Business Level Strategies

ASSIGNMENT OF MANAGEMENT CONTROL SYSTEM

Topic- Business strategies of a Listed Company & comparison with competitor

Date 25th JANUARY, 2013

SUBMITTED BY: Name- Deepika Monika Hanspal ROLL NO. 111 MBA 4th

SUBMITTED TO: Ms

(Session 2011-13)

Business Level Strategies

INTRODUCTION TO THE COMPANY

Bharti Airtel Limited is a leading telecommunications company with operations in 20 countries across Asia and Africa. Its Headquarter is situated in New Delhi, India. The company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the company's product offerings includes 2G, 3G and 4G services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile services. Bharti Airtel had over 253 million customers across its operations at the end of April 2012.

SERVICES
1. Airtel provides prepaid recharge as much as you need to from as low as Rs.

10, to as high as Rs. 10,000/-. 2. Airtel provides a strong network coverage that spans over 23 circles across the country.
3. Airtel Prepaid comes pre-activated with 'National Roaming', so

you stay connected no matter wherever you are. You can also send or receive MMS, check your email and access other GPRS services while roaming in India as you would in your own city. While traveling abroad you can receive calls & send or receive SMS.
4. Instant validity and balance enquiry.

Business Level Strategies

5. Easy recharge with coupons available at local outlets. 6. Prepaid roaming 7. Call management services like call hold, call divert, caller line identification. 8. Voice Mail 9. SMS/MMS 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Subscription alert Airtel live Hello tunes Copy a Hello Tune Buy Music 121 Easy payment Pay while roaming Widest roaming Conference call Missed call alerts

BUSINESS LEVEL STRATEGIES

COST LEADERSHIP TARGET MARKET: Airtel has targeted the premium and upper middle class. Ther a t i o n a l e b e h i n d i t i s t h a t o n l y t h o s e s e g m e n t s s h o u l d b e targeted who value time and have the paying capacity. It is also planning to target the business tourists during their stay in the capital about 60% of the clientele are top executives of corporate houses. About 15% are foreign organisations and the rest are professionals and small businessmen. During the introduction stage there was intense pressure to get consumers across t o hook up with their brand, because getting them to switch brand loyalty later would be hard. So far Airtel marketers have been concentrating
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Business Level Strategies

totally on the business executive class but now that the basic viable volumes has been built up and prices have declined to a certain extent they are planning to venture further afield. POSITIONING: The product is sought to be positioned as a business efficiency tool. A lifestyle revolution and a status symbol the emphasis is to remove misconception that the cell phone is an expensive means of communication and drive home the point that the cell phone is actually a day-to-day utility. PRODUCT POLICY AND PLANNING: T h e p r o d u c t o r s e r v i c e s are t h e heart of the marketing mix.Without a product or service customers' n e e d s c a n n o t b e satisfied. The basic product promise by Airtel is mobility. Airtel's main m a r k e t i n g s t r a t e g y i s t o b e a f i r s t m o v e r a l l t h e t i m e . I t h a s recognised the significance of making the first move-- because in the field of Communication & Information Technology changes occur at a tremendous pace. Effective product segmentation has to be carried on continuously because basic services can be and will be copied and in time become expected component of the product. Airtel seeks to carry out this segmentation through provision of new information services and making new facilities available. The product policy and planning depends on the stage of the product life cycle. Atp r e s e n t t h e c e l l u l a r p h o n e m a r k e t h a s r e a c h e d t h e m a t u r i t y stage. Since, the premium segment is nearing saturation the company targeting the upper middle and middle-middle class. In order to do so Airtel is trying to optimise the price performance package by offering suitable "product bundling" PRICE AND PRICING POLICY AIRTEL has realised that the Indian market is price sensitiv e. Therefore its care of has come up with various i n n o v a t i v e tariff schemes to take needs of different category of
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Business Level Strategies

customers-Generally, the cellular services are more expensive than the landline based telephone services. This is due to the reason that the operating companies are required to pay a fee to the government for using airtime.

AIRTEL vs. IDEA

There are some major factors that affect companys growth. Airtel is the leader in telecom sector where Idea is behind him. Airtel has a strong position in Indian telecom sector through its services. Some of the major factor faced by idea is connectivity and for Airtel its call rates. Both companies should analyse their cost and control their drawbacks to maintain the status in the telecom industry. As we talk about Idea, they can beat the leader in area of price. The Indian consumers mostly are price sensitive. They look for low price products. So the major factor of switching the customer is price. Some other factors also have their presence in consumer mind like value added services, connectivity, validity etc. Idea has low price average value added services and good validity period but also have low connectivity. Airtel is the leader and they present many services for their customers like value added services, connectivity. But as we research that Airtel has high prices rather than Idea, and also provide low validity period for same price. This is the main area where consumer can switch from there. After all analysis we can say that Airtel and Idea both have same advantage and disadvantage in market. Both should improve their services and reduce the services that are less in use and less in consumer awareness so they can get profit.