with its own capabilities Sify has also have some partners in the field
of technologies so that Sify can acquire more growth in its market share.

Partners are: -

With the help of partners Sify is regularly improving in technology and its
growth in terms of customers and market growth.

Competitors:
These are the competitors of Sify: -

 BSNL
 MTNL
 VSNL
 Bharti Airtel
 Others (Spectranet, Reliance, Tata Indicom etc.)

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Comparison of Sify with its competitors in terms of market share

Serial Company Market Revenue Revenue


No. Name Share Growth%
1 BSNL 43% NA NA
2 MTNL 19% -1.70% 1.03B
3 Sify 11.83% 22.40% 151.73M
4 VSNL 6% NA NA
5 Bharti 5.73% NA 2.60B
6 Others 14.46% 14.50% 7.67M

Major Problems
During my training period at Sify I had recognize some problems with Sify.
Some of
these problems are: -

 Sify is operating its consumer services with the help of CTOs, These
CTOs have their own image in their respective area. Some of CTOs are
not behaving good with the customers so ultimately CTOs are creating
bad image of Sify.
 Connectivity related problems due to cables are occurring very frequently,
it gives chance to a customer to create an image which is not in favour of
Sify.
 Less man power is also a major problem to resolve different issues
regarding customers and CTOs.
 Some customers are also not educated about the internet, antivirus and
other technical aspects, so if problem occur because of them, they finally
blame to the connectivity.

Achievements
During the time of its starting Sify has awarded by many awards. These are: -

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Share market Position
Sify is the only ISP which is listed in NASDAQ. Sify is listed in NASDAQ
since from 2003. The table of major share holders of Sify is: -

ShareHolder Percentage of shares


All insiders and owners 43%
Institutional and Mutual Fund Owners 21%
%age of floating held by Institutions & 36%
Mutual Funds

TOP Institutional Holders

Holder Shares % Out Value* Reported


31-Mar-
Credit Agricole S.A. 29,39,377 6.86 $13,109,621 08
MATTHEWS
INTERNATIONAL
CAPITAL MANAGEMENT 31-Mar-
LLC 16,69,624 3.9 $7,446,523 08
31-Mar-
Shah Capital Management 6,80,133 1.59 $3,033,393 08
FINANCIAL &
INVESTMENT
MANAGEMENT GROUP 31-Mar-
LTD 6,16,425 1.44 $2,749,255 08
Chilton Investment 31-Mar-
Company, LLC 5,16,148 1.21 $2,302,020 08
DELAWARE
MANAGEMENT 31-Mar-
BUSINESS TRUST 2,86,000 0.67 $1,275,560 08
31-Mar-
WEXFORD CAPITAL LLC 1,11,852 0.26 $498,859 08
31-Mar-
Credit Suisse 1,07,910 0.25 $481,278 08
MERRILL LYNCH & CO., 31-Mar-
INC. 94,556 0.22 $421,719 08
BEAR STEARNS & 31-Mar-
COMPANY 50,075 0.12 $223,334 08

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Top Mutual Fund Holders

Holder Shares % Out Value* Reported


Matthews Asian Fds-Matthews 31-Mar-
India Fd 16,69,624 3.9 $7,446,523 08
DELAWARE GROUP
GLOBAL &
INTERNATIONAL FDS-EMG 29-Feb-
MKTS SER 1,80,700 0.42 $849,290 08
31-May-
Utopia Core Fund 1,52,000 0.35 $743,280 08
31-May-
Utopia Growth Fund 1,07,500 0.25 $525,675 08
DELAWARE VIP EMERGING 31-Dec-
MARKETS SERIES 1,02,500 0.24 $541,200 07
31-May-
Utopia Core Conservative Fund 44,500 0.1 $217,605 08
31-May-
Utopia Yield Income Fund 24,000 0.06 $117,360 08
FIDELITY NASDAQ 30-Apr-
COMPOSITE INDEX FUND 1,939 0 $9,888 08
APEX MID-CAP GROWTH 31-Jan-
FUND 1,500 0 $7,170 08
FIDELITY NASDAQ
COMPOSITE INDEX 30-Apr-
TRACKING STOCK 1,072 0 $5,467 08

National & International Image


Sify is an Internet Service Provider in India. It provides mainly two
types of services in India. These are corporate services and consumer services.
Sify provides IPTV, VOIP, VPN, Network Securities, and other services to the
corporate consumers. Sify has a large market in the SMEs and institutions and
provide them their corporate services.

