Case study telecom industry and competitive landscape in India: will MTNL and BSNL successfully recover?

Abstract

Purpose – This case study aims to analyse the different factors that cause a decline in an organisation’s performance. It projects data for the prospective case readers to explore the possible approaches for the Chairman-cum-Managing Director (CMD) of Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) to turnaround both the organisations. Furthermore, the case compels the readers to study the Indian Telecom industry to analyse the competitive behaviour and the consequent actions necessary to survive and thrive amongst their peers. From the theoretical perspective, the case emphasises the recent change observed in the Telecom industry regarding the transition from value-chain to value-network. Design/methodology/approach – The authors collected the case facts and data for the case study from secondary sources like the latest news articles, the CRISIL database, company annual statements, company press releases and government regulatory body web portals. Findings –The case study has identified the issues pertinent in the public sector companies in India, especially in the telecom sector, concerning leadership, pending government financial commitments and a slow-moving attitude towards taking action. Originality/value – The case study highlights the management problems faced by the CMD of the two public sector telecom companies i.e. BSNL and MTNL.