airtel & vodafone service activities

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Service Marketing Telecom Industry Presented by: Aditya Jain Anup Kumar Diptiranjan Das Pratyush Singh

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Service MarketingTelecom Industry

Presented by:Aditya Jain

Anup KumarDiptiranjan DasPratyush Singh

Airtel vs. Vodafone

Introduction

• Public limited company, incorporated in England in 1982. • Second largest telecom service provider in the World.• It has got a significant presence in Europe, the Middle East,

Africa, Asia pacific and the United States with approximately 358 million registered mobile customers (31 March 2011)

• Vodafone group Plc

Revenue: £45,884 million (year ended 31 March 2011)

Group EBITDA: £14,670 million (year ended 31 March 2011)

Beliefs, values and ethical priorities

• Passion for customers• Passion for their people • Passion for results• Passion for the world around them

S W O T STRENGTHS:

• Strong International presence and brand recognition.• Solid platform across Europe; HSDPA available in 100% of 3G footprint.• Opening growth opportunities in mobile broadband services.• Controlling interest in strong growth markets (e.g. Egypt, Romania, South

Africa, Turkey, India)• Well-defined cost reduction initiatives: managed purchasing, outsourcing.• Stable operating profit despite downward profit trend in Europe offset by• Improved operations in EMAPA.• Have now established a clear route to delivering fixed broadband services

in all relevant markets• Consistent in maintaining a 60% payout ratio

Continued…

WEAKNESS :

• Uncertainty in revenue growth in the HSDPA network based on historically slow consumer market take-up of 3G data services

• Slow customer growth in DSL wholesale markets in UK and Italy; slow subscriber growth in Spain arising from lower promotional activity

• Adverse impact from exchange rate movements particularly in South Africa

• The likely slippage of dividends in Verizon Wireless to 2010 could fuel tension between Verizon Communications and Vodafone shareholders

• Insubstantial capacity to offer bundled services due to specialization in mobile services; may lead to higher churn rates and may be pressured to compete exclusively in price

Continued…

OPPORTUNITIES:

• EMAPA remains target for potential acquisitions, with an average mobile penetration of 27% by end of FY07 ; huge growth opportunity in India in a market of 1.1 bn people with a low 14% mobile penetration

• 3G data services gaining momentum in business customers; successful partnerships with laptop manufacturers to include embedded Vodafone SIMs to mobile devices allow opportunities for upselling of mobile broadband services

• In Europe, only one-third of voice traffic is carried over mobile networks and Vodafone customers has a monthly average of only 140 minutes of use; the trend is parallel with the company’s strategy to drive higher voice usage onto mobile through reduction in prices; Vodafone expects usage demand to eventually exceed the price reduction

Continued…Threat:

• Fierce competition in mature markets, specially with converged telcos offering triple-play and quad-play services; Vodafone lacks a direct substitute for such services

• Greater than anticipated competition with internet providers, MVNOs and new entrants; greater than anticipated customer acquisition and retention Costs

• Regulatory intervention on tariffs and other conditions creates pressure on revenues; the company expects a revenue reduction of £200 mn due to the elimination of top up charges under the Bersani decree in Italy and reduction of £200 mn to £250 mn from the deregulation of roaming charges across Europe

Bharti Airtel• Largest Private Integrated Telecom Company in India• 3rd Largest Wireless Operator in the World• Largest & Fastest Growing Wireless Operator in India with a customer base

in India & South Asia: 178,606,000 GSM mobile, 3,328,000 Tele-media customers and 6,614,000 Digital TV Services(status as on September 30, 2011)Africa: 48,437,000 GSM mobile customers.(status as on September 30, 2011)

• Largest Telecom Company listed on Indian Stock ExchangeProportionate revenueRs. 172,698 million (ended September 30, 2011-Audited)As per IFRS Accounts

Proportionate EBITDARs. 58,151million ( ended September 30, 2011 - Audited)As per IFRS Accounts

