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Pest Analysis of Bharti Airtel-: Political Factors

The document discusses Bharti Airtel's PEST analysis and value chain analysis. It examines the political, economic, social, and technological factors affecting Bharti Airtel. It also outlines the company's primary and supporting activities. Finally, it analyzes Bharti Airtel's strategies using Ansoff's matrix and the 7S framework to identify areas of market penetration, product development, market development, and diversification.

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annette
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101 views14 pages

Pest Analysis of Bharti Airtel-: Political Factors

The document discusses Bharti Airtel's PEST analysis and value chain analysis. It examines the political, economic, social, and technological factors affecting Bharti Airtel. It also outlines the company's primary and supporting activities. Finally, it analyzes Bharti Airtel's strategies using Ansoff's matrix and the 7S framework to identify areas of market penetration, product development, market development, and diversification.

Uploaded by

annette
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PEST ANALYSIS OF BHARTI AIRTEL-

 Political factors

 Regulations
 Political Opposition to participation by the private players
 Govt support to promote FDI in Telecom sector
 Banning of Phone Use in Certain Circumstances

 Economic factors

 Cost of calls Being Driven Down.


 Worldwide Recession- Both Boon &Bane.
 Middle class consumer base growing due to accelerated economic
growth.
 Untapped markets in emerging Economies - New Opportunity.

 Socio-Cultural factors

 High End Phones becoming status symbol.


 Due to Intimate family bonding in Indian Culture, there is need to remain
connected.
 Tech Savvy Generation.

 Technological factors

 Equipped with New Technology.


 Rapid Industrial growth rate induced by emerging technologies.
 Strong Fiber Optic Network.
 Utilization of E- Commerce facilities.
 Efficient Customer Care Services.
Bharti Airtel value chain analysis-
Primary Activities-
Under the primary activities, the main which give bharti airtel a competitive edge are:
Supporting activities-

 Firm Infrastructure : Tower setup, IT infrastructure, telecom


equipments, networking stations and equipments and various
software to assist in operations.

 Human Resource management: Hiring of IT skilled workforce and


telecom operators. Hiring of customer support personnel and their
training program. Expertise in recruiting the retail staff and quality of
their training. Recruiting best in business leaders to take the company
forward.

 Technology Development: Development of various VAS services.


Introduction to mCheck to enable consumers do mobile commerce.
Investing in research and development.

 Procurement: High initial investment required to setup physical


distribution towers and network stations. Long term contract with
third parties are required. Strong supply chain network is required to
enable continuous supply of handsets and sim cards
ANSOFF’S MODEL-

Market penetration strategy


 Attract users of competitors products: eg full talktime
 Convert nonusers into users: eg. Lifetime plans to attract low income
groups
 Increase product usage: eg.Easy recharge
 Increase the frequency of purchase: recharge through ATM, internet based
recharging through leading banks etc.

New product development


 Product quality improvement strategy: eg better mobile coverage
 Product feature addition strategy: eg . airtel live
 New product development strategy: eg Airtel-Blackberry

Market development
 Expand geographically
 Target new segments: eg call home service for NRIs to be touch
with their loved ones
Diversification
 Broadband services
 Telephone service- touchtel
 Consultancy services to industry verticals like Banking , Financial
services and Insurance etc to meet their telecom needs.
ANSOFF MATRIX
It is also known as Product-Market Growth Matrix.

The
Ansoff

Product-Market Growth Matrix is a marketing tool created by Igor Ansoff and


first published in his article "Strategies for Diversification" in the Harvard
Business Review (1957). The matrix allows marketers to consider ways to grow
the business via existing and/or new products, in existing and/or new markets
– there are four possible product/market combinations. This matrix helps
companies decide what course of action should be taken given current
performance.
The matrix consists of four strategies:

 MarketPenetration(existing markets, existing products):Market


penetration occurs when a company enters/penetrates a market with
current products. The best way to achieve this is by gaining competitors'
customers (part of their market share). Other ways include attracting
nonusers of your product or convincing current clients to use more of
your product/service, with advertising or other promotions. Market
penetration is the least risky way for a company to grow.

 Product Development (existing markets, new products): A firm with a


market for its current products might embark on a strategy of
developing other products catering to the same market (although these
new products need not be new to the market; the point is that the
product is new to the company). For example, McDonald's is always
within the fast-food industry, but frequently markets new burgers.
Frequently, when a firm creates new products, it can gain new
customers for these products. Hence, new product development can be
a crucial business development strategy for firms to stay competitive.

