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M eS mT R
b eArs
TEG Y R o ll N o .
M o k sh a T u ra k h ia 90
R a sh m i S in g h 65
H ite sh B h a tia 63
A k sh a y S e th u ra m 69
B h a v n a H a rih a ra n 73
Y o g e sh A jw a n i 98

G ro u p -


Leading Provider of Telecom Services in
Operations in India, Sri Lanka and
World’s second largest among emerging
markets market
Dec 31,2010 – 207.8m
Telemedia Services,Enterprise Solutions,

Vision and Mission

VISION 2015 M issio n
1)Loved by more “ W e a t A irte la lw a ys th in k
customers fre sh a n d in n o va tive w a ys
2) Enriching the lives of a b o u t th e n e e d s o f o u r
millions cu sto m e r s a n d h o w w e
w a n t th e m to fe e l. W e
VISION 2020 d e live r w h a t w e p ro m ise
a n d g o o u t o f o u r w a y to
To build India’s finest d e lig h t th e cu sto m e r w ith
conglomerate by 2020 a little b it m o re ” .
To support education of
underprivileged children
through the Bharti

equality and life form will be proper conference and going away from submissive and lawful necessities Esteem greetings given towards . Values Respond to the needs of customers Expectation and Good result From employees Progress the services – resourcefully Visible and insightful in dealings with the shareholders morals.

Nokia Siemens. Alcatel Lucent. Tellabs Information Technology – IBM Call Centre Operations . Mphasis. Hinduja TMT.Partners  Network Equipment Mobile Services . Huawei Telemedia & Long Distance Services . Cisco. Juniper.Singtel   Strategic Business Unit Mobile Services Telemedia Services Enterprise Services . Firstsource & Aegis Equity Partner {Strategic}.IBM Daksh. Ericsson. Teleperformance.Nokia Siemens. ECI.

053 million ( ended December Telemedia Customers.560 million (ended December Customer base 31.  S h a re s in issu e Also offer suite of Enterprise solutions. 1995. 2009-Audited)  2010) As per IFRS Accounts Africa: 42. 2009 – Countries of Africa. Fact sheet Name P ro p o rtio n a te E B IT D A Bharti Airtel Limited  R s . (status as on Dec 31. 31. 103. 2010-Audited) India: 157. 5 3 0 . 2 0 1 0 Established Listings July 07. 2010 – Business Description A u d ite d ) Provides GSM mobile services in all the 22 telecom circles in India. 8 1 6 m illio n ( e n d e d D e ce m b e r  31. Mumbai (BSE) Company The National Stock Exchange of India Limited (NSE) Proportionate revenue Rs.000 GSM mobile and 3. 7 9 7 . as a Public Limited The Stock Exchange. 0 9 6 a s a t D e ce m b e r 3 1 .000 GSM mobile(status as on .257. 4 9 .485. Bangladesh and now in 16 31. DTH and IPTV Services 3 .000 Rs. 157.124. 4 0 . R s . A u d ite d )   Provides telemedia services (fixed line A s p e r IF R S A cco u n ts and broadband services through DSL) in 88 cities in India. 8 2 3 m illio n ( e n d e d D e ce m b e r Srilanka.

7 million mobile phone users  .  Classified into Fixed Line Telephony and mobile telephony Vision 2020 document of the Planning Commission of India World’s second largest among emerging markets Pestel Analysis Penetration stands at 44.87% ie 525.72 % in February ie: 14.Total GSM subscribers 3G 5 forces model Telecom operators invested close to $2. Telecom Sector .5 billion Mobile subscribers increase by 15 million per month 5 Lakh crore investement in the next 5 yrs Spectrum auction .65 million India’s GSM subscriber base grew by 2.India Seventh largest in the world and the second  Market Share largest among emerging economies.

