This document analyzes the strengths, weaknesses, opportunities, and threats of Bharti Airtel's acquisition of Zain's African telecom assets. The key strengths are Bharti Airtel's large size and strong financials in India, as well as higher average revenue per user (ARPU) in Africa compared to India. However, integrating Zain's assets may be difficult and some African markets are unprofitable. The acquisition opens opportunities in emerging African markets with low mobile penetration. Threats include intense competition, falling ARPU, and supporting unprofitable assets.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
This document analyzes the strengths, weaknesses, opportunities, and threats of Bharti Airtel's acquisition of Zain's African telecom assets. The key strengths are Bharti Airtel's large size and strong financials in India, as well as higher average revenue per user (ARPU) in Africa compared to India. However, integrating Zain's assets may be difficult and some African markets are unprofitable. The acquisition opens opportunities in emerging African markets with low mobile penetration. Threats include intense competition, falling ARPU, and supporting unprofitable assets.
This document analyzes the strengths, weaknesses, opportunities, and threats of Bharti Airtel's acquisition of Zain's African telecom assets. The key strengths are Bharti Airtel's large size and strong financials in India, as well as higher average revenue per user (ARPU) in Africa compared to India. However, integrating Zain's assets may be difficult and some African markets are unprofitable. The acquisition opens opportunities in emerging African markets with low mobile penetration. Threats include intense competition, falling ARPU, and supporting unprofitable assets.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
This document analyzes the strengths, weaknesses, opportunities, and threats of Bharti Airtel's acquisition of Zain's African telecom assets. The key strengths are Bharti Airtel's large size and strong financials in India, as well as higher average revenue per user (ARPU) in Africa compared to India. However, integrating Zain's assets may be difficult and some African markets are unprofitable. The acquisition opens opportunities in emerging African markets with low mobile penetration. Threats include intense competition, falling ARPU, and supporting unprofitable assets.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Download as ppt, pdf, or txt
You are on page 1/ 7
Group-7
SWOT Analysis of Bharti Airtel-Zain Deal Strength Largest Telecom Player In India Strong Financials Strategic Alliance with other stake holders, including Nokia, SingTel & Sony Ericson Pan-India Presence EPS is accretive, total subscriber base of 140 million in INDIA. Strength ARPU in Africa ranges from $3 to $10, which compares favourably with India, where Airtel ARPU is $5(Rs 230) Weakness Outsourcing of core systems Integration pain likely to remain for about 12 to 18 months The African assets of Zain reported a loss of $35 million in 2008 In the first months of 2009,it has seen a 17 % drop in net profit. Weakness According to Zain’s Q3 presentation, 47% to 50% of all revenue comes from non-African sources. Bharti paying a 55 % premium for zain Ebitta, in comparison with Bharti’s own valuation. Nigeria is not profitable and reported a loss of $88mn on revenue of $986 mn, as of sept ,09 Opportunities Tie ups for the customer application Strong presence in the emerging markets. Match box Strategy scale of Penetration. Current tele density of 30.6% in Africa is still low considering other developing countries and opportunity of a new brand to bring a market. Threats o Intense competition & shortage of bandwidth o Falling ARPU o For a set of assets that are not positive at this point, analysts maintain that Bharti have to absorb it from its profitable India operations..
