Dissertation Report On Report On "Bharti Airtel Limited": Regional College of Management Autonomous Bhubaneswar
Dissertation Report On Report On "Bharti Airtel Limited": Regional College of Management Autonomous Bhubaneswar
Dissertation Report On Report On "Bharti Airtel Limited": Regional College of Management Autonomous Bhubaneswar
REPORT ON
Report on
BHARTI AIRTEL LIMITED
FURNISHED BY
REGIONAL COLLEGE OF
MANAGEMENT
AUTONOMOUS BHUBANESWAR
CONTENTS
Acknowledgment 3
Executive Summary 4
Introduction 5
Objectives
Methodology
Primary Data Sources
Secondary Data Sources
Analysis 12
SWOT Analysis 16
Porter Model 17
Environmental Analysis
Findings 22
Recommendations 23
Bibliography 24
References 24
2
ACKNOWLEDGEMENT
3
EXECUTIVE SUMMARY
This report on Airtel not just give description about the company
but it also talks about the various marketing strategy adopted by
the company.
SWOT analysis of Airtel helps to find out the weak points of the
company and to find out the way to overcome this problem.
Similarly with the help of Ans off matrix it can be finding that what
are the different strategic options available to the company under
the different market condition. and to find the answer that why
company is looking for overseas market like Nigeria and
Seychelles.
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INTRODUCTION ( COMPANY OVERVIEW )
Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti
Enterprises. The businesses of Bharti Airtel are structured into two main
strategic groups - Mobility and Infotel. The Mobility business provides GSM
mobile services in all 23 telecommunications circles in India, while the Infotel
business group provides telephone services and Internet access over DSL in
15 circles. The company complements its mobile, broadband, and telephone
services with national and international long-distance services. The company
also has a submarine cable landing station at Chennai, which connects the
submarine cable connecting Chennai and Singapore. Bharti Tele-Ventures
provides end-to-end data and enterprise services to corporate customers by
leveraging its nationwide fibre-optic backbone, last mile connectivity in fixed-
line and mobile circles, VSATs, ISP and international bandwidth access
through the gateways and landing station. All of Bharti Tele-Ventures' services
are provided under the Airtel brand.
As of September 2005, Bharti Tele-Ventures was the only company to provide
mobile services in all 23 telecom circles in India.
By the end of October 2005, Bharti Tele-Ventures was serving more than
14.74 million GSM mobile subscribers and 1.10 million broadband and
telephone (fixed line) customers.
The equity shares of Bharti Tele-Ventures are currently listed on the National
Stock Exchange of India Ltd (NSE) and the Stock Exchange, Mumbai (BSE).
As of September 30, 2005, the main shareholders of Bharti Tele-Ventures
were: Bharti Telecom Ltd (45.65%), a subsidiary of Bharti Enterprises;
Singapore Telecom (15.69%), through its investment division Pastel Ltd; and,
Warburg Pincus (5.65%), through its investment company Brentwood
Investment Holdings Ltd). Other shareholders with more than a 1% stake
were: Citi Group Global Markets Mauritius Pvt Ltd (2.99%); Europacific
Growth Fund (2.04%); Morgan Stanley & Co International Ltd (1.93%); CLSA
Merchant Bankers Ltd A/C Calyon (1.33%); Life Insurance Corporation of
India (1.34%); and, The Growth Fund of America Inc (1.11%).
Airtel provides a host of voice and data products and services, including high-
speed GPRS services. Airtel also offers a wide array of 'postpaid' and
'prepaid' mobile offers, with a range of tariff plans that target different
segments. A comprehensive range of value-added, customised services are
part of the unique package from Airtel. The company's products reflect a
desire to constantly innovate. Some of these are reflected in the fact that Airtel
was the first to develop a 'single integrated billing system'
Airtel comes to you from Bharti Airtel Limited - a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading
cellular service provider, with an all India footprint covering all 23 telecom
circles of the country. It has over 21 million satisfied customers. Bharti
Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world class products and services. Established in
1976, Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit. Bharti has many joint ventures with world
leaders like SingTel (Singapore Telecom); Warburg Pincus, USA; Telia,
Sweden; Asian infrastructure find, Mauritius; International Finance
Corporation, USA and New York Life International, USA. Bharti provides a
range of telecom services, which include Cellular, Basic, Internet and recently
introduced National Long Distance. Bharti also manufactures and exports
telephone terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments in India, it is also the first company to
export its products to the USA.
Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has
established itself across India in sixteen states covering a population of over
600 million people. Airtel will soon cover the entire country through a process
of acquisitions and green field projects. With a presence in over 1,400 towns,
Airtel today has the largest network capacity in the country.
