TABLE OF CONTENTS

1) Introduction ……………………………………………………………... 2

2) Aim and Vision …………………………………………………………. 2

3) Size ………………………………………………………………………. 2

4) Organisational Structure……............………………………………...... 3

5) Success Story ….....................………………………………………..... 3

6) PEST Analysis ............................……………………………………..... 4

7) SWOT Analysis ………………………………………………………….. 5

8) References……………………………………………………………...... 7

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 Bharti Airtel – India’s leading Telecom Company

Introduction

In late nineties, the development of telecommunication infrastructures was growing at rapid pace.
Landline or Wired communication was the only medium for communication. It was very difficult to bind the
entire country through wired connectivity. This was the basic necessity for the growth of Wireless
technology. In 1995, Wireless mobile services were launched by Bharti Airtel under the brand name
“Airtel”, in Delhi and Himachal Pradesh. The major stake holder was British Telecom plc. In couple of
years, Bharti Airtel acquired JT mobile and Skycell and became first Private Sector Telecom Company in
India. Later on, Singapore Telecommunications (SingTel) acquired stake in the company.
Bharti Airtel Limited is one of India leading private sector Company which provides telecommunications
services in mobile, land line, broadband and enterprise services. Bharti Airtel ranks 22 nd among top
telecom brand and the only Indian telecom operator among 500 Top Brands. Bharti Airtel emerged as the
tenth most trusted Brand; in the survey conducted by The Economic Times (ET) Brand Equity.

The Bharti Airtel operates in four major segments:

Aim of organisation:

In Bharti Airtel, Customer service is and always given first preference. Airtel aims to help each and every
customer quickly and efficiently as well as try to resolve their queries at the earliest.

Vision of organisation:

In year 2005, Bharti Airtel’s vision was to become the most respectable brand in the country. It has now
reached its own benchmark and is trying to set new horizons in coming years. To start their career top
talent have started targeting the Bharti Airtel. Today in 2010, Bharti Airtel is recognised as a trademark for
entrepreneurship, a magnet which attracts talent, a pool of innovative ideas and products, one of the best
customer solution and business model.

Size of the organisation:

Bharti Airtel has its presence in 18 countries across the globe, covering Asia and Africa. With respect to
the customer base, Bharti Airtel is world 5 th largest Telecom Company. The total number of employee
count is close to 25500+ and the number keeps on increasing day by day.

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Structure of the organisation:

As it is seen in the above diagram, Bharti Airtel follows a hierarchical structure.

The Executive Director and the Director report to the CEO of the organization. The CEO reports to the
Chairman and the Managing Director. The President and the Business Director report to the CEO. There
is proper channelling of responsibilities done in a hierarchical with Presidents and directors in the base
and the Chairman and the CEO’s taking control.

Success story:

Technological advancement and growth in Telecom sector in India has been a backbone for various
Telecom companies. Bharti Airtel has capitalised the growth in the Telecom sector and has emerged as a
global leader.

Facts and Figures:

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 (Fig 1) (Fig 2)

From Fig 1 we can see that in last few years there has been continuous increase in customer
base both in mobile service and Telemedia services. In year 2010, Bharti Airtel has achieved 1 billion
subscribers in mobile services and 1.80 million subscribers in internet service provider (ISP).

(Fig 3) (Fig 4)

The Figures 2, 3 & 4 indicates the steady growth of the organisation and also reflects the increase in the
profit margin in the year 2010. Figure 4 also indicates rise in the shareholders returns which is one of the
major reason for Bharti Airtel Success.

Environment factors which affect an organization can be explained using PESTEL analysis

Political / Legal Factors:

In Telecom Sector of India, Foreign Direct Investment (FDI) is approximately 100%. FDI ceiling in the
telecom sector has been raised to 74% which would help the Indian telecom sector immensely. Mobile
number portability (MNP) implementation would enable subscribers to move to different service provider
retaining the original number. This implementation would hamper Bharti Airtel as customers would keep
switching to any possible networks available. In India legal obligations are defined regarding 3G auction
and bidding, which proves to be in favour of Bharti Airtel as this auction is not available to the new
entrants. This political factor forbids the entry of new companies in to 3G services.
Due to rising terrorist activities and hacking of confidential data on air, India’s Department of
Telecommunication (DoT) has made amendments related to security features which states that telecom
companies should have good policies for security and they should be responsible for the security of the
network.

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Economical factor:

Indian telecom was growing approximately in a range of 20 to 30 % in year 2002 – 2003, but this figure
has moved considerately to 40 – 45 % during the last couple of years. Also this sector accounts for 1
percent of India’s GDP and this figure is likely to increase in few years. Approximately 30% of the service
tax revenue is contributed by telecom sector. It is also considered to be one of the major sectors which
provide direct employment which indirectly helps in economic growth of India.

Social factor:

Now a day, customers have a notion regarding brand and status symbol. Customers have become
cautious regarding choosing of telecom network. Cost factor is also major concern to customers for
example calling rates, roaming facility, etc. Most of the customers are influenced by the latest fashion
trend. A company needs to be updated with the latest technology and fashion trend. Demographic factor
play an important role in selecting a product. Likes and dislikes of a teenager and adult might not be
same, so the company will have to try its best to meet both the requirements. Advertisements plays very
important role in selecting network.

