bharti airtel.pptx7
Post on 18-Nov-2014
124 Views
Preview:
TRANSCRIPT
Bharti Airtel
• Largest Private Integrated Telecom Company in India
• 3rd Largest Wireless Operator in the World
• Largest & Fastest Growing Wireless Operator in India
• Largest Telecom Company listed on Indian Stock Exchange
GROUP 9
Integrated Telecom Company Wireless Services
– 2G/3G– Rural Market
Telemedia Services– Fixed Line– Broadband– DTH
Enterprise Services– Carrier– Corporate
Passive Infrastructure
– Bharti Infratel– Indus Tower
GROUP 9
Telecom Ecosystem
GROUP 9
Indian Telecom Industry FrameworkIndian Telecom Industry Framework
Indian Government Bodies Independent Bodies
Wireless Planning and Coordination (WPC)
Department of Telecommunications
Telecom Commission
Group on Telecom and IT (GoT-IT)
Telecom Regulatory Authority of India (TRAI)
Telecom Disputes Settlement and Appellate Tribunal (TDSAT)
Handles spectrum allocation and management
DoT – Licensee and frequency management for telecom
Exclusive policy making body of DoT
Handles ad hoc issues of the telecom industry
Independent regulatory body
Telecom disputes settlement body
They formulate various policies and pass laws to regulate the telecom industry in India.
They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India.
Regulatory Framework
Regulation
74% FDI Investment
Lack of Transparency in Spectrum & License Allocation
3G Policy & MNP still Pending
GROUP 9
GDP growth rate - Averaged around 7.9 % from 2002-2008
Rising Tele-density – Target of 45% by 2010
Growing per capita income/disposable Income Rs 12000 in 2002 to Rs 33000 in 2008)
Falling Handset Prices
Moderate inflation levels which were prevalent during the past 7 years – around 5-6%
Economic Factors
GROUP 9
Demand for VAS & Broadband services Among Youth
28 % Urban Population
Rapid Urbanization
Rising Income level
Changing Demographics
Source: Mckinsey Report
GROUP 9
CDMA – Already there are big players in this segment Reliance , Tata
3G – Value added services potential still to be tapped fully
2G/3G – GSM Currently commands 70% of mobile subscribers in India
Technology
Technology
GROUP 9
GROUP 9
Porter’s Generic Strategy
Porter’s 5 Forces
Threat from Competition
Customer Bargaining
Power
Threat of Substitutes
Supplier Bargaining
Power
Threat of New
Entrants
GROUP 9
1. Threat from Competition
GROUP 9
Wireless Market – Top 4 garnering 75% market share
HIGH
Competitor Analysis
GROUP 9
Bharti Rcom IDEA MTNL0.00%
20.00%
40.00%
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
2. Customer Bargaining Power
Lack of differentiation among
Service Providers
Cut throat Competition
Low Switching Costs
Number Portability will have –Ve
Impact
Businesses & Consumers
GROUP 9
HIGH
Market Scenario
GROUP 9
Postpaid Vs Prepaid Customers & Market Share
3. Suppliers Bargaining Power
GROUP 9
LOW
4. Threat of Substitutes
Landline CDMA
Video Conferencing
VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites
GROUP 9
BROADBAND SERVICES
DIMINISHING MARKET HIGH
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
GROUP 9
LOW
SWOT
STRENGTHS WEAKNESS
Largest Telecom Player in India - ~80Mn, 22.6%
Strategic Alliance with other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel
Pan India Presence Strong Financials
Outsourcing of Core Systems
Lack of emerging market investment opportunity
GROUP 9
Source: CMIE Report NOV 08
SWOT
OPPORTUNITIES THREATS
• Bharti Infratel – Cutting Down cost in Rural area
• Match Box Strategy – Scale of Penetration
• Current Tele-Density – 30.6 is still low among developing countries
• Low Broadband Penetration, Rural Telephony
India centric – Major revenues from India
Falling ARPU & AMOU Intense Competition
& Shortage of Bandwidth
GROUP 9
BCG Matrix for Bharti Airtel
Stars ? Retail Insurance
Cows Dogs • Fixed Line Services
GROUP 9Market ShareLOWHIGH
Mark
et
Gro
wth
R
ate
HIG
HLO
W
Mobile Services
DTH & IPTV
Broad Band
Factors Weight Rating(1 –5)
Value =(Weight * Rating)
Resource availability 0.20 3.5 0.7
Overall market size 0.15 4 0.6
Annual Market growth rate
0.20 4 0.8
Profitability 0.15 4 0.6
Competitive intensity 0.10 4 0.4
Technological requirements
0.20 4.5 0.9
Total 1.0 4.0
Factors Underlying Market Attractiveness
GROUP 9
Factors Weight Rating(1 –5)
Value =(Weight * Rating)
Market share 0.15 5 0.75
New product development
0.10 3.5 0.35
Brand Image 0.10 4 0.40
Sales force 0.15 3 0.45
Pricing 0.15 3 0.45
Distribution capacity 0.10 4.5 0.45
Product quality 0.10 4.5 0.45
R&D Performance 0.15 3 0.45
Total 1.0 3.75GROUP 9
Factors Underlying Market/Biz Strength
GROUP 9
Airtel’s GE Matrix
Business Strengths
Mar
ket
Att
ract
iven
ess
Low
High
LowHigh
Attractive
Moderate Attractive
Unattractive
Mobile Airtel
TeleMedia
5.00 1.002.333.67
5.00
3.67
2.33
Enterprise
7 P’s of Airtel
GROUP 9
Product
Airtel Pre-paid Airtel Post-paid Blackberry Wireless Handheld Value Added Services (VAS)
The different value added services provided by Airtel are- Instant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert, Call wait & Call Hold Multimedia messaging service (MMS) Airtel Live Portal SMS based Information Service
GROUP 9
Price
Customer based pricing strategies. Flexible pricing mechanism Controlled by TRAI.
GROUP 9
Place
It has wide and extensive presence even in the remotest areas
Airtel Customer Care Touch Points Distributors like
E.g. Paan shops, grocery stores, chemists, outlet etc.
GROUP 9
Promotion
GROUP 9
Large scale print and video advertising. Big celebrities like SRK and Sachin are roped in to
endorse the product . In 2002 Airtel got its Signature tune from A.R.
Rahman, this signature tune is the most downloaded tune in India.
Provides innovations such as Bollywood movie premiers, music services such as ring back tones & many more.
People
Total Employees 25616( Bharti Airtel consolidated) as per Q3 08.
Dedicate and passionate workforce. One of the best customer support. Have won 2nd Best employer award in
2004.
GROUP 9
Process
Process for services is very easy and customer can avail it very easily.
121 is the customer support no. which can be dialed from anywhere in India.
GROUP 9
Physical Environment
GROUP 9
References
• Bharti Airtel, Annual Report -2008• Investors presentation, Bharti Airtel Limited, November
2008• Telecommunication Services, Indian Industry: A
Monthly Review, CMIE – November 2008• Analyst Report – Bharti Airtel, Asit C. Mehta Invesment
Intermediates Ltd.• Telecommunication Sector Report – March 2008, CRISIL • Capitaline Database http://capitaline.com• Indian Telecommunication Sector - August 2007, IBEF
Report• “Next Big Spenders – Indian Middle Class”,
Businessweek
GROUP 9
THANK You !!
Prashant
Ravinder pal Singh BrarSapandeep KaurSachin Gurjar
GROUP 9
top related