bharti airtel presentation

7/30/2019 Bharti Airtel Presentation

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Strategic Analysis

Of

Group Company


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Introduction to industry India's telecommunication network is the second

largest in the world based on the total number of telephoneusers (both fixed and mobile phone).

It has one of the lowest call tariffs in the world enabled bythe mega telephone networks and hyper-competitionamong them. It has the world's third-largest Internet user-

base with over 137 million as of June 2012.

Major sectors of the Indian telecommunication industryare telephony, internet and television broadcasting.


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Introduction to company Flagship company of Bharti enterprises is

Bharti Airtel Ltd

There are three SBUs under it, are.

- Mobile Service

- Airtel Tele-media Service

- Enterprise Services.


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Objectives of Bharti Airtel Ltd Objectives

- To Undertake Transformational Projects

- To Diversity in new business.

- To Lay the foundation for building a conglomerate ofculture.


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VISION & MISSIONVISION :

To be globally admired for telecom services that

delight customers.

MISSION

Customer service focus

Empowered employees

Innovative services

Cost efficiency


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Q #1: What are the Industrys

Dominant Economic Traits?

Market size and growth rate

Number of rivals

Buyer needs and requirements

Vertical integration


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Q #2: What Kinds of Competitive

Forces Are Industry Members

Facing?

Five Forces Model of Competition


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New Entrant Threat

Extremely high infrastructure cost.

License cost is also very High.

Overall influence is Low.


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Power of buyers There is lack of difference among service provider

which increases power in the hands of buyers.

There is cut throat competition in the telecomindustry which again increases power in the hand ofbuyers.

Again switching cost is low.

Number portability has increased the power of thebuyers.

Overall, the power is in the hands of buyers is high.


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Suppliers bargaining power There are large numbers of suppliers to this industry.

The limited pool of engineers and skilled managers

has increased suppliers bargaining power. There is medium cost of switching the supplier as

changing their hardware would lead to cost inmodifying the architecture.

Overall influence is medium.


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Competitive rivalry Exit barrier is high.

Fixed cost is high.

There are 6-7 players in each region. 3 out of 4 big player including Airtel is present in each

region.

There is price war.

Overall the rivalry among substitute is veryhigh.


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Threats from substitute Landline and CDMA market is diminishing.

Use of Video conferencing, VOIP(skype, gtalk, yahoomessenger) is increasing rapidly.

Overall, the threat is medium.


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Q #3: What Factors Are Driving Industry

Change and What Impacts Will They

Have?

Types of Driving Forces

Network availability

Advertisement campaigns Global expansion strategies

Changing societal concerns

Changes in long-term industry growth rate

Changes in who buys the product andhow they use it

Product innovation

Technological change/process innovation

Marketing innovation


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Assess impact

Are the driving forces causingdemand for product to increaseor decrease?

- Yes

Are the driving forces acting to makecompetition more or lessintense?

- Yes,

Will the driving forces lead to higher or lower industry

profitability?

- Yes Low Profitability, because of more

competitors and also mobile.


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Q #4: What Market Positions Do Rivals

Occupy?

Strategic Group Mapping ( in Crs.)

COMPANIES REVENUE TOTAL ASSETS PAT

BHARTI AIRTEL 38,800 63,559 5730

BSNL 30,240 70,000 6457

VODAFONE 23,200 22,300.80 7003

RELIENCE 22,130 73,067 8040

IDEA 11,390 23,072 5765.4

TATA COM 11,000 8,087.80 171.34

TATA

TELESERVICES 6,900 4,237.96 517.51

MTNL 3,650 14,102.17 2801.92


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SWOT Analysis of Bharti Airtel Ltd

Strength:-

Bharti is very focused on telecom industry.

Leadership in telecom industry with over 88 millioncustomers.

The only Indian operator other than VSNL that hasinternational submarine cable.


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SWOT Analysis.

Weakness:-

Price competition has increased with othercompetitors.

Untapped rural market, most of which is covered by

BSNL.


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SWOT Analysis.

Opportunities:-

Latest technology and low cost advantage.

Huge market.

Low broadband penetration.


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SWOT Analysis. Threat:-

Falling annual revenue per unit.

Competition from other cellular companies.

Saturation point in basic telephony service.

Mobile number portability may result in switch over ofcustomer to other competitors.

Vodafone has advantage in 3G service than airtel since ithas experience of running the 3G service in other countries.


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Generic Strategy

Narrow

Market Scope

Broad Market

Scope

Differentiation Strategy Low Cost Strategy


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Generic StrategyExisting Product New Product

Existing

Market

New

Market

Differentiation Strategy Low Cost Strategy

Market penetration

- Mobile Service- Broadband- DTH

Product Development

- 3G

MarketDevelopment

- Mobile Services

Diversification


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Complementary strategyAlliances/Partnerships

To extend its reach in India's rural markets, Bharti Airtel isfocusing on innovative initiatives, including efficientinfrastructure deployments, expanding its distributionnetwork via partnerships, and customized content andtariffs.

To expand coverage into rural regions, Bharti Airtel is

sharing passive infrastructure services with Vodafone (42percent ownership) and Idea (16 percent ownership)through its joint venture, Indus Towers. Sharing theinfrastructure cost and usage between multiple operatorshas helped Bharti Airtel to reduce its operating and capitalexpenses.


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Complementary strategyJoint venture

Bharti Airtel also formed a joint venture with the Indian FarmersFertilizer Cooperative Limited (IFFCO). Its joint venture, IFFCO

Kisan Sanchar, uses IFFCO's wide rural presence (present in 80percent of Indian villages) and appeal among the ruralagricultural community to market and distribute Bharti'sproducts.

IFFCO Kisan Sanchar provides subsidized handsets andconnections at competitive rates in rural areas. It also helpsBharti Airtel to identify and acquire suitable locations fordeploying its cell sites. In addition, it offers tailored servicesincluding voice-based updates on crop prices, farmingtechniques, rural health initiatives, and "help line" services


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Strategy Options for Competing

in Emerging Industries

Bharti Airtel is pushing hard to improve Technology& improve Product Quality(Services).

Focus onAdvertising

- Increase frequency of Use.

- Creating brand Loyalty.


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Strategy Options for Competing

in a Mature Industry

Strong focus on Cost Reduction

Increase sales to present customers

Expanding Internationally

Emphasize Innovation in thevalue chain.


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Market Leader Fortify-and-Defend Strategy

1. Increase advertising and R&D2. Provide higher levels of customer service

3. Add personalized services to boost buyer loyalty

4. Keep prices reasonable and quality attractive

5. Invest enough to remain cost competitive


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Diversification in Related IndustryJoint Venture

Beetel Teletech Limited

Bharti Infratel Limited

Indus Tower is a joint venture between

- Vodafone Essar (42%)

- Bharti Group (42%) and- Aditya Birla Telecom Limited (16%)

It is Indias leading mobile towers company


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Unrelated DiversificationCompany Name Industry

Bharti AXA General Insurance Insurance

Bharti Retail Retail Industry

Bharti Walmart Retail Industry

FieldFresh Foods Pvt. Ltd Retail Industry

Bharti Realty Limited Real Estate Industry


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bharti airtel presentation

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