Airtel
Airtel
Airtel
Submitted to
Prof. A. Nag
Submitted By
Acknowledgment 3
Executive Summary 4
Introduction 5
Objectives 8
Methodology 8
Primary Data Sources
Secondary Data Sources
Analysis
SWOT Analysis 12
BCG Matrix 16
Porter Model 17
Ansoff matrix 18
Environmental Analysis 19
Competitors Analysis 21
Findings 25
Recommendations 26
Bibliography 27
References 27
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ACKNOWLEDGEMENT
There are many people who have been of enormously help in the preparation of
this Project on Housing Finance In India, we are specially thankful to Dr. A. Nag,
faculty at Institute of Marketing and Management who have given us this
opportunity to undertake this project.
We are thankful to all our friends giving their remarkable contribution and special
thanks to our faculty in charge, Dr A. Nag who not only explained the topics very
well but all have thrown a good insight at the practical aspect too.
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EXECUTIVE SUMMARY
This report on Bharti Airtel is done to findout certain objective regarding the
strategic approach Adopted by Airtel to stand strongly in the competitive telecom
market. Airtel’s marketing strategies are analyses using various models like
SWOT analysis, BCG Matrix, Ansoff’s matrix, porter’s five forces etc.
The outcomes of these models are properly analyzed to find out the various
aspects like companies position and competitors position in the market.
This report on Airtel not just give description about the company but it also talks
about the various marketing strategy adopted by the company.
SWOT analysis of Airtel helps to find out the weak points of the company and to
find out the way to overcome this problem.
Similarly with the help of Ansoff matrix it can be finding that what are the different
strategic options available to the company under the different market condition.
and to find the answer that why company is looking for overseas market like
Nigeria and Seychelles.
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INTRODUCTION (Company overview)
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the Airtel network expanded to several parts of India, the brand came to
symbolise the very essence of mobile services.
Product
Airtel provides a host of voice and data products and services, including high-
speed GPRS services. Airtel also offers a wide array of 'postpaid' and 'prepaid'
mobile offers, with a range of tariff plans that target different segments. A
comprehensive range of value-added, customised services are part of the unique
package from Airtel. The company's products reflect a desire to constantly
innovate. Some of these are reflected in the fact that Airtel was the first to
develop a 'single integrated billing system'
Airtel comes to you from Bharti Airtel Limited - a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular
service provider, with an all India footprint covering all 23 telecom circles of the
country. It has over 21 million satisfied customers. Bharti Enterprises has been at
the forefront of technology and has revolutionized telecommunications with its
world class products and services. Established in 1976, Bharti has been a
pioneering force in the telecom sector with many firsts and innovations to its
credit. Bharti has many joint ventures with world leaders like Singtel (Singapore
Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find,
Mauritius; International Finance Corporation, USA and New York Life
International, USA. Bharti provides a range of telecom services, which include
Cellular, Basic, Internet and recently introduced National Long Distance. Bharti
also manufactures and exports telephone terminals and cordless phones. Apart
from being the largest manufacturer of telephone instruments in India, it is also
the first company to export its products to the USA.
Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has
established itself across India in sixteen states covering a
population of over 600 million people. Airtel will soon cover the entire country
through a process of acquisitions and green field projects. With a presence in
over 1,400 towns, Airtel today has the largest network capacity in the country.
In the last nine years Airtel has achieved many firsts and unique records: it was
the first to launch nationwide roaming operations, it was the first to cross the one
million and the five million customer marks. It was also the first to launch services
overseas.
There are other 'firsts' credited to Airtel - many of them in the area of innovative
products and services. Today, Airtel innovates in almost everything that it
presents to the market. An excellent example is Easy Charge - India's first
paperless electronic recharging facility for prepaid customers. As evidence of its
fine record, Airtel has also been conferred with numerous awards. It won the
prestigious Techies Award for 'being the best cellular services provider' for four
consecutive years between 1997 and 2000 - a record that is still unmatched. And
in 2003, it received the Voice & Data Award for being 'India's largest cellular
service provider', amongst others.
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As part of its continuing expansion, Airtel has invested over Rs. 1,065 billion in
creating a new telecom infrastructure. In 2003/04, Bharti Tele-Ventures earned a
gross profit of Rs. 16 billion on revenues of Rs. 50 billion.
Corporate Structure
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OBJECTIVE
The Indian communications scenario has transformed into a multiplayer, multi
product market with varied market size and segments. Within the basic phone
service the value chain has split into domestic/local calls, long distance players,
and international long distance players. Apart from having to cope with the
change in structure and culture (government to corporate), Airtel has had to gear
itself to meet competition in various segments – basic services, long
distance(LD), International Long Distance (ILD), and Internet Service Provision
(ISP).It has forayed into mobile service provision as well.