In consumer services Sify is providing wireless connectivity with value


added services like e-billing, e-education, e-ticket booking etc. Sify has a
market stake of 11.83% in the field of broadband connectivity and competing
with the big telecom giant like BSNL, MTNL, AIRTEL etc.

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Sify has a very good national and international image in the mind of
corporate world and the direct consumers. Here are some comments on Sify by
the corporate world: -

"Sify was chosen because they are the one of the leaders in
implementing Last Mile wireless solutions with a fail-safe
infrastructure and an extensive presence in the country".

Mr.Jitendra Sarode
IT Infrastructure Head
Pantaloon

"We Chose Sify to conduct our Security Consulting Audit as they are
our Internet Bandwidth service provider, and we realized they could
provide world class network security services to us. Our experience
with Sify for the security audit has been very good. I believe we made
the right decision and it has been a pleasure working with their
competent and service focused team".

Mr.A.K.Sircar
Controller - Information Technology
Organon (India) Limited

“Partnering with Sify has given us a robust infrastructure whereby


our vehicle tracking system has been appreciated by a plethora of
our customers. High uptimes and prompt customer service has made
Sify an integral part of our product offering”.

Angshuman Roychoudhury
Customer Support Manager
Taco Mobiapps
“ERP and connectivity cannot be looked at in isolation. ERP's
success largely depended on a scalable, secure and reliable
connectivity, which was provided by Sify”.

Mr. Pradyumna Poddar


General Manager
Usha International Ltd.

Sify has a very good international image also. It is the first Indian
broadband service provider company which is listed in NASDAQ. Sify

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completed its successful 5 years in the list of NASDAQ. Sify has good image in
international market this is because it has a foreign promoter Infinity Capital
Ventures which has approximately 32% shares of Sify Technologies Limited.

Sify has many International Clients also, and provide them various
services in the field of internet.

Future Prospects
 Sify‟s main target is to provide wireless connectivity to its customers in
all over India.
 Sify is now also targeting corporate to provide them the services of VPN.
 Sify‟s future target is to provide a more reliable and secure network to its
customers.
 Sify is going to concentrate on VOIP and IPTV technology.

Conclusion
Sify is a regularly growing organisation in the field of internet solutions.
Sify is the organisation which changes itself according to the market
requirement. Sify is lead by a great management team headed by the CEO and
MD Mr. Raju Vegesna.

Sify‟s iWay cyber cafe chain has expanded to 153 cities with the addition
of 58 new cities in the last one year. The company has added 836 new iWays
during the year, at an average of more than two cafes a day leading to more than
3000 outlets across the country. For those unfamiliar with India‟s consumer
situation, Cyber Cafes are a key piece of the internet penetration equation in
India, and will continue to remain so for the next decade, since PC/broadband
costs are still not at a point where India‟s vast population can afford them
easily.

Sify could be a multi-billion dollar enterprise, and a great vehicle for


India‟s development.

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About the Project:

The project is based on many parameters like:

 To know about the broadband connectivity in the SMEs.


 Meeting with the IT heads/Admin heads.
 To promote for the Sify wireless connection.

About the “Sify Wireless Connection”:

SIFY - Advantage
Opportunity:

• Association with SIFY.


• Most superior technology
• Real Time Broadband
• High Speed ( from 256kbps to 1 Mbps… )
• 24x7 Help Desk Technical Support.
• Effective need based products to suit different profile of SME customers.
• Easy Scalability.
• 1st.Voice as additional Value Add.

