28577802-bharti-airtel-pptx7

Bharti Airtel: 

Bharti Airtel Largest Private Integrated Telecom Company in India 3 rd Largest Wireless Operator in the World Largest & Fastest Growing Wireless Operator in India Largest Telecom Company listed on Indian Stock Exchange GROUP 9

Integrated Telecom Company: 

Integrated Telecom Company Wireless Services 2G/3G Rural Market Telemedia Services Fixed Line Broadband DTH Enterprise Services Carrier Corporate Passive Infrastructure Bharti Infratel Indus Tower GROUP 9

Telecom Ecosystem: 

Telecom Ecosystem GROUP 9 Indian Telecom Industry Framework Indian Government Bodies Independent Bodies Wireless Planning and Coordination (WPC) Department of Telecommunications Telecom Commission Group on Telecom and IT ( GoT -IT) Telecom Regulatory Authority of India (TRAI) Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Handles spectrum allocation and management DoT – Licensee and frequency management for telecom Exclusive policy making body of DoT Handles ad hoc issues of the telecom industry Independent regulatory body Telecom disputes settlement body They formulate various policies and pass laws to regulate the telecom industry in India. They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India.

Regulatory Framework: 

Regulatory Framework 74% FDI Investment Lack of Transparency in Spectrum & License Allocation 3G Policy & MNP still Pending GROUP 9

PowerPoint Presentation: 

GDP growth rate - Averaged around 7.9 % from 2002-2008 Rising Tele-density – Target of 45% by 2010 Growing per capita income/disposable Income Rs 12000 in 2002 to Rs 33000 in 2008) Falling Handset Prices Moderate inflation levels which were prevalent during the past 7 years – around 5-6% Economic Factors GROUP 9

PowerPoint Presentation: 

Demand for VAS & Broadband services Among Youth 28 % Urban Population Rapid Urbanization Rising Income level Changing Demographics Source: Mckinsey Report GROUP 9

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CDMA – Already there are big players in this segment Reliance , Tata 3G – Value added services potential still to be tapped fully 2G/3G – GSM Currently commands 70% of mobile subscribers in India Technology GROUP 9

PowerPoint Presentation: 

GROUP 9 Porter’s Generic Strategy

Porter’s 5 Forces: 

Porter’s 5 Forces GROUP 9

1. Threat from Competition: 

1. Threat from Competition GROUP 9 Wireless Market – Top 4 garnering 75% market share HIGH

Competitor Analysis: 

Competitor Analysis GROUP 9 OP Margin Net Margin Company Sep-07 Sep-08 Sep-072 Sep-083 Bharti 43.00% 38.00% 26.40% 19.30% Rcom 37.90% 31.60% 23.90% 13.20% IDEA 32.80% 26.60% 14.10% 6.50% MTNL 23.70% 22.90% 7.00% 6.80% Best OP Margins & Net Profit Margins among Peers Source: CMIE November 2008

2. Customer Bargaining Power: 

2. Customer Bargaining Power Lack of differentiation among Service Providers Cut throat Competition Low Switching Costs Number Portability will have –Ve Impact Businesses & Consumers GROUP 9 HIGH

Market Scenario: 

Market Scenario GROUP 9 Postpaid Vs Prepaid Customers & Market Share

3. Suppliers Bargaining Power: 

3. Suppliers Bargaining Power GROUP 9 LOW

4. Threat of Substitutes: 

4. Threat of Substitutes Landline CDMA Video Conferencing VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites GROUP 9 BROADBAND SERVICES DIMINISHING MARKET HIGH

5. Threat of New Entrants: 

5. Threat of New Entrants Huge License Fees to be paid upfront & High gestation period Entry of MVNOs & WiMAX operators Spectrum Availability & Regulatory Issues Infrastructure Setup Cost - High Rapidly changing technology GROUP 9 LOW

SWOT: 

SWOT Strengths Weakness Largest Telecom Player in India - ~80Mn, 22.6% Strategic Alliance with other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel Pan India Presence Strong Financials Outsourcing of Core Systems Lack of emerging market investment opportunity GROUP 9 Source: CMIE Report NOV 08

