Chapter 1: Introduction

Incorporated on July 7, 1995, Bharti Airtel Ltd. is a division of Bharti Enterprises. The businesses of Bharti Airtel are structured into two main strategic groups - Mobility and Infotel. The Mobility business provides GSM mobile services in all 23 telecommunications circles in India, while the Infotel business group provides telephone services and Internet access over DSL in 15 circles. The company complements its mobile, broadband, and telephone services with national and international long-distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Bharti Tele-Ventures provides end-to-end data and enterprise services to corporate customers by leveraging its nationwide fibreoptic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. All of Bharti Tele-Ventures' services are provided under the Airtel brand.

As of September 2011, Bharti Tele-Ventures was the only company to provide mobile services in all 23 telecom circles in India.

By the end of October 2011, Bharti Tele-Ventures was serving more than 14.74 million GSM mobile subscribers and 1.10 million broadband and telephone (fixed line) customers.

The equity shares of Bharti Tele-Ventures are currently listed on the National Stock Exchange of India Ltd (NSE) and the Stock Exchange, Mumbai (BSE). As of September 30, 2011, the main shareholders of Bharti Tele-Ventures were: Bharti Telecom Ltd (45.65%), a subsidiary of Bharti Enterprises; Singapore Telecom (15.69%), through its investment division Pastel Ltd; and, Warburg Pincus (5.65%), through its investment company Brentwood Investment Holdings Ltd). Other shareholders with more than a 1% stake were: Citi Group Global Markets Mauritius Pvt. Ltd. (2.99%); Europacific Growth Fund (2.04%); Morgan Stanley & Co International Ltd (1.93%); CLSA Merchant Bankers Ltd A/C Calyon (1.33%); Life Insurance Corporation of India (1.34%); and, The Growth Fund of America Inc (1.11%).

Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (which owns Airtel), is today, the most celebrated face of the telecom sector in India. He symbolises the adage that success comes to those who dream big and then work assiduously to deliver it. Sunil Bharti Mittal began his journey manufacturing spare parts for bicycles in the late 1970s. His strong entrepreneurial instincts gave him a unique flair for sensing new business opportunities. In the early years, Bharti established itself as a supplier of basic telecom equipment. His true calling came in the


mid 1990s when the government opened up the sector and allowed private players to provide telecom services.

Bharti Enterprises accepted every opportunity provided by this new policy to evolve into India's largest telecommunications company and one of India's most respected brands. Airtel was launched in 1995 in Delhi. In the ensuing years, as the Airtel network expanded to several parts of India, the brand came to symbolise the very essence of mobile services.

Airtel provides a host of voice and data products and services, including high speed GPRS services. Airtel also offers a wide array of 'postpaid' and 'prepaid' mobile offers, with a range of tariff plans that target different segments. A comprehensive range of value-added, customised services are part of the unique package from Airtel. The company's products reflect a desire to constantly innovate. Some of these are reflected in the fact that Airtel was the first to develop a 'single integrated billing system'.

Airtel comes to you from Bharti Airtel Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 21 million satisfied customers. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti has many joint ventures with world leaders like SingTel (Singapore Telecom); Warburg

Telia. Bharti provides a range of telecom services. USA and New York Life International. Airtel's journey to leadership began in Delhi in 1995. International Finance Corporation. Today. It won the prestigious Techies Award for 'being the best cellular services provider' for four consecutive years between 1997 and 2000 . Internet and recently introduced National Long Distance. Airtel will soon cover the entire country through a process of acquisitions and green field projects. it received the Voice & Data Award for being 'India's largest cellular service provider'. With a presence in over 1. There are other 'firsts' credited to Airtel . Asian infrastructure find. it was the first to cross the one million and the five million customer marks.Pincus. it is also the first company to export its products to the USA. Airtel innovates in almost everything that it presents to the market.400 towns. Airtel today has the largest network capacity in the country. USA. Apart from being the largest manufacturer of telephone instruments in India. Bharti also manufactures and exports telephone terminals and cordless phones.a record that is still unmatched. Airtel has established itself across India in sixteen states covering a population of over 600 million people. Airtel has also been conferred with numerous awards. Sweden. Since then. In the last nine years Airtel has achieved many firsts and unique records: it was the first to launch nationwide roaming operations. Basic. USA.India's first paperless electronic recharging facility for prepaid customers. As evidence of its fine record. amongst 4 . Mauritius. It was also the first to launch services overseas.many of them in the area of innovative products and services. An excellent example is Easy Charge . which include Cellular. And in 2003.

