...Case Analysis: Bharti Airtel | | Introduction Bharti Airtel Limited is a major Indian telecommunications firm, with a particular focus on operating in the mobile services market. Founded in 1995, the company quickly tried to exploit growth opportunities arising from the liberalization of Indian telecommunication markets. The family owned business was soon able to generate profits and extend market shares. However, the pace of company growth challenges the firm in terms of being able to setup the necessary infrastructural elements, both within the firm as well as outside the firm. Therefore Bharti considers “reverse outsourcing” of IT infrastructure and network setup and maintenance to well-established firms from developed countries, such as IBM, Nokia and Siemens. This case analysis examines the proposed outsourcing deal both from the perspective of Bharti and from the perspective of potential vendors in order to find the most appealing solution for both parties. First, we talk about the success factors in the Indian mobile phone market and Bharti’s core competencies. Second, we will look into the outsourcing agreements outlined by Gupta and discuss the advantages and disadvantages of such agreements. Furthermore, we will discuss the question of how the contracts might affect Bharti’s core competencies. Third, we want to elaborate on the major concerns about entering in an outsourcing agreement with Ericsson, Nokia, Siemens and IBM respectively. Additionally...
Words: 3542 - Pages: 15
...CaseId – Bharti Case Title - Strategic Outsourcing at Bharti Airtel Limited Q1. Gupta’s proposal is comparable to “giving the family jewels to outsiders.” Why, or why not? Yes, if the core competence of a company is equivalent to family jewels, Gupta’s proposal is comparable to “giving the family jewels to outsiders”. Network management and operations expertise define a company like Bharti, it is the competitive differentiator and it takes a considerable number of years to achieve excellence in this area. Prioritizing the key revenue circles, if the deal goes through, will be done by an outside vendor i.e. Bharti will lose control some of the important areas that affect the business. How a network operator tackles the responsibility of maintaining the network in good working order decides its sustained profitability. By outsourcing the primary activity of a company, Bharti could be perceived as being at the “mercy of its vendors”. However Gupta’s proposal regarding IT outsourcing is not comparable to “giving the family jewels to outsiders”. IT is not the core operation of Bharti, and it could always tweak the deal to let in on more than one vendor. But one should carefully consider the capabilities of the IT vendor to maintain customer services, software, hardware and negotiations with their suppliers objectively. Q2. Assume the role of IBM or Nokia. What major concerns would you have about entering an agreement with Bharti? a. Firm and the outsourcing partner share...
Words: 548 - Pages: 3
...Africa: Bharti Airtel Unfolds New Partnership Strategy to Boost Service Across Africa Moses Nosike And Emmanuel Elebeke 29 October 2010 [pic] Email| Print| Comment Share: |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | | Leading global telecommunications company, Bharti Airtel yesterday announced a new strategic partnership with IBM, Tech Mahindra and Spanco to drive world class customer service across 16 African countries where it operates. The partnership is also aimed at igniting a rapid growth in the nascent African Business Process (BPO) to deliver economic growth to many countries across the continent of Africa. Under the new agreement which is expected to be finalized soon, Bharti Airtel, which owns and currently operates the Zain brand in 16 countries across Africa, will outsource core customer service functions like call centres and back office to over 40 million of its subscribers as it prepares for significant growth in the region. Unfolding the agenda to the press in Lagos, the Chief Executive Officer (International) and joint managing Director, Bharti Airtel, Manoj Kohli said "Our partnership with IBM, Tech Mahindra and Spanco is aimed at redefining and providing a world class and seamless customer experience in all 16 countries we operate in Africa" He explained that the Business Process Outsourcing (BPO) model partnership would enable Bharti Airtel customers to enjoy world class customer services with the partners introducing quality best practices...
Words: 426 - Pages: 2
...Hai |1 Case 5 – Strategic Outsourcing at Bharti Airtel Limited 1. Do you think Bharti should enter the outsourcing agreements outlined by Gupta? What do you see as advantages and disadvantages of such agreements? In my opinion, Bharti should go ahead with its outsourcing agreements outline by Gupta. There are advantages and disadvantages of delegating its telecommunications and IT networks to vendors. First of all, Indian market for Telecom is growing exponentially. In 1989, there were 4.2 million telephone subscribers. By 2003, the number was 54 million. Thus, outsourcing would help Bharti to full capitalize the astounding growth surge. It can use its resources and expertise to only focus on core areas of value-added services, marketing, branding and pricing, and leave the rest to expert vendors. Second, as one of Applegate’s benefits of “incremental outsourcing”, Bharti would reduce its deliver time to market by outsourcing (Applegate, 287). New network set up in a circle takes at least 6 months from planning to operating. Using its vendors’ technology and expertise, new products would be developed faster and the time would be reduced to get the product or service to the end users. Third, Bharti would receive favorable cash flow profiles and cost reduction from outsourcing, according to Applegate (288). The company would transfer equipment investment risk to vendors. It does not have to keep the investment in maintaining excess capacity. Vendors can archive...
