ANS-A3(a)

Bharti Airtel demonstrates some positive financial trends like revenue growth,
manageable debt, and efficient shareholder capital utilization. However, concerns
remain regarding short-term liquidity, declining profitability, and competitive pressure
on ARPU. Investors should closely monitor these trends and assess their impact on
long-term value creation.
Additional Information:

 Revenue Growth: Bharti Airtel's revenue has shown consistent growth in

recent quarters, indicating positive market performance.
 Average Revenue Per User (ARPU): ARPU has remained relatively flat in
recent quarters, indicating a challenge in increasing revenue per customer.
 Competition: The Indian telecom market is highly competitive, with Reliance
Jio being a major competitor. Bharti Airtel's performance needs to be
assessed in this context.

Here is a financial ratio analysis of Bharti Airtel Limited for the years 2019, 2020 and
2021
Ratio 2019 2020 2021

Profit Margin 3.09% 6.85% 6.30%

EBITDA Margin 8.79% 5.33% 7.61%

Return on Equity
12.14% 23.98% 33.78%
(ROE)

Debt-to-Equity
2.45 2.24 2.51
Ratio

Current Ratio 1.41 1.45 1.40

Profitability Ratios:

 Gross Profit Margin: This ratio measures the profit earned from each rupee of
sales. As of September 2023, it was 42.33%, which is a positive sign and
indicates good cost control.
  Net Profit Margin: This ratio shows the percentage of revenue left after all
expenses and taxes. With 4.06%, it's relatively low compared to previous
years and suggests room for improvement in operational efficiency.
 Return on Equity (ROE): This measures the return generated for
shareholders' investments. Bharti Airtel's ROE is 10.53%, which is decent but
slightly below the industry average.

Liquidity Ratios:

 Current Ratio: This ratio indicates the ability to meet short-term debt
obligations with current assets. At 0.471, it's below the ideal level of 1 and
raises concerns about short-term solvency.
 Quick Ratio: This excludes inventory from the current ratio and provides a
more stringent measure of short-term liquidity. With 0.337, it's even lower than
the current ratio and further highlights potential challenges in covering
immediate liabilities.

Efficiency Ratios:

 Inventory Turnover: This measures how quickly inventory is sold and

replaced. Bharti Airtel's inventory turnover is 7.01, which is good and indicates
efficient inventory management.
 Receivables Turnover: This measures how quickly credit sales are
collected. Bharti Airtel's receivables turnover is 8.03, indicating a relatively
short collection period.
 Debt-to-Equity Ratio: This measures the company's dependence on debt
financing. Bharti Airtel's debt-to-equity ratio is 2.36, which is high and
suggests concerns about financial leverage.

Good Ratios:

 Gross Profit Margin (42.33%) indicates good cost control.

 Inventory Turnover (7.01) indicates efficient inventory management.
 Receivables Turnover (8.03) indicates a short collection period.

Bad Ratios:

 Net Profit Margin (4.06%) is low and suggests room for improvement in
operational efficiency.
 Current Ratio (0.471) and Quick Ratio (0.337) are below ideal levels and raise
concerns about short-term solvency.
 Debt-to-Equity Ratio (2.36) is high and suggests concerns about financial
leverage.
ANS-A3(b)

Bharti Airtel Limited utilizes a hybrid organizational chart, combining elements of

hierarchical and flat structures.

Good aspects:

 Clarity of authority and responsibility: The hierarchical structure defines who

reports to whom and ensures accountability.
 Flexibility and adaptability: The flat elements enable quick decision-making
and adaptation to changing market dynamics.
 Empowerment and ownership: Regional autonomy empowers local teams and
fosters a sense of ownership.
 Collaboration and knowledge sharing: The hybrid approach encourages
cross-functional collaboration and knowledge sharing between departments.

Bad aspects:

 Potential for bureaucracy: The hierarchical structure can sometimes lead to

slow decision-making and red tape.
 Lack of coordination: Flat structures may require strong leadership to ensure
effective coordination between different departments.
 Communication challenges: Decentralization can make it difficult to maintain
consistent communication across the organization.
 Limited career progression: The flat structure may offer fewer opportunities for
upward mobility within certain departments.

ANS-A3(c)

Current organizational Structure of Bharti Airtel Limited:

 Hierarchical: A top-down approach with siloed departments like Marketing,

Sales, Customer Service, Network Operations, and Finance.
 Limited Cross-functionality: Lack of collaboration between departments,
leading to inefficiencies and slow decision-making.
 Focus on Products: Departments organized around specific products
(prepaid, postpaid, broadband) instead of customer segments.

Improved Structure:
  Matrix: A combination of vertical (reporting to functional heads) and horizontal
(customer-centric teams) structures.
 Customer-centric Teams: Cross-functional teams dedicated to specific
customer segments (consumers, businesses, enterprises), fostering a deeper
understanding of their needs.
 Shared Services: Centralized functions like IT, HR, and Finance to improve
efficiency and reduce redundancies.
 Empowerment: Decentralized decision-making, granting teams more
autonomy and accountability.

