The document presents a BCG matrix analysis of the strategic business units of Bharti Airtel Limited, a leading telecom company in India and Africa. It analyzes four SBUs - Mobile Services, Telemedia Services, Enterprise Services, and Passive Infrastructure. It identifies Mobile Services as a cash cow with high market share and low growth. Telemedia Services is identified as a dog with low market share and low growth. Enterprise Services is identified as a star with high growth potential but low current market share. Passive Infrastructure is identified as a question mark with high growth potential but low current market share requiring significant investment to increase its market share.

1. Presented by……….. Fedora D'souza Nitin Jadhav

2. Introduction Addresses the issue of the potential value of a particular business for the firm. Used to establish the best mix of businesses in order to maximize the long-term earnings growth of the firm Has two variables: i) the potential for generating attractive earnings levels now ii) the potential for growth for significantly increased earnings levels in the future.

3. BCG Matrix Star Dog Cow Question Mark

4. Stars High Market Share / High Market Growth Leads to large amount of cash consumption and cash generation. They require heavy investment, to maintain its large market share. Star products represent, probably the best profit opportunity available to a company, It is the future payoff of the star that counts, not the present reported profit. Attempts should be made to hold the market share otherwise the star will become a CASH COW.

5. Cows Low growth, High market share They are foundation of the company and often the stars of yesterday. Generate large cash surpluses Because of the low growth, promotion and placement investments are low. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining.

6. Question Marks High growth , Low market share Require more cash than they are able to generate on their own. Absorb great amounts of cash if the market share remains unchanged. Question marks are essentially new products where buyers have yet to discover them. The marketing strategy is to get markets to adopt these products. Need to increase their market share quickly or they become dogs. The best way to handle Question marks is to either invest heavily in them to gain market share or to sell them

7. Dogs Low growth , Low market share Dogs are in low growth markets and have low market share. Dogs are the cash traps. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help. Business is situated at a declining stage.

8. Product Portfolio Matrix: Strategic Consequences

9. Bharti Airtel Limited a leading emerging market telecom services provider with operations in 19 countries across Asia and Africa. Bharti Infratel Limited is amongst India's leading telecom passive infrastructure service providers.

10. 4 Strategic Sub Units (SBU) Mobile Services Prepaid & Postpaid Blackberry Smartphones International Calling Wireless Internet Digital TV Services Digital TV Recorder IPTV Enterprise Services Corporate Carriers Telemedia Services Fixed Line Broadband Passive Infrastructure Bharti Infratel Indus Tower Subsidiary

11. BCG Matrix of Bharti Airtel Ltd SBU : Enterprise Services SBU : Passive Infrastructure SBU : Telemedia Services SBU : Mobile Services

12. Strategic Business Unit Market Share (SBU) Market Share (Largest Competitor) Relative Market Share Relative Market Share (in BCG Terms) Product Sales Growth (%age change b/w FY 09-10) Quadrant in which the SBU lies Mobile Services 63.32% Idea Cellular Ltd. - 21.94% 50.12% 2.28 7% Cash Cow Telemedia Services 6.65% Tata Tele services - 20.32% 30.57% 1.5 2% Dog Enterprise Services (Carriers & Corporates) 16.41% Atire Technology - 42.6% 14.50% 0.34 17% Star Passive Infra 13.62% GTL Infra - 28.33% 6.32% 0.22 38% Question Mark

13. Justification Star Enterprise Services have been providing lot of amount as per current base but needs investments in the higher proportion due to high growth rate, hence it needs lot of amount to stand the business

14. Justification for Question Mark Passive Infrastructure is a very new approach but has been able to hold quick grip in market Good collaborations like Indus Towers could help them increase their market share if funded adequately

15. Justification for Cash Cows Mobile Services has been legacy of Bharti which has been enjoying a greater market share It generates highest revenues among its other SBU’s

16. Justification for Dogs Telemedia Services have little potential for gaining sufficient share to achieve feasible cost positions also because of other big players already existing in the market

17. BCG Matrix and PLC Curve Passive Infra Enterprise Services Mobile Services Telemedia Services

18. Characteristics and Strategy Implications of Products in the Strategy Quadrants

19. Company BAJAJ Gr. Prdt/ser Relative Market share Growth rate in % Sales 2010 (Rs.Crore) Bajaj auto 2&3 wheelers 0.74 16.78 12,767.12 Hero honda 2&3 wheelers 17,138.00 Bajaj Finserv Insurance & Financial services 0.62 23.39 985.41 Bajaj Holding & investment ltd. Insurance & Financial services 1410.17 Mahindra & Mahindra Financial Services Ltd Insurance & Financial services 1,595.60 Bajaj Hindustan Sugar Sugar 0.28 21 422.17 Balrampur chini mills Sugar 1,527.46 Bajaj Electricals Domestic Appliances 0.82 23.28 2,308.02 I F B Industries Ltd. Domestic Appliances 666.08 Whirlpool of India Ltd 2,817.21 Bajaj corp ltd . Personal Care 0.10 18.4 334.87 Dabur India Personal Care 3,466.38 Bajaj Steel ltd. Packaging 0.68 8.325 241.13 Karur KCP Packkagings Ltd Packaging 355.74

21. Company TVS Gr. Prdt/ser Relative Market share GR Rate in % Sales 2010 (Rs.Crore) Sundaram Finance Finance 0.50 39.27 2,035.37 IDFC Finance 4,060.16 Reliance Capital Ltd Finance 2,423.16 TVS motors 2&3 wheelers 0.38 16.78 4,811.40 Bajaj auto 2&3 wheelers 12,767.12 Hero honda 2&3 wheelers 17,138.00 TVS electronics Hardware 0.01 14.93 200.36 Moser baer Hardware 2,370.48 Redington India Hardware 13,982.14 Sundaram Clyaton Brakes 1.69 9.14 5,729.01 Amtek Auto Brakes 3,395.66 Indian Nippon Electricals Electrical 0.03 36.28 191.67 Motherson Sumi Electrical 7,209.63 Minda Industries Ltd Electrical 503.33 TVS Srichakra Ltd Tyres 0.09 23.67 753.61 Apollo Tyres Ltd Tyres 8,414.04 MRF Ltd Tyres 5,966.55