bharati enterprises

19
ted off as a Bicycle Parts Manufacturer in 19 Now it’s India’s Largest and World’s 4 th Largest Telecom Service Provider

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industry strategy analysis

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Page 1: Bharati enterprises

Started off as a Bicycle Parts Manufacturer in 1976

Now it’s India’s Largest and

World’s 4th Largest Telecom Service Provider

Page 2: Bharati enterprises

Bharti Enterprises

Page 3: Bharati enterprises

Enterprises

1976- Started as a Bicycle Parts Manufacturer

1980- Tied up with Suzuki to Import and Distribute Portable Gensets

1985-88 - Strategic Alliance with Siemens for Manufacturing Push Button Phones

1990- Manufactured Fax Machines, Cordless Phones

1992- Bharti Cellular Ltd. Formed , Bids for Mobile Telecom License

1994- Won GSM License for Delhi NCR

1995- Launched Airtel GSM Brand

Page 4: Bharati enterprises

Enterprises 1998-First Indian Company to Launch Telecom Services outside India in Seychelles

2004-Bharti & Rothschild form a 50:50 Joint Venture – Field Fresh

2004- Airtel Exclusively brings Blackberry to India

2005-First company to cover National Footprint in all Circles

2005-Ventured into Life Insurance formed Bharti Axa Joint Venture

2006- Forays into Retail Sector by signing MoU with Walmart

2007- Bharti Axa gets into General Insurance Business

Page 5: Bharati enterprises

Enterprises

2008-Easy Day Retail stores launched in Ludhiana

2008- Indus Towers Joint Venture Bharti(42%),Idea(16%) and Vodafone (42%)

2008- Airtel Digital TV Launched

2009-Bharti Walmart Launches Best Price

2012- Airtel Crosses 200 Million Customers ( Mobiles,Fixed Line, DTH)

2012- Partners with Qualcomm,4G Services Launched in Kolkata

2014 -Acquired Loop for 700 Crore

2014 - 200 Million Mobile Customers in India

Page 6: Bharati enterprises

Porters 5 Forces Analysis(Cellular Telecom Sector)

Intensity of Competition : High

Competition from Rivals

Consolidated Oligopoly

Mobile Number Portability

Price Wars

Page 7: Bharati enterprises

Cellular Players

Leader : Airtel

Challenger : Vodafone

Follower : Idea, Reliance, BSNL,Aircel,Tata etc

Nicher : Loop (Now Part of Airtel)

Page 8: Bharati enterprises

Porters 5 Forces Analysis(Cellular Telecom Sector)

Threat of New Entrant : High

New Licenses given to others in Existing Circles

100% FDI in Telecom Sector

Threat from Foreign Big players

Page 9: Bharati enterprises

Porters 5 Forces Analysis(Cellular Telecom Sector)

Bargaining power of Suppliers

Tower Suppliers : Low (Enjoy Monopoly) Own Tower Business, Infratel and Indus Tower Joint Venture

Handset Suppliers : Low (Fragmented Market) Compete Amongst themselves

Network Devices Suppliers : High (Oligopoly) Consolidated Market : ZTE, Huawei ,Ericsson , Nokia etc.

Page 10: Bharati enterprises

Porters 5 Forces Analysis(Cellular Telecom Sector)

Bargaining power of Buyers: High

Low Switching Cost

Govt. Initiatives like MNP

Less Differentiation amongst competition

Similar Tariff Plans

Page 11: Bharati enterprises

Porters 5 Forces Analysis(Cellular Telecom Sector)

Threat of Substitute: High

Internet Base Rising

Rise of Skype, WhatsApp and other Comm. Apps

Video Conferencing

Page 12: Bharati enterprises

Recommendations

Continue with the Telecom Business

Scaling of 4G network across India

Tie Ups with App Makers like Skype and other Communications Apps

Tie ups with Rising Local Players like Micromax

Page 13: Bharati enterprises

BCG Analysis of Bharti EnterprisesCompany Leader/

FollowerGrowth

RateRMS

Airtel (A) L 4 1.22X

Bharti Realty Ltd (BRL) F 3 0.1X

Easy Day (ED) F 7 0.2X

Infratel (I) L 10 3X

Digital TV (DT) F 6 0.5X

Life Insurance (LI) F -1 0.1X

General Insurance (GI) F -1 0.1X

Page 14: Bharati enterprises

5%

-5%

1X 0.1X

G r owt h

R a t e

Relative Market Share

Page 15: Bharati enterprises

GE Analysis Bharti Enterprises

Page 16: Bharati enterprises
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Page 19: Bharati enterprises