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    1. Industry Overview

    2. Group Overview

    3. PEST Analysis

    4. BCG Matrix

    5. Porters Five Force Model

    6. Value Chain Analysis

    7. Ansoff Model

    8. 7 S- Mckinsey

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    Industry Overview-

    An Overview of the Telecommunication Industry in India-

    Talking of telecommunications sector in India today, we can primarily identify twosegments namely Fixed Service Provider (FSPs) and Cellular Services. Some ofthe essential and basic telecom services forming part of Indian telecom industryinclude telephone, radio, television and Internet. Telecom industry in the countrylays a special emphasis on some of the advanced and the latest technicalinnovations like GSM ( Global System for Mobile Communications), CDMA(Code Division Multiple Access), PMRTS (Public Mobile Radio TrunkingServices), Fixed Line and WLL (Wireless Local Loop ). Especially, India has aflourishing market in GSM mobile service, while the number of subscribers is onrapid and dramatic increase. The Indian telecommunications industry boasts as

    being one among the most rapidly growing chunks on the globe. Experts aroundthe world estimate that India holds the promise of emerging as the second largesttelecom market of the world.

    Business Monitor International has stated that at present, India is adding up about8-10 million mobile subscribers every succeeding month. Estimates have revealedthat 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 ateledensity of about 51 per cent by the year 2012.

    The latest reports published by Evalueserve state that the availability of the 3Gspectrum has given hopes of finding about 275 million Indian subscribers using3G-enabled services. This will take up the number of 3G-enabled handsets to reachnear to 395 million by the end of 2013.

    A Frost & Sullivan industry analyst has predicted that by the year 2012, revenuesfrom fixed line subscriptions in India will reach up to US$ 12.2 billion, while therevenue from mobile connections will reach up to US$ 39.8 billion.

    BSNL, the state-managed telecom operator has introduced 3G services in morethan 318 cities benefitting 856,000 subscribers. BSNL has been venturing to crossmore than 400 cities in the near future eventually rolling this service across 760cities by September 2010. While the debate on 3G is seen continuing, TRAI hasalready started consulting on the next higher level of telecom services. 4G or thefourth generation enables downloads faster than all the earlier versions.

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    Today, India is the largest market in the world adding up a dramatic number ofabout 20 million mobile subscriber lines every month in an average. On the otherhand, the number of landlines is found gradually decreasing. At the end of the firstquarter in 2010, we find that the overall telecom subscriber penetration has goneup by more than 52 %. Though this might occur as a relatively low volumecompared with a number of other nations, this comes as a quantum leap noting thefigures recorded a few years back. Mumbai and Delhi (NCR) enjoy the statusamong a few other metro areas around the globe boasting of more than 25 mmobile subscribers in each of these regions. At present, The FDI cap in the telecomsector 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 thecountry. Bharti Airtel has the credit of being the first Indian operator to cross asubscriber base of 50 million.

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    Group Overview

    Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being amanufacturer of bicycle parts to one of the largest and most respected businessgroups in India. With its entrepreneurial spirit and passion to undertake business

    projects that are transformational in nature, Bharti has created world-classbusinesses 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, thegroups 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 AfricaIndia, Sri Lanka, Bangladesh,Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic ofCongo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone,Tanzania, Uganda, and Zambia. In addition, the group also has mobile operationsin Jersey, Guernsey.

    Over the past few years, the group has diversified into emerging business areas inthe fast expanding Indian economy. With a vision to build Indias finest

    conglomerate by 2020 the group has forayed into the retail sector by opening retailstores in multiple formatssmall and medium - as well establishing large scalecash & carry stores to serve institutional customers and other retailers.

    The group offers a complete portfolio oflife insurance, general insurance andasset managementto customers across India. Bharti also serves customersthrough its fresh and processed foods business. The group has growing interests inother areas such as telecom software, real estate, training and capacity building,

    and distribution of telecom/IT products.

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    What sets Bharti apart from the rest is its ability to forge strong partnerships. Overthe years some of biggest names in international business have partnered Bharti.Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are keypartners 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 theprocessed foods division. Bharti strongly believes in giving back to the society andthrough its philanthropic arm the Bharti Foundation it is reaching out to over30,000 underprivileged children and youth in India.

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    Bharti Airtel Limited (NSE: BHARTIARTL, BSE: 532454), commonly known asAirtel, is the largest Indian telecommunications company that operates in 20

    countries across South Asia, Africa and the Channel Islands. It operates a GSMnetworkin all countries, providing 2G, 3G and 4G services depending upon thecountry of operation.

    Airtel is the world's third-largest mobile telecommunications company with over261 million subscribers across 20 countries as of August 2012. It is the largestcellular service providerin India, with 200.00 million subscribers as of 09 August2012. Airtel is the third largest in-country mobile operator by subscriber base,

    behind China Mobile and China Unicom.