Airtel has invested over Rs.others. 1. Corporate Structure of the Company 5 . As part of its continuing expansion.065 billion in creating a new telecom infrastructure.

 innovative products and services Mission of the Company  Customer service focus  Empowered employees  Innovative services  Cost efficiency 6 .  bench marked by more business  first private telecommunication company to launch long distance services  cost efficiency  unified messaging solutions  Will meet the mobile communication needs of our customers through error -free service delivery.Vision of the Company “To be globally admired for telecom services that delight customers”.

International Long Distance (ILD).It has forayed into mobile service provision as well.  To find out how Airtel react to the technology changes in the communications sector. long distance players. and international long distance players.Chapter 2: Objectives Of The Study The Indian communications scenario has transformed into a multiplayer. and Internet Service Provision (ISP). 7 . Objective of study are:   What corporate strategies Airtel is implementing to defend and increase the market share. To find who are the competitors of the Airtel and the market shares of the competitors and what strategies Airtel is implementing to beat its competitors. multi product market with varied market size and segments. Airtel has had to gear itself to meet competition in various segments basic services. Apart from having to cope with the change in structure and culture (government to corporate). long distance(LD). Within the basic phone service the value chain has split into domestic/local calls.

conceptual and less concrete than decisions at the business or functional level.Chapter 3: Company Strategy Corporate Strategy Corporate level strategy occupies the highest level of strategic decision-making and covers actions dealing with the objective of the firm. Top management of the organization makes such decisions. acquisition and allocation of resources and coordination of strategies of various SBUs for optimal performance. Business Level Strategy Business-level strategy is – applicable in those organizations. The fundamental concept in SBU is 8 . The nature of strategic decisions tends to be value-oriented. which have different businessesand each business is treated as strategic business unit (SBU).

competition. corporate strategy usually applies to the whole enterprise. For example. defines the choice of product or service and market of individual business within the firm. Reliance Industries Limited operates in textile fabrics. less comprehensive. yarns. Andrews says that in an organization of any size or diversity. Therefore. fibers. the nature of market in terms of customers. Such strategies operate within the overall strategies of the organization.‟ Corporate strategy is not the sum total of business strategies of the corporation but it deals with different subject matter. allocation of re-sources among functional areas and coordination between them for making optimal contribution to the achievement of corporatelevel objectives. For example. In other words. The corporate strategy sets the long-term objectives of the firm and the broad constraints and policies within which a SBU operates. it requires different strategies for its different product groups. For each product group. There is a difference between corporate-level and business-level strategies. At such a level. Thus. and a variety of petrochemical products. each SBU sets its own strategies to make the best use of its resources (its strategic advantages) given the environment it faces. a SBU is created for each such segment. while business identify the discrete independent product/market segments served by an organization. While the corporation is concerned with and has impact on business 9 . where SBU concept is applied. Corporate strategy defines the business in which a company will compete preferably in a way that focuses resources to convert distinctive competence into competitive advantage. Since each product/market segment has a distinct environment. The corporate level will help the SBU define its scope of operations and also limit or enhance the SBUs operations by the resources the corporate level assigns to it. and marketing channel differs. strategy is a comprehensive plan providing objectives for SBUs. business strategy relates to the „how‟ and corporate strategy to the „what‟.