In the last nine years Airtel has achieved many firsts and unique records: it
was the first to launch nationwide roaming operations, it was the first to cross
the one million and the five million customer marks. It was also the first to
launch services overseas.
There are other 'firsts' credited to Airtel - many of them in the area of
innovative products and services. Today, Airtel innovates in almost everything
that it presents to the market. An excellent example is Easy Charge - India's
first paperless electronic recharging facility for prepaid customers. As
evidence of its fine record, Airtel has also been conferred with numerous
awards. It won the prestigious Techies Award for 'being the best cellular
services provider' for four consecutive years between 1997 and 2000 - a
record that is still unmatched. And in 2003, it received the Voice & Data Award
for being 'India's largest cellular service provider', amongst others.
As part of its continuing expansion, Airtel has invested over Rs. 1,065 billion in
creating a new telecom infrastructure. In 2003/04, Bharti Tele-Ventures
earned a gross profit of Rs. 16 billion on revenues of Rs. 50 billion.
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Corporate Structure
7
OBJECTIVE
METHODOLOGY
SECONDARY SOURCES
Internet
Newspaper
Magazines
Others
8
AIRTEL ENTERPRISE SERVICES
Voice Services
Mobile Services
Satellite Services
Managed Data & Internet Services
Managed e-Business Services
Voice Services
Bharti Airtel became the first private fixed-line service provider in India. It is now
promoted under the Airtel brand. Recently, the Government opened the fixed-line
industry to unlimited competition. Airtel has subsequently started providing fixed-
line services in the four circles of Delhi, Haryana, Madhya Pradesh, Karnataka,
Tamil Nadu & UP (West).
Airtel Enterprise Services believes that these circles have high
telecommunications potential, especially for carrying Voice & Data traffic. These
circles were strategically selected so as to provide synergies with Airtels long
distance network and Airtels extensive mobile network.
Airtel Enterprise Services, India's premium telecommunication service, brings to
you a whole new experience in telephony. From integrated telephone services for
Enterprises and small business enterprises to user-friendly plans for Broadband
Internet Services (DSL), we bring innovative, cost-effective, comprehensive and
multi-product solutions to cater to all your telecom and data needs.
9
Airtel Enterprise Services Voice Services provide Free Dial-up Internet access
that is bundled along with your Telephone connection from Airtel. Its fast,
reliable and gives you unlimited Internet access with various kinds facilities
availableand also it attractive by customer.
Mobile Services
Airtels mobile footprint extends across the country in 21 telecom circles. Its
service standards compare with the very best in the world. In fact, thats how
Bharti has managed to win the trust of millions of customers and makes it one
of the top 5 operators in the world, in terms of service and subscriber base.
The company has several Firsts to its credit:
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Satellite Services
Airtel Enterprise Services provides you connectivity where ever you take your
business Our Satellite Services bring you the benefits of access in remote
locations. Airtel Enterprise Services is a leading provider of broadband IP satellite
services and DAMA/PAMA services in India. Our solutions support audio, video
and voice applications on demand.
PAMA/DAMA
BIT - Internet
VPN
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Managed e-Business Services
ANALYSIS
SWOT ANALYSIS
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Very focused on telecom.
Leadership in fast growing cellular segment.
Price Competition from BS
Pan-India footprint.
Untapped Rural market
The only Indian operator, other than VSNL, that has an international submarine cable.
STRENGTH
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LEADERSHIP IN FAST GROWING CELLULAR SEGMENT Airtel is
holding leadership position in cellular market.. Bharti Airtel is one of
India's leading private sector providers of telecommunications services
based on an aggregate of 27,239,757 customers as on August 31,
2006, consisting of 25,648,686 GSM mobile and 1,591,071 broadband
& telephone customers.
WEAKNESS
Price Competition from BSNL and MTNL. Airtel is tough competition
from the operators like BSNL nd MTNL as these two operators are
offering services at a low rate.
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Untapped Rural market. Although Airtel have strong Presence
throughout the country but still they are far away from the Indian rural
part and generally this part is covered by BSNL so indirectly Airtel is
loosing revenue from the rural sector.
OPPORTUNITIES
THE FAST EXTENDING IPLC MARKET An IPLC (international
private leased circuit) is a point-to-point private line used by an
organization to communicate between offices that are geographically
dispersed throughout the world. An IPLC can be used for Internet
access, business data exchange, video conferencing, and any other
form of telecommunication. Airtel Enterprise Services and SingTel
jointly provide IPLCs on the Network i2i. The Landing Station in
Singapore is managed by SingTel and by Airtel in Chennai (India).
Each Landing Station has Power Feeding Equipment, Submarine Line
Terminating Equipment and SDH system to power the cable, add
wavelengths and convert the STM-64 output to STM-1 data streams
respectively.