    Airtel is the largest provider ofmobile telephony and second largest provider offixed telephony in India, and is also a provider ofbroadband and subscriptiontelevision services. It offers its telecom services under the airtel brand, and isheaded 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 communicationservices. The company has a submarine cable landing station at Chennai, whichconnects the submarine cable connecting Chennai and Singapore.

    It is known for being the first mobile phone company in the world to outsource allof its business operations except marketing, sales and finance. Its networkbasestations, microwave links, etc.is maintained by Ericsson, Nokia Siemens

    Networkand Huawei, and business support is provided by IBM, and transmissiontowers are maintained by another company (Bharti Infratel Ltd. in India).

    Ericsson agreed for the first time to be paid by the minute for installation andmaintenance of their equipment rather than being paid up front, which allowedAirtel to provide low call rates of 1/minute (US$0.02/minute). During the last

    financial year (200910), Bharti negotiated for its strategic partnerAlcatel-Lucentto manage the network infrastructure for the tele-media business.

    On 31 May 2012, Bharti Airtel awarded the three year contract to Alcatel-Lucentfor setting up an Internet Protocol across the country. This would help consumersaccess internet at faster speed and high quality internet browsing on mobilehandsets.

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    Company Vision, Value And Goal-


    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 andenergise with a strong passion and entrepreneurial spirit.

    Transparency:We believe we must work with honesty, trust and the innate desire to dogood.

    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 andthe customers evolving needs.

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    To undertake transformational projects that has a positive impact on thesociety and contribute to the nation building process.

    To diversify into new businesses in agriculture, financial services and retailbusiness with world-class partners.

    To lay the foundation for building a conglomerate of future.

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    Political factors 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


    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.

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    The BCG matrix, (Boston Consulting Group analysis) is a chart that had beencreated by Bruce Henderson for the Boston Consulting Group in 1970 to helpcorporations with analyzing their business units or product lines.

    This helps the company allocate resources and is used as an analytical tool inbrand marketing, product management, strategic management, and portfolioanalysis.

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

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    Cash cowsare units with high market share in a slow-growing industry. Theseunits typically generate cash in excess of the amount of cash needed to maintainthe business. They are regarded as staid and boring, in a "mature" market, andevery corporation would be thrilled to own as many as possible. They are to be

    "milked" continuously with as little investment as possible, since such investmentwould 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 barelyenough cash to maintain the business's market share. Though owning a break-evenunit provides the social benefit of providing jobs and possible synergies that assistother business units, from an accounting point of view such a unit is worthless, notgenerating 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 beingmanaged. Dogs, it is thought, should be sold off.

    Question marks(also known as problem child) are growing rapidly and thusconsume large amounts of cash, but because they have low market shares they donot generate much cash. The result is large net cash consumption. A question markhas the potential to gain market share and become a star, and eventually a cash cowwhen the market growth slows. If the question mark does not succeed in becomingthe market leader, then after perhaps years of cash consumption it will degenerate

    into a dog when the market growth declines. Question marks must be analyzedcarefully in order to determine whether they are worth the investment required togrow market share.

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

    stardom to dogdom.

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    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 thecollaboration of SingTel. This will help Airtel to maintain its position in IPLCmarket. Right now in India only VSNL have such cables.

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    Porters Five Force Model:

    Named after Michael E. Porter, this model identifies and analyzes 5 competitiveforces that shape every industry, and helps determine an industry's weaknesses and


    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 determinecorporate strategy, Porter's model can be applied to any segment of the economy tosearch for profitability and attractiveness.

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    Application of Porters Five Force Model in Bharti Airtel-

    The telecom industry structure has become relatively unfavorable compared toearlier monopolistic times. The earlier pattern used to be that the national telecom

    company used to own every segment of the value chain till the internationalgateway.With liberalization there is competition in virtually every segment. There arecompanies that provide local connectivity, those that function as long distancecarriers, and those that provide only gateway links. Some integrated playersoperate in all segments. The intensity of competitive pressures across the chain isreflected in the downward spiral being witnessed in tariffs and prices to customer.The value chain for cellular mobile service and Internet Service Providers (otherthan cable based net connections) is similar in as much as thecalls reach thedestination through similar local loop, long distance and international gateway.

    1.Threat from Competition-

    Wireless Market Top 4 garnering 75% market share

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    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 hasincreased tremendously.

    In Mumbai region Airtel could not become No. 1 because of its technicalproblems in coverage.