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Product Deliverables:

 Always ON Internet.
 Shared Broadband with QoS.
 Mail Applications.
 VoiP for International Calls.
 CuG for Inter Office.
 Video conference.
 Server Hosting.
 Security.

Sify Advantage:

 Dedicated wireless last mile via R.F. – For best possible throughput with
virtually no possibility of physical damage, cable cut and with highest
service levels.
 Broadband router: To facilitate single/admin login for all users, giving a
feel of enterprise class service.
 Static IP- To facilitate triple play- Voice, Video Data & better/instant
connectivity.
 24x7 Help Desk Support.
 Partnership with India‟s best in Class IP services Provider.

Sify Solution-Advantage:

Strengths:

• Wireless based Product solution.


• 100% Uptime as compared to Wireless Network.
• Cellular Broadband Technology Advantage.
• Presence in over 200 cities. (Ideal for SME presence).
• Established Corporate and Retail leadership experience.
• Complete Scalable Solution.
• Provision of VAS.

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Broadband Map:

Analysis with SWOT, BCG matrix in relation to the


company:
Analysis with SWOT:

Strengths

 Last mile wireless solutions with a fail-safe infrastructure


 Extensive presence in India
 World class network securities
 Scalable, Secure and reliable connectivity
 International MPLS services for VPNs
 Value added services to the customers
1. Free anti-virus to all customers
2. Technical support in case of some issues

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3. E-travelling (Trains, Airline bookings)
4. E-billing (Electricity, telephone bills)
5. Customer education on internet
6. Easy recharge of account
 Dedicated Management team headed by Mr. Raju Vegesna (CEO, MD)
 24x7 customer care services
 Very good Investors - company relations
 International internet gateways for global connectivity
 An array of customizable Intranet and extranet web applications, ranging
from websites to workflow automation and e-Business applications. Easy
to deploy, cost-effective solutions that can quickly web enable your
enterprise.

Weakness

 In many areas networks are on leased fibres.


 No direct customer reach.
 More of the network is based on wired technology so more connectivity
related issues occur due to cable.

Opportunities

 Very low broadband penetration India, so Sify has an opportunity to grow


with the customers.
 World class wireless solutions are provided by Sify, so there is a great
business opportunity for Sify in wireless technology.
 Business opportunities in the field of VOIP and IPTV.
 Opportunity in rural broadband.

Threats

 Competition with telecom giants like Reliance, Airtel, VSNL which are
providing data cards for internet access due to which customers have
mobility in terms of connectivity.

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Analysis with BCG Matrix:
The BCG matrix method used to determine what priorities should be given
in the product portfolio of a business unit. To ensure long-term value creation, a
company should have a portfolio of products that contains both high-growth
products in need of cash inputs and low-growth products that generate a lot of
cash. It has 2 dimensions: market share and market growth. The basic idea
behind it is that the bigger the market share a product has or the faster the
product's market grows, the better it is for the company.

The BCG has identified four following categories of SBU‟s and suggested the
appropriate strategy for each one

1) Star

2) Cash Cow
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3) Problem Child / Question mark

4) Dog

1) Star
Characteristics

 Market Leaders
 Fast growing
 Substantial Profits
 Require large finance growth

Strategies

 Protect existing share


 Reinvest earnings in form of price reductions, providing better market
coverage, product improvements, increase production efficiency, etc.
 Obtain large share of the new user.

2) Cash Cows
Characteristics

 Profitable Product
 Generate more cash than needed to maintain market share.

Strategies

 Maintain market dominance.


 Invest in process improvements and technological leadership.
 Maintain price leadership.
 Use excess cash to support research and growth elsewhere in the
company.

3) Problem Child / Question mark

Characteristics

 Rapid growth
 Poor profit Margins

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 Enormous demand for cash strategies.

Strategies

 Invest heavily to get a disproportionate share of new sales.


