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SR.NO 1. 2. 3. 4. 5. 6. 7. 8. TOPIC Industry Overview Group Overview PEST Analysis BCG Matrix Porters Five Force Model Value Chain Analysis Ansoff Model 7 S- Mckinsey PG. NO.

Industry OverviewAn Overview of the Telecommunication Industry in IndiaTalking of telecommunications sector in India today, we can primarily identify two segments namely Fixed Service Provider (FSPs) and Cellular Services. Some of the essential and basic telecom services forming part of Indian telecom industry include telephone, radio, television and Internet. Telecom industry in the country lays a special emphasis on some of the advanced and the latest technical innovations like GSM ( Global System for Mobile Communications), CDMA (Code Division Multiple Access), PMRTS (Public Mobile Radio Trunking Services), Fixed Line and WLL (Wireless Local Loop ). Especially, India has a flourishing market in GSM mobile service, while the number of subscribers is on rapid and dramatic increase. The Indian telecommunications industry boasts as being one among the most rapidly growing chunks on the globe. Experts around the world estimate that India holds the promise of emerging as the second largest telecom market of the world. Business Monitor International has stated that at present, India is adding up about 8-10 million mobile subscribers every succeeding month. Estimates have revealed that by June2012, almost half Indias population will be in possession of a mobile phone. This will result in about 612 million mobile subscribers, making up a teledensity of about 51 per cent by the year 2012. The latest reports published by Evalueserve state that the availability of the 3G spectrum has given hopes of finding about 275 million Indian subscribers using 3G-enabled services. This will take up the number of 3G-enabled handsets to reach near to 395 million by the end of 2013. A Frost & Sullivan industry analyst has predicted that by the year 2012, revenues from fixed line subscriptions in India will reach up to US$ 12.2 billion, while the revenue from mobile connections will reach up to US$ 39.8 billion. BSNL, the state-managed telecom operator has introduced 3G services in more than 318 cities benefitting 856,000 subscribers. BSNL has been venturing to cross more than 400 cities in the near future eventually rolling this service across 760 cities by September 2010. While the debate on 3G is seen continuing, TRAI has already started consulting on the next higher level of telecom services. 4G or the fourth generation enables downloads faster than all the earlier versions.

Today, India is the largest market in the world adding up a dramatic number of about 20 million mobile subscriber lines every month in an average. On the other hand, the number of landlines is found gradually decreasing. At the end of the first quarter in 2010, we find that the overall telecom subscriber penetration has gone up by more than 52 %. Though this might occur as a relatively low volume compared with a number of other nations, this comes as a quantum leap noting the figures recorded a few years back. Mumbai and Delhi (NCR) enjoy the status among a few other metro areas around the globe boasting of more than 25 m mobile subscribers in each of these regions. At present, The FDI cap in the telecom sector in India is 74 %. In a recent move, UKs Vodafone Group has purchased a 52 % stake in Hutchison Essar, the fourth largest mobile service provider in the country. Bharti Airtel has the credit of being the first Indian operator to cross a subscriber base of 50 million.

Group Overview

Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of bicycle parts to one of the largest and most respected business groups in India. With its entrepreneurial spirit and passion to undertake business projects that are transformational in nature, Bharti has created world-class businesses in telecom, insurance, retail, and foods. Bharti started its telecom services business by launching mobile services in Delhi (India) in 1995. Since then there has been no looking back and Bharti Airtel, the groups flagship company, has emerged as one of top telecom companies in the world and is amongst the top five wireless operators in the world. Through its global telecom operations Bharti group operates under the Airtel brand in 20 countries across Asia and Africa India, Sri Lanka, Bangladesh, Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. In addition, the group also has mobile operations in Jersey, Guernsey. Over the past few years, the group has diversified into emerging business areas in the fast expanding Indian economy. With a vision to build Indias finest conglomerate by 2020 the group has forayed into the retail sector by opening retail stores in multiple formats small and medium - as well establishing large scale cash & carry stores to serve institutional customers and other retailers. The group offers a complete portfolio of life insurance, general insurance and asset management to customers across India. Bharti also serves customers through its fresh and processed foods business. The group has growing interests in other areas such as telecom software, real estate, training and capacity building, and distribution of telecom/IT products.

