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Bharti Airtel
Largest Private Integrated Telecom Companyin India
2nd Largest Wireless Operator in the World
Largest & Fastest Growing WirelessOperator in India
Largest Telecom Company listed on IndianStock Exchange
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Integrated TelecomCompany
q Wireless Services 2G/3G
Rural Market
q Telemedia Services Fixed Line
Broadband
DTH
q Enterprise Services Carrier
Corporate Video Conferencing
Intercom
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Mobile Services include thefollowing:
GSM High capacity SIMS
GPRS
Biz Live SMS Voice Portal
VAS
SMS-based Applications Email to SMS
Information Broadcast
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Financials Snapshot
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Details Q4 FY 10
Customers 79.9 mn
Revenue $ 2,442 mn
EBITDA $ 1096 mn
Cash Profit $ 573 mn
Net Income $ 741 mn
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Vision 2015By 2015 Airtel will be themost admired brand in India: Loved by more customers Targeted by top talent
Benchmarked by more
businesses
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Core Values
Empowering People- to do their best
Being Flexible - to adapt to thechanging environment and evolvingcustomer needs
Making it Happen - by striving tochange the status quo, innovate andenergize new ideas with a strongpassion and entrepreneurial spirit`
Openness and transparency - with aninnate desire to do good
Creating Positive Impact with a
desire to create a meaningfuldifference in society.
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Indian Telecom Sector
Fastest Growing Sector
Second Largest Telecom Market Lowest tariff charges in the world
Wireless Subscribers 615.3 Mn Wireline Subscribers 98.4 Mn
198 Circles - 4 Categories
URBAN , RURAL , CITY , TOWN
Bharti Airtel Largest player with presencein 106 Circles
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Mission
We at Airtel always think infresh and innovative ways
about the needs of ourcustomers and how we wantthem to feel. We deliver what
we promise and go out of ourway to delight the customerwith a little bit more
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CDMA Already thereare big players inthis segmentReliance , Tata
3G Value addedservices potentialstill to be tappedfully
2G/3G GSM Currentlycommands 70% ofmobile subscribers inIndia
Technology
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Largest Telecom Player in India
Strong Financials
Largest Cellular Provider in INDIA Best service provider, good call
center service esp. in local
languages, good service even inthe remote areas, emphasis onbarriers break when peoplespeak, new initiatives like google
search on airtellive, downloads
SWOT
ANALYSISSTRENGTHS
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Till recently they didnt own towersand used BSNLs and Otherproviders Towers
Had to pay high charges
Also Lost major revenue when asubscriber was in other states.
Due to unavailability of towers,other Providers gave services whileRoaming
WEAKNESS
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APPLES IPHONE LAUNCH WITHONLY TWO PROVIEDERS IN INDIA
ALLIANCE WITH BLACKBERRY INTOPROVIDING BBM SERVICES AT LOWCOST
TIE UP WITH GOOGLE FOR ANDROID
DEVICES HUGE MARKETS
LATEST TECHNOLOGY
OPPORTUINITIES
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India centric Major revenues fromIndia
Intense Competition & Shortage ofBandwidth
Presence of Competitors whoprovide same services at low cost
Vodafones increasing acceptance
Entry of LOW cost operators FREE CALLING WEBSITES like
FRINGe, NIMBUZZ, Skype,ROCKETALK etc
THREATS
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Porters 5 Forces
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1. Threat fromCompetition
Wireless Market Top 4garnering 75% market share
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Competitor Analysis
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2
4
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10
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OVERALL PROFIT SHARING
Best ProfitMargins
among Peers
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2. Customer BargainingPower
Lack of differentiation among Service
Providers
Cut throat Competition
Low Switching Costs
Number Portability had Ve Impact
OPTIONS of TARRIF plans
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3. Threat of Substitutes
Landline
CDMA
Video Conferencing
VOIP - Skype, Gtalk, Yahoo Messenger
e-Mail & Social Networking Websites
BROADBANDSERVICES
DIMINISHINGMARKET
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4. Threat of NewEntrants
Huge License Fees to be paid upfront & High gestation
period
Entry of LOW COST operators
Spectrum Availability & Regulatory Issues
Infrastructure Setup Cost - High
Rapidly changing technology
5 S li B i i
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5. Supplier BargainingPower
SUPPLIERS ARE ESSENTIAL FOR THESUCCESS OF AN ORGANIZATION.