SWOT: 

SWOT Opportunities Threats 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 GROUP 9

BCG Matrix for Bharti Airtel: 

BCG Matrix for Bharti Airtel Stars ? Retail Insurance Cows Dogs Fixed Line Services GROUP 9 Market Share LOW HIGH Market Growth Rate HIGH LOW Mobile Services DTH & IPTV Broad Band

PowerPoint Presentation: 

Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness GROUP 9 Business Strength

PowerPoint Presentation: 

Factors Weight Rating (1 –5) Value = (Weight * Rating) Resource availability 0.20 3.5 0.7 Overall market size 0.15 4 0.6 Annual Market growth rate 0.20 4 0.8 Profitability 0.15 4 0.6 Competitive intensity 0.10 4 0.4 Technological requirements 0.20 4.5 0.9 Total 1.0 4.0 Factors Underlying Market Attractiveness GROUP 9

PowerPoint Presentation: 

Factors Weight Rating (1 –5) Value = (Weight * Rating) Market share 0.15 5 0.75 New product development 0.10 3.5 0.35 Brand Image 0.10 4 0.40 Sales force 0.15 3 0.45 Pricing 0.15 3 0.45 Distribution capacity 0.10 4.5 0.45 Product quality 0.10 4.5 0.45 R&D Performance 0.15 3 0.45 Total 1.0 3.75 GROUP 9 Factors Underlying Market/Biz Strength

PowerPoint Presentation: 

GROUP 9 Airtel’s GE Matrix Business Strengths Market Attractiveness Low High Low High Attractive Moderate Attractive Unattractive Mobile Airtel TeleMedia 5.00 1.00 2.33 3.67 5.00 3.67 2.33 Enterprise

7 P’s of Airtel: 

7 P’s of Airtel GROUP 9

Product: 

Product Airtel Pre-paid Airtel Post-paid Blackberry Wireless Handheld Value Added Services (VAS) The different value added services provided by Airtel are- Instant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert, Call wait & Call Hold Multimedia messaging service (MMS) Airtel Live Portal SMS based Information Service GROUP 9

Price: 

Price Customer based pricing strategies. Flexible pricing mechanism Controlled by TRAI. GROUP 9

Place: 

Place It has wide and extensive presence even in the remotest areas Airtel Customer Care Touch Points Distributors like E.g. Paan shops, grocery stores, chemists, outlet etc. GROUP 9

Promotion: 

Promotion GROUP 9 Large scale print and video advertising. Big celebrities like SRK and Sachin are roped in to endorse the product . In 2002 Airtel got its Signature tune from A.R. Rahman , this signature tune is the most downloaded tune in India. Provides innovations such as Bollywood movie premiers, music services such as ring back tones & many more.

People: 

People Total Employees 25616( Bharti Airtel consolidated) as per Q3 08. Dedicate and passionate workforce. One of the best customer support. Have won 2 nd Best employer award in 2004. GROUP 9

Process: 

Process Process for services is very easy and customer can avail it very easily. 121 is the customer support no. which can be dialed from anywhere in India. GROUP 9

Physical Environment: 

Physical Environment GROUP 9

References: 

References Bharti Airtel , Annual Report -2008 Investors presentation, Bharti Airtel Limited, November 2008 Telecommunication Services, Indian Industry: A Monthly Review, CMIE – November 2008 Analyst Report – Bharti Airtel , Asit C. Mehta Invesment Intermediates Ltd. Telecommunication Sector Report – March 2008, CRISIL Capitaline Database http://capitaline.com Indian Telecommunication Sector - August 2007, IBEF Report “Next Big Spenders – Indian Middle Class”, Businessweek GROUP 9

THANK You !! Prashant Ravinder pal Singh Brar Sapandeep Kaur Sachin Gurjar : 

THANK You !! Prashant Ravinder pal Singh Brar Sapandeep Kaur Sachin Gurjar GROUP 9