Utl Business Model

UTL Business Model

The business model for the wireless local loop technology that UTL conduct is “UTL is able to deliver telephones to local communities within hours rather than every days or weeks or months”. The business model of UTL takes the advantages of the fact that the people of Nepal find it difficult to get the telephone connection or GSM service provided by the only player, i.e NTC. Also the business model exists because of the people’s need for over demand and less supply of this service.

A Business Model is the umbrella term used to describe the method – position in the value chain, customer selection, products, pricing – of doing business. According to our sources UTL has a business model which consists of five components which are:

Value proposition: In the context of Nepal’s telecommunication service, the customer’s problem was that they were not getting the telephone connections in time and GSM service was provided on limited basis where as there was a high demand for this services and UTL realized this value and came with a unique service of providing customer telephone connection with in same day.

Market Segment: UTL didn’t targeted NTC’s customer but it targeted the whole new segment which was untouched by NTC. NTC’s customer was upper class and the middle class family and businesses where as UTL targeted middle class, lower class, student and household women. UTL analysis the potential customer in this group and unlocked the different segment which was still untouched.

Value chain structure: UTL value chain drives with the facts like the ability to deliver the correct product to the correct market and customers on time, the effectiveness in managing assets to support market and customer satisfaction and the capability to develop positive collaborative customer relationship.

Revenue generations and margins: UTL get the benefit of ready market to serve waitlisted customers created by NTC and moreover it has the benefit of market segmentation. It targeted the middle class, lower class, student and household women which are large in population and gives a high boost to generate revenue and the CDMA technique further gives it an advantage to lower its cost and pass it to the final consumer.

Competitive Strategy: UTL provides a range of telecom services that are tailor made to meet the specific need of its customers and it got an advantage from market to pent up huge demand for telephones. Its inherent mobility advantages, the flexibility of bandwidth on demand, rapid rollout and reduced maintenance cost gives a competitive position in the market.

UTL Value Chain Analysis

Value chain is a high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers. The objectives of UTL are to provide better quality services at lower cost and deliver them faster.

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