 Buy existing market shares by acquiring competitors.
 Divestments ( see Dogs )
 Harvesting ( see Dogs )
 Abandonment ( see Dogs )
 Focus on a definable niche where dominance can be achieved.

4) Dogs

Characteristics

 Greatest number of product falls in this category.


 Operate at a cost disadvantage.
 Few opportunities for at a reasonable cost.
 Markets are not growing: therefore, little new business.

Strategies

 Focus on a specialised segment of market that can be dominated and


protected from competitive inroads.
 Harvesting – Cut back all support cost to minimum level: support each
over the product remaining life
 Divestment- Sale of a growing concern.
 Abandonment- Deletion from the product line.

If we see Broadband‟s market growth and Sify‟s market share over the years,
we find that Broadband internet market is a rapid growing market segment. The
Broadband has continued with its growth trajectory till the previous year and
this year as well, to record a growth of around 7.4%. This shows that Market
Growth is quite high.

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Broadband in India
8.00%

7.00%

6.00%

5.00%

4.00%
Percentage
3.00%

2.00%

1.00%

0.00%
2001 2002 2003 2004 2005 2006 2007

The market share of Sify as compared to other telecom giants like


BSNL and MTNL is not very low. It gives a strong competition to them and
continues to improve its market share in the field of broadband internet over the
years.

5.73% 14.46%
1 BSNL
43%
6% 2 MTNL

11.83% 3 Sify
4 VSNL

19% 5 Bharti
6 Others

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From the above analysis, it may be concluded that “Sify and its
products” can be placed in „Question Mark‟ segment on the BCG matrix.
It can be shown by the following diagram:

Selecting a Product-Market Growth Strategy

The market penetration strategy is the least risky since it leverages


many of the firm's existing resources and capabilities. In a growing market,
simply maintaining market share will result in growth, and there may exist
opportunities to increase market share if competitors reach capacity limits.
However, market penetration has limits, and once the market approaches
saturation another strategy must be pursued if the firm is to continue to grow.

Market development options include the pursuit of additional market


segments or geographical regions. The development of new markets for the
product may be a good strategy if the firm's core competencies are related more
to the specific product than to its experience with a specific market segment.
Because the firm is expanding into a new market, a market development
strategy typically has more risk than a market penetration strategy.

A product development strategy may be appropriate if the firm's


strengths are related to its specific customers rather than to the specific product
itself. In this situation, it can leverage its strengths by developing a new product
targeted to its existing customers. Similar to the case of new market

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development, new product development carries more risk than simply
attempting to increase market share.

Diversification is the most risky of the four growth strategies since it


requires both product and market development and may be outside the core
competencies of the firm. In fact, this quadrant of the matrix has been referred
to by some as the "suicide cell". However, diversification may be a reasonable
choice if the high risk is compensated by the chance of a high rate of return.
Other advantages of diversification include the potential to gain a foothold in an
attractive industry and the reduction of overall business portfolio risk.

In case of Sify, when it first launched its products and services by entering
into the world of broadband internet, there came a revolution as by that time no
one was providing such services. This became Sify‟s Market Penetration
strategy.

After establishing its corporate office at Chennai, its main aim was to
target the thickly populated Areas mainly metro cities like Bangalore, Kolkata,
Delhi, Hyderabad, Mumbai and applied the same successful formula that had
worked wonders for Sify. This became Sify‟s Market Development strategy.

Once the company established itself as a presence in many cities


nationally, Sify sought to increase the number of purchases by existing
customers with a Product Development strategy with new facilities like

Sify : Business 2 Business


 Electronic Data Interface
 Virtual Private Networks
 Security Services
 Network Management Services

 E-Solutions
 Internet Consulting
 Solutions Architectures
 Design and Development of Solutions
 Hosting and Management Services
 E-Commerce products

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Sify : Business 2 Customers

Sify is India's largest provider of Broadband Services to


explore the true potential of the Internet.

Learnatsatyam.com uses the Internet to educate a global


classroom of learners.

India's most preferred private Internet Service Provider with


tens of thousands of subscribers accessing Net.

