2. Background
â—Ź Bharti Airtel, incorporated on July 7, 1995 is the flagship company of Bharti
Enterprises.
â—Ź It operates in 18 countries with major presence in South Asia and Africa. With 354
million subscribers, the company is the second largest mobile network operator in
India and the second largest mobile network operator in the world.
â—Ź Bharti Airtel, is AsiaĘĽs leading integrated telecom services provider with operations in
India and Sri Lanka. The company offers wireless services, cell phone commerce,
internet, DTH. The company covers almost 95.3% Indian population.
â—Ź Bharti Airtel has been at the forefront of the telecom revolution and has transformed
the sector with its world–class services built on leading edge technologies. The
company presents itself with brand name “Airtel”.
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3. Current Scenario
The telecommunication industry in India has taken a disruptive trend in Green Telecom,
Expansion to Rural Areas, launch of BWA Technologies, Internet of things, increase in
investment, mobile banking and more. These trends have brought rising competition and
hence, to serve the large consumer base, the companies have to take in more debt burden and
high operating cost. Airtel has brought in a certain set of mission and Goals to build and
maintain its existing market share.
Vision Statement
“Our vision is to enrich the lives of customers. Our obsession is to win customers for life
through an exceptional experience”.
Objective
Increase Market Share, increase revenue and build new revenue streams, reduce cost, provide
a good quality network, be more sustainable.
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5. Strengths
Airtel is market leader and had 24.31 percent market share whereas other competitors had below it (India Brand Equity
Foundation, 2017). It has highest revenue, market share and presence in India . It has wide distribution platforms such
as: Mobile money, Airtel TV . It has huge placements of its Network towers and base stations, hence, better customer
support and quality.
Weakness
As there are increased account receivables hence, Improper Credit Management can impact company’s financial
position in case of any default or economic slowdown .
Threats
Increased competition in industry (decreasing Average revenue per user), currency fluctuations and regulations bring in
potential threats. They could be seen with PESTEL and Porters Model discussed ahead.
Opportunities
The Government of India planned Digital Drive to bring opportunities for data consumption growth, Digital payments
(expected to grow by 5 folds in 2023), More penetration in new customers. The other revenue stream of “sharing
infrastructure” is also big opportunity.
SWOT Analysis
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6. Power of buyers
With Mobile number portability in place, least ways to differentiate in services a, more quality dependency and less
switching cost for customers leads to high customer bargaining power (India Brand Equity Foundation, 2017).
Power of suppliers
High Cost to switch from one supplier to another and less supplier availability in the market. But, with shared
infrastructure technology coming in place, reduces the burden of Airtel operating expenditure (India Brand Equity Foundation,
2017).
Degree of rivalry
The competition is huge and there are big players in each region. As the customer is price sensitive and switching cost is
low and the exit barriers for companies are high hence, provokes intense competition (India Brand Equity Foundation, 2017).
The substitute threat
The threat of substitute products can be seen with Voice over ip technology gaining market. The customer is making less use of telecom
services and using more internet services. Hence, this pose a big threat to Airtel
Porter 5 Forces
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8. Corporate Level Strategy
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â—Ź In existing market the company is transforming itself into the digital service
provider.
â—Ź The company is going for market consolidation and the future of telecom industry
would be - big three major private telecom giants (Airtel, Jio, Vodafone) and one
public sector giant (BSNL) to dominate the market.
â—Ź To Capitalize the emerging opportunities company is consolidating the market by
recent huge acquisitions (Cisco, 2012).
â—Ź By offering new products and services in existing market, company looks into
making the customer stick to it and also increase average revenue per user. The
company is steadily developing it’s b2b services market by offering cloud based,
digital media, network, voice services and Data Centre Based services