a. Part of TeliaSonera: TeliaSonera holds about 80% shares of Ncell. It is a strong and competitive group, which has high pool of resources. Ncell gains a lot of advantage from the parent company in terms of knowledge/technology sharing, fully leveraging benefits of scale and synergy through business strategy and network building techniques.
b. Largest market share: Ncell is the largest telecom service provider (GSM), having 43% market share. It has crossed more than 80 lakhs customer. Besides, it is also a leading ISP in Nepal.
c. Strong Distribution Network: With the equal distribution of customer all over Nepal, it has established 14 Ncell centre in the major cities of the country that gives full phase customer service. Besides, there are hundreds of Ncell shops all over the country.
d. Brand Identity: Strong advertisements and promotions of Ncell are one of its biggest strength. It has ample resources to invest in its branding. Every new scheme it offers increases the sales of Ncell. Thus, it is a strong brand identity. Today, from a 10-year-old child to 70-year-old grand-papa; everyone is aware of the brand “Ncell”, especially with the purple color.
e. Highly Skilled human resource: The ability to attract the best talent in the market & to retain it has become one of the key factors of Ncell’s success. Currently Ncell have an efficient manpower of more than 500 employees.
f. Innovation: Innovation is another strong aspect of Ncell. It has been growing itself and always succeeded to bring new and innovative product to the markets for its consumers. Ncell connect is once such innovative product introduced by Ncell.
g. Strong R&D: Ncell has built on its R&D under TeliaSonera. R&D technology centers of TeliaSonera in various parts of the world have highly qualified scientists and technologists. With the strong support from TeliaSonera R&D as well as the brand development capabilities, the company is well placed to meet the challenges arising from the increased competition intensity.
a. High Advertising Costs: Ncell is been paying high cost for its advertising agency. There is a significant increase in the advertising budget.
b. Difficulty in Understanding Local Culture: TeliaSonera is an international company with a global strategy. Though, it operates to act as a local company, it cannot understand the local culture as well as other locally established companies such as NTC and UTL can do.
a. Large domestic market: There is huge market development opportunity in urban region of Nepal. At present, it only has a market share of 43%; it can expand it to being a market leader.
b. Untapped Rural Market: With the presence of 81.4% of the total population living in the villages of Nepal, the Nepalese rural telecom market is something of high importance for Ncell.
c. Diversification: Though Ncell has entered into internet service sector, it has much more scope in other segments as well. It can diversify itself within the industry or in any other related industry such as cell phones.
a. High competition: Ncell is facing high competition mainly from NTC and other companies such as UTL. NTC and Ncell have entered into a price war, as NTC is giving tough competition to Ncell SIM cards and internet services.
b. Changing Consumer Demands: The trends in the demands of telecom services are changing. Consumers today are more aware of product and services available. They demand for more quality at low prices. Similarly, the demand of variety of services and new discount schemes is widely in demand.
c. Political Instability: Politics has a high influence in the way companies run in Nepal. We have frequently changing ministries and un-amended regulations. Nepalese government is still delaying the formulation of Constitution of Nepal. In such a condition, it is a severe threat to Ncell; no one knows when there is another major change in the politics and power having an impact on regulations, taxations and so on.
d. New Entrants: Since the market is less exploited and there is a high scope and market untapped, there are probable chances of new entrants.