Reasons For Improvement:

 Competition: To compete effectively, Airtel needs agility and responsiveness.

The current structure can be slow and bureaucratic.
 Customer Focus: A customer-centric approach is key to retaining and
acquiring customers. The current siloed structure hinders this focus.
 Market Changes: The telecom market is rapidly evolving with new
technologies and services. The current structure may not be adaptable
enough.
 Employee Engagement: A flatter structure with empowered teams can boost
employee morale and engagement.

ANS-A3(d)

The market positioning map shows Airtel and its competitors positioned on two
dimensions: price and differentiation.

 Price: The price axis shows the average price of a mobile data plan from each
operator. Jio is the cheapest operator, followed by Vodafone Idea, Airtel, and
then BSNL.
 Differentiation: The differentiation axis shows the different features and
benefits that each operator offers. Jio is differentiated by its low price,
Vodafone Idea is differentiated by its strong network coverage in rural areas,
Airtel is differentiated by its quality of service, and BSNL is differentiated by its
government ownership and reliability.

As you can see from the market positioning map, Airtel is positioned as a premium
operator that offers high-quality service at a slightly higher price than Jio and
Vodafone Idea. Airtel is also differentiated from its competitors by its strong brand
name and reputation.
ANS-A3(e)

Bharti Airtel, a leading Indian telecom giant, has carved a strong position in the
market through a multi-pronged marketing strategy. Let's analyze its good and bad
points compared to its key competitors:

Good Points:

 Strong Brand Image: Airtel enjoys a well-established brand image with a

legacy of over 25 years. It's associated with reliability, quality, and trust, giving
it an edge over newer players.
 Diverse Product Portfolio: Airtel offers a wide range of products and services,
from prepaid and postpaid mobile plans to broadband, DTH, and enterprise
solutions. This caters to various customer segments and needs.
 Extensive Network Coverage: Airtel boasts a robust network infrastructure
with extensive coverage across India, especially in urban and semi-urban
areas. This ensures consistent connectivity and customer satisfaction.
 Focus on Customer Experience: Airtel prioritizes customer experience
through initiatives like dedicated customer care channels, self-service
platforms, and loyalty programs. This fosters customer engagement and
retention.
 Effective Marketing Campaigns: Airtel is known for its creative and impactful
marketing campaigns that resonate with audiences. Its association with
celebrities like Shah Rukh Khan and AR Rahman further strengthens its brand
recall.

Bad Points vs. Competitors:

 Pricing Strategy: Compared to Reliance Jio, Airtel's data plans can be

perceived as slightly expensive, especially for budget-conscious consumers.
This might lead to customer churn in price-sensitive segments.
 Rural Market Penetration: While Airtel has a strong urban presence, its rural
market penetration lags behind Jio. This limits its reach and market share
potential.
 Innovation Gap: Jio's aggressive innovation in areas like 5G rollout and digital
services has put pressure on Airtel to keep pace. Failure to adapt and
innovate quickly could hamper its growth.
 Competition in Enterprise Segment: Airtel faces stiff competition from players
like Vodafone Idea and Airtel Business in the enterprise segment. Offering
differentiated solutions and competitive pricing is crucial for success here.

Overall, Bharti Airtel's marketing strategy has several strengths, but it also faces
challenges. By addressing its weaknesses and capitalizing on its strengths, Airtel
can maintain its competitive edge and achieve sustainable growth in the dynamic
Indian telecom market.

ANS-A3(f)

Bharti Airtel's operations are complex and multifaceted, encompassing various

activities to deliver its diverse range of telecommunications services to millions of
customers across India and Africa. Here's a breakdown of key aspects:

 Network Infrastructure: Airtel boasts a vast network infrastructure with over

237,577 towers across India, ensuring extensive coverage and reliable
connectivity. They also heavily invest in fiber optic cables and data centers to
support high-speed data transfers.
 Service Delivery: Airtel offers a vast array of services, including mobile voice
and data plans, broadband internet, DTH television, digital payments, and
enterprise solutions. They have dedicated teams for network
management, customer service, billing, and content provisioning to ensure
smooth service delivery.
 Distribution Channels: Airtel utilizes a multi-channel approach to reach
customers. They have a wide network of physical stores across India, partner
with retailers and e-commerce platforms, and leverage online channels like
their website and mobile app for self-service and sales.
 Marketing and Branding: Airtel actively invests in marketing campaigns to
build brand awareness and attract new customers. They use various channels
like TV, print, digital media, and sponsorships to promote their offerings and
differentiate themselves from competitors.

