The whole presentation depicts the Strategic Analysis of Airtel Limited in Indian Telecom sector. Here we talk about gradual evolution of Indian Telecom sector and growth of Airtel against its competitor. It also covers the internal value analysis of Airtel - Resource Based View. It is really informative for anyone interested to know about Airtel and Indian Telecom sector. Thanks Rajinder

1. PRESENTATION BY Group 5:
Kinny Jain
Nikhil Saraf
DionysiaMichalopoulou
Rajinder Pal Singh

2. HIGHLIGHTS OF THIS PRESENTATION:
Airtel Background
External Analysis
Macro-Environmental Analysis: PEST ANALYSIS
Micro-Environmental Analysis: PORTERS 5 FORCES [ ILC, SGA]
Opportunities and Threats
Internal Analysis
Resource Audit UNIQUE RESOURCES
Core Competencies: PORTERS VALUE CHAIN FRAMEWORK
Strengths and Weaknesses
Organisational Purpose: AIRTEL MISSION STATEMENT EVALUATION
Competitive Strategy Analysis: PORTERS GENERIC FRAMEWORK
Development Strategy Analysis: ANSOFF’S PRODUCT/ MARKET FRAMEWORK
Conclusions and Recommendations
PART A
PART B
PART C

3. Go-ahead to
the CDMA
technology
INDIA
Private players
were allowed in
Value Added
Services
National Telecom
Policy (NTP) was
formulated
1992
1994
1997
Independent
regulator, TRAI,
was established
NTP-99 led to
migration from high-
cost fixed license fee
to low-cost revenue
sharing regime
1999
2000
2002
BSNL was
established
by DoT
ILD services was
opened to
competition
Internet
telephony
initiated
Reduction of
licence fees
2003
Calling Party Pays
(CPP) was
implemented
Unified Access
Licensing (UASL)
regime was
introduced
Reference
Interconnect
order was
issued
2004
Intra-circle merger
guidelines were
established
Broadband
policy 2004 was
formulated—
targeting 20
million
subscribers by
2010
2005
FDI limit was
increased from
49 to 74 percent
Attempted to
boost Rural
telephony
2006
Number portability
was proposed
(pending)
Decision on 3G
services (awaited)
2007
Department of Telecommunication (DoT) is the main body formulating laws and
various regulations for the Indian telecom industry.
Evolution of Telecom In India

4. INTRODUCTION
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.
It is one of India’s leading private sector providers of telecommunications services with
more than 110 million customers.
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services.
Core values
 Empowering People - to do their best
 Being Flexible - to adapt to the changing environment and evolving customer needs
 Making it Happen - by striving to change the status quo, innovate
& energize new ideas with a strong passion & entrepreneurial spirit,
 Openness and transparency - with an innate desire to do good
 Creating Positive Impact – with a desire to create a meaningful difference in society.

5. National Coverage
Investor Relations :- http://www.bhartiairtel.in

6. Integrated Telecom Company
 Mobile / Wireless Services
– 2G / 3G
– Rural Market
 Telemedia Services
– Fixed Line
– Broadband
– DTH
 Enterprise Services
– Carrier
– Corporate
 Passive Infrastructure
– Bharti Infratel
– Indus Tower
6

7. PEST

8. PEST ANALYSIS- EXTERNAL ANALYSIS
Political
Regulations
Political Opposition to participation by the
private players
Govt support to promote FDI in Telecom sector
Banning of Phone Use in Certain Circumstances
Technology
 Equipped with New Technology
 Rapid Industrial growth rate induced
by emerging technologies.
 Strong Fibre Optic Network
 Utiilization of E- Commerce facilities
 Efficient Customer Care Services
Socio-Cultural
 High End Phones becoming status
symbol
 Due to Intimate family bonding in
Indian Culture, there is need to remain
connected
Tech Savvy Generation
Economic
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

9. PORTER 5 FORCES
INDUSTRY LIFE CYSLCE
STRATEGIC GROUP ANALYSIS

10. Porter’s 5 Forces
Threat from
Competition
Customer
Bargaining
Power
Threat of
Substitutes
Supplier
Bargaining
Power
Threat of
New
Entrants

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

12. Competitor Market Share – Threat HIGH

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

14. 3. Suppliers Bargaining Power
LOW

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

16. 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
LOW

17. AIRTEL
TELECOMMUNICATION INDUSTRY LIFE CYCLE
Johnson , Scholes & Whittington : Pg. 68, 2008

18. TELECOMMUNICATION INDUSTRY LIFE CYCLE
Telecom Industry is in its mature growth stage.
Significant achievements have happened in this sector.
In 2009 February, there was a rise in subscriber base by 13.25 million.
Total subscriber base was 375 million in 2009. A hike by 50%.
This shows the changes in the consumption pattern among the middle class.
AIRTEL

