Tech Mahindra

Presented By: Vivek Ojha

Shibkesh Singh Pankaj Shishodia

Vikas Bharti Sharma

“Leaders don't look behind, they don't look to the side; they look ahead. So as far as I am concerned we are looking to be the

best telecommunication service provider in the world. We have been recognized by major agencies in the world as

being amongst the top and we are ranked with the best in the world. So we benchmark not just with our peers here, but we

benchmark with the best in the world.”

‐ Anand Mahindra, Chairman, Tech Mahindra Ltd.

Telecom sector The telecom sector in India experienced a rapid growth over

the past decade on account of regulatory liberalisation, structural reforms and competition

Besides, the growth in the service and IT and ITeS sector also increased the prominence of the telecom industry in India.

Telecom has emerged as a key infrastructure for economic and consumer growth because of its multiplier effect and the fact that it is beneficial to trade in other industries

Types of telecom sector

Telecommunication service provider

Telecommunication equipment manufacturers

One of the largest business conglomerates in India◦ Incorporated as Mahindra & Mohammed on Oct 2nd 1945 by Mahindra

brothers & Ghulam Mohammed◦ Renamed Mahindra & Mahindra after Ghulam Mohammed’s exit in

1947◦ Over the next 60 years, it diversified its operations across various

sectors like automotive, farm equipment, trade & logistics, hospitality, information technology, infrastructure, financial services◦ US $ 6.7 billion group

1986 - Joint venture between Mahindra group & British Telecommunications plc◦ Company was named Mahindra-British Telecom (MBT)

1960 - Indian government set up Department of Electronics (DOE)1970 - The first software was exported by TCS1980 - Industry managed to reach USD 12 millionMid–1980 - Emergence of new players like Infosys, Satyam, Mastek, etc

(body shopping)1991 - Shift from body shopping to working from offshoreLate 1990 - High growth : ‘Y2K’ problem, STP scheme by govt.2000 - Dot com bubble burst2002 - Fastest growing IT market and captured 70% of IT outsourcing market2006 - High‐end software services - BFSI, telecom, retailing and automotive

segments2008 - Global recession – US companies slashed their IT spendings

IT Services. R&D services. BPO services.

Oracle Financial Services Software

MindTree Ltd.

MphasiS Ltd.

Patni Computer Systems Ltd.

Vakrangee Ltd.

Persistent Systems Ltd.

Hexaware Technologies Ltd.

A very clear focus on the telecommunication industry◦Achieved a clear objective & strategic alignment by focusing on one segment◦ Clarity of goal

By enhancing business with existing clients

By client acquisition in long run. By using geographic expansion. By moving in TEM manufacturing segment. By innovation of customized application solutions.

YEAR DECISIONS REASONING RATING

1986 – 2006

Entered IT sector: JV with British Telecommunications

Strategic pre-emption – Mahindra wanted to enter into the business -found the resource & expertise of BT would enhance growth in Indian Software Industry.

2006 JV with Motorola Inc. under the brand name CanvasM

Field of telephone software was booming and providing expertise in that domain would decrease the institutional voids

Post 2006

Expand geographic presence

•Incorporation of MBT GMBH (Germany):Re-certified to ISO 9001:1994 by BVQI

•Participation in Microsoft's Sandbox: collaborative environment to develop and test new communications services.

YEAR DECISIONS REASONING RATING

2007 Acquired iPolicy Networks Pvt. Ltd.

•Provided complimentary strong security services capabilities. •It got a core competency different from its existent core competencies.

2009 Satyam Acquisition

•Diversification•Acquire a better portfolio of customers.•Opportunity to rationalize shared functions•Global presence

2009 Tie-up with WIN

•Focuses on building a new platform to provide increased functionality and faster transactions •Will formulate a go-to-market strategy in key territories particularly targeting the Asian markets.

VRIO framework Resource Valuabl

eRar

eInimitabl

eOrganisati

onIn depth Knowledge of the

telecom IndustryY Y N Y

ISO 9001 by BVQI Y Y N YAcquisition of Axes

technologies Inc.Y Y Y Y

CanvasM (joint venture with Motorola)

Y Y Y Y

Ipolicy networks private limited (Acquisition)

Y Y Y Y

Satyam Computers Y Y Y Y

Tech Mahindra’s Management

Y Y Y Y

Political • Stable Indian Government• Strict laws regarding development• Anti Outsourcing Drive

Economic• Exchange Rate Fluctuations• STP and Fringe Benefit Tax

Social• Focus on Education in India

Technology

• Changing technology

• Open source

Environment

• Fraud and scams violence

Legal

• Legally Complaint(satyam)

Bargaining Power of Buyers:1. Given the large number of buyers, it is safe to say

that the customers control the this industry2. There are so many choices for a buyer (many firms

in this industry) and there are minimal switching costs

Bargaining Power of Suppliers:1. Suppliers are not "locked" into deals with specific

firms (contracts exempt), but most of the relationships between the firms and suppliers in this industry are well established.

Threat of New Entrants:1. This industry is relatively attractive to newcomers

because of its rapid growth and appealing customer base.

2. At the same time, the industry is unattractive to newcomers because of the cost advantage large-scale incumbents possess, the significant amount of capital a new firm would need

Threat from Substitutes:1. There is not much of a threat from substitutes to this

industry, mostly because there aren't true substitutes. 

Rivalry Among Exist ing Players:1.  Large companies in this industry benefit from

economies of scale.2.  Products in this industry are well branded and tend

to have a strong customer base.

Management is a challenge – Capabilities are far broader than TM's own background

Legal Liabilities – it has inherited from Satyam Mahindra Satyam – an I.T. project to provide WC

Football match details on mobile phones Changing need of customers and changing

technology

Sustaining profits in a highly competitive market. Keeping pace with continuously evolving

technology and business models. Introduction of new portfolios and faster time to

market. Creating reliable and optimized networks. Improving customer experience and customer

retention.

Reorganizing the Management structure. Providing more world class services to customer. Bringing more innovations in IT project field. Promotion of R&D activities in Telecom Centers of

Excellence. Setting up of Telecom Entrepreneur Development

Center (TEDC) for promoting entrepreneurship. Using merger and acquistions

THANK YOU!!