What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the years some of biggest names in international business have partnered Bharti. Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in telecom. Walmart is Bhartis partner for its cash & carry venture.

Axa Group is the partner for the insurance business and Del Monte Pacific for the processed foods division. Bharti strongly believes in giving back to the society and through its philanthropic arm the Bharti Foundation it is reaching out to over 30,000 underprivileged children and youth in India.

Bharti Airtel Limited (NSE: BHARTIARTL, BSE: 532454), commonly known as Airtel, is the largest Indian telecommunications company that operates in 20 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G, 3G and 4G services depending upon the country of operation. Airtel is the world's third-largest mobile telecommunications company with over 261 million subscribers across 20 countries as of August 2012. It is the largest cellular service provider in India, with 200.00 million subscribers as of 09 August 2012. Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the airtel brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification. 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. It is known for being the first mobile phone company in the world to outsource all of its business operations except marketing, sales and finance. Its networkbase stations, microwave links, maintained by Ericsson, Nokia Siemens Network and Huawei, and business support is provided by IBM, and transmission towers are maintained by another company (Bharti Infratel Ltd. in India). Ericsson agreed for the first time to be paid by the minute for installation and maintenance of their equipment rather than being paid up front, which allowed Airtel to provide low call rates of 1/minute (US$0.02/minute). During the last financial year (200910), Bharti negotiated for its strategic partner Alcatel-Lucent to manage the network infrastructure for the tele-media business. On 31 May 2012, Bharti Airtel awarded the three year contract to Alcatel-Lucent for setting up an Internet Protocol across the country. This would help consumers access internet at faster speed and high quality internet browsing on mobile handsets.

Company Vision, Value And GoalVision:

By 2020 we will build Indias finest conglomerate by: Always empowering and backing our people. Being loved and admired by our customers and respected by our partners. Transforming millions of lives and making a positive impact on society. Being brave and unbounded in realizing our dreams.

Empowerment: We respect the opinions and decisions of others. We encourage and back people to do their best. Entrepreneurship: We always strive to change the status quo. We innovate with new ideas and energise with a strong passion and entrepreneurial spirit. Transparency: We believe we must work with honesty, trust and the innate desire to do good. Impact: We are driven by the desire to create a meaningful difference in society. Flexibility: We are ever willing to learn and adapt to the environment, our partners and the customers evolving needs.

To undertake transformational projects that has 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.


Regulations Political Opposition to participation by the private players Govt support to promote FDI in Telecom sector Banning of Phone Use in Certain Circumstances

Economic factors
Cost of calls Being Driven Down. Worldwide Recession- Both Boon &Bane. Middle class consumer base growing due to accelerated economic growth. Untapped markets in emerging Economies - New Opportunity.

Socio-Cultural factors
High End Phones becoming status symbol. Due to Intimate family bonding in Indian Culture, there is need to remain connected. Tech Savvy Generation.

Technological factors
Equipped with New Technology. Rapid Industrial growth rate induced by emerging technologies. Strong Fiber Optic Network. Utilization of E- Commerce facilities. Efficient Customer Care Services.


The BCG matrix, (Boston Consulting Group analysis) is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

To use the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates.


Cash cows are units with high market share in a slow-growing industry. These
units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.

Dogs, or more charitably called pets, are units with low market share in a mature,
slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.

Question marks (also known as problem child) are growing rapidly and thus
consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

Stars are units with a high market share in a fast-growing industry. The hope is
that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom.



BCG Matrix is used to find out the relative growth prospects of the product line. Airtel is going to have a submarine cable between Singapore and Chennai with the collaboration of SingTel. This will help Airtel to maintain its position in IPLC market. Right now in India only VSNL have such cables.


Porters Five Force Model:

Named after Michael E. Porter, this model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. 1. Competition in the industry 2. Potential of new entrants into industry 3. Power of suppliers 4. Power of customers 5. Threat of substitute products It is frequently used to identify an industry's structure in order to determine corporate strategy, Porter's model can be applied to any segment of the economy to search for profitability and attractiveness.


