this assignment is generally prepared to analyse the strategic analysis on telecom industries and in this the example has been taken for Airtel Telecom Sector and its analysis has been done.

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STRATEGIC ANALYSIS
ON
TELECOM INDUSTRY
(AIRTEL)

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OBJECTIVE:
Objective of the assignment is to find out the Strategic Analysis of the
following tools for Telecom Industry:
· SWOT
· Porter’s five force model,
· PEST.
In this the SWOT analysis generally works for the product, Porter’s five
force models on company and PEST analysis generally work on the
Industry.
INTRODUCTION:
TELECOM INDUSTRY:
India's telecommunication network is the second largest in the world
based on the total number of telephone users (both fixed and mobile
phone). It has one of the lowest call tariffs in the world enabled by the
mega telephone networks and hyper-competition among them. It has the
world's third-largest Internet user-base. According to the Internet and

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Mobile Association of India (IAMAI), the Internet user base in the
country stood at 190 million at the end of June, 2013. Major sectors of
the Indian telecommunication industry are telephony; internet and
television broadcast Industry in the country which is in an ongoing
process of transforming into next generation network
Telecommunication in India has greatly been supported by
the INSAT system of the country, one of the largest domestic satellite
systems in the world. India possesses a diversified communications
system, which links all parts of the country by telephone, Internet, radio,
television and satellite.
TELECOM INDUSTRY

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AIRTEL:
Airtel is the largest provider of mobile telephony and second largest
provider of fixed telephony in India, and is also a provider
of broadband and subscription television services. It offers its telecom
services under the "airtel" brand, and is headed by Sunil Bharti Mittal.
Bharti Airtel is the first Indian telecom service provider to
achieve Cisco Gold Certification. It also acts as a carrier for national and
international long distance communication services. The company has a
submarine cable landing station at Chennai, which connects the
submarine cable connecting Chennai and Singapore.
Bharti Airtel added 5.10 lakh subscribers to take its base to
20.97 crore at the end of July, 2014. Its market share in India is highest
with a value of 28.41%.

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SWOT ANALYSIS ON PRODUCT AIRTEL
CELLULAR:
STRENGTH:
 Bharti Airtel has more than 65 million customers (July 2008). It is
thelargest cellular provider in India, and also supplies broadband a
ndtelephone services as well as many other telecommunications
services to both domestic and corporate.
 Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia
and SingTel, with whom they hold a strategic alliance. This
STRENGTH WEAKNESS
OPPORTUNITIES THREATS
AIRTEL

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means that the business has access to knowledge and technology
from other parts of the telecommunications world.
 The company has covered the entire Indian nation with its
network. This has underpinned its large and rising customer base.
WEAKNESS:
 An often cited original weakness is that when the business was
startedby Sunil Bharti Mittal over 15 years ago, the business has lit
tleknowledge and experience of how a cellular telephone system
actually worked. So the start-up business had to outsource to
industry experts in the field.
 Until recently Airtel did not own its own towers, which was a
particular strength of some of its competitors such as Hutchison
Essar. Towers are important if your company wishes to provide
Wide coverage nationally.
 The fact that the Airtel has not pulled off a deal with South Africa
MTNcould signal the lack of any real emerging market investment
opportunityfor the business once the Indian market has become
mature

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OPPORTUNITIES:
 The company possesses a customized version of the Google search
engine which will enhance broadband services to customers. The
tie-up with Google can only enhance the Airtel brand, and also
Provides advertising opportunities in Indian for Google.
 Global telecommunications and new technology brands see Airtel
as key strategic player in the Indian market. The new iPhone will
Be launched in India via an Airtel distributorship. Another
Strategic partnership is held with BlackBerry Wireless Solutions.
 Despite being forced to outsource much of its technical operations
in the early days, this allowed Airtel to work from its own blank
sheet of paper, and to question industry approaches and practices â
for example replacing the Revenue- Per-Customer model with a
Revenue-Per-Minute model which is better suited to India, as the
company moved into small and remote villages and towns.
 The company is investing in its operation in 120,000 to 160,000
small villages every year. It sees that less well-off consumers may
only be able to afford a few tens of Rupees per call, and also so
that the business benefits are scalable using it Match box strategy.
 Bharti Airtel is embarking on another joint venture with Vodafone
Essar and Idea Cellular to create a new independent tower
company called Indus Towers. This new business will control
more than 60% of
Indianetwork towers. IPTV is another potential new service that