Objective of study are:
METHODOLOGY
SECONDARY SOURCE
Internet
Newspaper
Magazines
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Others
Voice Services
Mobile Services
Satellite Services
Managed Data & Internet Services
Managed e-Business Services
Voice Services
Bharti Airtel became the first private fixed-line service provider in India. It is now
promoted under the Airtel brand. Recently, the Government opened the fixed-line
industry to unlimited competition. Airtel has subsequently started providing fixed-
line services in the four circles of Delhi, Haryana, Madhya Pradesh, Karnataka,
Tamil Nadu & UP (West).
Airtel Enterprise Services believes that these circles have high
telecommunications potential, especially for carrying Voice & Data traffic. These
circles were strategically selected so as to provide synergies with Airtel’s long
distance network and Airtel’s extensive mobile network.
Airtel Enterprise Services, India's premium telecommunication service, brings to
you a whole new experience in telephony. From integrated telephone services for
Enterprises and small business enterprises to user-friendly plans for Broadband
Internet Services (DSL), we bring innovative, cost-effective, comprehensive and
multi-product solutions to cater to all your telecom and data needs.
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of the Value Added Services offered are Calling Line Identification, Three Party
Conferencing, Dynamic Lock, Hunting Numbers, and Parallel Ringing etc.
Airtel Enterprise Services Voice Services provide Free Dial-up Internet access
that is bundled along with your Telephone connection from Airtel. It’s fast, reliable
and gives you unlimited Internet access.
Mobile Services
Airtel’s mobile footprint extends across the country in 21 telecom circles. It’s
service standards compare with the very best in the world. In fact, that’s how
Bharti has managed to win the trust of millions of customers and makes it one of
the top 5 operators in the world, in terms of service and subscriber base.
The company has several Firsts to its credit:
The First to launch full roaming service on pre-paid in the country.
The First to launch 32K SIM cards.
The First in Asia to deploy the multi band feature in a wireless network for
efficient usage of spectrum.
The First to deploy Voice Quality Enhancers to improve voice quality and
acoustics.
The First telecom company in the world to receive the ISO 9001:2000
certification from British Standards Institute
Satellite Services
Airtel Enterprise Services provides you connectivity where ever you take your
business Our Satellite Services bring you the benefits of access in remote
locations. Airtel Enterprise Services is a leading provider of broadband IP satellite
services and DAMA/PAMA services in India. Our solutions support audio, video
and voice applications on demand.
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Satellite Services include :
PAMA/DAMA
BIT - Internet
VPN
Satellite based IPLCs for redundancy reasons
MPLS
ATM
FR
Internet
IPLC
Leased Lines
Customised Solutions
International Managed Services
Metro Ethernet
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ANALYSIS
SWOT ANALYSIS
STRENGTH WEAKNESS
Very focused on telecom.
Leadership in fast growing
cellular segment.
Pan-India footprint. Price Competition from
The only Indian operator, BSNL and MTNL
other than VSNL, that Untapped Rural market
has an international
submarine cable.
OPPORTUNITIES THREATS
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STRENGTH
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huge value to the IPLC customers, delivering them an option besides the
incumbent carrier, to connect to the outside world.
WEAKNESS
Price Competition from BSNL and MTNL. Airtel is tough competition from
the operators like BSNL nd MTNL as these two operators are offering
services at a low rate.
OPPORTUNITIES
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back and low capital cost due to advantages of large scale buying of
cellular switch/equipment.
THREATS
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BCG MATRIX
STARS QUESTIONMARKS
HIGH
LEASED
ISP
PRIVATE
CELLULAR SERVICE
CIRCUIT
GROWTH %
COWS DDDDD
DOGS
LOW
BASIC TELEPHONE
(Fixed Line)
HIGH LOW
BCG Matrix is used to find out the relative growth prospects of the product line.
Within the Airtel product line leased, private, circuit are among star.
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Airtel is going to have a submarine cable between Singapore and Chennai with
the collaboration of singtel. This wills airtel to maintain its position in IPLC
market. Right in India only VSNL have such cables.
ANSOFF MATRIX
MARKET
PENETRATION PRODUCT
DEVELOPMENT
ENTERED IN
BROADBAND AND IPLC PRODUCTS
FIXED LINE MARKET
MARKET DIVERSIFICATION
DEVELOPMENT
LOOKING FOR
OUTSOURCING
OVERSEAS MARKET
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PRODUCT DEVELOPMENT: IPLC products
MARKET DEVELOPMENT: Airtel is now looking for overseas market.
