Business consultancy project

Metrics	Azercell
By 4 Operators
Annual Growth Rate	2020	2021	AAGR		2020	2021	AAGR
GSM Connection	-29%	-31%	-30%		-20%	-26%	-23%
Mobile Broadband	16%	11%	13%		15%	13%	14%
3 G Connection	8%	5%	6%		4%	2%	3%
4 G Connection	27%	18%	23%		31%	26%	28%
Net addition	-9%	-21%	-15%		-2%	0%	-1%
Market Penetration	2020	2021	AAGR		2020	2021	AAGR
GSM Connection	10%	7%	8%		31%	23%	27%
Mobile Broadband	39%	42%	41%		83%	93%	88%
3 G Connection	22%	23%	22%		44%	45%	44%
4 G Connection	17%	20%	18%		39%	48%	43%
Smartphone	58%	64%	61%		54%	63%	59%
Features phones	42%	36%	39%		45%	39%	42%

3. Outcome of the Findings

The consolidation and estimation of qualitative and quantitative data provide insight into the company revenue assessment from different perspectives. Based on internal numerical data evaluation, Azercell revenue stream alteration reflects the global upward and downward trend in key metrics. SMS usage is gradually retreating and leaving the place for data consumption. The alteration of traffic consumptions is directly affecting the revenue results, and SMS revenue is gradually shrinking while Data and VAS revenue demonstrates the positive results. Together with SMS revenue Voice revenue also is not expressing the optimistic projections. In accordance with the Boston Consultancy group`s product portfolio matrix (BCG) (Hollenson, 2014), Azercell revenue streams can be displayed accordingly.

• 
  Data Revenue/VAS Revenue- Stars
  
• 
  Voice Revenue-Cash Cows
  
• 
  SMS-Revenue- Dogs
  

Figure.43 Azercell Growth Share Matrix.

In reliance on the BCG growth-share matrix theory, the SMS revenue has negative market growth and declining market share. The fluctuation and the modest decline trend establish Voice revenue in the low-left corner of the matrix. Although the Voice revenue market share is still high, there is an opportunity for market growth, and based on projections, voice revenue

will continue the steady decline in the nearest future. Considering the annual revenue increase and market penetration growth, Data and VAS revenue can be displayed in a high-left cornet. The integration of mobile broadband and smartphone penetration create favorable conditions for both services and market share and growth rate shows the ascending tendency.

5. Recommendation.

In accordance with the assessments mentioned above, Azercell must consider the Data and VAS services as the key revenue generators. Nevertheless, Azercell is using various marketing strategy for restraining the airtime and text messaging position in the markets, the revenue proportion of both services is deteriorating. Azercell is trying to sustain the profit of each service through different product ranges and expressing voice and SMS as add-on services in different campaigns and bundles. Company is also trying to leverage customer retention by different particular segmented products both for consumer and enterprise markets. Meanwhile, in the stage of rapid integration and hectic competition, the customer loyally alleviated and contemporary customers are not satisfied with traditional services and demand more innovative and sophisticated services. Additionally, the service differentiation features have almost vanished as all three operators are providing the same product ranges, besides other two mobile operators try to pick up Azercell share by price-cutting strategy.
Based on all these outcomes, Azercell must outline the next strategy by accentuating the data-centric approach and must intrude the new product lines for the enhancement of Data usage and utilization of different value-added services. The new strategy of the company must contain the customer retention and revenue growth enhancement through distinct, innovative product lines. The new products must be designed for the reinforcing the value proposition through boosting data and value-added service usage. Throughout this project, the deployment of the different value-streams was being estimated.

1.