Strategic Management Project

On Bharti Corporation

Submitted to: Submitted by

Dr. R Sujatha Joann John –B05
Anshika Arora-B15
Anshu Chowdhary –B25
Vikas Sharma –B35
Adarsh Srivastva –B45
Pragya Sharma –B55
Index

1. Acknowledgement
2. Introduction to Bharti
3. Bharti Airtel
4. Beetel
5. Bharti Walmart
6. Bharti AXA General Insurance
7. Bharti Infratel
8. Bharti Realty Ltd.
9. Bharti Teletech Ltd.
10. Comviva
11. Jersey and Guernsey
12. Centum Learning Ltd.
13. Bharti Retail
14. Bharti AXA Life Insurance
15. Bharti AXA Investment Managers
16. Indus Towers
17. Bibliography

18.

2
 ACKNOWLEDGEMENTS

We would like to thank our faculty Dr. R Sujatha for providing us with an
opportunity to attain an experience on Strategic management and its application in
our assigned company Bharti Corporation. This research has been a great learning
experience for fresher like us, who are new to the ways of doing the same.

With her constant support and teachings we have been able to compile this report
by mixing our theoretical knowledge with practical application.

Thanking you.

3
 BHARTI CORPORATION Ltd.

Bharti Corporation came into existence in 1976 and was founded by Sunil Bharti Mittal. Sunil
started his career at 18 after graduating from Punjab University, India in 1976. Today, he heads a
successful enterprise which employs over 30,000 people. He started his business as the
manufacturer of bicycle parts and diversified into production of yarn, stainless steel sheets for
surgical utensils. In 1985-88 Bharti diversified and entered into the telecom sector with Bharti
Telecom. Through its global telecom operations Bharti group has presence in 21 countries across
Asia, Africa and Europe – India, Sri Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina
Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya,
Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. At the same
time they also entered into the Pharma sector with Bharti Healthcare. In 1995 it launched Delhi’s
first GSM mobile services under the Airtel brand. Bharti Airtel, the flagship group company, has
a market capitalization of over US$ 26 billion.

Visions and values shared by Bharti and its employees are:

By 2020 we will build India’s finest conglomerate by:

Always empowering and backing our people, being loved and admired by our customers and
-respected by our partners, transforming millions of lives and making a positive impact on
society and being brave and unbounded in realizing our dreams.

Our values
 Empowerment: We respect the opinions and decisions of others. We encourage and back
people to do their best
 Entrepreneurship: We always strive to change the status quo. We Innovate with new
ideas and energize with a strong passion and entrepreneurial spirit.
 Transparency: We believe we must work with honesty, trust and the innate desire to do
well.
 Impact: We are driven by the desire to create a meaningful difference in society
 Flexibility: We are ever willing to learn and adapt to the environment, our partners and
the customers’ evolving needs.

4
Airtel

Bharti Airtel operates in 18 countries across Asia and Africa. It is structured into four strategic
business units - Mobile, Telemedia, Enterprise and Digital TV. The Telemedia business
provides broadband, IPTV and telephone services across India. The Enterprise business provides
end-to-end telecom solutions to corporate customers and national and international long distance
services to carriers. The Digital TV business provides DTH services across India. All these
services are provided under the Airtel brand name.

The Vision Statement of Bharti Airtel is:

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

And its Mission Statement is:

 Customer service focus

 Empowered employees
 Innovative services
 Cost efficiency

Value Chain of Bharti Airtel

The following is the present value chain of Bharti Airtel. When Airtel was launched in
Delhi, Bharti joined forces with Siemens to market telephone terminals under Siemens. Later
Bharti entered into the sector of being telecom infrastructure providers by the name Bharti
Infratel ltd along with Indus Towers (Joint venture between Vodafone essar, Bharti group and
Aditya Birla Telecom Ltd.), there by performing backward integration in Airtel’s value chain.

5
 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

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 has created a Workplace Environments program
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.

6
2The following analysis techniques are conducted to analyse the level of competition faced by
the company and to analyse the external environment.