10 . can be subdivided into promotion. Such decisions are guided and constrained by some overall strategic considerations. the former is concerned with the shape and balancing of growth and renewal rather than in market execution. For example. Functional strategy deals with relatively restricted plan providing objectives for specific function. there may be operations level strategies as each function may be dividend into several sub functions. a functional strategy.strategy. pricing strategies with each sub function strategy contributing to functional strategy. sales. as is suggested by the title. marketing strategy. Decisions at this level within the organization are often described as tactical. relates to a single functional operation and the activities involved therein. allocation of resources among different operations within that functional area and coordi-nation between them for optimal contribution to the achievement of the SBU and corporate-level objectives. distribution. Below the functional-level strategy. Functional Level Strategy Functional strategy.

mobile services. It is now promoted under the Airtel brand.carriers (long distance services) and services to corporate. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU‟s) . while the B&T business group provides broadband & telephone services in 90 cities. Madhya Pradesh. The mobile services group provides GSM mobile services across India in 23 telecom circles. Recently. All these services are provided under the Airtel brand. Airtel has subsequently started providing fixed line services in the four circles of Delhi. Karnataka. Tamil Nadu & UP (West). The Enterprise services group has two sub-units . broadband & telephone services (B&T) & enterprise services. Haryana. 11 . the Government opened the fixed-line industry to unlimited competition. and is India's leading provider of telecommunications services. It includes:      Voice Services Mobile Services Satellite Services Managed Data & Internet Services Managed e-Business Services 1) Voice Services Bharti Airtel became the first private fixed-line service provider in India.Chapter 3: AIRTEL Enterprise Services The Company is a part of Bharti Enterprises.

Voice . 12 . Hunting Numbers. India's premium telecommunication service. especially for carrying Voice & Data traffic. Airtel Enterprise Services Voice Services provide Free Dial-up Internet access that is bundled along with your Telephone connection from Airtel. It‟s fast. From integrated telephone services for Enterprises and small business enterprises to user-friendly plans for Broadband Internet Services (DSL).Airtel Enterprise Services believes that these circles have high telecommunications potential. Each telephone connection from Airtel Enterprise Services is backed by a superior fibre-optic backbone for enhanced reliability and quality telephony. reliable and gives you unlimited Internet access. we bring innovative. and Parallel Ringing etc. brings to you a whole new experience in telephony. comprehensive and multi-product solutions to cater to all your telecom and data needs. Airtel Enterprise Services. These circles were strategically selected so as to provide synergies with Airtel‟s long distance network and Airtel‟s extensive mobile network. cost-effective. Few of the Value Added Services offered are Calling Line Identification. Dynamic Lock. Three Party Conferencing.Product Portfolio Airtel Enterprise Services telephone services go beyond basic telephony to offer our users a whole host of Value Added Services as well as premium add-ons.

13 . that‟s how Bharti has managed to win the trust of millions of customers and makes it one of the top 5 operators in the world. The First in Asia to deploy the multi band feature in a wireless network for efficient usage of spectrum. Its service standards compare with the very best in the world.   The First to deploy Voice Quality Enhancers to improve voice quality and acoustics. In fact. in terms of service and subscriber base.2) Mobile Services Airtel‟s mobile footprint extends across the country in 23 telecom circles. The First telecom company in the world to receive the ISO 9001:2000 certification from British Standards Institute. The company has several Firsts to its credit:    The First to launch full roaming service on pre-paid in the country. The First to launch 32K SIM cards.

Managed Data & Internet Services include:       MPLS ATM FR Internet IPLC Leased Lines 14 .3) Satellite Services Airtel Enterprise Services provides you connectivity where ever you take your business Our Satellite Services bring you the benefits of access in remote locations. Our solutions support audio. Airtel Enterprise Services is a leading provider of broadband IP satellite services and DAMA/PAMA services in India. video and voice applications on demand. Satellite Services include:    PAMA / DAMA BIT – Internet VPN 4) Managed Data and Internet Services Airtel Enterprise Services brings you a comprehensive suite of data technologies. So we are able to support all types of networks and ensure our customers can migrate their network to the future seamlessly. Our Managed Data & Internet services make our customers future proof.

Managed e-Business Services include:    Co-lo: Dedicated and Shared BCRS Services Web Hosting 15 . A range of services that help to keep your business running the way you want .   Customised Solutions International Managed Services Metro Ethernet 5) Managed e-Business Services Airtel Enterpirse Services offers an internationally benchmarked. carrier class hosting.24x7. storage and business continuity services. Thanks to our world-class high tech Data Centres.