HERE SUPPLIERS ARE SIM CARD VENDORSand SERVICE CENTERS.
NOWADAYS PROCURING SIM CARDS ISNOT A TOUGH JOB, JUST SHOW SOME I.DAND U CAN GET UR DESIRED PROVIDERS
SIM CARD. HERE, VENDORS PLAY A MAJOR ROLE IN
SELLING ANY COMPANYS SIM CARDS.
THEY ALWAYS PREFER ONES WITH MOREPROFITS. 22
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BCG Matrix for Bharti Airtel
Stars ????
Cows Dogs Fixed Line Services
Market
LOWHIGH
MarketG
rowth
Rat
e
HIG
H
LOW
MobileServices
DTH & IPTV
Broad Band
RETAIL,
INSURANCE
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ANSOFF MATRIX
1: Market Penetration
Market Penetration Increase usage byexisting customers
Encourage increase in frequency of use Attract customers away from rivals /
Gain market share at expense of rivals
Devise and encourage new applicationsEncourage non-users to buy
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ANSOFF MATRIX
2: PRODUCT DEVELOPMENT
New product to replace old product New innovative products Productimprovements Product line-extensions
New products to complement existing
Products at a different quality level fromexisting product
Developing totally new offerings.
Adding different features, sizes, etc. to
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3:- MARKET-DEVELOPMENT
This strategy involves Adjusting to the
market. Analyzing competitors strengths,
weaknesses, and potential.
Modifying the basic product offeringUsing different distribution outletsChanging the sales effort or advertising
ANSOFF MATRIX
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4:- DIVERSIFICATION:-
New products sold to new markets
New products sold to new customers Based on growth prospects which the
new variables offer that the presentproduct-market does not
ANSOFF MATRIX
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ANSOFF MATRIXMARKET PENETRATION: Airtel entered inbroadband and fixed phone line market.
PRODUCT DEVELOPMENT: IPLC productsMARKET DEVELOPMENT: Airtel is nowlooking for overseas market. Companyhas already make his presence in Nigeria
and Seychelles
DIVERSIFICATION : Airtel has nowoutsourcing some of its services like
customer services with IBM
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Strategy
Airtel partnered with leadingplayers in telecommunicationplayers across the globe.
It has managed to work with thebest of domain specialists globallyand emerge as a world class entity.
Partnerships include operational
contracts with marquee vendorsand strategic investors rangingfrom private equity investors to
global telecom giants.
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Strategic partnerships,Technology and Capital
Warburg Pincus a celebratedinvestor held a stake for asubstantial period of time and wasinstrumental in providing Airtelsupport in its early stages.
Vodafone was a strategic investor
in Airtel. Temasek the Singapore based
investor holds a considerable stake
in it.
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Outsourcing deals
Ericsson was given the mandate toprovide, manage and maintain theequipment as well as providequality assurance in Airtels then33 mobile circles.
IBM was given the mandate to
handle the back officerequirements of Airtels presencein India
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Operational Strategies.
Aim to be become a one stop shopfor all telecommunication servicesunder the Bharti umbrella.
Exploring opportunities ininternational markets.
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Performance till date
Bharti Airtel has enjoyed anexcellent run ever since thetelecom sector opened.
It has managed to hold on to itsleadership position inspite of thepresence of other players withdeep pockets Ambanis, Tatas,
Birlas and Vodafone. Has coped well with regulatory
changes.
Continues to attract and delight
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Future Strategies
Translate its expertise in Indianmarkets to other emergingeconomies.
This could call for acquisitionsglobally.
Technology leadership is a must Airtel must ensure that its reliance
on GSM technology does not renderit obsolete.
Indian market inspite of being the
worlds largest is still not matured.
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Growth Factors
R d M G th P th
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Road Map Growth Path
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DTHSERVICES/
iPHONE/Blackberry
Lowcost
RuralTelephony
2G/3G
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THANK YOU !!