1. Poter’s five forces model:-

Michael E. Porter has proposed five competitive forces on the basis of which intensity of
industry competition and profitability can be determined.
 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 are 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.

7
  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.

2. 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.

8
  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.
3. 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

9
  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.

Expansion through diversification:-

Bharti airtel previously known as Bharti Tele-Ventures Limited (BTVL) started itself in telecom
industry. Now company has diversified 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. This is expansion is in
the nature of related diversification.

10
 BEETEL

Beetel is a leading global technology brand which offers a wide range of innovative products in
the mobile phones, IT peripherals and fixed line telephone segments. Leveraging its consistent
performance, distribution and marketing capabilities Beetel as a brand has achieved a leading
market share in the telecom and allied product segments.

The company has forayed into IT peripherals and positioning as a mass consumer products
provider. Beetel Teletech, a Bharti group company, has recently broadened its business canvas
by foraying into the IT peripheral space, launching a complete range of Beetel-branded products
spanning across nine categories, covering the entire gamut of IT peripherals for PCs. The range
includes products like woofers, headphones, monitors, webcams, keyboards, mouse as well as
channel-centric products like cabinets, UPS, and TV tuner cards. The Beetel-branded product
range provides the consumer an opportunity to buy an aspirational Indian brand, offering a
distinct advantage on two key parameters-quality and service. The products provide an
impressive feature list at similar prices to competition, thereby promising the consumer more
value for money.

The company shares the following mission, vision and values with its employees:

Mission

By 2012, Beetel Teletech will be India’s finest sales and distribution Services Company by:

 Building a boundary-less distribution scale across India

 Delivering predictability and success for our partners
 Making Beetel a loved and aspirational symbol of India’s middle class.
 Ensuring a performance driven and satisfied ecosystem of our people, partners and
consumers

Vision

Enabling Technology Reach Masses

 Enabling- Principal Partners who are owners of technology brands and products of
principal partners including Beetel
 Technology-Communication, Entertainment and IT
 Reach-Creating and Leveraging the distribution strength
 Masses-Serving the large mass of the Indian consumer.

11
Values

 Respect to the individual

 Be a long term partner
 Deliver on commitment
 Process integrity
 Strive for excellence

Competitive advantage

With powerful distribution and marketing capabilities, Beetel distributes a host of iconic brands
like Blackberry, Apple, Avaya, Polycom, Samsung, Sanyo, Panasonic, Transcend, Iomega,
Aastra Telecom, RAD Data Comm., Actelis and Strontium. Its products and solutions are present
worldwide, spanning 35 countries in 5 continents.

BUSINESS DEFINITION
Customer group:

Beetel focuses on corporate group.

Customer function:

To satisfy the need of communication.

Alternative Technology:

Offering innovative and high quality

DIVERSIFICATION
Beetel Teletech limited has adopted related diversification by providing products like woofers,
headphones, monitors, webcams, keyboard and mouse as well as channel-centric products like
cabinets, UPS, and TV turner cards.

12
BHARTI WALMART

Introduction

In 2007 Bharti and Wal-Mart stores formed a joint venture – Bharti Walmart Private Ltd. for
wholesale cash-and- carry and back-end supply chain management operations in India to serve
small retailers, manufacturers, institutions and farmers. This joint venture is in the nature of an
unrelated diversification.

The Company operates Cash & Carry stores under the Best Price Modern Wholesale brand. A
typical cash-and-carry store stands between 50,000 and 100,000 square feet and sells a wide
range of fresh, frozen and chilled foods, fruits and vegetables, dry groceries, personal and home
care, hotel and restaurant supplies, clothing, office supplies and other general merchandise items.

Mission: To improve the quality of life for everyday people around the world.

Vision: To provide good quality and services to our customers while remaining the market
leader.

The following analysis techniques are conducted to analyze the external environment of the
company

Porter’s five forces model

New market entrants

 High threats from competitors

 Market is new and potential growth is tremendous
 Hard entry for foreign companies

Supplier power

 Supply chain system

 Large base of textiles and other retail sectors
 Cash and carry outlets

Competitive rivalry

 Primary competitors: Big Bazaar, RPG group Reliance. Tata’s Trent

 New companies taking up market share
13
Buyer Power

 Better quality product

 Less bargaining power with chain store
 More choices for consumers

Availability of substitutes

 Traditional Indian retail outlets

 Increased competition for market share in retailing.

