In our previous blog, we did a comprehensive SWOT Analysis of one of the top multinational telecommunication companies, Airtel. Here we will be doing an In-Depth SWOT Analysis of Tata Communications
Tata Communications is the Largest player in voice communication in the world. It also has the largest submarine cable networks in the world.
Tata Communication has been able to Gain such large success in its industry by marketing its services using digital marketing. It still has space to improve its marketing strategies in its business. This can be done with the help of advanced digital marketing techniques. As most people are using social media nowadays it is easy for a business to gain customer’s attention. Using digital marketing can improve its brand awareness among the customers. Every business needs to have a digital presence in this era. If you are curious about learning about digital marketing and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Thus this makes us keen to know how Tata Communications has maintained a stable position in the market. To understand that we have given an In-Depth SWOT Analysis of Tata Communications. But before we start with its SWOT Analysis let us learn about Tata Communications as a Company, its services, competitors, financials, and more.
About Tata Communications
Tata Communications was established in the year 1986, by the government of India. It has its headquarters situated in Mumbai, Maharashtra, India.
Tata Communications was owned by the Department of Telecommunications, under the Ministry of Communications of the Government of India and later by Tata Group in February 2008. The network span of Tata Communications is 500,000 kilometers (310,000 mi) of subsea fiber and more than 210,000 kilometers (130,000 mi) of terrestrial fiber.
Tata Communications has a long history. It was known as Videsh Sanchar Nigam Limited (VSNL) when it was founded. One of the most surprising facts about VSNL is that it is credited to have brought the internet to India.
|Founder||Government of India|
|No. of Employees||12,000+ (2020)|
|Market Cap||₹6,645 Crores (2020)|
|Annual Revenue||₹4,401 Crores (2020)|
|Net profit||₹386 Crores (2020)|
Services of Tata Communications
Tata Communications has a large audience in its industry. Thus it has to provide them with different services. Following are some of the services that Tata Communications provide:
- Cloud networking
- Now that you know about Tata communications, Enterprise
- Network security
- Cloud telephony
- Data center services
- Internet services.
Close Competitors of Tata Communications
Tata communication is one of the largest companies in its industries and thus it has to face many competitors to retain its position in the market. Following are some of the competitors of Tata Communications:
- Bharti Airtel
- NTT Communications
- Sify Technologies
- Tejas Networks India
- Orange Business Services
Now that we know about the company let us start with the SWOT Analysis of Tata Communications.
SWOT Analysis of Tata Communications
SWOT analysis is very important if you want to know the essential aspects of any company. Knowing about the strengths, weaknesses, threats, and opportunities of the company can give you detailed information about the company.
Let us start with its SWOT Analysis by first looking at the Strengths of Tata Communications.
Strengths of Tata Communications
Strengths are the internal factors of Tata Communications which help it to stand out among its competitors. Following are some of the Strengths of Tata Communications:
- Successfully operating in many countries – Tata Communications provides its quality services in more than 200 countries and territories. It is also the world’s largest wholly-owned subsea fiber backbone and a Tier-1 IP network. It is also known as a leader to other global network service providers.
- Global alliances – Tata Communications is owned by the Tata Group that also has many successful affiliates. This company has many global alliances such as Microsoft, Tata consultancy services, Amazon, Cisco, and more. The strategies of these global alliances have resulted in more growth for the company and contributed to more success stories of the company.
- Large customer base – Tata Communications provides services to more than 7000 customers globally. It connects 4 out of 5 mobile subscribers worldwide as well as businesses to 60% of the world’s cloud giants. It also provides 30% of the world’s internet routes. It already had a large customer base and now the customer base has been growing a lot due to the Covid-19 pandemic.
- Best quality services – The main reason for the company’s large customer base is the quality of its services. The alliances and customers have reviewed Tata Communications as highly professional.
- A big and strong team – Tata Communications has over 12,000 employees worldwide. Tata Communications have also been included in AON’s Best Employers India and believes in great teamwork. The employees here are encouraged to be innovative and are also encouraged to learn more and grow.
- Leading in the telecommunication industry – Tata Communications has been awarded as a leader quite a few times in recent years and is seen as a leading company in India. For the development and advancement of the digital world in India, Tata Communications have also taken various initiatives like Tata Communications Centre for Digital Transformation.
Weaknesses of Tata Communications
Weaknesses are the factors that create flaws in the functioning of Tata Communications. Following are some of the Weaknesses of Tata Communications:
- Company’s significant debt – Even if a layman is told that a certain company has huge debts, he/she will also naturally say that the company is a bit risky and needs to recover from it. The company has huge debts as it is a huge company, operating at an international level. The company has delivered poor sales in the last five years but has shown recovery too.
- Limited social media presence – Tata Communications has a lot to explore and grow in terms of social media. The engagement on the social media handles of Tata Communication is very low. If we take Instagram as an example, the company’s official account on Instagram is a great way to know about their campaigns and services, etc but there is still not a lot of engagement on it.
Opportunities for Tata Communications
Opportunities are potential advantages to Tata Communications which if catered properly can help in their growth. Following are some of the opportunities for Tata Communications:
- Demand for cloud computing – There has been an increase in the demand for cloud computing services over the past few years. Mostly when the Covid pandemic hit the world. As compared to other cloud platforms, Tata communications have the potential to shine through as it provides an easy to adapt and convenient platform that will help you with your ever-changing digital needs through its great host services.
- Growing need for good networking for enterprises – In the last few years, there has been a lot of new businesses and enterprises, mainly functioning online. Especially after the covid-19 pandemic and lockdowns, the enterprises that were functioning offline also had no choice but to continue their businesses online like every other business to survive in the market. In such times, Tata’s communications have been improving and growing a lot. Tata Communications provides networking services that will help in running your business smoothly, without any problems or issues.
Threats to Tata Communications
Even if Tata Communications has leadership and professionalism, there are some threats that it has to look out for to compete. Following are some of the Threats to Tata Communications:
- Growing competition – Like any other industry, the competition aspect is also there in telecommunication, especially now, when almost every other person needs internet for their education, work, business, etc. Tata Communication has been around in this industry for almost 35 years. In the span of such a long time, there have been many telecommunication companies that have been formed.
- Pricing of services – The telecommunication sector usually has pricing factor issues when it comes to big companies like Tata Communications, as it has huge debts and charges high as compared to some of its competitors. A growing industry like telecommunication is more in demand as well as highly competitive. It becomes necessary to adapt and look out for the pricing factors of other companies.
With this, we have reached the end of the SWOT Analysis of Tata Communications. The analysis helps it to get a better understanding of the company at a wide scare in the market.
On the study of the SWOT Analysis of Tata Communications, we have known that it is one of the largest players in voice communication in the world. It has successful operations all over the world with a large customer base. It can increase its market share with the increasing demand for cloud computing. Even with such positive factors, it faces some flaws in the market.
Due to the increasing competition and demand for telecommunication services, Tata Communication needs to adapt and learn from its competitors like Bharti Airtel. The advertising and pricing strategies of the services provided by Tata Communications have to improve. It can use digital marketing to build a good brand presence in the market as most people are on social media nowadays. It is essential for every business to grow its digital presence in the market. If you are interested in upskilling and learning, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
If you like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.
Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.