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reportonairtelstratedies-090515002139-phpapp02

reportonairtelstratedies-090515002139-phpapp02

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Published by madhanyepuri

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Published by: madhanyepuri on Jun 29, 2011
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02/01/2013

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INITIAL REPORT
Internship Program 2009Company: Vasani EnterprisesCompany Guide: Mr. Jayesh VasaniSubmitted to: Mrs. Seema SantSubmitted by: Mr. Kedar PawaskarEnrollment no: 8NBMM008
 
Indian Telecom Industry – Facts
One of the fastest growing cellular markets in the world interms of number of subscriber additions – 19.35 million in 3months (April to June 2008)
Expected to reach total subscriber base of about 500 millionby 2010 (i.e., more than one phone for every household)
Annual growth rate of the telecom subscribers – 47 percent(2007–08)
Fastest Growing Sector – CAGR 22% (2002-07)
Second Largest Telecom Market
Lowest tariff charges in the world
Wireless Subscribers – 315.3 Mn
Wireline Subscribers – 38.4 Mn
 Teledensity – 30.6
23 Circles - 4 Categories ( Metro, A, B & C)
Bharti Airtel – Largest player with presence in 23 Circles 
 
PORTER'S GENERIC COMPETITIVE STRATEGIESCost Leadership Strategy
A firm gains cost leadership in an industry when its cost of production is lower than that of its competitors. Airtel has gaincost leadership by managing its processes and resourcesefficiently and effectively. By bringing down its operational costs,an Airtel has offer its products and services at lower prices. It hasalso earn higher profits because either the profit margins aregreater or the sales volume has increased.OperationalmarginNETMARGIN
companySep 07Sep08Sep07Sp08
Bharti43%38%26.4%19.30%Rcom37.90%31.60%23.90%13.20%IDEA32.80%26.60%14.10%6.50%MTNL23.70%22.90%7%6.80%A cost leadership strategy works well for Airtel in the event of aprice war in the industry. Since the firm is already working on alow price strategy, it has reap profits
 
while the competitors( mtnl / reliance/ tata) are bound to make losses.

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