SWOT ANALYSIS

Strengths

 Venturing with Wal-mart in the retail sector

 The success of the joint venture as the business partner and the supplier connection
 These connections will allow wal-mart to develop supply chain logistics as in the US to
supply new stores across India.
 Brand reconciliation allow the consumers in India to relte wal-mart to company they are
familiar dealing with.

Weakness

 Bharti has established and profited by acquiring and outsourcing to industry experts in
the field. This is the major factor within the joint venture that challenge the partnership
between Wal-Mart.
 The lack of knowledge in the retail sector.

Opportunities

 Expansion in rural market.

 Ability to learn and grow while understanding the Indian consumers.
 The creation of the cash-and-carry stores that Wal-Mart and Bharti will open have the
largest opportunity to profit.
 Allow Bharti Walmart to sell wholesale business-to-business transactions and also allow
to start operations in country.
 Supply chain will also increase to support these operations.
 The creation of supply chain will allow locals to provide and sell product in Bharti
Walmart.

Threats

 The ability of the Wal-Mart to execute strategies in the US is not same in India.
 The ability to outsource to low cost regions is not same in India as the US. This will lead
to increase price competition among retailers.
14
  The intense price completion will pose a threat to Wal-Mart ability to increase bottom
line profitability and remain a powerhouse in India.

Bharti Axa General Insurance

Mission
“To be the preferred company for general insurance in India” ( as available on the website )

Vision
“To be a leader and the preferred company for financial protection and wealth management in
India“

Value
the value of the product is based on the market alertness(attentiveness), availability and
reliability.

Bharti AXA presents an array of protective plans to suit your personal and business
requirements. These embody our commitment to our system of values. 

a) Reliable – prompt settlements, customer service and professionalism. 

b) Attentive – to customer needs as they change with time, and actively 

    listening to our customers.

c) Available – easy customer access to money and to our company, and plans 
    that have built-in flexibility and convenience.

Business definition
The business definition, which is the sum total of customer group, customer function and
alternative technology, of Bharti AXA General Insurance is as follows:

Customer group

Bharti AXA is targeting it’s customers through the database of the mother company that is the
Bharti group and by providing insurance to diverse sectors as
Customer Function
Is to provide insurance to all sections of society
Alternative Technology (means through which customer function is provided)
A)Retail Insurance:

a. Motor b. Health c. Personal Accident d. Home e. Shop

15
B)Commercial:

a. Fire b. Engineering c. Marine d. Property Crime e. Liability f. Package

C)Rural:

a. Agricultural Pump set b. Cattle Insurance Policy

the various mode of communication that Bharti AXA is following for the promotion of it’s products are
newspapers, telecalling, advertisements, etc.

Levels of strategic decision

Corporate level Strategy

Quality Policy - To provide fast, fair and friendly service to customers & partners

To achieve a leadership position in India through a multi-distribution, multi-product platform

To adapt AXA's best practice blueprints as a sound platform for profitable 

growth

Business level strategy

To leverage Bharti's local knowledge, infrastructure and customer base

To deliver high levels of shareholder return

To build long term value with our business partners by enhancing the proposition to their customers

Operational level strategy

To be the employer of choice to attract and retain the best talent in India

Strong distribution network & customer base of Bharti - provides access to customer base of more than
60 million

SWOT

Strength
1. Joint venture stake.

Bharti @ 74% and AXA @ 26% respectively. Bharti enterprise is a leading business group in telecom,
agricultural business, insurance and retail sector.

AXA, a global leader in financial protection, insurance, savings and financial planning.

Combination of AXA’s expertise and Bharti’s proven credibility and leadership position in India.

16
2. Collaborative growth

Fastest growing GI company with a business of over RS. 200 crores gross written premium in the first
calendar year’s operations.