Chapter 4: Company Analysis Bharti Airtel Stock Analysis: 16 .

around 93% of the total revenue comes from telecom (Total telecom revenue Rs 3.  The only Indian operator.  Saturation point in basic telephonic services.  Untapped Rural Market.  Latest Technology and Low cost advantage. other than VSNL. 17 . WEAKNESS  Price Competition from BSNL.  Huge Market. that has an international submarine cable. Idea Cellular.SWOT ANALYSIS: STRENGTH  Very Focused on Telecom.326).  Leadership in fast growing cellular segment. cellular and mobile operators. Vodafone and Rcom.  Pan-India footprint. OPPURTUNITIES  The fast expanding IPLC THREATS  Competition from other Market. 1. Strength Very Focused on Telecom Bharti Airtel is largely focused on the telecom. MTNL.

2011.239. The mobile services group provides GSM mobile services across India in 23 telecom circles. Pan-India Footprint Airtel offers the most expansive roaming network. to connect to the outside world.648. The only operator in India other than VSNL having International Submarine Cables Airtel. Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 27. 2. Letting you roam anywhere in India with its Pan-India presence. in the year 2002. Weakness Price Competition from BSNL and MTNL Airtel is tough competition from the operators like BSNL and MTNL as these two operators are offering services at a low rate. and trot across the globe with International Roaming spread in over 240 networks. while the B&T business group provides broadband & telephone services in 92 cities.Leadership in Fast Growing Cellular Segment Airtel is holding leadership position in cellular market.. the monopoly breaker shattered the Telecom monopoly in the International Long Distance space with the launch of International Submarine cable Network i2i jointly with Singapore Telecommunications Ltd.591.071 broadband & telephone customers. consisting of 25.686 GSM mobile and 1. 18 . delivering them an option besides the incumbent carrier.757 customers as on August 31. This has brought a huge value to the IPLC customers.

As a late entrant into the cellular market. as it needs only to augment its cellular switch/equipment capacity and increase the number of base stations. An IPLC can be used for Internet access. Each Landing Station has Power Feeding Equipment. Besides such cost advantages. business data exchange. it has also other cost advantages for the latest cellular technology.Untapped Rural market Although Airtel have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is losing revenue from the rural sector. Submarine Line Terminating Equipment and SDH system to power the cable. Opportunities The fast extending IPLC Market An IPLC (international private leased circuit) is a point-to-point private line used by an organization to communicate between offices that are geographically dispersed throughout the world. The number of cities. towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. it has dual advantage of latest technology with modern 19 . and any other form of telecommunication. Airtel Enterprise Services and SingTel jointly provide IPLCs on the Network i2i. The Landing Station in Singapore is managed by SingTel and by Airtel in Chennai (India). 3. Latest Technology and Low Cost Advantage The costs of introducing cellular services for Airtel are marginal in nature. video conferencing. add wavelengths and convert the STM 64 output to STM-1 data streams respectively.

trying to grab most of the „mind share‟ of the „king . Besides there is a vast rural segment where the cellular services have not made much headway and many customers are looking towards Airtel for providing the service to them.the consumer. Threats Competition from other cellular It is time for BSNL to improve/expand its cellular services. its cellular service will be a flop. 4. Fierce and cut-throat competition is already in place with the markets ever abuzz with several tariff reductions and announcement of attractive packages. unlike other private cellular operators who started their service more than 4-5 years back and low capital cost due to advantages of large scale buying of cellular switch/equipment.features. With its wide and extensive presence even in the remotest areas. whose benefits are increasing with passing of everyday. It needs to be proactive with attractive packaging. Huge Market The cellular telephony market is presently expanding at a phenomenal / whopping rate every year and there is still vast scope for Airtel to enter /expand in this market. If BSNL is not innovative and agile. pricing and marketing policies lest its presence in the market be treated with disdain by the private cellular companies. Market Maturity in Basic Telephony Segment 20 . Airtel poised to gain a big market share in this segment when it expands cellular services into the rural areas. The launch of WLL services by Rcom has aggravated the situation.

