Satyam Iway - Changing the Indian Internet Browsing Experience

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Case Details:

Case Code : MKTG035
Case Length : 15 Pages
Period : 1987 - 2002
Pub Date : 2003
Teaching Note : Available
Organization : Satyam Infoway Ltd.
Industry : ITES
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Rationale for Entering the Cyber Cafe Business

During the late 1990s, the popularity of the Internet grew at an unprecedented pace in India (Refer Exhibit IV). Corporates saw a lot of potential in the market, with over 250,000,000 consumers reportedly browsing the internet regularly. In early 1998, there were around 50,000 Internet connections in the country...

Establishing Iway - The Outlet

Sify launched its cyber cafes in the metros first to tap the largest segment of Internet surfers (or 'Netizens,' as it called them) before moving on to the smaller towns and cities.

Commenting on this, V. V. Kannan, Vice President, Sify, said "Our aim is to cater to the largest segment of Netizens. After we reach a certain critical mass, we will extend our brand to other mini metros too." The company wanted to increase the number of cafes across the country to 500 by March 2001...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Establishing Iway - The Brand

To further differentiate iWays from other browsing centers, Sify decided to offer a host of value-added services to its customers that would enhance their surfing experience. For this, the company took the route of offering customized promotion packages to Indian corporates to market their products through iWays...

Browsing into the Future

According to estimates of The Internet Service Providers Association of India (ISPAI), the number of cyber cafes in India was 12,000 in 2001. The unorganized segment was the main contributor in this growth and owned about 90% of the market. ISPAI's research revealed that the rising tariffs of dial-up connections were the main reasons for the growth of cyber cafes. The study also revealed that Sify was the only company growing in the organized segment. During the late 1990s, the 'branded' cyber cafe business in India saw a lot of activity...


Exhibit I: Sify's Award Winning Posters for Iway
Exhibit II: Indian ISP Market - Company-Wise Sales & Marketshares
Exhibit III: Sify - Income & Expenditure Statements
Exhibit IV: Internet & The Indian Perspective

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