Integrated Telecom Company

Wireless Services• 2G/3G• Rural Market

Tele-media Services• Fixed Line• Broadband• DTH

Enterprise Services• Carrier• Corporate

Passive Infrastructure• Bharti Infratel• Indus Tower

S W O T

Strengths Weaknesses Largest Telecom Player in India Strategic Alliance with other

stakeholders in Bharti Airtel include Sony-Ericsson, NSN, Sing Tel and Cisco

Pan India Presence Strong Financials

Outsourcing of Core System Lack of emerging market

investment opportunity

Continued…Opportunities Threat Bharti Infratel – Cutting Down cost

in Rural area Match Box Strategy – Scale of

Penetration Current Tele-Density – 30.6 is still

low among developing countries Low Broadband Penetration, Rural

Telephony

India centric – Major revenues from India

Falling ARPU & AMOU Intense Competition & Shortage of

Bandwidth

Comparison between Aritel and Vodafone Parameters Airtel Vodafone

Variety of services services like DTH, broadband ,mobile services and fixed line.

Underdeveloped or absent

Innovative Less innovative strategies Innovative marketing strategies

Advertising Use of superstars like Shah Rukh Khan, Kareena Kapoor and Sachin Tendulkar.

Use of zoo zoos/pug in commercials

Coverage It has better national coverage

It has better international coverage

Presence in Indian Circles Presence in all 23 telecom circles of the country

Presence in 21 circles only

Preference for corporate Corporate preferred for internet connection

Not much of corporate clientele and underserviced/linked

Continued…Pricing Price is comparatively little

higher side with profitability motive everywhere.

Provides best value to its customer at lowest cost.

Customer Care Customer care services questionable.

Good customer care services.

Offices:

Call Centers:

:

Airtel Vodafone

Delayed processing and systems relatively manual

Faster with machine for depositing bills for customers separately

Environment not formal and laidback ; office ambience not uniform (smaller and relatively shabby)

Formal attire of employees and anticipative environment ; Office ambience clean and spacious

Less staff with undefined roles More staff with defined roles

More service resources diverted to corporate clients

On the reverse side from corporate perspective else normal

Airtel Vodafone

Server Call disconnect problems Not reported of highly

No such culture Feedback culture/orientation

Service Gaps in identification and resolution of problems

No such gaps

Critical Service differentiation

Web:

Parameter Airtel Vodafone

Approach Service offering display design (Product centric)

Customer information/usage design (Customer centric)

Customer Involvement

Customer aiding & involvement is quite low

High Customer based interactive site.

Website Interface Interface more user friendly/attractive. But, less interactive

Comparatively dull interface, yet interactive.

Official- website presence

Single Domain Name i.e one stop solution.

Two domains, Corporate site and Service sites are different

Continued… Services:

Parameter Airtel Vodafone

Internet Dongle 3G, high speed internet. 3GB download 7.2 mbps.

3G, comparatively slower.2GB downlaod3.4 mbps

Better Networking Relatively weak

Collection centers Airtel personnel have better approach

Have typically friendly.

Benchmark

China mobile ( Total customers – 644 million approx )• As the leading mobile services provider in China, the Group boasts the world's

largest mobile network and the world's largest mobile customer base. The Group's human resources work focused on the full-service business, supported new development, reform and innovation to achieve effectiveness. By optimizing its organizational structure, establishing its core talent team and enhancing its systems and mechanisms, the Company enhanced its management efficiency and organizational capabilities and promoted and built up its new competitive advantage in human resources under the new environment, all of which strongly supported the achievement of the Company's strategies and business objectives. Strong relationship with its employees firstly by implementing Labor Contract Law in earnest and proactively building harmonious labor relations and then providing conducive environment. Developed Human Resources Strategic Plan with emphasis on training needs and practices like "survey – improvement – resurvey“ were used.

SuggestionsAirtel

Should change website design to put in specific information for customers involvement more and do the same through responsive behavior from call centers and offices.

Promote culture of feedback and helping customer. Serve existing customers well for sustaining brand’s market share that can

help in ruling the 1st position in long run. Heavy Diversion to new industry shall not be approached aggressively but,

steadily/gradually. Innovative on plans for communities with competitive strength.

(Eg:- Har ek friend zaruri hota hai). Sponsor online mini games to attract more customer base.

Continued…

Vodafone: Should evolve more service offerings as per opportunities in the market as

they cannot be compensated by mere service orientation. Become more innovative in ways of interaction. Explore rural market more. Improve services in 3G and the upcoming technologies. Faster and wider means of communication techniques.