    2.Customer Bargaining Power-

    Porter's Five Forces of buyer bargaining power refers to the pressureconsumers can exert on businesses to get them to provide higher quality

    products, better customer service, and lower prices. When analyzing thebargaining power of buyers, the industry analysis is being conducted fromthe perspective of the seller. According to Porters 5 forces industry analysisframework, buyer power is one of the forces that shape the competitivestructure 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

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    3.Suppliers Bargaining Power-

    Bargaining power is the ability to influence setting of prices. The more

    concentrated and controlled the supply, the more power it wields against the


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    4.Threat of Substitutes-

    Threat 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. Landlineb. CDMAc. Video Conferencingd. VOIP - Skype, Gtalk, Yahoo Messengere. e-Mail & Social Networking Websites

    5.Threat of New Entrants-

    A 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) Huge License Fees to be paid upfront & High gestation period.b) Spectrum Availability & Regulatory Issuesc) High Infrastructure Setup Cost.d) Rapidly changing technology.

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    Bharti Airtel value chain analysis-

    Primary Activities-

    Under the primary activities, the main which give Bharti Airtel a competitive

    edge are:

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    Supporting activities-

    Firm Infrastructure : Tower setup, IT infrastructure, telecomequipments, networking stations and equipments and various software to

    assist in operations.

    Human Resource management: Hiring of IT skilled workforce andtelecom 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 physicaldistribution 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

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    The AnsoffProduct-Market Growth Matrix is a marketing tool created by IgorAnsoff and first published in his article "Strategies for Diversification" in theHarvard Business Review (1957). The matrix allows marketers to consider ways togrow the business via existing and/or new products, in existing and/or new marketsthere are four possible product/market combinations. This matrix helpscompanies decide what course of action should be taken given current


    The matrix consists of four strategies:

    MarketPenetration(existing markets, existing products):Marketpenetration occurs when a company enters/penetrates a market with currentproducts. The best way to achieve this is by gaining competitors' customers

    (part of their market share). Other ways include attracting nonusers of yourproduct or convincing current clients to use more of your product/service,with advertising or other promotions. Market penetration is the least riskyway for a company to grow.

    Product Development(existing markets, new products): A firm with amarket for its current products might embark on a strategy of developingother 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 thecompany). For example, McDonald's is always within the fast-food industry,

    but frequently markets new burgers. Frequently, when a firm creates newproducts, it can gain new customers for these products. Hence, new productdevelopment can be a crucial business development strategy for firms to staycompetitive.

    Market Development(new markets, existing products): An establishedproduct in the market place can be tweaked or targeted to a differentcustomer segment, as a strategy to earn more revenue for the firm. Forexample Lucozadewas first marketed for sick children and then rebrandedto target athletes. This is a good example of developing a new market for anexisting product. Again, the market need not be new in itself; the point isthat the market is new to the company.

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    Diversification(new markets, new products): Virgin Cola, VirginMegastores, Virgin Airlines, Virgin Telecommunications are examples ofnew 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.

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    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

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    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.

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    7 S McKinsey Model:

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    Strategystrategy 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

    StructureStructure is the framework in which the activities of theorganization's members are coordinated. The four basic structural forms are thefunctional form, divisional structure, matrix structure, and network structure.

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    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 inthe telecommunication sector. Telecom giant Bharti Airtel is the flagship companyof Bharti Enterprises and is the largest private Telecom Company in India. Toassist in their business processes, they have implemented the CRM module of theOracle E-Business Suite. This application is used 24x7 by the contact centerslocated at various geographic locations.

    There are three different implementations of CRM catering to different businesssegments, including, most recently, for Airtel Broadband Telephone Services

    (ABTS). Contact centers for the landline telephone and broadband servicesprovided by Bharti Airtel across Pan-India use this application.

    Stylethe leadership approach of top management and the organization's overalloperating approach is the way in which the organization's employees presentthemselves to the outside world, to suppliers and customers. Employees are one ofthe most important drivers of growth and success for any organization is its people.At Bharti Airtel his Mantra for employee delight focus on 4ps

    PeoplePridePassionProcessesManagement is about getting things done. Leadership is about achieving goals bycreating a direction for a business and inspiring employees to take initiative andmake the right decisions. Enterprise managers need the skills to motivate, lead andinfluence others. Enterprise aims to employ people who can take on a leadershiprole 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 aretwo leadership styles that rely strongly on the Individual leader personalcharacteristics, which are Transactional leader and Transformational Leader.Depending upon the circumstances, leaders will use different leadership styles, by

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    developing leaders who are able to make decisions at a local level, Enterprise canrespond more closely to customer needs within a competitive service

    Skillsskills involve what the company does best; thedistinctive capabilities and competencies that reside in the organizationPerformanceAccording 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

    Staffthe 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 hisorganization.

    Shared valuesOriginally called superordinate goals; the guiding concepts andprinciples of the organizationvalues and aspirations, often unwrittenthat gobeyond the conventional statements of corporate objectives; the fundamental ideasaround which a business is built; the things that influence a group to work togetherfor a common aim. The employees in Airtel, shares a common picture about thefuture.

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