Industrial Organization model The I/O Model adopts an external perspective to explain that forces outside of the organization have dominating influences on a firm's strategic actions and is based on the following four assumptions: The external Environment The general. and competitive environments impose pressures and constraints on firms and determines strategies that will result in superior returns Most firms competing in an industry or an industry segment control similar sets of strategically-relevant resources and thus pursue similar strategies Resources used to implement strategies are highly mobile across firms Organizational decision-makers are assumed to be rational and committed to acting only in the best interests of the firm . industry.

External Analysis Market Share Pestel Analysis 5 forces model .

set up TRAI (Telecom Regulatory Authority of India) reducing interference of Govt in deciding tariffs and policy making 1999: more reforms were made in liberalization policy 2002: TATA took 25% stake in VSNL Upto 74%-MNCs. VSNL and MTNL 1994: P.Department Pestel Analysis of Telecommunications (DoT) . reduction in services fees and call costs . and not policy making Liberalization of long distance services 1995 govt.N Rao led govt introduced national telecommunications policy [NTP] in which brought changes in areas of: ownership. service and 5 forces model regulation of telecommunications infrastructure Successful in establishment of joint ventures between state owned telecom companies and international players Foreign firms were eligible to 49% of the total stake stating that MNCs were just involved in technology transfer. External Analysis  Political and Regulatory Issues Market Share Liberalisation of telecom industry in India: 1981: Prime Minister Indira Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom Company (ITI) Under the leadership of Rajiv Gandhi. PSUs were set up .

External Analysis Economic Market Share Economic growth .40% GDP growth Growth in the services and manufacturing sectors. interest rates . exchange rates and the inflation rate 8. Pestel Analysis 5 forces model .

age distribution. External Analysis Market Share Social  Includes cultural aspects. population growth rate.huge future customer base Urbanization is increasing leading to an increased demand for connectivity .. Pestel Analysis Trends in social factors affect the demand for a product or a service 5 forces model Lowest mobile penetration in the second most populous country in the world 35 % population below 14 yrs of age . career attitudes etc.

such as R&D activity. External Analysis  Technological Market Share Include technological and environmental aspects. automation. technology incentives and the rate of technological change Pestel Analysis 5 forces model .

and climate change. External Analysis Market Share Enviornmental  Includes weather. climate. and insurance Growing awareness of environmental factors 5 forces model make the industries responsible for their activities Radio frequency waves emitted from the mobile phones harms body cells and damages the DNA This is not yet proved that such changes were risk to human health . farming. which may especially affect industries such Pestel Analysis as tourism.

External Analysis Market Share  Legal Govt Launched Mobile Number Portability (MNP) Pestel Analysis Govt is marketing 3-4 slots of spectrum across the nation 5 forces model Govt fixed Rs 3.500 crore as reserve price for pan-India spectrum FDIs up to 74% .

External Analysis It uses concepts developed in Industrial Organization model Market Share to derive five forces that determine the competitive intensity and therefore attractiveness of a market They consist of those forces close to a company that affect its ability to serve its customers and make a profit Pestel Analysis A change in any of the forces normally requires a company to re-assess the marketplace 5 forces model .

02%.25% .11 %.18%.2%. Tata teleservices limited : 11. Vodafone Essar Limited:17. Reliance telecom limited : 17. Videocon Telecommunications Limited. Etisalat DB Telecom Private Limited.63%. Idea : 11. Airtel : 22.13%. External Analysis Market Share Competitive Rivalry:  The telecom industry is a highly competitive one Pestel Analysis Not much differentiation amongst competitors Cut throat competition amongst the players for 5 forces model gaining market share and a higher competitive advantage Aircel : 6. Sing Tel Private Limited : 0.

the switching costs for customers are very low. Tata. Tata Indicom. these are the major threats to Airtel Most companies offering 3G licenses and mobile number portability. Reliance and BSNL also provide 5 forces model digital TV facilities. Thus. External Analysis Market Share Competitive Rivalry:  Airtel. Pestel Analysis wireless and broadband as well as fixed line services Airtel. increasing the threat Buyer’s inclined towards changing their brands only with some value addition or if it is cost saving . BSNL and MTNL offer all the services such as mobile. Reliance mobile.

