1. BHARTI AIRTEL
(GSM MOBILE SERVICES)
STRATEGIC MANAGEMENT
TERM PAPER
Sumit Srivastava
Cohort 7
Learn Team 12 B

2. Company Background
• Established in 1995 by Sunil Bharti Mittal, currently the Chairman and MD
of Airtel
• Telecom giant Bharti Airtel is the flagship company of Bharti Enterprise
• Bharti Airtel Limited, (commonly known as Airtel), is India’s largest
integrated and the first private telecom services provider with services in all
the telecom circles
• Bharti Airtel is structured into three strategic business units - Mobile
services, Telemedia services, Enterprise services and Digital TV services*
• The mobile business provides mobile & fixed wireless services using GSM
technology
* This study is based on the Airtel Mobile Services only

3. Target Market(s)
Airtel has two major customer segments (demographically) in the mobile
telephony services:
• Students and young professionals who use the prepaid services (use
convenient recharge/load)
• Premium and upper middle class customers, who value time and have
the paying capacity. They are mostly post-paid users (billed on a
monthly basis)
Airtel has mobile services in all the telecom circles in India (geographically).
The concentration is mostly in urban and sub-urban areas where mobile
users are more)

4. Competition
• Airtel is the market leader in GSM mobile services
• Other key players along with the percentage market share has been
shown in the table and pie chart* below
Telecom Company No of Subscribers
Bharti Airtel
171,846,824
Vodafone
144,144,031
IDEA
98,441,714
BSNL
BSNL
15%
90,622,219
Aircel
59,191,661
Others
Aircel
10%
Others
8%
IDEA
16%
Bharti Airtel
28%
Vodafone
23%
47,512,178
* GSM market share as of Aug 2011 (based on number of subscribers)
Source: http://investorzclub.blogspot.com/2011/04/telecom-companies-market-share.html

5. PEST Analysis/Factors
POLITICAL FACTORS
• Regulatory bodies – DoT & TRAI
• Mobile number portability
introduced in January 2011
• Lack of Transparency in
Spectrum & License Allocation
SOCIAL FACTORS
•Customers notion regarding
brand and status symbol
• Cost factor is major concern to
customers
• Likes and dislikes of a teenager
and adult not the same
ECONOMIC FACTORS
• Fastest Growing Sector – CAGR
22% (2002-07)
• Tariff rates declining since the
year 2000
• Declining ARPU but increasing
subscriber base
TECHNOLOGICAL FACTORS
• e-commerce portal
•R&D driven industry
• Introduction of newer products/
services/ plans
• 3G, 4G and high speed
broadband in the market

6. Porter’s 5 Forces Analysis
Bargaining
power of
Buyers
Bargaining
power of
Suppliers
HIGH
HIGH
Threat of New
Entrants
HIGH
Industry
Rivalry
Threat of
Substitutes
HIGH
HIGH
As per the Porter’s 5 forces study, the Indian Telecom
Industry is Highly Unattractive

7. Strategic Maps
Price
High
Medium
Low
Low
Medium
High
Call Quality
• Airtel is good in quality but has relatively higher prices (hence lower score)
• BSNL has least price (being government division), but lacks the call quality
• Vodafone and Aircel are priced at similar level but differ in call quality

8. Strategic Maps
Price
High
Medium
Low
Low
Medium
Network Coverage
• Airtel has substantial network coverage, but at a higher price
• BSNL has highest network coverage and least price
• Aircel has lowest network coverage and medium level price
High

9. Strategic Maps
Product Offerings
High
Medium
Low
Low
Medium
High
Brand Image
• Airtel is considered the best brand with high no of products/services/plans offered
• BSNL lacks the brand image and is very low on the no of services/plans offered
• Idea and Aircel lie in the medium range, lower than Vodafone and Airtel

10. Strategic Maps
Customer Services
High
Medium
Low
Low
Medium
High
Reach / No of Outlets
• Airtel and Vodafone provide the best customer services, with large no of outlets
• Idea has got higher reach than Aircel with similar customer service
• BSNL is low on both customer service and reach