19. STRATEGIC GROUP ANALYSIS

20. Competitor Analysis
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Bharti Rcom IDEA MTNL
Competitor Analysis
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

21. AMOU & ARPU Stats
838
461
303
88Russia
China
India
USA
0
2
4
6
8
10
Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007
ARPU(USDpermonth)
GSM CDMA
Minutes of Usage per Month – Mobile Services
ARPU* in India – Mobile Services
Despite a low tele-density of approximately 30.5%
India has the second highest minutes of usage per
month.
This offers huge growth opportunity to telecom
companies.
The declining ARPU implies that India Inc. is tapping a
large market at the bottom of the pyramid by reducing
tariffs; thereby, enhancing affordability.

22. Strategic Group Analysis
PRODUCTRANGE
NarrowBroad
NATIONAL GLOBAL
GEOGRAPHICAL SCOPE
BSNL,
MTNL
15.00 %
Other – 5%
Airtel 25%
10 %
Reliance 18%
Vodafone 17%
TATA 9.3%IDEA 9.6%
VIRGIN -0.5%

23. INTERAL ANALYSIS
RESOURCE AUDIT AND PROCESS VALUE CHAIN

24. Human resources
 well defined rewards and recognition system
 Young team - Average age is 26years
 Employees decide their training needs.
 A state-of-the-art learning centre and training
practices adopted from British Telecom
 PACE (Progressive Assessment of Culture and
Environment) feedback taken from employees
used for company’s strategy
Physical
 Over 110 million customers
 Received license to provide 2G ad 3G in Sri Lanka
 First Telecom operator in India to offer MS
Windows Mobile 5.0
 Strong Distribution channel.
Financial
 Profit crosses US$1 bn
 Fixed asset (09) $ 7,986,254,556
 Dividend offered for 2008-09 is 20% of
the face value of each share
 Received US$1.275 bn investment from
international investors in Bharti Infratel.
 Ability to raise funds
Intangible
 Strategic partnership with Google.
 Goodwill & Reputation
 Facility based Operator license in
Singapore.
AIRTEL
Resource audit (unique resources) – Internal Analysis

25. SupportingActivities
Primary Activities
Firm infrastructure - CRM tools, MIS, ERP, Networking Equipment, Telecom
equipment for coverage and signal strength, IT Infrastructure
HR management - IT skilled work force, Telecom engineers, SCM specialists
Customer service & Telesales training, Franchisee management, 7,646 out of 23,789
employees in Mobile services, Owned retail staffing and training.
Technology development - Creating a 3G enabled network, mChek - Launching M
commerce by tie ups with banks and credit cards.
Procurement - Established a SCM network to acquire networking & Telecom tools,
Maintain long term relation with suppliers to provide handsets & services
M
A
R
G
I
N
M
A
R
G
I
N

26. Primary Activities - Analysis
Input
Marketin
g &
Sales
Process Output
Post
Sale
•Network
Infrastructure
Nokia-Siemens,
CISCO , INTEL
•Software and
content provider
IBM, INFY TCS,
AFFLE, On Mobile,
India Times,
Hungama Mobile,
Mauj , One 97 IMI
MOBILE.
•Finance
•Licenses
• Strong
Channel
Distribution
•Market
Innovators
•Trend
Setters
•Unique
advertising
strategy –
Emotional
values &
Humor
•GSM
Services
•VAS
•Fixed Lines
•Broadband
Public
Corporate
Businesses
SME’s
Institutes
Infrastructure
Development
Network
Integration
Competitive
Position
Capable
Supplier
Start

27. Value Chain Analysis –
Conclusions & Recommendations
Inbound
Logistics
Operations
Output
Marketing
& Planning
Post Sale
Value Chain
Outcome - 37%
PM
• Aero mobile, MATE, GPS tracking
device for B2B
• M-commerce
•wide network coverage as they own their network
infrastructure
Android platform based HTC
mobile unique marketing
strategy, low STD rates –
Trend setters
Bill payments and Indian rail
tickets using m commerce