External Analysis Market Share Bargaining power of suppliers:  Major players in the Indian telecom sector are Airtel. better quality. Reliance. Uninor etc. Videacon. The bargaining power increases if there is 5 forces model monopoly. Vodafone. threat of forward integration by suppliers etc In case of telecom industry being a services industry it is intangible So the role of suppliers almost negligible Yet. Tata Docomo. greater security. minor role played by suppliers are: Mobile and handset suppliers Technology provided in the mobile phones . Loop Pestel Analysis mobile. Aircel. Tata Indicom. Idea.

Tata Indicom. 5 forces model Reliance mobile and BSNL All companies are also applying for their 3G licenses and offering mobile number portability In the current scenario switching costs do not pose as a threat to increasing the bargaining power of buyers as the switching costs are very low on account of the mobile number portability Brand loyalty and price sensitivity of product but again on account of mobile number portability the brand loyalty seems to dwindle Thus buyers are strong and have an edge in the market . External Analysis Market Share Bargaining power of Buyers:  For the telecom category the buyer’s bargaining power will relatively be higher Pestel Analysis Not much of differentiation between services provided by various telecom companies Lack of differentiation between Airtel.

Pestel Analysis Low threat because:  Rapid changes in technology 5 forces model High infrastructure and set up costs Availability of 3G and other government licenses Spectrum availability and Regulatory issues Entry of MVNO’s and Wimax operators High threat because:  Entry through 3G Increasing FDI to 76% bringing foreign players in the Indian markets New entrants are entering with huge capital because of market attractiveness and great potential New entrants from non telecom companies with an ease in outsourcing . Govt policies can also be a hurdle. External Analysis Market Share  Threat of new entrants: Threat is lower if there is higher entry level and it is higher if  there is lower entry level and great market potential.

External Analysis Market Share Threat of substitutes:  Substitutes can vary according to size.CDMA phones. all the messengers and social networking sites etc Other mediums substitute a mobile phone easily now-a-days. landlines. quality. price etc Pestel Analysis Factors can be switching costs. video conferencing. Skype. world phone. posing a great threat to Airtel Lack of differentiation amongst existing players . emails. buyer’s inclination to the substitute etc 5 forces model Major threats .

are more critical to determining the appropriateness of strategic actions. The organization's environment consists of three components: General Environment .Resource-based model This model adopts an internal perspective to explain how a firm's unique internal resources and capabilities serves as a basis for earning above average returns. firms acquire different resources and develop different or unique capabilities. and non-substitutable. When they meet this standard they become known as core competencies or what the company is known for being good at. costly to imitate. found in its internal environment. then the conditions of the external environment Internal resources and capabilities lead to a competitive advantage when they are: valuable. rare. The model is based on three assumptions: Each firm is a collection of unique resources and capabilities that provides the basis for its strategy and is the primary source of firm returns Over time. Resources may not be highly mobile across firms To sum: according to this model a firm's resources and capabilities. Firms therefore are likely to adopt and implement different strategies in their attempts to achieve strategic competitiveness.

Internal Analysis SWOT Analysis Strengths Weaknesses Largest provider in India Start-up business had to be outsourced GE Model Towers Stakeholders with strategic alliances Coverage BCG Matrix SWOT Analysis Value Chain Opportunities Google tie. Vodafone Investment in small villages Recession’s effect on acquisitions Resource Audit IPTV .up Threats iPhone & Blackberry Airtel Vs.

0 0 SAttractive tro n g H ig h GE Model A irte l E n te rp ri M o b il se d iu me n e ss e 3 . Internal Analysis B u sin e ss S tre n g th SWOT Analysis M e d iu m W eak 5 .6 7 M a rk e t BCG Matrix M ectiv Moderate Te le M e d ia Attractive L o w A ttra Value Chain 2 . 33 . 00 3 . 67 2 .0 0 Low 5 .3 3 Resource Audit Unattractive 1 .