11. Key Success Factors
The key success factors for the industry are as below:
• Price (Threshold)
• Customer Services
• Brand Image
• Network Coverage
• Call Quality
• Reach/No of outlets
• Product Offerings*
* This includes value added features like international roaming, international calling, CUG services,
BlackBerry and iPhone connection and services etc

12. Competitive Matrix
Key Success Factors
Weightage
Airtel
Vodafone
IDEA
BSNL
Aircel
Network Coverage
25%
8
7
7
9
4
Call Quality
25%
8
9
6
6
6
Product Offerings
15%
9
8
7
3
6
Brand Image
15%
9
8
6
4
6
Reach / No. of Outlets
10%
9
8
6
2
4
Customer Service
5%
9
8
5
3
5
Price
5%
6
7
6
9
7
Score
100%
8.35
7.95
6.35
5.85
5.3
28.09%
23.56%
16.09%
14.81%
9.68%
Market Share
• Network coverage and call quality are the most important factors in the telecom market
• The products/plans offered, along with the brand image also play an important role for
customers decision making process
• Price is a threshold as similar prices are charged by all private players (BSNL is Govt. owned)

13. Triangle Model
Vision / Mission
Key Success Factors
Core Competencies
•Price
• Customer Services
• Brand Image
• Network Coverage
• Call Quality
• Reach/No of outlets
•Product Offerings
• Sales & Promotions
• Brand Image
• Market Share
• Resource availability
• Product quality
Value Proposition
Quality, Value, Consistency
and Reliability
– Anywhere, Anytime

14. Ladder Model
Sustainable
Comp. Advantage
1.
2.
3.
Brand Image
Products & VAS
R&D capability
Distinctive Comp.
1.
2.
Network
Coverage
Product Offering
Strategic Comp.
1.
2.
Competencies
1.
2.
Threshold Comp.
1.
Resources
1.
2.
3.
Peripheral Comp.
Market Share
Distribution
Brand
1.
Incompetency
1.
Innovative
pricing
1.
2.
Market Leader
Product
Innovation
Network
Infrastructure
Distribution
Customer
Service
Comp. Advantage
Basic voice and
data services
Market Share
Distribution
system

15. Vision, Mission, Values
VISION
MISSION
VALUES
By 2015 Airtel will be the
most loved brand,
enriching the lives of
millions
“ 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”
• Empowering People
• Being Flexible
• Making it Happen
• Openness and
transparency
• Creating Positive Impact

16. Long Term Objectives
STRATEGIC
Continue market
leadership and increase
the market share
1. Technical
Enhancement:
Equip
technically
to stand against
competitors (extension of 3G to all 22
circles in India & introduction of 4G in
the top 10 cities)
2. Bottom of the pyramid: Provide
connectivity to in the low income
group in rural area targeting a
teledensity of more than 50% is
currently 33.8% only
3. Increase Usage:
By value added services like mcommerce (mobile wallet), Airtel can
increase it’s ARPU by 20% from the
current level of Rs 194 per month
FINANCIAL
Grow at higher than
industry rate and create
value for shareholders
1. Increase Market Share: Continue to
grow at a higher rate (42.1% in 201011) than the industry growth rate (7%)
to maintain market leadership
2. Dividends for Shareholders: Pay
progressive dividends to the share
holders (4,428 million INR in 2010-11)
3. Cash Reserves: Maintain cash reserves
to invest in R&D and network
development
(cash
and
cash
equivalent in 2010-11 was 9,575
million INR). PPE increased more than
9 folds in 2010-2011