He called the four product-market strategic alternatives:  Market Penetration [existing market + existing product]  Market Development [existing product + new market]  Product Development [existing market + new product]  Diversification [new product + new market]. ANSOFF MATRIX MARKET PENETRATION  Entered in Broadband and Fixed Line Market. Igor Ansoff conceptualized a matrix that focused on the firm‟s present and potential products and markets / customers. 21 . PRODUCT DEVELOPMENT  IPLC Products.Although Airtel entered in the basic telephony market it‟s a biggest there for the company as the basic telephony market has reached. To portray alternative corporate growth strategies. DIVERSIFICATION  Outsourcing. MARKET DEVELOPMENT  Looking for Overseas Market.

MARKET PENETRATION: Airtel entered in broadband and fixed phone line market. DIVERSIFICATION: Airtel has now outsourcing sum of its services like customer services with IBM. Company has already made his presence in Nigeria and Seychelles. 22 . PRODUCT DEVELOPMENT: IPLC products.The company should follow all four strategies depending on the demand and product as indicated in the matrix. MARKET DEVELOPMENT: Airtel is now looking for overseas market. The company perhaps needs to focus more on the comparatively neglected area of diversification.

This wills Airtel to maintain its position in IPLC market. private. Within the Airtel product line leased. Airtel is going to have a submarine cable between Singapore and Chennai with the collaboration of SingTel. circuit are among star.BCG MATRIX STARS    Leased Private Circuit QUESTIONMARKS  ISP  Cellular Service COWS  Basic Telephone DOGS BCG Matrix is used to find out the relative growth prospects of the product line. 23 . Right now in India only VSNL have such cables.

Recent regulatory developments will have significant implications on the future of telephony and broadband as well as India‟s global competitiveness. In addition. Private players have driven the telecom growth in the country and Bharti Airtel has led from the front.Chapter 5: Risks and Concerns Bharti Airtel believes that risk management and internal control are fundamental to effective corporate governance and the development of a sustainable business. The entire industry looks to the Government for a fair. The regulatory authorities keep consumer interest at the heart of the policy. Amidst this uncertain regulatory environment. transparent and sustainable telecom regime. In the process. Key risks that may impact the Company‟s business include:- • Changes in Regulatory Environment The regulatory environment in India continues to be challenging. 24 . the positive feature is that larger players continue to enjoy majority of market share. in addition to developing a vibrant brand. Bharti Airtel has a robust process to identify key risks across the group and prioritize relevant action plans that can mitigate these risks. To ensure that the business risks associated with changes in regulations are well managed. In Africa. the regulatory environment in which the Company operates varies from country to country and is at different stages of development. the Company has created a large pool of loyal customers and talented human resource capital. the Company has adopted a consultative approach to engage the various regulators on the proposed key developments in each country.

The Company has been investing significantly in business continuity plans and disaster recovery initiatives which will enable it to continue with normal operations and offer seamless service to our customers under most circumstances. The Company resorts to various hedging 25 . The Company is currently focusing on eliminating systemic congestion in the network and reducing technical failures as well as embedding redundancies. the Company follows a prudent risk management policy. The Company‟s telecom networks are subject to risks of technical failures or natural disasters. including dense urban areas as well as vast rural terrains.comprehensive self-assessments are carried out in all countries to ensure compliance with regulatory requirements. The Company maintains insurance for its assets. Most of the borrowings carry variable interest rates which also exposes the Company to the risks of higher interest costs. To mitigate these risks. special perils and terrorist attacks. though temporary. The Company has also borrowed in foreign currencies which have the inherent risk of currency fluctuations. • Currency and Interest Rate Fluctuations The Company‟s operations are spread across 20 countries and are subject to the risks of fluctuations in currency rates. which provides cover for damage caused by fire. to the Company‟s operations. Technical failures and natural disasters even when covered by insurance may cause disruption. • Technical Failures or natural disaster damaging telecom networks The Company‟s operations and assets are spread across wide geographies. This is of particular significance to Africa especially where the Company is enhancing its network coverage and capacity as part of its growth plans. equal to the replacement value of its existing telecommunications network.

mechanisms to protect the cash flows. Finally. 26 . The Company is spreading its debt profile across local and overseas sources. the Company takes pro-active measures to mitigate cost pressures arising out of currency movements including sourcing diversification and pricing adjustments. to provide a natural hedge. No speculative positions are created and all foreign currency hedges are taken on the back of operational exposures.