Company has already make his presence in Nigeria and Seychelles
DIVERSIFICATION : Airtel has now outsourcing sum of its services like
customer services with IBM
The earlier pattern used to be that the national telecom company used to own
every segment of the value chain till the international gateway. With liberalization
there was competition in virtually every segment. There are companies that
provide local connectivity, those that function as long distance carriers, and those
that provide only gateway links. Some integrated players operate in all segments.
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The intensity of competitive pressures across the chain is reflected in the
downward spiral being witnessed in tariffs and prices to customer.
The value chain for cellular mobile service and Internet Service Providers (other
than cable based net connections) are similar in as much as the calls reach the
destination through similar local loop, long distance and international gateway.
ENVIRONMENTAL ANALYSIS
It is a systematic examination of all 3 levels of the environment with at least three
purposes:
Detecting important economic, social, cultural, environmental, health,
technological, and political trends, situations, and events
Identifying the potential opportunities and threats for the institution
implied by these trends, situations, and events
Gaining an accurate understanding of your organization’s strengths
and limitations
STEEP refers to changes in the social, technological, economic, environmental,
and political sectors that affect organizations directly and indirectly.
CORE COMPETENCE
Airtel core competencies are sales & promotions and as of now Airtel is leading
brand in mobile services in India. Airte have three big personality Viz. Sachin
Tendulkar , Shahrukh Khan and music maestro A. R. Rahman for endorsing there
product and services currently Airtel is outsourcing there no competence function
and try to fully concentrate on his core competency that is sales promotion.
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ANNEXURE
Market
share
Fixed Mobile Total
(%age)
(% age)
1
BSNL 36.8 78.02
2
MTNL 3.94 8.35
3
Tata 3.23 6.85
4
Reliance 1.86 3.94
5
Bharti 0.97 2.06
6
HFCL 0.21 0.44
7
Shyam 0.16 0.34
All India 47.17 100
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OPERATOR WISE SUBSCRIBER BASE OF FIXED SERVICES & THEIR MARKET SHARE
(% age)
1 BSNL 47.96 44.82
2 Reliance 14.01 13.09
3 Bharti 13.76 12.86
4 Hutch 8.85 8.27
5 IDEA 5.73 5.36
6 MTNL 5.27 4.93
7 Tata 4.84 4.52
8 BPL 2.7 2.52
9 Aircel 1.94 1.82
10 Spice 1.49 1.39
11 HFCL 0.27 0.25
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12 Shyam 0.18 0.17
107 100
All India
OPERATOR WISE TOTAL SUBSCRIBER BASE OF MOBILE AND FIXED TELECOM SERVICES AND THEIR
MARKET SHARE AS ON JULY 2005
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Factsheet [Bharti Airtel Limited]
Proportionate Revenue
Rs. 117,255 million (year ended March 31, 2006-Audited)
Rs. 81,558 million (year ended March 31, 2005-Audited)
Proportionate EBITDA
Rs. 42,250 million (year ended March 31, 2006-Audited)
Rs. 30,658 million (year ended March 31, 2005-Audited)
Shares in Issue
1,895,241,565 as at June 30, 2006
Listings
Market Capitalisation
Customer Base
25,648,686 GSM mobile and 1,591,071 broadband & telephone (fixed line)
customers (Status as at month ended August 31, 2006)
Operational Network
Provides GSM mobile services in all the 23 telecom circles in India, and was the
first private operator to have an all India presence.
Provides broadband (DSL) and telephone services (fixed line) in 92 cities in
India.
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FINDINGS
Strategic allianceThe company has a strategic alliance with SingTel. The
investment made by SingTel is one of the largest investments made in the
world outside Singapore in the company. The company also has a
strategic alliance with Vodafone. The investment made by Vodafone in
Bharti is one of the largest single foreign investments made in the Indian
telecom sector.The company’s mobile network equipment partners include
Ericsson and Nokia. In the case of the broadband and telephone services
and enterprise services (carriers), equipment suppliers include Siemens,
Nortel, Corning, among others. The Company also has an information
technology alliance with IBM for its group-wide information technology
requirements and with Nortel for call center technology requirements.
OutsourcingThe call center operations for the mobile services have been
outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.
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RECOMMENDATIONS
After the complete analysis of entire STUDY we put forward a set of
recommendations which are a follows:
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BIBLIOGRAPHY
REFERENCE
www.airtelworld.com
airtel-broadband.com
www.trai.gov.in
www.hindustantimes.com
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