Case study : Sigma Telecom Company Submitted To: Prof. R.

Vyas

Date : 4th October,2011

 Siddhesh

Chavan Pradnya Salve

12 41

Company is a public limited company manufacturing and

installing telecom equipment in organizations.

It is largest producer of EPABX(Electronic Private Automatic

Branch Exchange) systems in India.

Sigma telecom is the market leader with highest market share in the EPABX systems in India.

Sigma telecom is a manufacturing & installing telecom

equipment called EPABX system in joint technical collaboration with a Japanese company called MIKI.

Also with collaboration with Alfa communications, providing technologies like communication system, key telephone systems, multimedia messaging and response systems.

Again in collaboration with a Japanese company, sigma telecom provides point-to-point digital radios for transmission.

Sigma telecom is a player in middle and high end market

segment.

The high end market segment has very high demanding

customers.

The suppliers in the low end market segment are planning to enter this market.

Increase in competition in middle and high end market.

Recession due to slow down of economy since 1996-97.

Sigma telecom faced the problem of recession because of

which their net profit tend to decline.

Sigma telecom restricted themselves to one industry but their competitor targeted different industry with their strength to sustain in the market.

The lack of infrastructure had also caused a problem to sigma telecom.

Also consumer buying behaviour started changing people

started purchasing those product which have advance feature, who provide after sales service and where not concern about the price.

The apparent problems are the real problems

because at the start of the case it is mentioned that the managing director is worried about the increasing competition from established foreign companies and new entrants in to the market and the recession is also the major factor.

The company should maintain its original impression

of being into a middle end and high end market segment. The company should also try acquire new customers through various contacts. The after sales service should be good enough to compete with other competitors in that market segment. Sigma telecom should try to come superior

technology with value added features to customers.

Sigma telecom should enter other markets like paging industry, networking and call centres.

The company should provide effective after sales service. There should be availability of enormous products of value addition for the customer so that they don't shift to another

manufacturer.

The company should have more manufacturing plants so that they can supply their products to the local problem at lower

cost by reducing the logistic cost.

The company should work on developing effective marketing plan to maintain and strengthen their market leadership position in the growing competition.

The environment is very competitive.

As telecom is a booming industry the intensity of competition is very intense.

There is a constant struggle to acquire new market.

Due to the number of entrants in all the segments of the targeted market the pricing is a major factor.

The foreign companies are the major cause of concern.

The telecom service providing industry is a very fast

growing industry.

There are customers like hospitals, 5 star hotels,

MNCs etc. using the EPABX on a large scale.

The customers are demanding in terms of product features, applications and after sales service support.

Due to liberalization more foreign competitors are entering the Indian market.

Sigma telecom is the market leader in the industry.

Sigma telecom is working in joint collaboration with

different companies for different products.

It has its own R&D department, which works on harnessing

the foreign technologies to make them suitable for Indian environment.

The company has invested in in-house training institute

and own training residential center in Mumbai.

Its after sales force team is very generous.