6 Annual Market growth rate 0.0 4.8 BCG Matrix Profitability 0. Factors Underlying Market Attractiveness Factors Weight Rating Value = SWOT Analysis (1 –5) (Weight * Rating) Resource availability 0.5 0.7 GE Model Overall market size 0.10 4 0.20 3.20 4.15 4 0.5 0.4 Competitive intensity Technological requirements 0.15 4 0.0 .9 Resource Audit Total 1.6 Value Chain 0.20 4 0.

10 4.5 0.15 5 0.10 3.10 4 0.15 3 0.75 .10 4.45 Pricing 0.75 GE Model New product development 0.40 BCG Matrix Sales force 0.5 0.0 3.35 Brand Image 0.15 3 0. Factors Underlying Market / Biz Strength Factors Weight Rating Value = SWOT Analysis (1 –5) (Weight * Rating) Market share 0.5 0.45 Resource AuditR&D Performance 0.45 Value Chain Distribution capacity 0.45 Product quality 0.15 3 0.45 Total 1.

Internal Analysis Stars ? – Question Mark HIGH SWOT Analysis Retail Insurance GE Model Mobile Services DTH & IPTV Broad Band BCG Matrix Cows Dogs Value Chain  Fixed Line Services  Resource Audit LOW HIGH Market Share LOW .

Established a SCM ti es BCG Matrix Value Chain M A R G Resource Audit I N Primary Activities . SCM specialists Customer service & Telesales training.789 R emp ng G nology Ac development . Networking Equipment. 7. Franchisee management. MIS. ERP. Telecom equipment for coverage and signal strength.Creating a 3G enabled network.646 out of 23. Internal Analysis Su astructure . IT pp SWOT Analysis or M A ti ngineers. Maintain long term relation with suppliers to p t .CRM tools.Launching M commerce by tie ups withI banks an GE Model ti N vi network to acquire networking & Telecom tools. mChek .

556 Young team . . BCG Matrix PACE (Progressive Assessment of Culture and Environment) Ability to raise funds feedback taken from employees used for company’s strategy Value Chain Physical Intangible Over 110 million customers Strategic partnership with Received license to provide 2G ad Google. Strong Distribution channel.254.986. A state-of-the-art learning centre Received US$1.Average age is 26years Dividend offered for 2008-09 is 20% of the face value of each Employees decide their training GE Model share needs. Internal Analysis Human resources Financial SWOT Analysis well defined rewards and Profit crosses US$1 bn recognition system Fixed asset (09) $ 7.0 license in Singapore.275 bn and training practices adopted investment from from British Telecom international investors in Bharti Infratel. 3G in Sri Lanka Goodwill & Reputation Resource Audit First Telecom operator in India to Facility based Operator offer MS Windows Mobile 5.

The Rule of Three Only three major players survive Mid size companies either die or grow by M&A 70% of market share is dominated by Full line generlist.20% by Specialist and rest by small players Being 22% of major market share Airtel is a Leader but since it is not more than 40%-70% Rule of three is not applicable  .

Value Added Service (VAS) Rolling out of advanced VAS has been possible due to Technological advancement and hence creating higher value for buyers and sellers. . The Rule of Three gradually may be after following strategies : Go Global: The Right time of entry Fast Follower Search for newer market – Attract Customers Penetrate in Rural and isolated market by different pricing strategies..The Rule of Three cont…. But being a leader it can aquire more market share to reach.

Levels of strategy Corporate level Business level Functional level .

