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Swot Analysis

Airtel's strengths include its experience as a renowned telecom company operating in 20 countries, high brand equity as an Indian pioneer, and extensive infrastructure network across India through partnerships. However, Airtel also faces weaknesses such as high debt from acquisitions, struggling African operations, and outsourced dependencies. Opportunities exist in strategic partnerships, market development, expanding 4G services, and advancing LTE technology. Threats include regulatory changes, intense competition lowering prices and margins, and potential subscriber losses through India's mobile number portability policy.

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102 views2 pages

Swot Analysis

Airtel's strengths include its experience as a renowned telecom company operating in 20 countries, high brand equity as an Indian pioneer, and extensive infrastructure network across India through partnerships. However, Airtel also faces weaknesses such as high debt from acquisitions, struggling African operations, and outsourced dependencies. Opportunities exist in strategic partnerships, market development, expanding 4G services, and advancing LTE technology. Threats include regulatory changes, intense competition lowering prices and margins, and potential subscriber losses through India's mobile number portability policy.

Uploaded by

ashish9dubey-16
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SWOT ANALYSIS

STRENGTHS

1. Renowned Telecom company: Airtel has 19+ years of rich experience in


telecom industry they have travelled far to become world’s 2 nd largest
telecom operator overseas with operations in nearly 20 countries.
2. High Brand Equity: It is one of the pioneer brands in telecommunication
having a high brand recall and with an increasing subscriber base. In month
of June 2021 airtel subscription was increased by 38.1 lakh
3. Extensive infrastructure: With the formation of Indus tower & due to its
partnership with Idea & Vodafone, the infrastructure of Airtel
has extended in all parts of the country resulting into nationwide
penetration.
4. Strategic Alliances: The Company has top notch stakeholders,
namely Sony Ericsson, Nokia, SingTel, and in 2019 Apple. Such strategic
alliances boost the brand equity and the bottom line of the company.

WEAKNESSES

1. Outsourced Operations: Outsourcing operations helped Airtel in lowering


its cost. But on the other hand, they are running the risk of being dependent
on some other companies which may affect its operations.
2. Venturing into African operations: Although it’s been 11 years that Airtel
has acquired Zain’s Africa business which cover’s 15 countries in Africa, but
Airtel is still struggling to turn around the unit which was bought at 10.7
billion dollars.
3. High Debt: With its acquisitions turning out to bad investment, and credit
being high and margins being low, Airtel group is under high debt. Airtel
does not have as deep pockets as Vodafone.
OPPORTUNITIES

1. Strategic Partnership: Partnering with smart phone companies is going to


be a smart strategy as far as MNP (mobile number portability in India) is
concerned. This will ensure fixed cash flows in the future and a higher
customer base.
2. Market Development: With aggressive competition in the telecom industry
& shrinking margins, venturing out in new markets/developing economies
will prove fruitful for the company.
3. Untapped geography of the current market: Although airtel is currently
providing 4G services, but these services are limited to specific geographical
locations. Expansion of these services to most of its regions where its quality
of network is low can be improve which will help the company get more
margins and customers.
4. LTE: The whole wireless world is moving towards LTE (long term evolution or
4G). LTE for mobile broadband can be a good solution for India where fixed
broadband penetration is otherwise low. Airtel has taken the lead with this
version of LTE in 4 cities, but deployment needs to catch up pace. Despite a
weak LTE ecosystem in India, Airtel should portray itself as the surround of
that technology.

THREATS

1. Government Regulatory Framework: Due to less spectrum (signal towers)


and change in the government policies on a regular basis, it is a potential
threat to the stability & existence of this industry thereby affecting the
players.
2. Competition: Price war in the home market and declining margins due to
this is adversely affecting the overall business of the group.
3. MNP (Mobile number portability): MNP gives the customer independence
to change the service provider while retaining the number and as Airtel
charges are premium over other service providers, it can reduce the
subscribers of the company.

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