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Comparative Analysis Between Airtel & Videocon Mobile Services
Comparative Analysis Between Airtel & Videocon Mobile Services
Co n t in u e …. .
under the Rs 149 monthly recharge plan, subscribers can
make one hour of local calls free every day.
Recharge options are V Top-up by visiting nearby mobile
showroom, online or through IVR system.
Offering value added services like
Music downloads, Sports updates, V rashi every day, Other
Stars ?
HIGH
Mobile Services
Cows Dogs
Fixed Line Services
LOW
HIGH LOW
8
Market Share
BCG M a t r ix
Consumer
Electronics & Television---
home appliances, Videocon LCD
?
GSM Mobile
Services,
Stars
Mobile Phones,
Dogs
HIGH
Cash Cows
Market
PLC ( Product Life Cycle )
Mobile Service
Fix line
3G Service
Ø The company has covered the entire Indian nation with its
network. This has underpinned its large and rising customer
base.
We akne s s e s
Ø An often cited original weakness is that when the business
was started by Sunil Bharti Mittal over 15 years ago, the
business has little knowledge and experience of how a
cellular telephone system actually worked. So the start-up
business had to outsource to industry experts in the field.
Ø Until recently Airtel did not own its own towers, which was a
particular strength of some of its competitors such as
Hutchison Essar. Towers are important if your company
wishes to provide wide coverage nationally.
Ø The fact that the Airtel has not pulled off a deal with South
Africa's MTN could signal the lack of any real emerging
market investment opportunity for the business once the
Indian market has become mature.
O p p o r t u n it ie s
Ø The company possesses a customized version of the Google
search engine which will enhance broadband services to
customers. The tie-up with Google can only enhance the
Airtel brand, and also provides advertising opportunities in
Indian for Google.
Ø Global telecommunications and new technology brands see
Airtel as a key strategic player in the Indian market. The
new iPhone will be launched in India via an Airtel
distributorship. Another strategic partnership is held with
BlackBerry Wireless Solutions.
Ø Despite being forced to outsource much of its technical
operations in the early days, this allowed Airtel to work
from its own blank sheet of paper, and to question industry
approaches and practices - for example replacing the
Revenue-Per-Customer model with a Revenue-Per-Minute
model which is better suited to India, as the company
Co n t in u e ……
The company is investing in its operation in 120,000 to
160,000 small villages every year. It sees that less well-off
consumers may only be able to afford a few tens of Rupees
per call, and also so that the business benefits are scalable
- using its 'Matchbox' strategy.
In te rn a l
Fa cto rs
E xte rn a l
Fa cto rs
Po sitive N e g a tive
GE Matrix Classification
Business Strength
Medium Weak
Strong 5 . 00
High
Attractiveness
3 . 67
Medium
Market
2 . 33
Low
5 . 00 3 . 67 2 . 33 1 . 00
Business Strength
High 5 . 00
Attractive
Market Attractiveness
Airtel Enterpri
Mobile se
3 . 67
Moderate
TeleMedi
a Attractive
2 . 33
Unattractive
Low
GROUP 7
5 . 00 3 . 67 2 . 33 1 . 00
GE Matrix of Videocon Company
25 GROUP 7
Porter’s 5 Forces
1. Threat from Competition
HIGH
Competitor Analysis
R u s s ia 88
10
8
The declining ARPU implies that India Inc.
ARPU (USD per month)
6
is tapping a large market at the bottom of
4 the pyramid by reducing tariffs; thereby,
2 enhancing affordability.
0
Q 1 2006 Q2 2006 Q3 2006 Q 4 2006 Q1 2007
GSM CDMA
2. Customer Bargaining Power
LOW
33 GROUP 7
4. Threat of Substitutes
Ø Landline
DIMINISHING MARKET HIGH
Ø CDMA
Ø
Ø Video Conferencing
Ø BROADBAND
SERVICES
Ø VOIP - Skype, Gtalk, Yahoo Messenger
Ø e-Mail & Social Networking Websites
Continue….
Ø
Core Values
Empowering People - to do their best
Being Flexible - to adapt to the changing environment and
evolving customer needs
Making it Happen - by striving to change the status quo,
innovate and energize new ideas with a strong passion and
entrepreneurial spirit
Openness and transparency - with an innate desire to do
good
Creating Positive Impact – with a desire to create a
meaningful difference in society.
TARGETING
Elite
Up market professionals
Entrepreneur with business plans
Low income mass category
Youth
Women and senior citizens by post paid connection
POSITIONING
Ø “Power to keep in touch”
Ø “Touch tomorrow”
Ø “Live every moment”
Ø “Express yourself”
Strategy
Ø
Ø Airtel partnered with leading players in telecommunication
players across the globe.
Ø
Ø It has managed to work with the best of domain specialists
globally and emerge as a world class entity.
Ø
Ø Partnerships include operational contracts with marquee
vendors and strategic investors ranging from private equity
investors to global telecom giants.
RURAL STRATEGIES
Airtel follows “Match-box strategy”
§ Advertisements
§ Sales promotion
§ Publicity and events
The firm expands regularly in Bihar, piggybacking on 300
distributors and more than 50,000 retail outlets selling
Airtel prepaid cards
Covers over 4,00,000 villages and hopes to expand to other
1,00,000 by 2009
AIRTEL ADVERTISEMENT
Airtel basically uses two appeal to connect to the users
Emotional
Humorous
Big Boss
KBC
Indian Idol
Outsourcing deals in 2004
Ericsson was given the mandate to provide, manage and
maintain the equipment as well as provide quality
assurance in Airtel‘s then 13 mobile circles.
IBM was given the mandate to handle the back office
requirements of Airtel’s presence in India
Performance till date
Bharti Airtel has enjoyed an excellent run ever since the
telecom sector opened.
It has managed to hold on to its leadership position inspite of
the presence of other players with deep pockets –
Ambani’s, Tata’s, Birla’s and Vodafone.
Has coped well with regulatory changes.
Continues to attract and delight customers.
Future Strategies
Translate its expertise in Indian markets to other emerging
economies.
This could call for acquisitions globally.
Technology leadership is a must – Airtel must ensure that its
reliance on GSM technology does not render it obsolete.
Indian market in spite of being the worlds largest is still not
matured. Opportunities abound in the hinterland which
must be exploited.
THANK YOU !!