3. Hugely popular

With over 1 lakh customers and counting and Bharti is providing customer base of more than than 20
million.

Weakness
Late entry to insurance sector.

Thin distribution network all over the nation.

Very less number of product offering as compared to it’s competitors.

Lack of confidence among the customers as parent company does not have a financial background.

Opportunity
Strong growth of unit linked market at the mass affluent end.

Potentially with 20% of the insurance cross sale only to new telecom customers, this network can yield 48
lac policies per year with a sum assured of nearly Rs 58000 crores.

Threats
Many more companies are lining up to enter the Indian Insurance market

Consumers preferences is still more towards public sector insurance companies.

Expansion through Concentration

Bharti AXA General Insurance expands its market share by way of expansion
through concentration. This is done by providing a variety of insurance schemes to
the same customer group.
Bharti AXA equity fund ( an open ended equity growth scheme)

Bharti AXA Equity fund is a diversified equity fund which can invest across sectors and market
capitalizations.

The fund aims to generate income and long-term capital appreciation through a diversified
portfolio of predominantly equity and equity-related securities including equity derivatives,
across all market capitalizations.

17
Tax advantage fund Bharti AXA Tax Advantage Fund (product name)

Tax advantage fund Bharti AXA Tax Advantage Fund is an equity linked savings scheme
(ELSS), where investors can avail a deduction of income tax under Sec 80 C of Income tax Act
up to '1 lakh* which translates into tax savings of up to `30,900 (assuming highest tax bracket).
Investments have a 3 year lock-in period, giving the fund manager the comfort of planning
investments with a long-term horizon. Being a diversified equity fund, the fund manager has the
flexibility to invest across sectors and market capitalizations

Bharti AXA Focused Infrastructure Fund ( product name)

Bharti AXA Focused Infrastructure Fund aims to capture returns from the potential in
infrastructure sector. It is ideal for investors who are seeking long - term capital gains, largely
through equities of companies in infrastructure and related sectors.

Hybrid fund

Bharti AXA Regular Return Fund (product name )

It is important for your portfolio to have an optimum asset allocation mix, which would provide
you with regular returns. Bharti AXA Regular Return Fund is your first step in that direction. Go
ahead! Make the most of this opportunity. Invest now!!! 

Debt fund

Bharti AXA Treasury Advantage Fund is a scheme that is focused on providing high liquidity
while seeking to deliver reasonable market-related returns. The fund aims to minimize risk by
investing in a portfolio of debt and money market instruments

Bharti AXA Liquid Fund is a scheme that is focused on providing high liquidity while seeking
to deliver reasonable market related returns.

The fund aims to minimize credit risk by investing in a portfolio of debt and money market
instruments.

18
SBUs
The other SBU’s of Bharti corporation are:

Bharti Infratel Limited

Bharti Infratel Limited is amongst India’s leading telecom passive infrastructure service
providers. The company deploys, owns and manages telecom towers and communication
structures, for various mobile operators across 18 states of India. It has a vast footprint of over
30,000+ towers and holds a 42% stake in Indus Towers Ltd - a Joint Venture between Bharti
Infratel, Vodafone & Idea Cellular – that has the distinction of being the world’s largest tower
company.Bharti Infratel has not only pioneered the passive infrastructure space in the Indian
telecom sector, but has also continued to lead the industry in developing and providing
innovative solutions and setting service delivery benchmarks

Bharti Realty Limited

Bharti Realty Limited is a young, vibrant and dynamic realty company with expanding interests
in commercial, retail and residential real estate. It has grown from strength to strength,
constructing and managing over ten top of the line facilities for Bharti group companies and third
party clients. Spurred by its accomplished success and acquired expertise, Bharti Realty Limited
has now forayed into developing qualitcommercial real estate in the central business district
(CBD) areas of metropolitan cities, retail real estate in the up-market localities of metropolitan
cities and in a few prominent cities of Punjab, and high end residential real estate in the Delhi
NCR region, Mumbai and Bangalore.