Sify.com is a popular consumer portal with comprehensive


information, facilities and services and information.

An extensive network of cyber cafes spread across the


metropolitan cities of India.

Way2Talk is Sify's Internet Telephony service to make calls


across the world using a PC 2 Phone Dialer.

On this year May 2008, Sify Technologies has announced the launch
of its Roam Connect International service in India . The Roam Connect
International service, powered by leading enterprise mobility provider iPass
(NASDAQ: IPAS), will enable Sify customers to access a global high-speed,
reliable and secure wireless Broadband service when on the move. With Roam
Connect International, customers will now be able to access their data from
more than 100,000 broadband locations globally, including key business-centric
venues such as airports, hotels, conference centers and retail venues.

Till date, Sify has been developing as a leading firm in the field of
Internet over the years. As of now its services are limited to internet only. It has
not entered into any other sector. Hence the company‟s Diversification strategy
has not yet come.

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Analysis with PLC:
Product life cycle concept provides basic structure that allows a company
to see where the company is, and what lies ahead. Help a manager to conclude
where the company phase, understand the marketing implication of each phase
and responsible to re-build the most effective strategy in order to survive in
competition thus generate revenue.

All products have a life-cycle. It starts with preparations for the product's launch

Stages in the cycle are: -

1. Introduction
2. Growth
3. Maturity
4. Decline

Product Life Cycle (PLC)

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Stage 1: Market Introduction
 Sales are low as the new idea is first introduced to the market.
 Customers may not be aware of the product‟s benefits and features and
may not be aware of the product itself.
 Most companies experience losses during the market introduction stage.
 A lot of money is spent on promotion and product development to
build product awareness.
 Promotion is aimed at innovators and early adopters.
 Pricing
 Low penetration pricing
 High skim pricing

Stage 2: Market Growth


 Rapid growth in sales and profits
 More product awareness
 Competitors see the opportunity and enter the market.
 Some competitors will copy the product or may try to make it better or
more appealing to other target markets.
 The new entries result in more product variety.

 Promotion is aimed at a broader audience.


 More distribution channels are established.

Stage 3: Market Maturity

 Most common stage in the cycle.


 Sales begin to level off.
 The competition gets tougher as more competitors have entered the
market.
 Increased competition creates a downward movement in prices.
 Industry profits are largest, but it is also when industry profits begin to
decline.
 Promotion is targeted to create brand differentiation.

Stage 4: Sales Decline

 Sales continue to decline.


 Shrinking market

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 New products replace the old.
 Firms will often try to use extension strategies.
 Companies may be able to keep some sales by appealing to their most
loyal customers.
 When in the decline stage, a firm may:
 Maintain: enhance the product by finding new uses or by adding new
features.
 Harvest: reduce costs and continue to offer the product to a targeted
niche.
 Discontinue: sell the product to another firm, or liquidate inventory.

Sify Technologies lies in Growth stage in PLC because of following points:-

PLC OF SIFY

 Sify has managed to garner revenue of Rs 420 crore in the last four
quarters from dial-up, leased lines and other Internet services during FY
'06-07, thereby asserting a growth of 13% over last year's revenue of Rs
371 crore. This is despite showing a dip of 8% in the overall subscriber
base.

 Sify's dial-up subscriber base dropped 40% from 1, 36,331 to 81,670 by


the end of the fiscal. The public access through iWay chain of cyber
outlets has dropped by 9.2%, falling from 572,724 at the beginning of the
year to 519,466 by end of the fiscal.

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 Sify is now owned by Mr.Raju Vegesna, the enterpreneur who has made
several billion dollars with his other company Server works. Under the
leadership of Mr. Raju, his company has earned a maiden profit after 10
years of its existence. It also earned a Net profit for the year was $ 2.3
million compared to a net loss of $3.50 million for the previous fiscal.

With the above analysis, it can be said that Sify Technologies Ltd. is in
growth stage.

