Bharti Airtel Enterprise Services BCG Matrix Study

BCG Matrix:-

Star
SBU: Enterprise Services(Carriers & Corporates) Reason:-( Major Contributor to revenue in just 4 years of coming 04-08)

?
SBU: Passive Infra Reason:-(Very new approach but quick grip of market/Good Coloborations like-Indus Towers/Untaaped Market)

Cash Cow
SBU: Mobile Services Reason:-(Legacy of Bharti)

Dog
SBU: Telemedia Services Reason:-(Significant fall in ARPU/Other Big Players existing in Market)

Data for BCG Matrix in following Manner:-

Market Growth Strategic Business Unit Mobile Services Telemedia Services Enterprise Services(Carri ers & Corporates) Market Share(S BU) 70.56% 9.22% Market Share(Largest Competitor) RelianceCDMA/GSM->17.94% BSNL-->37% Atire Technology->42.6% Relativ e Market Share 24.79% 23% Relative Market Share (in BCG Terms) 1.38 0.62 0.34 (%age change b/w FY 07-10)

Quadra nt in which the SBU lies

Cash 33.00% Cow 44.00% Dog

18.26%

Passive Infra

1.94%

14.50% NA(New ly Induced GTL Infra-->28.33% SBU)

30.00% Star 0.00 (SBU Started in FY08) ?

Bharti Airtel- Ansoff Matrix

The Ansoff Matrix helps to define the product strategy which encompasses the product, its marketing strategies and its management altogether. To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused on the firms present and potential products and markets / customers. He called the four product-market strategic alternatives Market penetration [existing market + existing product], Market development [existing product + new market],

Product development [existing market + new product], and Diversification [new product + new market].

The company should follow all four strategies depending on the demand and product as indicated in the matrix. The company perhaps needs to focus more on the comparatively neglected area of diversification. MARKET PENETRATION: Airtel entered in broadband and fixed phone line market as a part of its market penetration strategy. PRODUCT DEVELOPMENT: IPLC products. Digicel Business IPLC or International Private Leased Circuit provides your business with dedicated point-to-point data networks. It is an ideal communication tool if you operate in multiple markets as it provides immediate connection to global associates and assets, direct links between HQ and branch, immediate access to data banks- live or back-up and real time links to call centers. MARKET DEVELOPMENT: Airtel is now looking for overseas market. Company has already made their presence in Nigeria and Seychelles. This move can be categorized as development of newer markets for the company to move into. DIVERSIFICATION: Airtel has now outsourcing sum of its services like customer services with IBM which is diverting from its mainstream telecom operation.