A Summer Project Report

On
CRM by mobile service companies with reference to Bharti Airtel (Allahabad)
A report submitted to Ishan Institute of Management & Technology, Greater Noida as a partial fulfillment to full time post graduate
diploma in management

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY

2, KNOWLEDGE Park – 1, Greater Noida, Dist.-G.B.Nagar (U.P.)
Website: www.ishanfamily .com
E-Mail: student@ishanfamily.com

GROUP 7 1
Bharti Airtel Introduction
• Largest Private Integrated Telecom Company in India

• 3rd Largest Wireless Operator in the World

• Largest & Fastest Growing Wireless Operator in India

• Largest Telecom Company listed on Indian Stock

Exchange

GROUP 7 3
Integrated Telecom
Company
 Wireless Services  Enterprise Services
– 2G/3G – Carrier
– Rural Market – Corporate

Telemedia  Passive
Services Infrastructure
– Fixed Line – Bharti Infratel
– Broadband – Indus Tower
– DTH

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Vision 2010
• By 2010 Airtel will be the most
admired brand in India:
– Loved by more customers
– Targeted by top talent
– Benchmarked by more businesses
Vision 2020
• To build India's finest business
conglomerate by 2020
• Supporting education of
underprivileged children through
Bharti Foundation
• Strategic Intent:
– To create a conglomerate of the future by
bringing about “Big Transformations
through Brave Actions.”
Mission
• “ We at Airtel always think in fresh
and innovative ways about the needs
of our customers and how we want
them to feel. We deliver what we
promise and go out of our way to
delight the customer with a little bit
more”
Objectives/Goals
• To undertake transformational projects
that have a positive impact on the society
and contribute to the nation building
process.
• To Diversify into new businesses in
agriculture, financial services and retail
business with world-class partners
• To lay the foundation for building a
“conglomerate” of future
Indian Telecom Sector
• 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

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CRM?
• Customer satisfaction.
• Customer delightment.
• Customer solution.
• Customer convenience.
• Customer responsibility.
• Customer problem.
• Customer facility.

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CRM OF AIRTEL
• Best services
• Prepaid connection
• Post paid connection
• VAS(value added services)
• GPRS
• GSM

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Technology
CDMA – Already there are
big players in this
segment Reliance ,
Tata

3G – Value added services

potential still to be
tapped fully

2G/3G – GSM Currently

commands 70% of
mobile subscribers in
India
Porter’s Generic
Strategy

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Porter’s 5 Forces

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1. Threat from Competition
Wireless Market – Top 4 garnering 75%
market share

HIGH

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Competitor Analysis

  OP Margin Net Margin

Compan Sep-07 Sep-08 Sep- Sep-
Best OP Margins
y 072 083
& Net Profit Bharti 43.00% 38.00% 26.40% 19.30%
Margins among
Rcom 37.90% 31.60% 23.90% 13.20%
Peers
IDEA 32.80% 26.60% 14.10% 6.50%
MTNL 23.70% 22.90% 7.00% 6.80%

Source: CMIE November 2008

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2. Customer Bargaining
Power
 Lack of differentiation among HIGH

Service Providers
 Cut throat Competition
 Low Switching Costs
 Number Portability will have –Ve
Impact
 Businesses & Consumers
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Market Scenario

Postpaid Vs Prepaid Customers & Market Share

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3. Suppliers Bargaining
Power
LOW

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4. Threat of Substitutes
 Landline DIMINISHING HIGH
 CDMA MARKET

 Video Conferencing
BROADBAND
SERVICES
 VOIP - Skype, Gtalk, Yahoo Messenger
 e-Mail & Social Networking Websites

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5. Threat of New Entrants
 Huge License Fees to be paid upfront & High
gestation period
LOW
 Entry of MVNOs & WiMAX operators

 Spectrum Availability & Regulatory Issues

 Infrastructure Setup Cost - High

 Rapidly changing technology

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SWOT
Strengths Weakness
• Largest Telecom Player in • Outsourcing of Core
India - ~80Mn, 22.6% Systems
• Strategic Alliance with • Lack of emerging
other stakeholders in market investment
Bharti Airtel include Sony- opportunity
Ericsson, Nokia - and Sing
Tel
• Pan India Presence
• Strong Financials

Source: CMIE Report NOV 08

GROUP 7 22
SWOT
Opportunities Threats
• Bharti Infratel – • India centric – Major
Cutting Down cost in revenues from India
Rural area
• Falling ARPU & AMOU
• Match Box Strategy –
Scale of Penetration • Intense Competition &
• Current Tele-Density – Shortage of Bandwidth
30.6 is still low among
developing countries
• Low Broadband
Penetration, Rural
Telephoney
GROUP 7 23
BCG Matrix for Bharti Airtel
HIGH

Mobile Services
DTH & IPTV

Broad Band
LOW

HIGH LOW
GROUP 7 24
 GE Matrix Classification
Business Strength
Medium Weak
Strong 5.00
High
Attractiveness

3.67
Medium
Market

2.33
Low

GROUP 7
5.00 3.67 2.33 1.0025
Business Strength
 Current market share
 Brand image
 Brand equity
 Production capacity
 Corporate image
 Profit margins relative to competitors
 R & D performance
 Managerial personal
 Promotional effectiveness

GROUP 7 26
Airtel’s GE Matrix
High Business Strengths Low

High Attractive 5.00

Market Attractiveness

Airtel Enterpri
Mobil se
e
3.67

Moderate
TeleMed
ia Attractive
2.33

Unattractive

Low
GROUP 7 27
5.00 3.67 2.33 1.00
Airtel – Strategy
MANTRA : Focus on Core Competencies
and Outsource the rest!
Strategy
• Airtel partnered with leading players in
telecommunication players across the
globe.
• It has managed to work with the best of
domain specialists globally and emerge as
a world class entity.
• Partnerships include operational contracts
with marquee vendors and strategic
investors ranging from private equity
investors to global telecom giants.
Performance till date
• Bharti Airtel has enjoyed an excellent run ever
since the telecom sector opened.
• It has managed to hold on to its leadership
position inspite of the presence of other players
with deep pockets – Ambani’s, Tata’s, Birla’s and
Vodafone.
• Has coped well with regulatory changes.
• Continues to attract and delight customers.
Future Strategies
• Translate its expertise in Indian markets to
other emerging economies.
• This could call for acquisitions globally.
• Technology leadership is a must – Airtel
must ensure that its reliance on GSM
technology does not render it obsolete.
• Indian market inspite of being the worlds
largest is still not matured. Opportunities
abound in the hinterland which must be
exploited.
Growth Factors

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Road Map – Growth Path
VPN &
VoIP

WiMAX

3G

2G/2.5G

GROUP 7 33
Airtel - Strategy

MANTRA : Focus on Core Competencies and Outsource the rest!

References
• Bharti Airtel, Annual Report -2008
• Investors presentation, Bharti Airtel Limited,
November 2008
• Telecommunication Services, Indian Industry: A
Monthly Review, CMIE – November 2008
• Analyst Report – Bharti Airtel, Asit C. Mehta
Invesment Intermediates Ltd.
• Telecommunication Sector Report – March 2008,
CRISIL
• Capitaline Database http://capitaline.com
• Indian Telecommunication Sector - August 2007,
IBEF Report
• “Next Big Spenders – Indian Middle Class”,
Businessweek
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THANK YOU !!

GROUP 7 36