  .Corporate level It is concerned with the overall purpose and scope of  an organization and how value will be added to the different business units of the organization.

and Germany’s T-Mobile Airtel . January 2010 also acquired 70% stake in Warid Telecom of Bangladesh  for $300 million (about Rs 1. offers mobile telecom services with a user base of over 2. Sweden’s Telia Sonera.700 crore) offer Bharti enters a relatively untapped market The acquisition takes Airtel past China’s Unicom.7-billion (Rs’s seventh-largest telecom service provider company by subscribers Bharti Airtel.9 million in Bangladesh .363 crore) A subsidiary of the Dhabi Group. Corporate level Growth  Airtel’s acquisition of Kuwaiti firm Zain's African assets to capture the 16 African countries A $10.

5 million new customers per month Outsourcing of technology enables Bharti Airtel to focus resources on growing the business Optimization of business processes and infrastructure through flexible. . Corporate level  Integration Business Challenge Bharti Airtel had to maximize its future flexibility and growth potential Need to develop new services to differentiate from competition Strengthen its customer relationships Solution Bharti Airtel entered into a comprehensive 10-year agree-ment with IBM To transform its Processes and take on the man­agement of its IT infrastructure Standardized framework for Bharti Airtel to integrate its channels and cus­ tomer-facing processes Enables a more seamless customer experi­ence. higher customer satisfaction and more profitable growth Key Benefits Ability to process 1.

Corporate level  Diversification BHARTI INFRATEL Bharti Infratel is the one of the world’s largest ‘Telecom Passive Infrastructure’ providers Benefits to the operator:  Reduced Capital Investment .as these towers have a large geographic footprint. Vodafone and Idea to hive off the Towers business 12 circles . and also the leaders with over 30.000 Towers across the circles they operate in Bharti Infratel also has a 42% stake in Indus towers which was created as a Joint Venture between Bharti best practices adopted by the market leader automatically benefit them too Pioneedr the passive infrastructure sharing concept in new infrastructure need not be created for them Faster . and cover existing. high-revenue Telecom circles Operational efficiencies .

(Porter’s generic strategies) .Business level It is about how to compete successfully in particular  markets.

Business level

Focussing on the newly acquired African markets is very
important for Airtel
Bharti Airtel is into a strategic partnership with IBM,
Tech Mahindra and Spanco to drive world class
customer service across the 16 African countries
Outsource core customer service functions like call
centres and back office to its subscribers
The partnership also aims at igniting a rapid growth in
the nascent African Business Process (BPO) to deliver
economic growth to many African countries
The partnership is also aimed at redefining and
providing a world class and seamless customer
experience in all 16 African countries
Help creating additional jobs and will provide services in

Business level

Goodbye cash, hello airtelmoney!
India’s first mobile wallet service by a telecom operator-
airtel money now launched in Gurgaon
Now, airtel mobile customers can use the power of the
ubiquitous mobile platform to make payments the
easier way
Airtel money gives mobile customers in India have
another reason to join the country’s largest network
Aimed at offering customers with an efficient alternative
to cash transactions
Airtel money will provide millions of airtel customers
across the country with a convenient and secure way of
making payments

Business level

Cost leadership

This strategy involves the firm winning market share by
appealing to cost-conscious or price-sensitive customers
This is achieved by having the lowest prices in the target
market segment, or at least the lowest price to value ratio
In the case of Bharti Airtel the cost leadership strategy of
prepaid and postpaid mobile services are comparatively
lower as compared to their competition
The 3G service plans of Airtel is at par with any other
service provider
To increase their market share in the future the price to
value ratio of the various 3G plans can catapult its market
share by a huge margin

processes and people .Functional level They are concerned with the how the component parts  of the organization deliver effectively the corporate and business level strategies in terms of resources.


Functional Strategy – Human Resources Well defined rewards and recognition system Employees decide training needs State of the art learning centre and training practices PACE(Progressive assessment of culture and environment) feedback taken by employees .


Targeting Elite Up market professionals Entrepreneur with business plans Low income mass category Youth Women and senior citizens by post paid connection .