Value Chain Analysis:

Applying Porter's Value Chain framework to Bharti Airtel, we can analyze its activities
that contribute to creating value for customers:

Primary Activities:

 Inbound Logistics: Airtel procures equipment, licenses, and other resources

from various suppliers to establish and maintain its network infrastructure.
 Operations: Network operations involve managing towers, data centers, and
software systems to ensure smooth service delivery, network
maintenance, and capacity expansion.
 Outbound Logistics: Airtel delivers its services to customers through various
channels, including mobile networks, broadband connections, and distribution
outlets.
  Marketing and Sales: Airtel invests in marketing campaigns, branding, and
sales channels to attract new customers and promote its services.
 Customer Service: Airtel provides customer support through call
centers, online platforms, and physical stores to address customer queries
and resolve issues.

ANS-A3(g)

Bharti Airtel, a major player in the Indian telecom industry, has recognized the
importance of a strong online presence. Let's analyze the good and bad points of its
website and e-commerce abilities:

Good Points:

 User-friendly Interface: Airtel's website and mobile app boast a clean and
intuitive interface, making it easy for users to navigate and find
information. They offer clear categorization of plans, services, and support
options.
 Self-service Options: Customers can manage their accounts through the
website and app, performing actions like bill payments, plan
changes, recharge, and service requests. This reduces reliance on customer
care channels and offers convenience.
 Promotional Offers and Deals: Airtel regularly displays ongoing
promotions, deals, and bundled packages on its website and app, attracting
customers with lucrative offers and discounts.
 Integration with My Airtel App: The My Airtel app seamlessly integrates with
the website, allowing users to manage their accounts, track usage, and
access services on the go. This enhances accessibility and user experience.

Bad Points:

 Occasional Server Issues: During peak hours or promotional

campaigns, website and app responsiveness can be slow or encounter server
errors, frustrating users and hindering transactions.
 Complex Plan Structures: Airtel offers a wide range of plans with various
benefits and conditions, which can be overwhelming for some users to
compare and choose the best option. Simplifying plan structures could
improve user experience.
 Limited Online Recharge Options: While self-service options are
available, online recharge options might be limited compared to third-party
platforms, potentially restricting user convenience.
 Lack of Personalized Recommendations: The website and app could benefit
from personalization features that recommend plans and services based on
 individual user needs and usage patterns. This could enhance customer
satisfaction and engagement.

ANS-A3(h)

Bharti Airtel, a telecom giant in India, shines with strengths like market leadership,
diverse offerings, strong infrastructure, and a trusted brand. However, it faces
challenges like fierce competition, high debt, limited rural reach, and the need to
embrace rapid technological advancements. Navigating these challenges will be
crucial for Airtel to unlock its full potential and maintain its value proposition.

ANS-A3(i)

Strengths

1. Market Leader in India's Telco Space

2. Extensive Network Coverage and Infrastructure
3. Diverse Product Portfolio - Mobile, Broadband, DTH, Enterprise
4. Strong Brand Recognition and Reputation
5. Focus on Customer Experience and Service Quality
6. Innovative Marketing and Promotional Strategies
7. Wide Distribution Network - Physical Stores, Partnerships
8. Digitally Enabled Platforms - Website, Mobile App
9. Skilled Workforce and Talent Management
10. Robust Financial Performance and Stable Revenue Streams
11. Investment in Future Technologies - 5G, Cloud, AI
12. Strong Corporate Social Responsibility Initiatives
13. Global Presence and Partnerships
14. Focus on Data Monetization and Digital Services
15. Efficient Supply Chain and Procurement Management
16. Collaborative Culture and Employee Engagement
17. Regulatory Expertise and Compliance
18. Proactive Approach to Environmental Sustainability
19. Commitment to Rural Connectivity and Digital Inclusion
20. Adaptability and Flexibility in a Dynamic Market
 Weaknesses

1. High reliance on urban markets

2. Vulnerability to price wars with competitors
3. Debt burden and financial constraints
4. Potential regulatory headwinds
5. Erosion of market share in certain segments
6. Limited rural market penetration and infrastructure
7. Challenges in keeping up with rapid technological advancements
8. Dependence on traditional revenue streams
9. Difficulties in monetizing data effectively
10. Competition from alternative communication channels
11. Challenges in attracting and retaining skilled talent
12. Brand perception in certain segments might need improvement
13. Cybersecurity risks and data privacy concerns
14. Operational inefficiencies and cost optimization needed
15. Customer churn and loyalty challenges
16. Reliance on third-party infrastructure and partnerships
17. Limited diversification into other sectors
18. Bureaucracy and slow decision-making processes
19. Negative publicity and reputational risks
20. Inability to adapt to changing customer preferences and behaviors

ANS-A3(j)

Bharti Airtel's IFE Matrix

Strengths: Strong brand, wide network, diverse products, large customer base,
innovation, partnerships, experienced management. Weaknesses: High debt,
intense competition, limited rural reach, customer service issues, slow decision-
making, regulatory challenges.

Hypothetical IFE Score: 2.4 (suggesting areas for improvement)

Key Takeaways:
 Airtel has strong assets but faces challenges in debt, competition, rural
reach, and customer service.
 Addressing weaknesses is crucial for strengthening its internal position and
competing effectively.