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could underpin the company long – term strategy.
Threats:
 Airtel and Vodafone seem to be having an on/off relationship.
Vodafone which owned a 5.6% stake in the Airtel business sold it
back to Airtel, and instead invested in its rival Hutchison Essar.
Knowledge and technology previously available to Airtel now
moves into the hands of one of its competitors.
 The quickly changing pace of the global telecommunications
industry could tempt Airtel to go along the acquisition trail which
may make it vulnerable if the world goes into recession. Perhaps
this was an impact upon the decision not to proceed with talks
about the potential purchaseof South Africa MTN in May 2008.
This opened the door for talksbetween Reliance Communication A
nil Ambani and MTN, allowing acompeting Indian industrialist to
invest in the new emerging African telecommunications market.
 Bharti Airtel could also be the target for the takeover vision of
other global telecommunications players that wish to move into the
Indian market.

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PORTERS 5 FORCES MODEL ON
COMPANY:
INTRODUCTION TOPORTER FIVE FORCES:
Porter (1980) gave the idea of deployment of five forces for the analysis.
These five forces are (1) the threats of substitute products or services (2)
the threats of the entry of the new competitors (3) the intensity of
competitive rivalry (4) the bargaining power of buyers (5) the bargaining
power of suppliers. He said that these forces jointly determine the
competitive intensity of a firm within the industry. Strength of these
forces leads to lower profitability of an organization and vice versa.

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Bargaining Power of Supplier
 Many vendors are available (infrastructure, fiber optic cables,
software…).
 Limit on personnel, talented managers and engineers.

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Bargaining Power of Customers:
 Rising power due to increased number of telecom products – Very
little differentiation.
 Switching costs are low for residential customers, but may be high
for corporations.
Threat of New Entrants
 Access to finance (high fixed costs).
 Entrants are subject to financial state.
 FCC Still gives telecom licenses.
 “Good” Radio spectrum.
Threat of Substitute Products
 Cable TV and Satellite compete.
 Internet voice “Internet telephony”.

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Competitive Rivalry
 “Cut Throat”.
 New technology is creating substitute services.
 Market is nearly at capacity.
PEST ANALYSIS ON INDUSTRY.
PEST analysis of any industry sector investigates the important factors
that are affecting the industry and influencing the companies operating
in that sector. PEST is an acronym for political, economic, social and
technological analysis. Political factors include government policies
relating to the industry, tax policies, laws and regulations, trade
restrictions and tariffs etc. The economic factors relate to changes in the

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wider economy such as economic growth, interest rates, exchange rates
and inflation rate, etc. Social factors often look at the cultural aspects
and include health consciousness, population growth rate, age
distribution, changes in tastes and buying patterns, etc. The
technological factors relate to the application of new inventions and
ideas such as R&D activity, automation, technology incentives and the
rate of technological change.
POLITICALFACTOR:
 Antitrust Regulations
 Environmental
 Protection laws
 Tax laws
 Special incentives
 Foreign trade regulations
 Attitudes toward foreign companies
 Laws on hiring and promotion
 Stability of government
ECONOMICALFACTOR:
 GDP trends
 Interest rates
 Money supply
 Inflation rates

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 Unemployment levels
 Price control
 Devaluation Revaluation
 cost
SOCIALFACTORS:
 lifestyle Changes
 Career Expectation
 Consumer activism
 Rate of family formation
 Growth rate of population
 Age distribution of population
 Regional shift in population
 Life expectations
 Birth rates
TECHNOLOGICALFACTOR:
 Total government spending for research and development
 Total industry spending for research and development
 Focus of technological efforts
 Patent protection
 New products
 Technology transfer from lab and market place
 Productivity improvement through automation
 Internet availability

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BIBLIOGRAPHY:
 http://en.wikipedia.org/wiki/Telecommunications_in_India
 http://en.wikipedia.org/wiki/Bharti_Airtel
 http://www.scribd.com/doc/50192017/SWOT-Analysis-Bharti-
Airtel-PPT#scribd
 https://www.academia.edu/5994017/Porter_Five_Forces_Analysis
_of_the_Leading_Mobile_Cellular_Telephony_Service_Provider_i
n_India_
 http://www.columbia.edu/cu/consultingclub/Resources/Telecomm
unications_Pablo_PrietoMunoz.pdf
 https://www.asdreports.com/shopexd.asp?id=4450
 http://www.scribd.com/doc/27121254/Pest-Analysis-Indian-
Telecom-Industry#scribd