Words: 1413 - Pages: 6
...EMERGING TRENDS IN RECRUITEMNT OF TELECOM INDUSTRY WITH SPECIAL REFERENCE TO BHARTI AIRTEL SERVICE LIMITED INTRODUCTION OF BHARTI AIRTEL SERVICE LIMITED Telecom giant Bharti Airtel is the flagship company of Bharti enterprises. Bharti Airtel limited is India’s largest integrated first private telecom service provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the cores of the telecom sector in the country with its world class products and services. The business at Bharti Airtel has been structured into three individual strategy business units (SBU’s) – mobile services, Airtel telemedia services & enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel telemedia services business offers broadband & telephone services in 94 cities. The business enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All the services are provides under the Airtel brand. Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to succeed. A spirit charged with energy, creativity and a team driven “to seize the day” with an ambition to become the most globally admired telecom service. Airtel, after just ten years, has risen to the pinnacle of achievement. As India's...
Words: 5499 - Pages: 22
...management • Provision of low-cost services Now Then Succeeding in the Mobile MarketBharti’s Core Competence • Market is highly competitive • Increasingly, IT expertise is needed for management of services • Network management cannot be the sole differentiator • Look at building expertise in value-added services, data, 3G Succeeding in the Mobile Market • Telecom industry in India is highly competitive with players- competition largely based on price which results in lower margins • Bharti must now look at providing value above basic telephony services and provide value added services which will allow it to charge a premium • Contracts must be drawn to outsource activities that can be done better by market firms to free up resources for other activities; avoid contracting and tendering repeatedly to reduce transaction costs associated with going for a new contract every few months Decision to outsource • Bharti Airtel should enter the outsourcing agreements and hand over the responsibility of buildup, maintenance and servicing of telecom network to equipment vendors like Ericsson, Nokia and Siemens and core IT infrastructure to IBM. Pay per usage approach – sharing market risks with the vendor Customer base growing at 100% per year and it was a challenge to keep pace with network expansion Budgeting and tendering process for network expansion taking tremendous amount of management time and bandwidth – used for sales and marketing Delay...
Words: 1783 - Pages: 8
...CASE HIGHLIGHTS Bharti Airtel, in 1995, won govt tender to launch mobile telecom services in Delhi Initial investment was high Spectrum License, Towers, Telecom networks, supports systems Funded through debt – this meant high charges for subscribers 2002 – Running out of money + New entrants Shifted focus from ARPU to: A. Gross Revenue and Profit B. Operating Efficiency C. Capital Productivity Potential market then expanded to entire Indian population Cost reduction targeted by way of outsourcing Economies of scale ; converted fixed costs and capital expenditures into variable operating expenses. IT services, n/w equipment, apps, distribution. Rural market penetration – partnership with SKS Microfinance and IFFCO. Competitor collaboration – Shared passive infrastructure through Indus Towers – aids expansion of operations CASE HIGHLIGHTS RESULTS OF BHARTI AIRTEL’S INNOVATIVE BUSINESS MODEL: Most affordable mobile service world over 200 million subscribers targeted by 2012 (but have already reached 221 mill) Increased operating margins: From 2.25% in ‘03 to 28.3% in ’08. Revenue growth of 43% from ‘04 to ‘08. 27% RoCE, $2.04B EBIT, Cash reserves of $963M, zero debt in ‘09 despite ARPU of only $5.95 INNOVATIONS IN INDIA TYPES OF INNOVATION: 1. Change Business Dynamics 2. Synthesize Technologies 3. Create New Technologies ‘MATCHBOX’ MODEL AIRTEL BUSINESS MODEL – DEFINITION 1 – PETER DRUCKER Who is your customer? What does the customer value...