Technological factor:

Bharti Airtel is first wireless service provider which supplies roaming services, International and long
distance communication services and Value Added Services. Bharti Airtel’s has high-speed optic fibre
network. This network presently spans 126,357 kms all over India. Bharti Airtel's international network
infrastructure includes ownership of the i2i submarine cable system and consortium ownership in five
global undersea cable system.

Environmental factors:

Radio frequency waves emitted from the mobile phones harms body cells and damages the DNA. This is
not yet proved that such changes were risk to human health.

Internal Environment:
Internal environment affecting the organisation can be expressed in terms of SWOT Analysis.

Strengths:

Bharti Airtel is one of the Leading Telecom Company in India and it is renowned globally. Even during the
economic turmoil share holders have maintained their trust in the organisation. In turn, Bharti Airtel has
responded strongly and has not let down any shareholders. Any organization requires strong partners
which would help and support in various activities. Similarly, Bharti Airtel has strong strategic alliance with
Ericson, IBM and Cisco. Airtel’s match box strategy in rural areas helped them to penetrate deep in the
rural sectors. Bharti Airtel has its presence in more than 300000+ rural areas. Airtel has always taken an
initiative in promoting the services. Various services like hello tunes, Electronic recharge and Airtel Live
have provided a competitive edge.

Weakness:

In spite of good operation and marketing strategy, the mobile connectivity is poor in rural India. Bharti
Airtel hasn’t taken enough measures in overcoming geological factors. Bharti Airtel has too much
dependency on Domestic market of India and Asia. In India, the mobile towers of Bharti Airtel are
controlled, monitored and maintained by Ericson; as a result it does not have a single mobile tower. Bharti
Airtel does not have experience and exposure on 3G technology as compared to its counterpart Vodafone
and Virgin media.

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Opportunities:

Current market trend indicates that there would be rapid increase in 3G and Wimax technology in country.
Enterprise Telecom services includes services like voice over internet protocol (VoIP), telecom services
providers are targeting these areas. The growth in Value added services industry was approximately
USD 632 million and is expected to increase by 60%. Bharti Airtel has a strategic alliance with CISCO
and Servion Global to develop hosted call centre (HCC). The forecasted market size for HCC in the
country would be approximately $50 million a year and will increase steadily. Bharti Airtel has acquired
stake in Zain group in Africa and has got an entry to explore African market. Bharti Airtel should enter the
international market. It should grab all the possible opportunities to make a strong foothold in telecom
sector all over the globe.

Threats:

Failures of MTN deal damaged the reputation of company. Better network and coverage by CDMA
operators (Reliance communication and TATA communications) can lead to switching of customers to
some different network. Increase in number of both domestic and international mobile service providers
(Domestic – Uninor, Videocon and International - Virgin media). Implementation of Mobile number
portability (MMP) may lead to switching of subscribers to different mobile service providers. As all the
service providers are trying to find new ways to attract customers, cost per call is reducing. This may lead
to decrease in Average revenue per user (ARPU). Now a day, due to increase in terrorist activity,
service providers need to make sure that the network is secured and it is not used for ill legal activates.

References:

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Bharti Airtel, (2010). Bharti Airtel Annual Report 2009-10. [online]. Available at:
http://www.airtel.in/wps/wcm/connect/8a8645804366e6d890c695c68c4996a0/Bharti_Airtel_Annual_Repo
rt_2009_10.pdf?MOD=AJPERES&CACHEID=8a8645804366e6d890c695c68c4996a0 [accessed on 28
September 2010]

Bharti Airtel, (2010). Organisation Structure. [online]. Available at:

http://www.airtel.in/wps/wcm/connect/about+bharti+airtel/Bharti+Airtel/Investor+Relations/Company+Profil
e/Organisation+Structure/ [accessed on 28 September 2010]

Bharti Airtel, (2010). FY 2010- 2011. [online]. Available at: http://www.airtel.in/wps/wcm/connect/About

%20Bharti%20Airtel/bharti+airtel/media+centre/bharti+airtel+news/telemedia/pg-bharti-airtel-enters-into-
a-strategic-partnership-with-novatium-to-help-expand-the-broadband-market [accessed on 28 September
2010]

Bharti Airtel, (2010). Our Vision and promise. [online]. Available at:
http://www.airtel.in/wps/wcm/connect/about+bharti+airtel/Bharti+Airtel/About+Bharti+Airtel/Our+Brand+Air
tel/Our+Vision+and++Promise/ [accessed on 28 September 2010]

India Brand Equity Foundation, (2007). Indian Telecommunication Sector. [online]. Available
at:www.ibef.org/download%5CIndian_Telecom_Sector_301008.ppt [accessed on 28 September 2010]

Corporate Catalyst India, (2008). Telecom Industry in India. [online]. Available at:
http://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdf [accessed on 28 September 2010]

Anon, (2010). India Amends Telecom License Rules For Long-Distance Operators On Security Concerns.
The Wall Street Journal [online]. Available at: http://online.wsj.com/article/BT-CO-20100928-
702255.html#articleTabs%3Darticle [accessed on: 28 September 2010]

Government of India, (2003). Foreign Direct Investment in India. [online]. Available at:
http://dipp.nic.in/manual/manual_0403.pdf [accessed on 28 September 2010]

Anon, (2004), Mobile phones ‘alter human DNA’. BBC News. [online]. Available at:
http://news.bbc.co.uk/1/hi/health/4113989.stm [accessed on: 29 September 2010].

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