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Swot - Tows Examples

Swot - Tows Examples

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Published by: ajay gehlot on Nov 20, 2008
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SWOT Analysis Bharti Airtel
Strengths
 
 Bharti Airtel
has more than 65 million customers (July 2008). It is the largestcellular provider in India, and also supplies broadband and telephone services - aswell as many other telecommunications services to both domestic and corporatecustomers.
 
Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel,with whom they hold a strategic alliance. This means that the business has accessto knowledge and technology from other parts of the telecommunications world.
 
The company has covered the entire Indian nation with its network. This hasunderpinned its large and rising customer base.
Weaknesses
 
An often cited original weakness is that when the business was started by SunilBharti Mittal over 15 years ago, the business has little knowledge and experienceof how a cellular telephone system actually worked. So the start-up business hadto outsource to industry experts in the field.
 
Until recently Airtel did not own its own towers, which was a particular strengthof some of its competitors such as Hutchison Essar. Towers are important if yourcompany wishes to provide wide coverage nationally.
 
The fact that the Airtel has not pulled off a deal with South Africa's MTN couldsignal the lack of any real emerging market investment opportunity for thebusiness once the Indian market has become mature.
Opportunities
 
The company possesses a customized version of the Google search engine whichwill enhance broadband services to customers. The tie-up with Google can onlyenhance the Airtel brand, and also provides advertising opportunities in Indian forGoogle.
 
Global telecommunications and new technology brands see Airtel as a keystrategic player in the Indian market. The new iPhone will be launched in Indiavia an Airtel distributorship. Another strategic partnership is held withBlackBerry Wireless Solutions.
 
Despite being forced to outsource much of its technical operations in the earlydays, this allowed Airtel to work from its own blank sheet of paper, and toquestion industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited toIndia, 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 villagesevery 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 - usingits 'Matchbox' strategy.
 
Bharti Airtel is embarking on another joint venture with Vodafone Essar and IdeaCellular to create a new independent tower company called Indus Towers. Thisnew business will control more than 60% of India's network towers. IPTV isanother potential new service that could underpin the company's long-termstrategy.
Threats
 
Airtel and Vodafone seem to be having an on/off relationship. Vodafone whichowned a 5.6% stake in the Airtel business sold it back to Airtel, and insteadinvested in its rival Hutchison Essar. Knowledge and technology previouslyavailable to Airtel now moves into the hands of one of its competitors.
 
The quickly changing pace of the global telecommunications industry could temptAirtel to go along the acquisition trail which may make it vulnerable if the worldgoes into recession. Perhaps this was an impact upon the decision not to proceedwith talks about the potential purchase of South Africa's MTN in May 2008. Thisopened the door for talks between Reliance Communication's Anil Ambani andMTN, allowing a competing Inidan industrialist to invest in the new emergingAfrican telecommunications market.
 
Bharti Airtel could also be the target for the takeover vision of other globaltelecommunications players that wish to move into the Indian market.
 
SWOT Analysis ITC.
 ITC is one of India's biggest and best-known private sector companies. In fact it is oneof the World's most high profile consumer operations. Its businesses and brands arefocused almost entirely on the Indian markets, and despite being most well-known forits tobacco brands such as Gold Flake, the business is now diversifying into new FMCG(Fast Moving Consumer Goods) brands in a number of market sectors - includingcigarettes, hotels, paper, agriculture, packaged foods and confectionary, brandedapparel, personal care, greetings cards, Information Technology, safety matches,incense sticks and stationery. Examples of its successful new FMCG products include:
 
Aashirvaad - India's most popular atta brand with over 50% market share. It isalso present in spices and instant mixes.
 
Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.
 
Bingo! - a new introduction of finger snacks.
 
Kitchens of India - pre-prepared foods designed by ITC's master chefs.
 
Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pastaproducts).
Strengths
 
ITC leveraged it traditional businesses to develop new brands for new segments.For example, ITC used its experience of transporting and distributing tobaccoproducts to remote and distant parts of India to the advantage of its FMCGproducts. ITC master chefs from its hotel chain are often asked to develop newfood concepts for its FMCG business.
 
ITC is a diversified company trading in a number of business sectors includingcigarettes, hotels, paper, agriculture, packaged foods and confectionary, brandedapparel, personal care, greetings cards, Information Technology, safety matches,incense sticks and stationery.
Weaknesses
 
The company's original business was traded in tobacco. ITC stands for ImperialTobacco Company of India Limited. It is interesting that a business that is nowso involved in branding continues to use its original name, despite the negativeconnection of tobacco with poor health and premature death.
 
To fund its cash guzzling FMCG start-up, the company is still dependant uponits tobacco revenues. Cigarettes account for 47 per cent of the company'sturnover, and that in itself is responsible for 80% of its profits. So there is anargument that ITC's move into FMCG (Fast Moving Consumer Goods) is beingsubsidized by its tobacco operations. Its Gold Flake tobacco brand is the largestFMCG brand in India - and this single brand alone holds 70% of the tobaccomarket.

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