Application of Porters Five Force Model in Bharti AirtelThe telecom industry structure has become relatively unfavorable compared to earlier monopolistic times. The earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there is competition in virtually every segment. There are companies that provide local connectivity, those that function as long distance carriers, and those that provide only gateway links. Some integrated players operate in all segments. The intensity of competitive pressures across the chain is reflected in the downward spiral being witnessed in tariffs and prices to customer. The value chain for cellular mobile service and Internet Service Providers (other than cable based net connections) is similar in as much as thecalls reach the destination through similar local loop, long distance and international gateway.

1. Threat from Competition-

Wireless Market Top 4 garnering 75% market share 15

The subscriber growth for Airtel is only 37% as compared to Reliance & Vodafone whose growth is nearly 60%. After the launch of Reliance GSM in all India basis the subscriber base has increased tremendously. In Mumbai region Airtel could not become No. 1 because of its technical problems in coverage.

2. Customer Bargaining PowerPorter's Five Forces of buyer bargaining power refers to the pressure consumers can exert on businesses to get them to provide higher quality products, better customer service, and lower prices. When analyzing the bargaining power of buyers, the industry analysis is being conducted from the perspective of the seller. According to Porters 5 forces industry analysis framework, buyer power is one of the forces that shape the competitive structure of an industry. a. Lack of differentiation among Service Providers.

b. Cut throat Competition.

c. Low Switching Costs.

d. Number Portability will have NEAGTIVE Impact.

e. Businesses & Consumers


3. Suppliers Bargaining PowerBargaining power is the ability to influence setting of prices. The more concentrated and controlled the supply, the more power it wields against the market.


4. Threat of SubstitutesThreat of substitutes occurs when companies within one industry are forced to compete with industries producing substitute products or services. Substitutes limit an industrys potential returns by placing a ceiling on the prices that firms within that industry can charge to make a profit. As the price-performance alternative offered by substitutes becomes more attractive, it becomes even more difficult for those firms to make a profit. Demand for substitutes can also reduce the demand for industry products and services. Substitutes can create intense competition during normal economic times, and reduce potential profit increases during positive economic times. Threats to Substitutes to Bharti Airtel: a. Landline b. CDMA c. Video Conferencing d. VOIP - Skype, Gtalk, Yahoo Messenger e. e-Mail & Social Networking Websites

5. Threat of New EntrantsA major force shaping competition within an industry is the threat of new entrants. The threat of new entrants is a function of both barriers to entry and the reaction from existing competitors. a) b) c) d) Huge License Fees to be paid upfront & High gestation period. Spectrum Availability & Regulatory Issues High Infrastructure Setup Cost. Rapidly changing technology.


Bharti Airtel value chain analysisPrimary ActivitiesUnder the primary activities, the main which give bharti airtel a competitive edge are:


Supporting activities Firm Infrastructure : Tower setup, IT infrastructure, telecom equipments, networking stations and equipments and various software to assist in operations.

Human Resource management: Hiring of IT skilled workforce and telecom operators. Hiring of customer support personnel and their training program. Expertise in recruiting the retail staff and quality of their training. Recruiting best in business leaders to take the company forward.

Technology Development: Development of various VAS services. Introduction to mCheck to enable consumers do mobile commerce. Investing in research and development.

Procurement: High initial investment required to setup physical distribution towers and network stations. Long term contract with third parties are required. Strong supply chain network is required to enable continuous supply of handsets and sim cards



Market penetration strategy

Attract users of competitors products: eg full talktime Convert nonusers into users: eg. Lifetime plans to attract low income groups Increase product usage: eg.Easy recharge Increase the frequency of purchase: recharge through ATM, internet based recharging through leading banks etc.

New product development

Product quality improvement strategy: eg better mobile coverage Product feature addition strategy: eg . airtel live New product development strategy: eg Airtel-Blackberry

Market development
Expand geographically Target new segments: eg call home service for NRIs to be touch with their loved ones

Broadband services Telephone service- touchtel Consultancy services to industry verticals like Banking , Financial services and Insurance etc to meet their telecom needs.


It is also known as Product-Market Growth Matrix.

The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff and first published in his article "Strategies for Diversification" in the Harvard Business Review (1957). The matrix allows marketers to consider ways to grow the business via existing and/or new products, in existing and/or new markets there are four possible product/market combinations. This matrix helps companies decide what course of action should be taken given current performance.