 Market Development (new markets, existing products): An


established product in the market place can be tweaked or targeted to a
different customer segment, as a strategy to earn more revenue for the
firm. For example Lucozade was first marketed for sick children and then
rebranded to target athletes. This is a good example of developing a new
market for an existing product. Again, the market need not be new in
itself; the point is that the market is new to the company.

 Diversification (new markets, new products): Virgin Cola, Virgin


Megastores, Virgin Airlines, Virgin Telecommunications are examples of
new products created by the Virgin Group of UK, to leverage the Virgin
brand. This resulted in the company entering new markets where it had
no presence before.
Ansoff Matrix for Bharti Airtel Ltd-

 MARKET PENETRATION: Airtel entered in broadband and fixed phone


line market.

 PRODUCT DEVELOPMENT: IPLC PRODUCT. (International Private Leased


Service is a service offered exclusively to International BPO’s. This
service provides the facility to make inbound or outbound calls to
multiple international destinations and pay only on per minute rates for
the entire set-up.
 MARKET DEVELOPMENT: Airtel is looking for expanding its overseas
market. Company has already made his presence in 20 countries and is
trying to expand into many foreign nations.

 DIVERSIFICATION: Airtel has now outsourcing sum of its services like


customer services with IBM.
7 S McKinsey Model:

Strategy – strategy is the route that the organization has chosen for its future
growth; a plan an organization formulates to gain a sustainable competitive
advantage:
Strategies used by Airtel are:
 Cost leadership strategy
 Differentiation Strategy
 Focus strategy
 Distribution strategy
 Promotion strategies etc…

Structure – Structure is the framework in which the activities of the


organization's members are coordinated. The four basic structural forms are
the functional form, divisional structure, matrix structure, and network
structure.
Systems –  System forms the formal and informal procedures, including
innovation systems, compensation systems, management information
systems, and capital allocation systems, that govern everyday activity.

The Bharti Group has a diverse business portfolio and has created global
brands in the telecommunication sector. Telecom giant Bharti Airtel is the
flagship company of Bharti Enterprises and is the largest private Telecom
Company in India. To assist in their business processes, they have implemented
the CRM module of the Oracle E-Business Suite. This application is used 24x7
by the contact centers located at various geographic locations.
There are three different implementations of CRM catering to different
business segments, including, most recently, for Airtel Broadband Telephone
Services (ABTS). Contact centers for the landline telephone and broadband
services provided by Bharti Airtel across Pan-India use this application.

Style – the leadership approach of top management and the organization's


overall operating approach is the way in which the organization's employees
present themselves to the outside world, to suppliers and customers.
Employees are one of the most important drivers of growth and success for
any organization is its people. At Bharti Airtel his Mantra for employee delight
focus on 4p’s 
People
Pride
Passion
Processes
Management is about getting things done. Leadership is about achieving goals
by creating a direction for a business and inspiring employees to take initiative
and make the right decisions. Enterprise managers need the skills to motivate,
lead and influence others. Enterprise aims to employ people who can take on a
leadership role and help to grow the business for the longer term. Its
management and training programmes help to provide employees with the
skills necessary to lead others. This case study illustrates that individual differ
in many ways, including personality, values, attitudes and style of thinking and
decision making. There are two leadership styles that rely strongly on the
Individual leader personal characteristics, which are Transactional leader and
Transformational Leader. Depending upon the circumstances, leaders will use
different leadership styles, by developing leaders who are able to make
decisions at a local level, Enterprise can respond more closely to customer
needs within a competitive service 

Skills – skills involve what the company does best; the


distinctive capabilities and competencies that reside in the organization
PerformanceAccording to Sunil Mittal essentials to build a strong work force
are:
 Ability to take decisions amidst uncertainties
 Reading customer mind and predicting future trend
 Ability to deal with grievant customers
 Communication skill
 Work Experience
 Learning skill

Staff – the organization's human resources; refers to how people are


developed, trained, socialized, integrated, motivated, and how their carriers
are managed. According to Sunil Mittal , he relies only on skilled staff members
for his organization.

Shared values – Originally called superordinate goals; the guiding concepts


and principles of the organization – values and aspirations, often unwritten –
that go beyond the conventional statements of corporate objectives; the
fundamental ideas around which a business is built; the things that influence a
group to work together for a common aim. The employees in Airtel, shares a
common picture about the future.

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