Summary of market research:

 This research was done to find out the response of SMEs about their
willingness to the Sify wireless connection.

 The research includes questionnaire filling by the customers.


 The sample size I have taken is 70.
 The main areas for my research are Noida, Greater Noida, and
Ghaziabad.
 Some SMEs are satisfied with their service provider and some want to
switch over to another who can provide them mainly with broadband
speed with minimal charges.
 During research I also found that most of the SMEs mainly in the
companies, IT-heads were very busy with their working schedule. So I
find it quite a difficult task to conduct a cold calling meeting.
 Among those to whom I was able to meet, about 70% of them were
interested for taking wireless connection or want to switch over to
another service provider who would give them better service with
minimum rates as compared to their current connection.

In most SMEs, mainly in the colleges, the number of users are more than
any other sectors. Hence they want the wireless connection that gives a speed of
minimum 2 MBPS.

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Surveys, Feedback and Data Analysis:

Surveys:

The basic task I was given by the company was to conduct a market
survey. The main purpose of the survey was to get a clear understanding of the
market and set up a plan based upon the data collected.
To start with the survey, I had to design a questionnaire that contains
the basic questions. The questions were simple, short and clearly
understandable. I directly approached to them, told them about Sify benefits and
advantages of Sify wireless broadband connection. And also I came to know
about their current service provider and their service. Then I got my
questionnaires filled and gathered my relevant information. The questionnaire
format which I had used for my survey was given in the Annexure.

Feedback:

Suggestions & Recommendation:


 Company should maintain very strong corporate relations especially with
SMEs to make new clients and to maintain relations with existing clients.
 All the technical support teams should report their respective head on
the daily basis to report him about the complaints and their resolutions.
 During my training, the company wouldn‟t provide me the complete Sify
wireless Plans list. I was told to only speak about Sify benefits to the
SMEs. So the customers get only a part of information from me; not the
whole. So I would recommend Sify to provide the summer trainees with
the complete set of information about their products and services so that
customers can get full information at the same time.
 Sify‟s wireless broadband speed is limited to 1MBPS only. But the SMEs
like colleges want a minimum speed of 2-4MBPS. So I would
recommend Sify to upgrade its Wireless plans to compete with other
telecom giants.
 Till now, Sify is providing its service through CTOs. Hence they have to
involve in a partnership with them. So it becomes dependent on them. I
would suggest Sify to provide its own service rather than through CTOs.
 The one and only main problem is that when there is a power cut, then all
of a sudden the broadband connection is down. This is something which
happens on a regular basis in India, and for those who provide the

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internet, need to have a backup for their users, so that the service is
sufficient and the best.

Conclusion:
“Wireless in SMEs” is a project which definitely shows the accessibility and
requirement of wireless internet in the remote areas. The main problem the
SMEs are facing is the complex and expensive wired technology which they are
bound to use over the years until the wireless technology comes. With the
wireless technology, they can be relieved from the problems like failure of
connectivity, cable cut, security problems etc.

By this type of connectivity, Sify can be in directly contact with the


customers and can handle them according to their policy of customer handling.

I have also analysed the Sify‟s current market position in relation to its
wireless broadband technology with PLC, SWOT and BCG matrix analysis.

The project also helps me to learn and experience the corporate life style.
During the project, I met different corporate people who gave me valuable tips
and advice which I should follow during my training and in the future also. So
this has been a good learning experience for me.

Finally I can conclude that Sify has come a long way in the business of
internet and is growing still further. It has brought a revolution by bringing the
wireless technology to the SMEs with a cheaper rate so that they can easily
afford it and enjoy more reliable and secure network than they have ever used.

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Bibliography
Internet
 http://en.wikipedia.org/wiki/Broadband_Internet_access
 www.Fcc.gov
 http://en.wikipedia.org/wiki/Wireless_internet_service_provider
 www.dot.gov.in
 www.broadbandindia.com
 www.google.com
 www.sifycorp.com
 www.sify.com
 www.sifybroadband.com

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