” Implementing and supporting primary. 27 . secondary and higher education initiatives. Launched in 2006. free of cost to underprivileged children in rural India with a special focus on the girl child. undertaken by a corporate in India. the program is one of the largest end-to-end initiatives in education. Bharti Foundation  Delivering Quality Education Bharti Foundation is the philanthropic arm of Bharti Enterprises and was set up in the year 2000 “to help underprivileged children and young people realize their potential. Bharti Foundation aims to bridge the education divide and help create an equitable and empowered society contributing towards the overall development of the nation. radiating knowledge and excellence for underprivileged children.  The Satya Bharti School Program.Setting Benchmarks in Quality Education The Satya Bharti School Program is the flagship rural education initiative of Bharti Foundation. Satya Bharti Schools provide quality education. Envisioned as temples of learning.Chapter 6: Works of Bharti Airtel I.

The program complements the nation‟s education agenda in a substantive way and aims to find innovative solutions to address ground challenges.000 underprivileged children at full capacity in the rural parts of India. 50 have been recently upgraded from the primary to elementary level in partnership with Google Inc. Currently Bharti Foundation runs 253 Satya Bharti Schools. Of the 62 elementary schools. 62 are elementary and five are senior secondary schools. of which 186 are primary. The five senior secondary schools are being operated in a Public-Private Partnership mode under the Adarsh Scheme of the Punjab Government.  Accolades and Recognitions Bharti Foundation received several awards during the year for its impact through the Satya Bharti School Program.00. It aims to set up 500 primary and 50 senior secondary schools delivering quality education to more than 2. World Education Award-Best Public Choice Award for Innovative Practices in Education 2011 28 .

500 primary school children through the identified 20 schools so far. Nokia Education Delivery uses mobile technology to deliver educational videos to schools in remote.Best NGO for Excellence in Education at Concern 2012 . The “Our School” adoption program. We have partnered with Nokia. In this initiative. to underprivileged children.Consortium for Competence in Education and Research for National Development. books. provides infrastructure refurbishment. Africa Initiatives  Airtel Africa’s School Initiative Airtel Africa has adopted at least one primary school in each of the 17 African countries that it has a presence in. over and above our adopted schools. hard-to-reach areas. having touched the lives of over 11. The team has been successful in the projects. teaching aids and broadband connectivity. which has a unifying identity in Africa. The videos can be used for any 29 . all of which are in rural areas. Global CSR Awards in the category of Corporate Social Responsibility – Education II. working hand in hand with the governments in these countries. The CSR team has worked to improve the quality of education provided in the rural areas. to provide broadband connectivity to schools in Nigeria. furniture. in an ICT initiative called NOKIA NED. school uniforms.

Uganda 30 . a non-profit organization.  Airtel Africa and UN Millennium Development Goals As part of the UN Millennium Development Goals. Malawi. b) Sauri and Dertu.Kenya. All these are referred to as “Millennium Villages”. As part of this initiative. Kenya. Tanzania and Uganda. Airtel is committed to ensure telecommunications and Internet services to these villages through its network. from school lessons to training sessions.  Airtel adopted Millennium Villages a) Bonsaaso . 30 schools have benefitted from this initiative implemented in Nigeria. to provide connectivity to 8 villages in 6 countries in Africa – Ghana. Nigeria.Nigeria.Ghana. Airtel provides SIM cards to the Community Health Workers and establishes the local emergency numbers (toll free) as needed by each village besides taking care of maintenance of the sites in these villages. So far. e) Mbola. c) Mwandama.Tanzania f) Ruhiira. Airtel has partnered with the Earth Institute.Malawi d) Pampaida and Ikaram.educational purpose.