Words: 702 - Pages: 3
...REPORT ON BHARTI AIRTEL LIMITED Submitted to Prof. A. Nag Submitted By Vivek Kumar Gupta (05_F1_129) Mohd. Imran (05_F1_113) Institute of marketing and management Uploaded for www.projectsparadise.com CONTENTS Acknowledgment 3 Executive Summary 4 Introduction 5 Objectives 8 Methodology Primary Data Sources Secondary Data Sources 8 Analysis SWOT Analysis BCG Matrix Porter Model Ansoff matrix Environmental Analysis Competitors Analysis 12 16 17 18 19 21 Findings 25 Recommendations 26 Bibliography 27 References 27 Uploaded for www.projectsparadise.com 2 ACKNOWLEDGEMENT There are many people who have been of enormously help in the preparation of this Project on Housing Finance In India, we are specially thankful to Dr. A. Nag, faculty at Institute of Marketing and Management who have given us this opportunity to undertake this project. We are thankful to all our friends giving their remarkable contribution and special thanks to our faculty in charge, Dr A. Nag who not only explained the topics very well but all have thrown a good insight at the practical aspect too. Uploaded for www.projectsparadise.com 3 EXECUTIVE SUMMARY This report on Bharti Airtel is done to findout certain objective regarding the strategic approach Adopted by Airtel to stand strongly in the competitive telecom market. Airtel’s marketing strategies are analyses using various models like SWOT...
Words: 4805 - Pages: 20
...Executive Summary Bharti Airtel, a leading telecommunications provider in India has seen an enormous growth since the opening up of the Indian economy after the economic reforms initiated by the then PM of India, Mr. P.V.Narasimharao towards liberalization, globalization and privatization. Airtel is now the fourth largest telecom company in the world in terms of subscriber base and is the leading telecom carrier in India. The phenomenal growth of Airtel has been due its outstanding and unique business model where it retained its core-functions to itself such as marketing and finance and outsourced its IT functions to companies such as IBM. Airtel has expanded significantly since 1992 due to the competitive advantage it had in the domestic market ( pan-India presence) and only since 2005-06 it started going global foraging into Africa. Significant threats to Airtel come from the lowering of FDI influx into Indian economy and increasing government regulations in the spectrum allocation frame work ,political interference and lobbying. Also the unstable economic conditions in the countries such as Central Africa were not favorable for its expansion in the global markets. Bharti Airtel (or simply Airtel) is an Indian telecommunications company with operations in 20 countries across Asia and Africa. It is headquartered in New Delhi India and was originally conceived and set up by Sunil Bharti Mittal in 1995. At present, Airtel is the world’s fourth largest telecommunication...
Words: 2782 - Pages: 12
...[pic] Assignment Submission Form Page 1 Course Name: Competitive Strategy, Term 2, 2009-2010 Assignment Title: Competitive Strategy, Term 2, 2009-2010 Submitted by: Section B; Group B13 (Student name or group name) The ISB Honour Code • I will represent myself in a truthful manner • I will not fabricate or plagiarize any information with regard to curriculum • I will not seek, receive, or obtain an unfair advantage over other students • I will personally uphold and abide, in theory and practice, the values, purpose, and rules of the ISB Honour Code • I will report all significant violations of the ISB Honour Code by members of the ISB community • I will respect the rights and property of all in the ISB community I certify that I have adhered to the Honour Code of the ISB in completing this assignment. Signature Date: 19th July 2009 PTO Indian School of Business Assignment Submission Form Page 2 Group Submission Group Name: Section B; Group B13 Group Member 1: Hardik Vijay Jhaveri Student ID: 61010438 Group Member 2: Jay Shah Student ID: 61010117 Group Member 3: Prashant Ram Student ID: 61010216 Group Member 4: Priyom Sarkar Student ID: 61010134 Group Member 5: Suyog Kalyanji Kotecha Student ID: 61010319 To be filled by Evaluator Only: Score Obtained:...