17. New Key Success Factors
Key Success Factors
Weightage
Airtel
Vodafone
IDEA
BSNL
Aircel
R&D Performance
30%
9
8
7
5
6
Rural Market Focus
25%
8
6
5
9
5
Partnership
20%
9
8
6
3
4
Network Coverage
10%
9
7
7
9
4
Call Quality
10%
9
9
8
6
7
Product Offerings
5%
9
9
8
3
8
100%
8.3
7.2
6.35
6.05
5.45
35.00%
25.00%
15.00%
10.00%
8.00%
Score
Market Share *
• R&D is required to provide higher bandwidth data services to high income group
• Rural market still remains quite unexplored, which has huge potential customer base
• Partnership with mobile phone manufacturers can help in starting the concept of
contract based service plans (especially for lower income group)
* This is the expected market share based on the new key success factors

18. New Triangle Model
Vision / Mission
Key Success Factors
Core Competencies
• R&D Performance
• Rural Market Focus
•Partnership
• Network Coverage
•Call Quality
• Product Offerings
• Technological Capabilities
• m-Commerce
• Brand Image
• Market Share
•Product quality
Value Proposition
Connecting people across
the country with latest
technology and high quality
service in all states, cities,
towns and villages

19. Strategic Options
STRENGTHS
SWOT
Analysis
OPPORTUNITIES
O1 – 3G expansion
O2 – 4G introduction
O3 – Low rural penetration
O4 – m Commerce
THREATS
T1 – Increased competition
T2 – Regulatory Issues
T3 – Vulnerability to recession
T4 – Mobile number portability
WEAKNESSES
S1 – Current Market Share
S2 – Brand Image
S3 – R&D Capabilities
S4 – Distribution Network
S5 – Network Coverage
W1 – Infrastructure issues
W2 – Higher price
1-Pan India 3G service(S1,S3,O1)
2-Introduce 4G in all tier 1 cities (S1,
S2, S3, O2)
3-Rural sector with tele-density of
only 33.8% (S1, S4, O3)
4-Value added services like mobile
wallet and international SIM
etc(S2,S3,O4)
1 – Improve the infrastructure in
order to support technical
enhancements (W1, O1, O2)
2 – Innovate to reduce price for
rural expansion (W2, O3)
1 – Improve time to market to
handle growing competition (S3,
S5, T1)
2 – Increase network coverage
to support MNP (S5, T4)
1 – Reduce price to match the
competitors (T1, W1)
2 – Maintain cordial relation
with the government (T2)
3 – Improve infrastructure in
order to retain customers not to
move out by MNP (W1, T4)

20. Options Filter
Strategic
Options
Long Term
Objectives
Value
Proposition
Organizational
Capability
Mission /
Values
30%
30%
30%
10%
3G Expansion
8
9
9
9
8.7
4G Introduction
9
5
4
6
6.0
8
7
7
7
7.3
7
9
8
9
8.1
Rural
Penetration
Value Added
Services
Total
Score

21. Recommendations
SHORT TERM
1. 3G Expansion: The 3G
services are currently being
offered in the tier 1 cities.
They should be extended to
other cities/towns as well
2. Value Added Services: With
the current teledensity of
almost 75%, VAS like the mcommerce and international
SIM provide a way ahead for
mobile industry
LONG TERM
1. Rural Penetration: The
telecom rural penetration at
33.8% at end of March 31,
2011 offers huge growth
potential in terms of both
customers and usage
2. 4G Introduction: The upper
segment customers are
looking forward for high
speed data availability on
the move

22. Market Leadership
Sustainable Growth
Continuous
Growth
Telecom House Framework
Value Proposition
Core Competencies
Vision / Mission / Values
Company’s
Strengths &
Capabilities
Industry
Success
Factors
Competitive Advantage

23. References
• Bharti Airtel Annual Report 2010 – 2011
• https://www.airtel.in
• http://www.airtel.in/wps/wcm/connect/about+bharti+airtel/Bharti+
Airtel/Investor+Relations/Company+Profile/PG_Company_Profile?countrytabs=1
• http://investorzclub.blogspot.com/2011/04/telecom-companies-marketshare.html
• http://www.marketingteacher.com/swot/bharti-airtel-swot.html#
• http://www.financialexpress.com/news/bharti-airtel-says-q4-india-arpu-drops12/786275/

24. THANK YOU!!