 Identifying the potential opportunities and threats for the institution implied by these trends. mobile phones. environmental. situations. technological. A STEEP analysis of the macro environment indicates that economic (a phone call being a cheaper way to stay in touch than outstation travel for example) and social factors (working outside the home town) have forced the pace of utilization of technology (Public Call Offices. STEEP refers to changes in the social. economic. Increasing customer awareness has raised expectations and vocal demands are being articulated for consumer rights. such political factors have in turn impacted the competitive environment by way of entry of private players. health. The customer has. technological. environmental. benefited from increased choice from within the communications services basket itself.Chapter 7 : Environmental Analysis It is a systematic examination of all 3 levels of the environment with at least three purposes:  Detecting important economic. and events. and political trends.  Gaining an accurate understanding of your organization‟s strengths and limitations. networked companies). and events. cultural. and a policy framework tilted towards a level playing field for new entrants. independent regulation. and political sectors that affect organizations directly and indirectly. A near environment analysis indicates that the competitors are becoming active resource rivals (political and financial) apart from applying pressures as customer rivals. situations. social. 31 . needless to say.

Rahman for endorsing their product and services currently.CORE COMPETENCE Airtel core competencies are sales & promotions and as of now Airtel is leading brand in mobile services in India. Airtel have three big personality Viz. Sachin Tendulkar. R. Shahrukh Khan and music maestro A. 32 . which is sales promotion. Airtel is outsourcing currently and are trying to fully concentrate on their core competency.

Nortel. The investment made by SingTel is one of the largest investments made in the world outside Singapore in the company.  Outsourcing The call center operations for the mobile services have been outsourced to IBM Daksh. In the case of the broadband and telephone services and enterprise services (carriers). Hinduja TMT. Teletech & Mphasis. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. Corning. The company also has a strategic alliance with Vodafone.Chapter 8: Findings  Strategic Alliance The company has a strategic alliance with SingTel. equipment suppliers include Siemens. The investment made by Vodafone in Bharti is one of the largest single foreign investments made in the Indian telecom sector.  Overseas Market Airtel is looking for overseas market and already Started operation in Nigeria and Seychelles. among others. 33 . The company‟s mobile network equipment partners include Ericsson and Nokia.

 Competition Airtel is facing strong competition from MTNL and BSNL in spite of the fact they are far away from Airtel technologically but these two have a inside arch in rural and urban area and have low tariff rates. Sachin Tendulkar.R.  Brand Ambassador Airtel have strong brand ambassador. Rehman to promote their product and services. 34 .  Leader in Telecom market Airtel is holding a position of Market Leader by having 21 percent of the total market share. Shahrukh Khan and A.

The special distribution of the transmission towers should be increased to avoid no signal pockets. This will improve the quality of service to desired level and provide simultaneous integration with the nationwide network. 35 . The distribution network shall make the product visible and available at convenient locations. ”  ESTABLISHMENT OF DISTRIBUTION CHANNELS Airtel should establish widespread and conspicuous distribution to match that of the competitors.  IMPROVEMENT IN TECHNOLOGY Airtel should immediately shift to third generation switches by replacing its c-dot switches.  UNTAPPED RURAL MARKET: Large part of Indian rural market is still untapped therefore Airtel is required to bring that area under mobility. there should be flexible pricing mechanism (either at central or local level).Chapter 9: Recommendations After the complete analysis of entire STUDY we put forward a set of recommendations which are as follows:  PRICING Depending on the market conditions / competition from cellular or wll-mobile service providers and also to suit local conditions.

Airtel should introduce cheaper recharge cards than the others because its competitors have introduced them. Airtel has created a very good image on the mind of new users of cellular service. A. Other Celebrities like Shahrukh Khan and Sachin Tendulkar has contributed very much in Airtel. by which all buyers of a Nokia phone get a new free connection with Airtel. By virtue of its connectivity and advertising strategy Airtel is successful is grabbing the highest market share in India. People like its schemes very much. one of the market leaders in mobile set. Airtel is successful in capturing the highest market share by adopting Celebrity Endorsement Strategy.Rehman‟s tune for Airtel worked as free advertising for Airtel as another service user uses it too.Chapter 10: Conclusion The conclusion of my study is that Airtel‟s advertising has a impact on the users. 36 . Airtel has adopted a very good strategy by providing a new connection with Nokia. They should also look to sign from celebrities from Bollywood and Cricket.R. but there are still some recommendations from my study point of view which are that Airtel needs to make its network service more stronger than other service providers to dominate the market in future also.

com  http://voicendata.vccircle.Chapter 11: Bibliography       37 .ciol.wirelessduniya.

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