INDIAN INSTITUTE OF MANAGEMENT, INDORE

SM-I Individual Assignment

BHARTI AIRTEL

Submitted by: Ankit Bansal Section D 2010PGP046

Long term contract with third parties are required. Recruiting best in business leaders to take the company forward. ERP and various software to assist in operations HR Management: Hiring of IT skilled workforce and telecom operators. Investing in R & D. Networking stations and equipments. the main activities which give Bharti Airtel a competitive edge are: Input Operation Licenses Finance for operations and setup of infrastructure Setting up Network infrastructure in collaboration with third party Software and support required to operate the Mobile telephony Value added content providers of like games. . Procurement: High initial investment required to setup up physical distribution towers and network stations. Hiring of customer support personnel and their training program. TATA. Introduction of mCheck to enable consumers do mobile commerce. Telecom equipments. Creating and setting up of 3G network with new licenses coming in. Porter 5 Force analysis for Bharti Airtel Threat from Competition: HIGH Companies like BSNL. music etc. Vodafone. Operations Develop and expand the infrastructure Customize software to requirement Develop the sim cards Develop the network substations Use the Mobile serives switching center to divert traffic to mobile or fixed systems Integrate various network to achieve economies of scale Output Broad Band Services Fixed Line Services GSM Services VAS Marketing & Services Coverage area of each airtel outlet Customer Support Technical assistance for broad band services Duplicate Sim availability Strong supplier channel for repairable parts Opening new outlets in new circles Sales Strong SIM distribution channel First mover in developing better products Introducion of new services to match the customer preferences Innovative advertising campagins Sales force compensation tied to profit and not revenues Customer awareness about latest technology Support Activities Firm Infrastructure: Tower setup. Expertise in recruiting the retail staff and quality of their training.Bharti Airtel Value Chain Analysis Primary Activities Under the primary activities. MTNL. Strong Supply Chain Network is required to enable continuous supply of handsets and SIM cards. Technology Development: Development of various VAS services. IT infrastructure. IDEA and Reliance continuously engage themselves in aggressive marketing and expansion and thus trying to eat into Bharti s market share.

Innovation and creativity: Airtel combines telecom services. valuable (gives it control of more processes in the value chain) and costly. Threat from Suppliers: LOW Long term contracts ensure future supply of handsets and SIM cards. Many high end software making companies compete for telecom software develop thereby pushing the prices of these software low. Threat from Substitutes: LOW Fixed Line services are on decline. Social Networking websites and Skype is reducing the need for mobile services. it is not a rare resource giving Bharti Airtel a competitive parity.Threat from Customers: HIGH All the major telecom operators provide similar services. Customers can switch easily to another firm. 3. Building such reputation especially in the telecom sector is quite rare and very valuable and quite difficult to imitate. the physical resources is a source of competitive advantage. However the internet telephony is catching up giving telecom operators run for money. Physical: Airtel has state of the art towers and networking infrastructure that use the latest software to provide best services at lower cost. Financial: It has a good balance of cash and reserves in its balance sheet and also its borrowing power both in terms of equity and debt is good as can be inferred from the fact that it successfully raised funds in 2009 through debt and through equity in 2010. Low spectrum availability and introduction of new strategies by the existing firms. Though valuable. 4. It has a JV with Indus Power for towers and long term customer support outsourcing deal with IBM. Lower prices are enjoyed by customers due to severe competition. Many companies are present to provide customer support at lowest prices. Threat from New Entrants: LOW Huge initial investments and high gestation period. Technological: It has major network outsourcing and maintenance deals with Ericsson and Nokia Siemens. distribution of products as well as after sale services and has a proven track record of high profit generation. Bharti has been the front-runner in the product innovations field and has obviously been enjoying the first mover advantage. With number portability a reality it further gives them power to dictate. valuable and costly to imitate giving it a competitive advantage. Thus. 5. . High initial investments by suppliers mean they are dependent on few telecom operators for revenue. hence. Again. Reputation: Airtel enjoys a good brand name and reputation in India. These networks till now cannot be put to other profitable uses. we can analyze the following resources and capabilities of Bharti Airtel: 1. Video conferencing. Highly regulated industry and it is very dynamic in nature. hence low bargaining power for them. Bharti Airtel has the largest market share in the GSM segment. it has innovative processes which again are rare. Resource Based Analysis Using the VRIO model. it is valuable as well as rare and also costly to imitate. Managing over 23 circles in India is a huge challenge which is rare (not done by many companies). 2.

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