The matrix consists of four strategies:

MarketPenetration(existing markets, existing products):Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting nonusers of your product or convincing current clients to use more of your product/service, with advertising or other promotions. Market penetration is the least risky way for a company to grow. Product Development (existing markets, new products): A firm with a market for its current products might embark on a strategy of developing other products catering to the same market (although these new products need not be new to the market; the point is that the product is new to the company). For example, McDonald's is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. Hence, new product development can be a crucial business development strategy for firms to stay competitive. Market Development (new markets, existing products): An established product in the market place can be tweaked or targeted to a different customer segment, as a strategy to earn more revenue for the firm. For example Lucozade was first marketed for sick children and then rebranded to target athletes. This is a good example of developing a new market for an existing product. Again, the market need not be new in itself; the point is that the market is new to the company. Diversification (new markets, new products): Virgin Cola, Virgin Megastores, Virgin Airlines, Virgin Telecommunications are examples of new products created by the Virgin Group of UK, to leverage the Virgin brand. This resulted in the company entering new markets where it had no presence before.


Ansoff Matrix for Bharti Airtel Ltd-

MARKET PENETRATION: Airtel entered in broadband and fixed phone line market.


Leased Service is a service offered exclusively to International BPOs. This service provides the facility to make inbound or outbound calls to multiple international destinations and pay only on per minute rates for the entire setup.


MARKET DEVELOPMENT: Airtel is looking for expanding its overseas market. Company has already made his presence in 20 countries and is trying to expand into many foreign nations. DIVERSIFICATION: Airtel has now outsourcing sum of its services like customer services with IBM.


7 S McKinsey Model:

Strategy strategy is the route that the organization has chosen for its future
growth; a plan an organization formulates to gain a sustainable competitive advantage: Strategies used by Airtel are: Cost leadership strategy Differentiation Strategy Focus strategy Distribution strategy Promotion strategies etc


Structure Structure is the framework in which the activities of the

organization's members are coordinated. The four basic structural forms are the functional form, divisional structure, matrix structure, and network structure.


Systems System forms the formal and informal procedures, including

innovation systems, compensation systems, management information systems, and capital allocation systems, that govern everyday activity. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises and is the largest private Telecom Company in India. To assist in their business processes, they have implemented the CRM module of the Oracle E-Business Suite. This application is used 24x7 by the contact centers located at various geographic locations. There are three different implementations of CRM catering to different business segments, including, most recently, for Airtel Broadband Telephone Services (ABTS). Contact centers for the landline telephone and broadband services provided by Bharti Airtel across Pan-India use this application.

Style the leadership approach of top management and the organization's overall
operating approach is the way in which the organization's employees present themselves to the outside world, to suppliers and customers. Employees are one of the most important drivers of growth and success for any organization is its people. At Bharti Airtel his Mantra for employee delight focus on 4ps People Pride Passion Processes Management is about getting things done. Leadership is about achieving goals by creating a direction for a business and inspiring employees to take initiative and make the right decisions. Enterprise managers need the skills to motivate, lead and influence others. Enterprise aims to employ people who can take on a leadership role and help to grow the business for the longer term. Its management and training programmes help to provide employees with the skills necessary to lead others. This case study illustrates that individual differ in many ways, including personality, values, attitudes and style of thinking and decision making. There are two leadership styles that rely strongly on the Individual leader personal characteristics, which are Transactional leader and Transformational Leader. Depending upon the circumstances, leaders will use different leadership styles, by developing leaders who are able to make decisions at a local level, Enterprise can respond more closely to customer needs within a competitive service

Skills skills involve what the company does best; the

distinctive capabilities and competencies that reside in the organization PerformanceAccording to Sunil Mittal essentials to build a strong work force are: Ability to take decisions amidst uncertainties Reading customer mind and predicting future trend Ability to deal with grievant customers Communication skill Work Experience Learning skill

Staff the organization's human resources; refers to how people are developed,
trained, socialized, integrated, motivated, and how their carriers are managed. According to Sunil Mittal , he relies only on skilled staff members for his organization.

Shared values Originally called superordinate goals; the guiding concepts and
principles of the organization values and aspirations, often unwritten that go beyond the conventional statements of corporate objectives; the fundamental ideas around which a business is built; the things that influence a group to work together for a common aim. The employees in Airtel, shares a common picture about the future.