About

Bharti

Airtel:

Bharti

Airtel

limited

is

leading

global

telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing technology companies in the world by business week. Aharti airtel had 200 million customers across its operations. Business Divisions: Mobile Services Telemedia Services Enterprise Services to end data and

Mobile and fixed Wireless Broadband, Fixed landline End services. telephone DTH. services

and enterprise services to the corporate optic back bone. customers through it nationwide fiber

SWOT analysis of Bharti Airtel

Strength Leadership position in fast growing Airtel dont

Weakness have such schemes as

cellular services. Largest number of customer base. Strategic alliances Best in Customer management. The only Indian operator other than VSNL, that had a international submarine cable Indias largest ever e-governance project based on the communication solution offered by Bharti Airtel. Etc

Choose your Mobile Number as BSNL offers for its prospective mobile customers

Price competition from BSNL and MTNL. relationship Untapped Rural market Less number of Own towers. etc

Growing IPCL (International private leased Cut throat Competition market players. circuit) Growing DTH and IPTV demands India, the worlds second largest mobile market with over 850 million growth subscribers, offers immense Present Entry of saturation global level telephone services. cellular

with of and

other basic mobile

operators Shortage of bandwidth Uncertain economic conditions. Etc

opportunities for mobile internet. iPhone and Blackberry distributorship Etc.

Opportunities

Threats

Strength: Bharti Airtel is now first service provider to cross 10-crore subscriber base. Airtel at present has 25 per cent subscriber share and 30 per cent market share in terms of revenue. It is only behind two Chinese operators in terms of subscriber size measured within a country. Airtel also has the largest telecom network and distribution in India covering 4.25 lakh towns and villages. Bharti Airtel has strategic alliances with Sony Ericson, Nokia and Sing-tel and is stakeholders in Bharti Airtel. This shows Airtel has access of technology and knowledge from other parts of telecommunication world. The only Indian operator other than VSNL, that had a international submarine cable. With the launch of international submarine cable network i2i with Singapore telecommunication Ltd. Airtel broke the monopoly in the international long distance space. This bought huge value to IPCL customers. Indias largest ever e-governance project based on the communication solution offered by Bharti Airtel. Airtel connected 13, 716 villages in Gujarat creating a virtual information highway. Villagers no longer need to travel to tehsil office or district headquarters to get copies of their land records or birth certificates. They communicate through video conferencing. Bharti Infratel, one of Indias top tower companies, has taken a pioneering step towards replacing diesel generators with solar energy, reducing Co2 emissions by 2.5 tons per tower every year.

Weakness: Airtel dont have such schemes as Choose your Mobile Number as BSNL offers for its
prospective mobile customer.

Airtel is still behind in price competition from BSNL and MTNL. Many rural markets in India are still untapped by Airtel. For any cellular company having its towers adds huge value to the firm and to provide wide coverage nationally. Airtel still has very low number of its own tower.

Opportunities: IPLC or private line is a dedicated, leased point-to-point digital circuit for the bulk transport of data, voice and video. It allows simultaneous two-way transmissions of digital signals at high speeds. Enterprise Services and SingTel jointly provide IPLCs on theNetwork i2i. The Landing Station in Singapore is managed by SingTel and by Airtel in Chennai (India).
Bharti Airtel is looking on another joint venture with Idea Cellular and Vodafone Essar to create a new independent tower company called Indus Towers. This new business will control more than 60% of India network towers. IPTV is another potential new service that could underpin the companys long-term strategy along with DTH.

India, the worlds second largest mobile market with over 850 million subscribers, offers immense growth opportunities for mobile internet. Airtel has joint venture with Softbank Corp. to focus on mobile technology. Key areas are e-commerce, social media and gaming.

Airtel expanded its managed services agreement with Ericsson (NASDAQ:ERIC) for its India operations. Under this new five-year multivendor, multi technology managed services agreement Ericsson will operate, maintain and provide services across 70 percent of Bharti Airtels network in India. With India emerging as the third largest internet market and a multifold growth in data traffic on the back of a rising number of Smartphones, wireless networks need to be ready for the data revolution that has only just begun. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. All the new iPhones will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.

Threats: Cut throat Competition with other market players. Airtel will need to come with low cost schemes and free call plans as the other competitors in cellular industry are offering such schemes in bulk and can have the low cost advantage which can bring a dropdown in the present market share of Airtel. Present saturation level of basic telephone services. Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market. Being lots of players in the cellular market, there is a big fight for bandwidth. Uncertain global economic conditions may affect the company growth.

Value Chain analysis of Bharti Airtel

Primary Activities: Support Activities: General administration: This will include setting up of new towers, IT infrastructure, ERP and other software to help in operations, Networking stations and equipment. Human resources management: Hiring of customer support executives, hiring of skilled IT people and telecom operators. Expertise in recruiting the retail staff. Recruiting good business leaders to take the company on top. Research, technology & system development: Development of various VAS services. Introduction of mCheck to enable customers to do mobile commerce. R & D investments. With new licenses setting up of 3G services. Procurement: High initial investment required to setup physical distribution and network stations. Need of long term contract with third party. Supply chain network should be strong enough which is required for the continuous supply of handsets and Sim cards.

Resource Analysis
Tangible Resources
Financial: Present market capitalization of Airtel is approx INR 1277 billion. Going through the balance sheet of Bharti Airtel of 2010-2011, it can be inferred that Airtel has good amount of cash reserves and good flow of cash from both debt and equity, however Following the completion of its acquisition of Zain Africa, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on India's Bharti Airtel to 'BB+' from 'BBB-'. Physical: At present Airtel had sufficient towers and good networking infrastructure that uses latest technology to provide best services at low cost which gives it a competitive advantage.

Intangible Resources
Technological: It has major outsourcing and maintenance strategic alliances with Ericsson, Nokia, SingTel and Softbank Corp. It has long term customer support outsourcing deal with IBM which in total again gives a competitive advantage to Airtel. Reputation: Airtel has largest number of customer base and enjoys a good brand name and reputation in India. Airtel enjoy the Leadership position in fast growing cellular services which keep Airtel still far ahead from other competitors.

References: http://telecomtalk.info http://www.bharti.com/wps/wcm/connect/BhartiPortal/Bharti/home/about_us/changi ng_lives http://businesstoday.intoday.in/story/bharti-airtel--rider-of-the-boom/1/1738.html http://www.business-standard.com/india/news/bharti-airtel-unveils-the-airteladvantage/370604/ http://www.bharti.com/wps/wcm/connect/BhartiPortal/Bharti/home/media_centre/Pre ss_releases/FY2011-2012 http://www.moneycontrol.com/financials/bhartiairtel/balance-sheet/BA08