Competitive Strategies MMS – A | BATCH 2019-21 | GROUP 3

Strategies Adopted By Airtel

There are three main streams for generic strategies that are used by
multinational firms like Airtel to achieve the growth objectives.

• Cost leadership strategy

• Differentiation strategy
• Focus strategy
• Intensive Growth Strategies
• Market Penetration
 Cost leadership
• How Airtel uses a cost leadership strategy?

• The primary objective of using this strategy is to preserve the market leadership position
through efficient value chain management.
• This strategy allows Airtel to expand the market share by targeting the middle class, which
makes the largest proportion of overall consumer market mix in most of the countries
• Airtel focuses on affordability and easy accessibility of its produce across the globe, which
leads towards high brand awareness and high sales growth and provides a strong competitive
advantage basis.
 Differentiation

• How Airtel uses differentiation strategy?

• The adoption of differentiation as a secondary generic strategy allows Airtel to

expand the customer base by emphasizing over the unique product features.
• Extensive experience, the oldest brand and strong presence in all over the world are
some differentiation factors that are highlighted in the company's marketing and
communication strategies.
• Other than these, the brand logo is also used to set the differentiation basis. The
unique and distinctive brand logo has established a strong brand image in
consumers’ mind. Although the brand has undergone many revisions, the essence
has remained the same, which also serves as a strong differentiating factor.
 Focus Strategy

• How Airtel uses focus strategy?

• Airtel adopts the focus strategy both in terms of low cost and offering the
best value. The low-cost focus strategy is adopted by serving the needs of a
niche market segment at the lowest possible price. While, best value focus
strategy is adopted by emphasizing over the taste, size and design of the
product that could best match the customers’ needs and requirements.
• By focusing on product attributes, Airtel revises its branding strategies and
brings continuous changes in the product designing and packaging to satisfy
the customers’ psychological expectations and maximize value for money.
 Intensive Growth Strategies

• Aim of Airtel to use intensive growth strategies

• The effective implementation of these strategies requires the firm to exert the
intensive efforts, particularly when management considers them as a source
of competitive advantage.
• This article discusses the four intensive growth strategies of Airtel to
understand the contribution of each growth strategy in achieving the sales
growth objectives at the international stage
 Market Penetration (Primary Strategy)

• How Airtel applies a market penetration strategy?

• Adoption of this strategy requires Airtel to lower the prices and use different
marketing and promotional strategies to push the sales in the existing
customer market.
• The organization offers various price discounts and deals, frequently runs the
promotional campaigns and offers the product in new attractive packages to
achieve sales growth target while staying in the same market.
• Aggressive marketing tactics are required when using this strategy in a
competitive consumer market.