“Power to keep in touch” Positioned in premium category aimed at elite class of society Convey power of instant communication Perception of aspirational and lifestyle brand Airtel decided that the brand should always connote leadership–be it in network. services Sponsored games like Golf . innovations. offerings.

performance and dynamism  . Logo indicated core value of the brand: leadership. “Touch tomorrow” New campaign launched to facilitate entry into new markets Started to capture mass market A new logo for Airtel.Red . black and white colors with ‘Airtel’ enwrapped in an eclipse.

thoughts and actions over boundaries. emotions. sounds. sights.“Live every moment” Launched to capture the imagination of the customer Projects a persons desire to spontaneously communicate through words. distances and geographies .

Airtel repositioned its brand with “Express yourself” campaign Changed its logo to give more energetic and younger look Highlight capability of Airtel’s performance and network coverage Launched in regional language .“Express Yourself” In 2003.

The First mover advantage Electronic recharge Hello tunes Airtel Live! Portfolio manager Song catcher Easy music Black berry handsets M-cheques .

000 by 2009 .00.Rural strategies Airtel follows “Match-box strategy” The firm expands regularly in Bihar. piggybacking on 300 distributors and more than 50.00.000 retail outlets selling Airtel prepaid cards Covers over 4.000 villages and hopes to expand to other 1.

special bidding  portal. SMS at  affordable prices . music download facilities. access to cell phones 14-19 years of age Expand customer base (limited to the older age groups till now) Deviation from earlier positioning for older people symbolizing dignity and power Re 0.night!.Youtopia Reduced tariffs.25 for 30 seconds.Youtopia Special tariff plan for youth.

r rahman and saina nehwal the latest entrant in the airtel brandwagon .Use of brand ambassadors Saif and kareena for digital tv Sachin tendulkar and shahrukh khan A.

as a Public Limited Company Largest GSM service provider in India 3rd largest wireless operator in the world. Bangladesh and few countries in Africa Listed in the stock exchange. Covers telecom circles in India.Financial Facts Established in July 07. BSE. Sri Lanka. NSE . 1995.

Financial Facts Customer Base of 207.6 million in India subscribe to GSM services The company also deploys.8 million in India and 42.124.000 in Africa 199. owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited .

. 8.8% India and South Asia business revenue growth accelerates to 13.7% growth over Q2 . up by 52.Financial Highlights Overall customer base stands at 207. across 19 countries Successful launch of the new Airtel brand across 19 countries Total revenues at Rs.7% Africa revenues came in at $ 911 million. 15.9% Underlying EBIDTA margin sustained at 33.756 Cr.8 million.

44 24.81 23.06 34.57 ROE(%) 29.Key Financial Ratios Particulars Mar 2010 Mar 2009 Mar 2008 Mar 2007 Mar 2006 ROA(%) 24.30 0.23 62.83 Debt/Equity(x ) EBIT 27.02 54.14 0.46 39.19 Growth(%) EPS -39.76 16.45 66.77 50.46 27.72 24.54 0.99 54.68 94.91 28.42 32.21 34.15 23.53 43.77 33.63 Growth(%) .92 18.67 27.12 ROCE(%) 28.49 Growth(%) PAT 21.27 Total 0.33 0.66 100.82 100.63 33.

to gain more market share . Untapped Rural Market: Large part of Indian Rural market is still untapped therefore Airtel is required to bring that area under mobility VAS: Increase more VAS to increase more profitability M&A: Merge and acquire Companies with market share less than 10 %.Recommendation Pricing: Airtel should keep their Pricing flexible according to market condition and competition Improve in Technology: Airtel should concentrate on better network Coverage to retain customers. companies-who-bid-for-3g-auctions-in-india.html http://www.html %20Airtel/bharti+airtel/media+centre/bharti+airtel+ news/mobile/pg-goodbye-cash-hello-airtel-money ftp://ftp.

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