1. An Internal Analysis of
Hathway
By Naresh R Shah

2. Presentation Structure:
 An overview of ISP: Hathway
 SWOT Analysis of Hathway
 Value Chain Analysis of Hathway
 VROI Analysis of Hathway
 Conclusion

3. An overview of ISP: Hathway
 Entered into Broadband Technology in the year
2000, providing internet with DOCSIS technology.
 Reached 100,000 customers in 2004.
 Acquired two major MSOs in Maharashtra:
Hathway Rajesh Multichannel Private Limited and
Hathway MCN Private Limited.
 Reached 3,20,000 subscribers in 2009.

4. SWOT Analysis
Strengths
• Experience in ISP market
• Known name
• Innovation
• Business contracts/Peering agreements
• Experienced personnel
• Network management and economics
knowledge

5. Weaknesses
• Customer service is somewhat lacking
• No local content
• Usually don’t own infrastructure
Opportunities
• Relationships with Telcos long established
• Mergers with content providers
• Acquire smaller enterprises
• Development of web applications

6. Threats
• Entry of Telcos/other cable companies
• Some market squeeze
• Saturation of Market

7. • Experience in ISP market • Customer service is somewhat
• Known name lacking
• Innovation • No local content
• Business contracts/Peering • Usually don’t own infrastructure
agreements
• Experienced personnel
• Network management and
economics knowledge
Strengths Weaknesses
Threats Opportunities
• Entry of Telcos/other cable • Relationships with Telcos long
companies established
• Some market squeeze • Mergers with content providers
• Saturation of Market • Acquire smaller enterprises
• Development of web applications

8. Value Chain Analysis- Primary
Activities
Inbound logistics - HIGH
• Inbound logistics add a lot of product value for large ISPs since they need to
minimize the ‘lease’ costs.
Outbound logistics - HIGH
• Outbound logistics are relatively high for large ISP’s since they need to
‘minimize’ ‘lease’ costs.
Operations - LOW
• Typically, larger ISP’s have low operation costs since they get their
technology at a bargain.
Marketing and Sales - HIGH
• Customer perception of product is entirely through marketing of the product.
Hence, Marketing and Sales have a relatively high priority.
Services - LOW
• Services have a low priority since, they do not serve a niche market but a
more generalized market.

9. Secondary Activities
Procurement - LOW
• Procurement is easy once there’s infrastructure in place, since a single long
lease from a telco is generally sufficient.
Human Resource Management – LOW
• Human Resource management is not very important for companies of the size
of Hathway since they have a sufficiently large amount of technical backup
staff.
Technology Development - HIGH
• Frequent changes in standard technology implies that Technology
Development is a necessary cost for an ISP.
Infrastructure - HIGH
• Frequent expansions require a lot of infrastructure development. This is quite
important in a company of Hathway.

10. Value Chain Order:
 Primary Activity rank:
 Marketing and Sales > Inbound Logistics = Outbound
Logistics > Services > Operations
 Secondary Activity rank:
 Infrastructure > Technological Development > Procurement >
Human Resource Management

11. VRIO Analysis
 If a firm has resources that are:
 Valuable
 Rare, and
 Costly to Imitate and,
 The firm is Organized to exploit these resources
 Then the firm can expect to enjoy a sustained competitive
advantage.

12. Factors to look at in the VRIO
analysis:
 Experience in ISP market
 Known name
 Innovation
 Business contracts/Peering agreements
 Experienced personnel
 Network management and economics knowledge

13. VRIO Analysis of strengths of the
company:
Experience in ISP market – Not very Valuable
Known name - Valuable
Innovation – Not very Valuable
Business contracts/Peering agreements - Valuable
Experienced personnel – Valuable
Network management and economics knowledge - Valuable

14. Value Analysis of…
 Known name: This strength is valuable since a
customer is more likely to subscribe to a known name
than to an unknown name, therefore leading to an
increase in revenue.
 Business Contracts: These are a constant source of
‘confirmed’ revenue and are thus very valuable.
 Experienced Personnel: These people often set higher
standards in research labs by providing breakthrough
technologies giving the company a competitive
advantage.

15. Value analysis of…
 Network Management and Economics: With lots of
data at hand, setting competitive tariff plans that
work is much easier, therefore, getting a larger
customer base.

16. Rarity Analysis of….
 Known name: Not very rare in the industry as
such.
 Business Contracts: Again not rare enough to
have a competitive advantage in the industry.
 Experienced Personnel: These people are a rarity
in the industry as such. They can sometimes
provide a competitive advantage.
 Network Management and Economics: Again not
much of a rarity since a lot of competitors have
data as well.

17. Imitability Analysis of….
 Known name: Not imitable.
 Experienced Personnel: Not imitable. Can be
imitated by ‘stealing’ or ‘poaching’ people from
‘start-ups’ or smaller companies. Other
competitors can do this as well.

18. Organizational Analysis of…
 Known name: Organizational hierarchy allows
hathway to maximize its advantage.
 Experienced Personnel: High premiums and high
positions in Organization in Hathway allow
Hathway to maintain this advantage.