AirTel

1. Vision Statement:-

“To be globally admired for telecom services that delight customers”.

2. Mission Statement:-

 Customer service focus

 Empowered employees
 Innovative services
 Cost efficiency

3. Value Chain:-
 ACTIVITIES SERVICE PARTNER

 Ericssion
Network equipment supplier
 Nokia
Telemedia and enterprise  Siemens
equipment supplier  Nortel
SUPPORTING
 Bharti Infratel
Passive infrastructure
 Indus Towers
 IBM
Information system
 Nortel
 IBM Daksh
 Hnduja TMT
PRIMARY Customer service
 TeleTech
 Mphasis

4. Competitive advantage:-
What sets Bharti airtel apart from the rest is its ability to forge strong partnerships. Over
the years some of biggest names in international business have partnered Bharti.
Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in
telecom.
The corporate real estate group at Bharti-Airtel have created a Workplace Environments
programme to reshape the portfolio so that workplace effectiveness becomes an integral,
branded component of their corporate vision to be the most admired brand in India. This
initiative has been sold internally as a key factor in Bharti-Airtel’s goal of attracting and
retaining top talent, and as part of the wider goal of using the workplace as a strategic
tool to gain competitive advantage.

5. Poter’s five forces:-

 Threat from the competitors:-

Supply side economies of scale:
- Average revenue per user is declining.
Demand side benefits:
 - Brand pull of airtel is very high.
Customer switching cost:
- Cost of new connection is low.
- Now with the introduction of number portability the switching cost gone
much low.
Capital requirement:-
- Extremely high infrastructure cost.
- License cost is also spectrum.
Restrictive government policy:
- Spectrum and license allocation.
- Minimum requirements of number of towers.
Overall, threats from new entrants is very high.
 Power of buyers:-
- There is lack of difference among service provider which increases power in
the hands of buyers.
- There is cut throat competition in the telecom industry which again increases
power in the hand of buyers.
- Again switching cost is low.
- Number portability has increased the power of the buyers.
Overall, the power is in the hands of buyers is high.
 Supplier’s bargaining power:-
- There are large numbers of suppliers to this industry.
- The limited pool of engineers and skilled managers has increased suppliers
bargaining power.
- There is medium cost of switching the supplier as changing their hardware
would lead to cost in modifying the architecture.
Overall influence is medium.
 Rivalry among the existing competitors:-
- Exit barrier is high.
- Fixed cost is high.
- There are 6-7 players in each region.
 - 3 out of 4 big player including airtel is present in each region.
- There is price war.
Overall the rivalry among substitute is very high.
 Threat from substitutes:-
- Landline and CDMA market is diminishing.
- Use of Video conferencing, VOIP(skype, gtalk, yahoo messenger) is
increasing rapidly.
Overall, the threat is medium.

6. SWOT analysis:-
 Strength:-
- Bharti is very focused on telecom industry.
- Leadership in telecom industry with over 88 million customers.
- The only Indian operator other than VSNL that has international submarine
cable.
 Weakness:-
- Price competition has increased with other competitors.
- Untapped rural market, most of which is covered by BSNL.
 Opportunities:-
- Latest technology and low cost advantage.
- Huge market.
- Low broadband penetration.
 Threat:-
- Falling annual revenue per unit.
- Competition from other cellular companies.
- Saturation point in basic telephony service.
- Mobile number portability may result in switch over of customer to other
competitors.
- Vodafone has advantage in 3G service than airtel since it has experience of
running the 3G service in other countries.
7. PEST analysis:-
 Political factor:
The political factor that affects Airtel are:
- Antirust regulation which was  created to prevent monopolies.
- Environmental regulation.
- Tax law.
- Foreign trade regulation.
- Law of hiring and promotion.
 Economical:
- Inflation rate can affect the company.
- Unemployment level can increase the pressure on the company.
- Devaluation and revaluation can effect he company economically.
- The current GDP trends can increase the economical pressure on telecom
industry
 Socio-cultural changes:
- Life style of the people are changing day by day, hence company has to adjust
itself according to that.
- Growth rate is increasing so demand will change which can affect the
company.
- Regional shift in the population that is people are shifting from rural to urban
area.
- Age distribution can also affect the company as younger generation are more
demanding and also most of the part of Indian population is young.
- Consumer has become more aware and active so company can’t fool them,
hence airtel has to do something different from others.
 Technological factor:
- Technology is changing day by day hence flexibility should be there to adopt
new technology.
- To do something different airtel should invest in its R & D department more.
8. Expansion through diversification:-
Bharti airtel previously known as Bharti Tele-Ventures Limited(BTVL) started itself in
telecom industry. Now company diversify itself in other related business such as mobile
voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom
solutions for enterprises and national & international long distance services to carriers.