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BHARATI AIRTEL
S. W. O. T. ANALYSIS
An analysis on BHARATI AIRTEL has been conducted to identify its Strength, Weaknesses, Opportunities and Threats. This is a detailed report on internal and external analysis of company’s environment.

VIKASH RAI Dayananda Sagar Business School Roll no. 57

About the COMPANY:
Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular service provider in India, with more than 110 million subscribers as of 2009. With this, Bharti is now the world's third-largest, single-country mobile operator and sixth-largest integrated telecom operator. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel Digital TV. Shahrukh Khan is the brand embassador of the mobile company and Kareena Kapoor andSaif Ali Khan are the brand embassadors of the DTH company. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India, the company has a 24.6% share of the wireless services market, followed by 17.7% for Reliance Communications and 17.4% for Vodafone Essar. In January 2010, company anonced that Manoj Kohili, joint managing director and chief executive of Indian and South Asian operations, will become the chief executive of the international business group from 1st of April 2010. He will be overseeing Bharti's overseas business.

Deputy Chief Executive Sanjay Kapoor will replace Mr. Kohli and will be the CEO with effective from April 1 2010

Brands
Airtel:
Airtel is a brand of telecommunication services in India, Bangladesh and in Sri Lanka owned and operated by Bharti Airtel. It is the largest cellular service provider in India in terms of number of subscribers. Services are offered under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population (as of Financial Year 2007). Airtel has also launched 16Mb/s broadband plans in India, making it the first ISP to do so.

Airtel Sri Lanka:

In December 2008, Bharti Airtel rolled out third generation services in Sri Lanka in association with Singapore Telecommunications. SingTel is a major player in the 3G space in Asia. It operates third generation networks in several markets across Asia. Airtel's operation in Sri Lanka, known as Airtel Lanka, commenced operations on the 12th of January 2009.

Airtel in Bangladesh:

In January 2010, it was announced that the Bangladesh Telecommuncations Regulatrory Commission (BTRC) of The People's Republic of Bangladesh had given Bharti Airtel the go ahead to acquire a 70% stake in the Bangladesh business of Abu Dhabi based Warid Telcom. The latter had till date invested a total of $600 million, with plans to bring their Bangladesh investments to the $1 billion mark. Airtel's 70% stake in the company is said to be at a cost of an initial $300 million. Warid will be later named Airtel and the price of the sim will go higher and call rates will be more lower....

Touchtel:

Until September 18, 2004, Bharti provided fixed-line telephony

and broadband services under the Touchtel brand. Bharti now provides all telecom services including fixed-line services under a common brand "Airtel".

BlackBerry:

On 19 October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion(RIM).

Digital TV:

On 9 October 2008, Airtel joined the DTH bandwagon in India with Airtel Digital TV, a Direct-to-Home Television service.

iPhone 3G:

The Apple iPhone 3G was rolled out in India on 22 August 2008 via Airtel & Vodafone.

Merger talks
In May 2008, it emerged that Bharti Airtel was exploring the possibility of buying the MTN Group, a South Africa-based telecommunications company with coverage in 21 countries in Africaand the Middle East. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm. However, both sides emphasize the tentative nature of the talks, while The Economist magazine noted, "If anything, Bharti would be marrying up," as MTN has more subscribers, higher revenues and broader geographic coverage. However, the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company. In May 2009, Bharti Airtel again confirmed that it is in Talks with MTN and companies have now agreed discuss the potential transaction exclusively by July 31, 2009. Bharti Airtel said in a statement “Bharti Airtel Ltd is pleased to announce that it has renewed its effort for a significant partnership with MTN Group". Talks eventually ended without agreement, some sources stating that due to the South African government opposition.

Sponsorship
Bharti Airtel signed a five-year deal with ESPN Star Sports to become the title sponsor of the Champions League Twenty20 cricket tournament. The tournament itself is named "Airtel Champions League Twenty20."

Airtel 3G
Airtel plans to launch the nationwide 3G services in India in the second quarter of 2010.

HIGHLIGHTS:
» » » » » » Bharti Airtel launches India’s first Mobile App Store – Airtel App Central Bharti Airtel launches Unlimited Sunday on Fixed Line for Valentine’s Day Airtel and RIM Launch the BlackBerry Bold 9700 Smartphone in India Airtel launches the first ever Family Tunes on Fixed Line Bharti Airtel announces its third quarter ended Dec 31, 2009 on Jan 22, 2010 Bharti Airtel and Limelight Networks ® announce strategic partnership for global Content Delivery Network (CDN) services

BUSINESS DIVISION:
a) b) c) d) MOBILE SERVICES. AIRTEL TELEMEDIA SERVICES. ENTERPRISE SERVICES. DIGITAL TV SERVICES.

S. W. O. T. Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strength, Weaknesses, Opportunities and Threats involved in a project pr in a business venture. It involves specifying the objectives of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. A key tool in the strategic planning process can also be applied to career planning. This tool is a marketing analysis using the SWOT technique. A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

Strengths: attributes of the person or company that are helpful to achieving the objective. Weaknesses: attributes of the person or company that are harmful to achieving the objective. Opportunities: external conditions that are helpful to achieving the objective Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.
I N T E R N A L E X T E R N A L

STRENGTHS
a) Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers.

b) 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 access to knowledge and technology from other parts of the telecommunications world. c) The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.

WEAKNESSES
a) An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the startup business had to outsource to industry experts in the field. b) Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally. c) The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature.

OPPORTUNITIES
a) The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google

can only enhance the Airtel brand, opportunities in Indian for Google.

and

also

provides

advertising

b) Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions. c) Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns. d) The company is investing in its operation in 120,000 to 160,000 small villages every 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 - using its 'Matchbox' strategy. e) Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.

THREATS
a) Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors. b) The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market. c) Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.

BRIEF SUMMARY:
STRENGTH
• Massive Economies of Scale from Large Subscriber Base Strong Brand name in Consumer Market Marketing Driven LowCost Model

WEAKNESS
• Lack of International Management Experience Weaker Position of Fixed-Line Services Late Start of DTH TV Services

OPPORTUNITY
• Aggressive Move into the Rural Market International Investments Aggressive Bundling across Services

THREATS
• Increased Competition Regulatory Risks on MNP Hyper Growth for Mobile Slows Quicker than Expected

CONCLUSION:
Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. Thus the company should explore its opportunities to take it to its advantage and gain edge upon its competitors. Weakness should be worked upon to convert them into strengths and threats must be coped with finding new opportunities.

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