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Airtel Strategic Analysis

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Presented By: Sakshi Muskan Dimple Sanjeev
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Page 1: Airtel Strategic Analysis

Presented By:

Sakshi

Muskan

Dimple

Sanjeev

Page 2: Airtel Strategic Analysis

About the companyBharti Airtel Limited commonly known as Airtel is an Indian multinational telecommunication Services company Headquarter at New Delhi, India.

It operates in 20 countries across South Asia, Africa and the Channel Islands. Airtel has GSM network in all countries in which it operates, providing 2G, 3G and 4G services depending upon the country of operation.

Airtel is the world's third largest mobile telecommunications company

Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services.

Page 3: Airtel Strategic Analysis

Vision and Mission statementVision Statement

By 2010 Airtel will be the most admired brand in India:Loved by more customersTargeted by top talentBenchmarked 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”

Page 4: Airtel Strategic Analysis

Strategic business units of airtel

Mobile services

Airtel telemedia services

Enterprise services

Page 5: Airtel Strategic Analysis

SWOTStrengths

Huge customer base of 186.9M, highest in India.Recognized and established brand name. High Brand Equity and Strategic Alliances.Effective advertising capability with out of the box thinking.Targeting youth of India (the highest population bracket 18-25yrs)Wide and extensive presence in 25 states of India.Airtel Money, SmartDrive services which is getting popular.Huge variety of products in every segment with competitive prices and value added services.

Weaknesses

Poor network in rural areasOperating margin, Net profit margin is decreasing year on year basis.Low GPRS speedDecreasing ARPU (Average revenue per user)

Opportunities

Strategic tie ups with google, apple, blackberry to avail various services like search engine for broadband, iphone and blackberry phone.Increasing mobile and broadband market in rural and urban area of India.Can Expand its Airtel Tv brand as the digitalization of TV took from july 2012.Indian Cellular market is the fastest growing market in the world

Threats

Many international player will come in the industry, giving tough competitionPolitical instability is making call charges more.Tough competition from china in the future.Mobile number portability can result in decrease in customer base.Competition from big players in DTH and other products.

Page 6: Airtel Strategic Analysis

TIMELINE OF AIRTEL

1995Bharti Cellular launched cellular services as "AirTel" in Delhi.

2004On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion(RIM).

Page 7: Airtel Strategic Analysis

Contd…May 2009 : AIRTEL & MTN

Informa Analyst Matthew Reed - Failure was South Africa’s worry that control of MTN. March 2010 : AIRTEL & ZAIN India's second biggest overseas acquisition after Tata Corus.

Bharti Airtel completed its $10.7 billion acquisition of African operations from Kuwaiti firm - Airtel the world's 5 largest wireless carrier by subscriber base!!!

Page 8: Airtel Strategic Analysis

Contd…August 2010 : AIRTEL & TELECOM SEYCHELLES 100% stake : US$62 million - Global presence to 19 countries.

Invest US$10 million in its fixed and mobile telecoms network in the Seychelles over 3 years.

Also participating in the Seychelles East Africa submarine cable (SEAS) project of US$34 million - improving global connectivity by building a 2,000 km undersea high speed link.

Page 9: Airtel Strategic Analysis

JOINT VENTURES

AIRTEL-ERICSSON Ericsson – Manage and Optimize - Airtel’s mobile networks in Africa. Modernize and Upgrade - Airtel’s mobile networks in Africa with the latest technology including its multi standard RBS 6000 base station.As part of the MODERNIZATION - Ericsson will also

provide technology consulting,network planning & design network deployment.

Page 10: Airtel Strategic Analysis

SPONSORSHIP9 May 2009 - Manchester United : Rights to broadcast the matches played by the team to its customers.

5-year deal - ESPN Star Sports - The TITLE SPONSOR of the Champions League Twenty20 cricket tournament .

Airtel title sponsor the inaugural Formula One Indian Grand Prix during the 2011 season.

Page 11: Airtel Strategic Analysis

MARKETING STRATEGIES

Page 12: Airtel Strategic Analysis

Target Audience•Prepaid connections:Targets Audience is college students.

• Post paid connection: Target Audience is working people but there can be secondary audiences such as house wife and college going students who use this connection.

Page 13: Airtel Strategic Analysis

Communication Campaign ToolsAdvertisements

Creates pervasiveness Creative quotient very highExtra ordinary music usedTV, Print, HoardingsUsed celebrity endorsers such as Sachin Tendulkar, SRK, Kareena Kapoor, Vidya Balan, A.R Rehman

Page 14: Airtel Strategic Analysis
Page 15: Airtel Strategic Analysis
Page 16: Airtel Strategic Analysis

Sales PromotionsThere are over 800 Airtel Stores across IndiaEvery new mobile phone that is brought in The Mobile Store, an Airtel GSM is gifted for freeAirtel Tied up with Lufthansa to offer its customers bonus miles on German Airlines.

Page 17: Airtel Strategic Analysis

Creative Brand Messages of Airtel

In a service industry like telecom, people live a brand 24X7. It's all about experience; and for Airtel, brand =customer experience

- Rajan Mittal, Joint Managing Director

Page 18: Airtel Strategic Analysis

Tagline(1995) •Power to keep in touch

(1999) •Touch Tomorrow”

(2002) •“Live Every Moment”

(2003) •Express Yourself”

Page 19: Airtel Strategic Analysis

Creative Execution of messages

Advertisements are built on a story line.Exceptional audio appeal in commercials.Decent, simple and an up market feel.Catchy slogans-

“Barriers break when people talk”‘’Pyar ke beech mein kabhi dooriyan na aayen’’.

Page 20: Airtel Strategic Analysis

Airtel ANSOFF Directional Matrix

Market Penetration

The Airtel Advantage- 1p/min callVAS- Airtel Live, Hello Tunes, Astrology etc.Extensive & Increasing Sales & Distribution Channel.Lowest National & International Tariff.

Product Development

MATE- Mobile Application tool for Enterprise.

M Commerce- mCheck3G & 4G Network

Market Development

3G Network Implementation in Sri Lanka.Lost cost calling card to India- UK, USA, Singapore etc.MTN-Airtel Alliance in South Africa.

Diversification

Bharti Infra Tel & Towers.BhartiTelemedia Services- Broadband, DTH,IPTV

Bharti Retail

Market

Existence Product New

Page 21: Airtel Strategic Analysis

Airtel BCG Matrix

CDMA & GSM

Broadband

IPTV

Retail

Fixed Line Services

Market

Growth Market Share

High Low

HIGH

LOW

Page 22: Airtel Strategic Analysis

Porter's Generic Strategy

Low Cost prepaid & postpaid

Lowest rate International Calling

mCheck

MATE

VAS like- share internet plan, special5

Cost

UnIqueness

Page 23: Airtel Strategic Analysis

Announcement Title

announcing


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