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A leading Indian business house wanted Tata Strategic to review the Business Plan for its Direct-to-Home (DTH) business.

The Tata Strategic team studied the growth of DTH in mature markets to understand the impact of factors like pricing, content offerings, subscriber penetration and ARPUs on business. The team compared adoption rates between consumers in India and other countries to arrive at DTH subscriber estimates.

Various scenarios were created to demonstrate the sensitivity of the profitability of the project to subscriber base and pricing. An analysis of competitor activities helped the team understand possible competitor positioning in the market and its impact on the client’s business. The team suggested changes in the channel mix offered and pricing for set top boxes and monthly subscriptions. It also recommended changes in product positioning and sales and marketing strategy.

Impact

Based on their analysis the team was able to question some fundamental assumptions and projections made in the business plan and suggest significant changes in the go-to-market strategy.