Beetel Teletech Limited

Beetel is a leading global technology brand which offers a wide range of innovative products in
the mobile phones, IT peripherals and fixed line telephone segments. Leveraging its consistent
performance, distribution and marketing capabilities Beetel as a brand has achieved a leading
market share in the telecom and allied product segments. With powerful distribution and
marketing capabilities, Beetel distributes a host of iconic brands like Blackberry, Apple, Avaya,
Polycom, Samsung, Sanyo, Panasonic, Transcend, Iomega, Aastra Telecom, RAD Data Comm,
Actelis and Strontium. Its products and solutions are present worldwide, spanning 35 countries in
5 continents

Comviva

Comviva is the global leader in providing mobile solutions beyond VAS. With an extensive
portfolio of solutions spanning VAS infrastructure, application delivery platforms and customer-
facing applications, Comviva enables mobile service providers to enrich mobile users’ lives,
whilst rationalizing costs, accelerating revenue growth and enhancing customer lifetime value.
Comviva’s solutions are deployed by service providers in over 85 countries and power services
to more than 650 million mobile subscribers globally.

19
Jersey and Guernsey

Jersey Airtel and Guernsey Airtel are subsidiaries of Bharti group and offer mobile services on
the islands of Jersey and Guernsey respectively in the Channel Islands (Europe). All services are
offered under the Airtel-Vodafone brand under a partnership to bring a range of Vodafone global
products together with other exciting services from Bharti to customers in Jersey and Guernsey.

Centum Learning Limited

Centum Learning Limited provides end-to-end learning and skill-building solutions that enhance
business performance to Bharti Group and several large corporates. Centum Learning has
received the Gold Award for "Excellence in Training" at the World HRD Congress, 2010 and
has been adjudged as one of the 'Top 15 Emerging Leaders in Training Outsourcing' 2009
Worldwide. Centum Learning provides industry oriented employability programmes through a
network of 130 Centum Learning Centers spread across 90 cities. It has also launched a new
education initiative, Centum U – Institute of Management & Creative Studies which offers UG
and PG programmes in association with world renowned institutions.

Bharti Retail

Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. The Company operates easyday
neighborhood stores and compact hypermarket stores called easyday Market. Bharti Retail
provides consumers a wide range of good quality products at affordable prices. easyday stores
are a one stop shop that cater to every family's day-to-day needs. Merchandise at easyday Market
stores include apparels, home furnishings, appliances, mobile phones, meat shop, general
merchandise, fruits and vegetables among others.

Bharti AXA Life Insurance

Bharti AXA Life Insurance is a joint venture between Bharti and AXA Group.The company
launched national operations in December 2006. Today, Bharti AXA Life has a national
footprint of distributors trained to provide quality financial advice and insurance solutions to the
large Indian customer base. Bharti AXA Life offers a range of innovative products and services
that cater to specific insurance and wealth management needs of customers.

Bharti AXA Investment Managers

Bharti AXA Investment Managers Private Limited is a joint venture between Bharti and the
AXA Group. With a presence in more than 34 locations across the country within one year of the
launch, Bharti AXA Investment Managers boasts one of the largest footprints for any AMC in
the country during launch. This indicates the retail focus of the AMC. With best practices
brought in from world leaders in financial protection, Bharti AXA Investment Managers aim to
be an aggressive player in the Indian Asset Management Industry

20
Indus Towers

Indus Towers, a JV between Vodafone Essar (42%), Bharti Group (42%) and Aditya Birla
Telecom Limited (16%) and is India’s leading mobile towers company. The company, which
operates in 16 telecom circles across India, provides services to all telecom operators and other
wireless service providers such as broadcasters and broadband service providers on non-
discriminatory basis.

21
Bibliography:

1. Bharti’s main site :

http://www.bharti.com/wps/wcm/connect/BhartiPortal/Bharti/home/our_com
panies
2. Airtel’s main site: http://www.airtel.in/
3. http://www.bharti-infratel.com
4. http://www.beetel.in
5. www.bharti-axalife.com
6. www.bharti-axagi.co.in
7. www.bhartiaxa-im.com
8. http://www.industowers.com
9. Strategic Management and Business Policy by Azhar Kazmi

22