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

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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

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Integrated Telecom Company  Wireless Services – 2G/3G – Rural Market  Enterprise Services – Carrier – Corporate Telemedia Services – Fixed Line – Broadband – DTH  Passive Infrastructure – Bharti Infratel – Indus Tower GROUP 7 4 .

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.

We deliver what we promise and go out of our way to delight the customer with a little bit more” .Mission • “ We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel.

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 .

3 Mn Wireline Subscribers – 38.4 Categories ( Metro.6 • 23 Circles .4 Mn Teledensity – 30. A.Indian Telecom Sector • Fastest Growing Sector – CAGR 22% (2002-07) • Second Largest Telecom Market – – – – Lowest tariff charges in the world Wireless Subscribers – 315. B & C) • Bharti Airtel – Largest player with presence in 23 Circles GROUP 7 9 .

facility. responsibility. problem. GROUP 7 10 . convenience. solution. delightment.CRM? • • • • • • • Customer Customer Customer Customer Customer Customer Customer satisfaction.

CRM OF AIRTEL • • • • • • Best services Prepaid connection Post paid connection VAS(value added services) GPRS GSM GROUP 7 11 .

Tata 3G – Value added services potential still to be tapped fully 2G/3G – GSM Currently commands 70% of mobile subscribers in India .Technology CDMA – Already there are big players in this segment Reliance .

Porter’s Generic Strategy GROUP 7 13 .

Porter’s 5 Forces GROUP 7 14 .

Threat from Competition Wireless Market – Top 4 garnering 75% market share HIGH GROUP 7 15 .1.

90% 31.50% 23.30% 37.00% 6.80% Source: CMIE November 2008 GROUP 7 16 .10% 6.60% 14.60% 23.80% 26.Competitor Analysis Best OP Margins & Net Profit Margins among Peers   Compan y Bharti Rcom IDEA MTNL OP Margin Net Margin Sep-07 Sep-08 SepSep072 083 43.90% 13.40% 19.20% 32.00% 38.90% 7.00% 26.70% 22.

2. Customer Bargaining Power  Lack of differentiation among Service Providers  Cut throat Competition  Low Switching Costs  Number Portability will have –Ve Impact  Businesses & Consumers GROUP 7 17 HIGH .

Market Scenario Postpaid Vs Prepaid Customers & Market Share GROUP 7 18 .

3. Suppliers Bargaining Power LOW GROUP 7 19 .

Skype. Threat of Substitutes  Landline  CDMA  Video Conferencing BROADBAND SERVICES DIMINISHING MARKET HIGH  VOIP . Yahoo Messenger  e-Mail & Social Networking Websites GROUP 7 20 . Gtalk.4.

Threat of New Entrants  Huge License Fees to be paid upfront & High gestation period  Entry of MVNOs & WiMAX operators  Spectrum Availability & Regulatory Issues  Infrastructure Setup Cost .High  Rapidly changing technology LOW GROUP 7 21 .5.

6% • Strategic Alliance with other stakeholders in Bharti Airtel include SonyEricsson. 22.SWOT Strengths • Largest Telecom Player in India .~80Mn.and Sing Tel • Pan India Presence • Strong Financials Weakness • Outsourcing of Core Systems • Lack of emerging market investment opportunity Source: CMIE Report NOV 08 GROUP 7 22 . Nokia .

Rural Telephoney Threats • India centric – Major revenues from India • Falling ARPU & AMOU • Intense Competition & Shortage of Bandwidth GROUP 7 23 .6 is still low among developing countries • Low Broadband Penetration.SWOT Opportunities • Bharti Infratel – Cutting Down cost in Rural area • Match Box Strategy – Scale of Penetration • Current Tele-Density – 30.

BCG Matrix for Bharti Airtel HIGH Mobile Services DTH & IPTV Broad Band LOW HIGH GROUP 7 LOW 24 .

67 GROUP 7 2.33 1.33 Low 5.GE Matrix Classification Business Strength Medium Strong Weak 5.00 3.00 Market Attractiveness High Medium 3.0025 .67 2.

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 .

67 GROUP 7 Low 5.Airtel’s GE Matrix High High Business Strengths Airtel Enterpri se Low 5.67 TeleMed ia Moderate Attractive 2.00 2.00 Attractive Mobil e Market Attractiveness 3.33 1.33 Unattractive 3.00 27 .

Airtel – Strategy MANTRA : Focus on Core Competencies and Outsource the rest! .

• Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.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.

• It has managed to hold on to its leadership position inspite of the presence of other players with deep pockets – Ambani’s. Tata’s.Performance till date • Bharti Airtel has enjoyed an excellent run ever since the telecom sector opened. . • Continues to attract and delight customers. • Has coped well with regulatory changes. Birla’s and Vodafone.

• Technology leadership is a must – Airtel must ensure that its reliance on GSM technology does not render it obsolete. . Opportunities abound in the hinterland which must be exploited. • Indian market inspite of being the worlds largest is still not matured.Future Strategies • Translate its expertise in Indian markets to other emerging economies. • This could call for acquisitions globally.

Growth Factors GROUP 7 32 .

Road Map – Growth Path VPN & VoIP WiMAX 3G 2G/2.5G GROUP 7 33 .

Strategy MANTRA : Focus on Core Competencies and Outsource the rest! .Airtel .

CMIE – November 2008 • Analyst Report – Bharti Airtel. Asit C. Indian Industry: A Monthly Review. Businessweek GROUP 7 35 .August 2007. Bharti Airtel Limited. • Telecommunication Sector Report – March 2008. November 2008 • Telecommunication Services.com • Indian Telecommunication Sector . Annual Report -2008 • Investors presentation. CRISIL • Capitaline Database http://capitaline. IBEF Report • “Next Big Spenders – Indian Middle Class”. Mehta Invesment Intermediates Ltd.References • Bharti Airtel.

THANK YOU !! GROUP 7 36 .

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