Strategic Alliances of Bharti Airtel

Group No 14Tripurari Pandey

Yogesh ThoratUpendra KumarVasudha PandaVishal Sharma

Strategic Alliance & Types• A strategic alliance is when two or more

businesses join together for a set period of time. The businesses, usually, are not in direct competition, but have similar products or services that are directed toward the same target audience.

• Involves Technology Transfer, Economic Specialization, Shared Expenses & Shared Risks.

• Types: Joint Venture Equity Strategic Alliance Non Equity Strategic Alliance Global Strategic Alliances

Strategic Alliance: Advantages• On an average, each fast growing company

today is involved in atleast 5 different types of Strategic Alliances.

Strategic

Alliances

Bharti Airtel Limited

5th largest mobile operator in the world in terms of subscriber base and has a commercial presence in 19 countries.3 countries in the Indian Subcontinent.16 countries in Africa.

Market Leader in India with a 30.07% Market Share (as on May 2010).

Airtel Strategy

Core Competenc

ies

Product Innovation

VASMarketing

and Branding

Pricing

MANTRA : Focus on Core Competencies and Outsource the rest !

• Airtel partnered with leading players in telecommunication players across the globe.

• It has managed to work with the best of domain specialists globally and emerge as a world class entity.

• Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.

Strategic partnerships/ Shareholders – Technology and Capital

• Warburg Pincus – a celebrated PE investor held a stake for a substantial period of time and was instrumental in providing Airtel support in its early stages.

• Vodafone was a strategic investor in Airtel.

• Temasek – the Singapore based investor holds a considerable stake in it.

• Was also affiliated with Singapore Telecom.

Outsourcing Deals in 2004• Ericsson was given the mandate to

provide, manage and maintain the equipment as well as provide quality assurance in Airtel‘s then 13 mobile circles.

• IBM was given the mandate to handle the back office requirements of Airtel’s presence in India

Business PartnersOutsourcing

Deals Vendors Advantages

Network Outsourcing & Maintenance

•Pricing linked to capacity.•Assured Network Quality.•Ease in Network Planning.

Information Technology

•Service Delivery Platforms•SLAs for Quality & Deployment.

Passive Infrastructure

•Sharing Passive Infrastructure•Reduced Capex.

Call Centre Outsourcing

•Consistent customer experience.•Scalable business model.

Strategic Alliance with Google• Possesses a customized version of the

Google search engine.• Enhance broadband services to

customers. • The tie-up with Google can only

enhance the Airtel brand and• Provides advertising opportunities in

Indian for Google.

Strategic Alliance with VeriSign• Strikes an alliance with VeriSign to set

up Regional Internet Resolution Site (RIRS) in the country which will enable users to access .com and .net Websites without having to wait for a response from servers located in other countries such as China or the US.

• Enabling faster response time• Another advantage of the RIRS is that

it mitigates the impact of attacks on the Internet.

Strategic Alliance with HCL• Strategic  alliance  with HCL – wherein

a Airtel broadband  connection  will  be offered with every HCL PC.

• Existing Airtel Landline customers buying HCL PCs will also be given a special price on the fastest selling models ranging from Rs 19,000 to Rs 29,000.

Strategic Alliance with Cisco• The alliance will combine the strengths

of Airtel’s network service provider leadership and Cisco’s Internet Protocol (IP) technologies and expertise to work together to create and sell in a phased manner a set of unique products and services.

• These include, managed data services hosted unified communications connected branch services and Cisco TelePresence™. Airtel and Cisco will appoint a dedicated team to develop and manage these services to fulfill the requirements of customers across small, medium and large enterprises.

Thank You