OVERVIEW• Bharti Airtel Limited, commonly known as Airtel, is an Indian telecommunications services company headquartered at New Delhi, India.• Bharti Airtel Limited is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa.• The company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the companys product offerings include 2G, 3G and 4G services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national & international long distance services to carriers• Airtel is the worlds fourth-largest mobile telecommunications company with over 261 million subscribers across 20 countries as of August 2012.• It is the largest cellular service provider in India, Ithad over 246 million customers across its operations at the end of February 2012.
VISION To be globally admired for telecom services that delight customers MISSION"A spirit charged with energy, creativity and a teamdriven "to seize the day" with an ambition to become themost admired telecom service provider globally".
HIGHLIGHTS Bharti Airtel becomes the fourth largest mobile operator in the world Airtel rolls out Maharashtras first 4G service in Pune F1 now on your fingertips with Airtel India Grand Prix mobile application Ace designer Michael Foley creates trophy for 2012 Airtel Indian Grand Prix Bharti airtel to Observe Silent period from September 30, 2012airtel launches Smart Drive, a voice based real time navigation service
STRATEGIES ADOPTED BY AIRTEL Business Process Outsourcing Airtel follows the strategy of outsourcing the non-core activities and focus on the core. Airtel is known for being the first mobile phone company in the world to outsource everything except marketing and sales. The firm outsources many of its most fundamental functions and infrastructures, including its information technology (IT) opera tions to IBM, Nortel and Wipro; Its communications networks to Ericsson and Nokia Siemens; and Its contact centre operations to Nortel and Wipro and recently with Cisco and Servion to provide hosted contact centre services.
INNOVATION IN VALUE ADDED SERVICES Airtel has separate value added services for consumers, s mall business and business enterprises. Airtel’s online desktop for airtel broadband users provides free online space for storing , editing and sharing data . It also provides free antivirus package, free software and updates on rental basis for small businesses and this is one of the VAS which is not provided by other service providers.
M-Commerce Airtel has an idea of introducing m-commerce as one of its value added service. According to its CEO Sanjay Kapoor there is an 80 to 85 per cent of the population which is still unbanked and looking to do financial transactions using mobile technologies. By providing m- commerce Airtel plans to bring a revolution by making mobile phones work as ATM machines. Network Airtel packs a punch when it comes to network coverage. The aim of Sunil Bharti Mittal was to create a network which is clear even when in the basement. Airtel has done just that and beyond.
Declining ARPU With more than 10 million subscriber additions a month, the Telecom Sector continues to maintain its growth momentum. Due to the entry of new players in the market a high level of competition prevails and this has lead to a decrease in the Average Revenue Per User. Thus in order to sustain its competitive position Airtel has started focusing on increasing the revenue from Minutes of Usage MoU
PORTER’s FIVE MODELSThreat of New Entrant• 12 major number of players in India• The concept of per second billing brought in bt Tata docomo• Uninor’s variable pricing has left feathers ruffled• Challenges have also been posed by inclusion of 3G technology
Power of Suppliers• There is a large number of equipment makers around which dilutes the bargaining power of suppliers• There is monopoly with the government in allocation of bandwidth• The system lacks transparency which leads to several losses• The limited pool of talented managers and engineers
Power of Buyers• The end user is the happiest as the price wars are prevelant• Telecom in the present day holds low brand loyaltyAvailabiity of Substitutes• Advent of internet into the domain of mobile• Due to high speed internet on mobiles the role of phone calls and short messages has diminished• Chief source of revenue is the inclusion of internet
Competitive Rivalry• Indian telecom is a big pie being shared by many people• The impact made by newer companies has led to a major price war among all the players• The changes being brought forward are too many and those who adapt will survive• Competitors of Airtel are flanking it from the side by trying out newer ways to woo the customer• Airtel works very similar to a bank which likes to have more money coming in through valued customers rather than low cost urban connections
SWOT AnalysisStrengths Weakness• Largest wireless network and market • Reduced profit margin share • Increased debt• Effective Value added services • Penetration into rural market• Looking forward into the domain of • Charging for customer care cloud computing• Partners with leading Phone manufacturers for distributionOpportunities Threats • Too many players• The entry into the newer markets of Africa • Internet based services taking over a• Telecom is looked upon as a • part of the telecommunications Domain commodity so higher quality at a • Government regulations over the lesser price is needed bandwidth• Large section of the population which • Customer preference of price over is not exposed to internet and need performance better connectivity • Failure of expansion operations• Mobile Banking Services