THREATS
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The earlier pattern used to be that the national telecom company used to own
every segment of the value chain till the international gateway. With
liberalization there was competition in virtually every segment. There are
companies that provide local connectivity, those that function as long distance
carriers, and those that provide only gateway links. Some integrated players
operate in all segments. The intensity of competitive pressures across the
chain is reflected in the downward spiral being witnessed in tariffs and prices
to customer.
The value chain for cellular mobile service and Internet Service Providers
(other than cable based net connections) are similar in as much as the calls
reach the destination through similar local loop, long distance and
international gateway.
ENVIRONMENTAL ANALYSIS
It is a systematic examination of all 3 levels of the environment with at least
three purposes:
Detecting important economic, social, cultural, environmental,
health, technological, and political trends, situations, and events
Identifying the potential opportunities and threats for the institution
implied by these trends, situations, and events
Gaining an accurate understanding of your organizations strengths
and limitations
STEEP refers to changes in the social, technological, economic,
environmental, and political sectors that affect organizations directly and
indirectly.
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pace of utilization of technology (Public Call Offices, mobile phones,
networked companies). Increasing customer awareness has raised
expectations and vocal demands are being articulated for consumer rights;
such political factors have in turn impacted the competitive environment by
way of entry of private players, independent regulation, and a policy
framework tilted towards a level playing field for new entrants. A near
environment analysis indicates that the competitors are becoming active
resource rivals (political and financial) apart from applying pressures as
customer rivals. The customer has, needless to say, benefited from increased
choice from within the communications services basket itself.
CORE COMPETENCE
Airtel core competencies are sales & promotions and as of now Airtel is
leading brand in mobile services in India. Airtel have three big personality Viz.
Sachin Tendulkar , Shahrukh Khan and music maestro A. R. Rahman along
with R. Madhavan and Vidya Balan for endorsing there product and services
currently Airtel is outsourcing there no competence function and try to fully
concentrate on his core competency that is sales promotion.
ANNEXTURE
Market
share
Fixed Mobile Total
(%age)
(% age)
1
BSNL 36.8 78.02
18
2
MTNL 3.94 8.35
3
Tata 3.23 6.85
4
Reliance 1.86 3.94
5
Bharti 0.97 2.06
6
HFCL 0.21 0.44
7
Shyam 0.16 0.34
All India 47.17 100
(% age)
1 BSNL 47.96 44.82
2 Reliance 14.01 13.09
3 Bharti 13.76 12.86
4 Hutch 8.85 8.27
5 IDEA 5.73 5.36
6 MTNL 5.27 4.93
7 Tata 4.84 4.52
8 BPL 2.7 2.52
9 Aircel 1.94 1.82
10 Spice 1.49 1.39
11 HFCL 0.27 0.25
12 Shyam 0.18 0.17
107 100
All India
OPERATOR WISE TOTAL SUBSCRIBER BASE OF MOBILE AND FIXED TELECOM SERVICES AND
THEIR MARKET SHARE AS ON JULY 2007
20
FIXED LINE 48.47Mn 48.93 Mn 49.21 Mn
ADDITION DURING THE MONTH 0.28 Mn 0.46 Mn 0.28 Mn
MOBILE 71.46Mn 75.92 Mn 80.61 Mn
ADDITION DURING THE MONTH 3.51Mn 4.46 Mn 4.69 Mn
GSM ADDITION 2.32 Mn 3.19 Mn 3.52Mn
CDMA ADDITION 1.18Mn 1.17Mn 1.17Mn
Proportionate Revenue
Rs. 117,255 million (year ended March 31, 2007-Audited)
Rs. 81,558 million (year ended March 31, 2006-Audited)
As per Indian GAAP Accounts
Proportionate EBITDA
Rs. 42,250 million (year ended March 31, 2007-Audited)
Rs. 30,658 million (year ended March 31, 2006-Audited)
Shares in Issue
1,895,241,565 as at June 30, 2006
Listings
Market Capitalization
Customer Base
25,648,686 GSM mobile and 1,591,071 broadband & telephone (fixed line)
customers (Status as at month ended August 31, 2006)
Operational Network
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Provides GSM mobile services in all the 23 telecom circles in India, and was
the first private operator to have an all India presence.
Provides broadband (DSL) and telephone services (fixed line) in 92 cities in
India.
FINDINGS
Outsourcing The call center operations for the mobile services have
been outsourced to IBM Daksh, Hinduja TMT, and Teletech & Mphasis.
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RECOMMENDATIONS
After the complete analysis of entire STUDY we put forward a set of
recommendations which are a follows:
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BIBLIOGRAPHY
REFERENCES
www.airtelworld.com
www.airtel-broadband.com
www.trai. gov.in
www.hindustantimes.com
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