Niyamath Parveez

In these troubled economic times, short term deals which look great may not be the best thing in the long run. Companies obviously have to work harder to appeal to a customer base to make sales but with so many firms in the mix, how can they compete? One way that many firms decide to entice customers in by is through lowering prices and this gives consumers something to think about. Firms are struggling but so are consumers so any deal which threatens to slash prices and give consumers more for their money is sure to look good to many people.

However, the firm needs to think if these low prices are sustainable. If not, there could be even bigger trouble ahead if they stick by the low pricing model. Yes, the opposition may be getting blown away by this tactic but income is not sufficient to match the outgoings, the final outcome is only going one way. This will be against the firm so whilst short term price drops can be of benefit, the longer term prospects have to be based around offers that are more substantial. Of course, if a firm could lower their costs, they may be able to sustain lower prices.

The market for mobile phones in India is extremely competitive and with the population size, it is evident why so many firms are keen to grab a slice of the action. There will be niche areas and products to produce which could provide a slight advantage but cost is the most eye-catching area for consumers. The price of the mobile phones or the tariffs are opportunities to snap up market share but another way is to lower the cost of each call. This is what is currently being done by many of the operators in the market but not all think it is the best solution.

Still Bharti, a huge player in the Indian mobile phone market with over 110 million mobile customers in the nation, have announced that they plan to lower their costs through the medium of outsourcing. This is a tactic that has been used all over the world and is recognized as a major factor in the economic growth of India in recent years. The country has welcomed outsourced jobs from all over the world and this has given the Indian population the opportunity to economically thrive and prosper in harsh times.

The decision by Still Bharti to outsource has been made with the company confident that others will not be able to sustain their current low pricing policy. Making savings within the production side of things will give Still Bharti a stronger chance of lowering their overall costs, and providing a more sustained low level of pricing to the consumer. Thinking with respect to the long term is a major separation between the firms that succeed and the firms that lose out. Having the confidence to think of long term shows; Still Bharti is likely to be around in five years time.

There are many ways for a firm or business to enter into a foreign market and it depends on the size and power that the firm has at their disposal. Multi-national companies have the ability to swoop in, build new premises and start building up their name and brand in no time at all. Of course, the vats majority of companies in the world do not have the potential to undertake this activity and therefore need to think of more modest methods of getting involved in a new market. One such way is to look at methods of entry that take a lower form of capital and one of the increasingly important ways of entering a new market is through outsourcing. And with outsourcing being one of the major industries in India, any firm who is looking to enter this market has a ready made opportunity to develop their growth in a natural and comfortable manner.

One such firm who is looking at this opportunity is Etisalat, who are planning on entering the communication market in India. The way they are going to do this is to outsource a number of their infrastructure requirements to firms based in India in order to be better prepared for their new conquest. The first step that Etisalat are going to undertake is to offer out its passive telecommunication infrastructural requirements to Reliance Communications. Reliance Communications are an Indian based operator who is perfectly situated to provide the services and requirements that Etisalat need. Etisalat are also taking on the services of Reliance Infratel, and this firm will be providing a subsidiary level of services to the communications provider. These two link ups will provide a great introduction for Etisalat and should ensure that their entry into the Indian market is as smooth as they could hope for.

Not only is outsourcing a fantastic way to reduce labor costs but when looking to enter a new market, many people may be unsure of the local customs or how best to negotiate with local firms. Using an outsourcing agent to act as a go-between is a fantastic way of obtaining this knowledge and information very quickly and this is driving the supply and demand for outsourcing in many areas. The global market place is becoming much smaller than it has been at any time in the past and given the current economic situation that is facing the world, it is becoming sensible to diversify into other areas wherever possible.

First on the bill for Etisalat will be restructuring their mobile service provisions as this is a lucrative and growing market in India. The mobile phone boom has been very important for the telecommunications industry and it is providing the scope for businesses to grow and make profit. This is important for all firms and there is no doubt that entering the Indian market in this manner will provide Etisalat a fantastic opportunity to open up new partnerships and revenue streams which should make the company even more buoyant in the future.