28. SWOT
SUMMATION OF EXTERNAL & INTERNAL ENVIRONMENT ANALYSIS

29. AIRTEL Strength & Weakness
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
INTERNALEXTERNAL
 Tele-Density – 30.6% Low among Developing Countries
 Low Broadband Penetration
 Untapped Rural Market
 Bharti Infratel – Cutting Down cost in Rural area
 Growing Globally
First Indian Sponsor to signed Manchester United
• Falling ARPU
• Intense Competition From Nearest Competitor
• Shortage of Bandwidth
• New Players Entering Indian telecom sector
• Uncertain Economic Condition
• Valuable Business Partners – Techno & Financial
•Strong Brand Image
• First Mover Advantage
• Single Private Leading Indian Telecom Company
• Enthusiastic & Innovative Business Development team
•Marketing Driven Low Cost Model
• Blessed with Directional Visionary - S.N. Mittal
• Massive Economies of scale from large subscriber base
• Outsourcing of Core Systems
• Lagging behind in Exploring market Investment
opportunity

30. NoNoYesYesNoYesNoYesYes
An evaluation matrix of the mission statement
Customer
Product/
Services
Markets
Technology
Concernforsurvival,
GrowthProfitability
Philosophy
Self-Concept
Concernfor
PublicImage
Concernfor
Employees
AIRTEL ORGANISATIONAL PURPOSE
Vision
By 2010 Airtel will be the most admired brand in India:
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
Mission Statement
“We at Airtel always think in fresh and innovative ways about the needs of our customers and
how we want them to feel. We deliver what we promise and go out of our way to delight the
customer with a little bit more”

31. AnsOff Directional Matrix

32. PRODUCT
M
A
R
K
E
T
E
X
I
S
T
I
N
G
EXISTING NEW
N
E
W
AIRTEL ANSOFF DIRECTIONAL MATRIX
PRODUCT DEVELOPMENT
MATE – Mobile Application Tool for Enterprise
M commerce – mChek (Recharge Anywhere, Anytime)
Airtel Way Finder - GPS Service Blackberry
New Tech-Savvy Handset Options in Prepaid & Post Paid
Schemes: HTC, BlackBerry, Apple iPhone
Lowered Overseas Call Rates – Bahrain @ Rs 5.00/-
3G Network – Awaiting for GOI Approval
AeroMobile – Airtel in-flight connectivity on Emirates and
Malaysian Airlines
Bridge Alliance – Roaming in Asia Pacific Region
MARKET PENETRATION
“The Airtel Advantage” : 50 paisa / min Call on both National
Long Distance Calls & Local calls
Value Added Services: Airtel Live, Hello Tunes, Astrology
Lowered National & International Roaming Tariff
Extensive & Increasing Sales & Distribution channel covering
1.27 million
Delhi Half Marathon – 2nd Edition – 28000 participants
Celebratory Endorsement - Top BollyWood & International
Personality
Tie with major TV events – KBC, India Got its Talent
MARKET DEVELOPMENT
3G Network Implementation in Sri Lanka
Airtel –Vodafone Alliance: Debut in Europe through Channel
Islands (Jersey & Guernsey)
Low cost Calling Cards to India - UK, USA, Singapore etc.
MTN – Airtel Alliance - South-South Cooperation **
DIVERSIFICATION
Bharti InfraTel & Indus Towers - Passive Infrastructure Provider
Bharti Teletech – Landline & Telephone Equipment
Bharti Telemedia Services – Broadband & Internet, DTH, IPTV
Airtel Tracking Services – GPS
Bharti Walmart – Sipermarket

33. Ansoff Product / Market Framework
110 million Mobile Customer Base 24% of wireless market
3rd largest single country mobile services operator
Sixth largest in-country integrated telecom operator in
the world

34. Poter’s Generic Matrix

35. Porters Generic Strategy
Differential Strategy Cost Leadership
Narrow
Market
Scope
Broad
Market
Scope
Uniqueness
Competency
Low Cost
Competency

36. Porters Generic Strategy (Cont….)
Own Tower Infrastructure
Operator in 23 circles in
india
Huge Distribution Network
High Customer Base
Huge Economy of scale
Low cost Mobiles on Postpaid &
prepaid
Lowest fare International Calling
cards
First in class Value added
services,
Mobile web- internet on
mobile,
Hello Tunes,
MATE - mobile application
tool for enterprise.
Aero mobile- the In-flight
connectivity
iphone and Blackberry Phones.
L
O
W
C
O
S
T
U
N
I
Q
U
E
N
E
S
S
BROAD MARKET NARROW MARKET

37. CONCLUSION AND RECOMMENDATIONS
“Refine your processes, strive for dominance and build a brand”
MR. Sunil Bharti Mittal
Airtel have done a good job by Improving their core competencies.
Being the market leader & Especially in building a brand
We would recommend Bharti Airtel to continue with their good work
and concentrate more on mobile services which is Bharti’s cash
cow, in its process of huge diversification.

38. Thank You