Words: 5372 - Pages: 22
...EXECUTIVE SUMMARY This report examines the international expansion process of Bharti Airtel as a result of increasing competition in the Indian telecom industry during the last 2-3 years. The report provides a detailed account of the evolution of the Indian telecom industry analysis. It gauges the industry through YIP’s globalization drivers and measures industry attractiveness through Porter’s Five Forces model. It also provides information about the increasing saturation and declining Average Revenue per User (ARPU) and the strategies major operators such as Bharti Airtel, Vodafone, Idea Cellular Ltd, Reliance Telecom Ltd, etc. are following to safeguard their profitability. The report discusses about the two fold strategy of tapping the rural market within India and netting talkers in emerging economies, followed by mobile operators in India to de-risk them. Whether it is the rural Indian market or other emerging markets, operators would be busy acquiring subscribers. This, in turn, may result in erosion in profitability. There is no question of profitability. It is all about registering your presence and building psychological pressure. On the other hand, the Indian market has yet to take-off when it comes to offering data-intensive mobile value-added services like m-commerce, healthcare services, governance, education, information and location-based services. But these areas are already contributing to revenues in many African and Middle Eastern countries. In...
Words: 6716 - Pages: 27
...vipul rohit Indian Telecommunication Industry Last Updated: July-September 2008 [pic] The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for India's resurgent economic growth. India is has surpassed US to become the second largest wireless network in the world with a subscriber base of over 300 million in April, according to the the Telecom Regulatory Authority of India (Trai). The year 2007 saw India achieving significant distinctions: |1 |having the world's lowest call rates |2-3 US cents | |2 |the fastest growth in the number of subscribers |15.31 million in 4 months | |3 |the fastest sale of million mobile phones |in a week | |4 |the world's cheapest mobile handset |US$ 17.2 | |5 |the world's most affordable color phone |US$ 27.42 | |6 |largest sale of mobile handsets |in the third quarter | Segment-wise growth Wireless segment has emerged as...
Words: 5812 - Pages: 24
...CHP-1, INTRODUCTION ON BHARTI AIRTEL Bharti Airtel Limited, commonly known as Airtel, is an Indian telecommunications services company headquartered at New Delhi, India. It operates in 20 countries across South Asia, Africa and the Channel Islands. Airtel has GSM network in all countries, providing 2G, 3G and 4G services depending upon the country of operation. Airtel is the world's third-largest mobile tele communications company with over 261 million subscribers across 20 countries as of August 2012. It is the largest cellular service provider in India, with 185.92 million subscribers as of September 2012. Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the airtel brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except marketing, sales and finance and building the 'minutes factory'...
Words: 12985 - Pages: 52
...Lorem Ipsum | Lorem Ipsum Dolor Sit Amet [Insert Date] | Corporate Level Strategy Corporate Strategy Airtel is the single largest player, both in terms of revenue and customers in the Wireless segment and in the Airtel Business segment in India. It is the largest private player in the Telemedia services – Broadband and Fixed Line services. It also is one of the leading players in the other SBU’s – Digital TV services, and passive infrastructure services. As the market leader, Airtel is making efforts to expand the total market, as well as defend its market share. Airtel has played a key role in the introduction of 4G/LTE services and in the Digital TV space in the country. It has also penetrated the rural market, which now boasts of a much better ARPU than before. As the market leader, Airtel’s strategy has been 4 fold – * High Usage, High Price: Airtel has focused on higher usage and higher price in India. Airtel started with low pricing, which helped it augment its subscriber base (largest in the country), and then steadily increased the prices. However, with the entry of newer firms like Docomo and Aircel, this strategy has not played off very well, with Airtel losing market share, from over 30% 4 years ago to just over 20% currently. * Marketing and Branding: Airtel has, over the years, laid strong emphasis on marketing and branding. The Brand ‘Airtel’ is one of the most recognizable brands in the country, let alone telecom. It has engaged in mass spending...
Words: 1845 - Pages: 8
...INDIAN INSTITUTE OF MANAGEMENT BANGALORE COMPETITION AND STRATEGY Final Project Report Submitted to: Prof. S Chandrasekhar Submitted on March 16, 2012 by AKASH SINGH 1111003 Section – A CHANDER PRAKASH 1111018 Section – A PRABHA KUMARI 1111048 Section – A SHIVASHEESH 1111064 Section – A KARAN KUCHINAD 1111033 Section – A Table of Contents 1. 2. INTRODUCTION ................................................................................................................................. 3 ANALYSIS OF FIRM'S COMPETITIVE STRATEGY ................................................................................. 4 2.1. BCG Matrix .................................................................................................................................... 4 2.2. Multidimensional Analysis ........................................................................................................... 5 2.3. ANSOFF Matrix ............................................................................................................................. 5 3. SUSTAINABILITY OF AIRTEL'S STRATEGY ........................................................................................... 6 3.1. Strong Supplier relationship.......................................................................................................... 6 3.2. Strong Distribution Channel .......................................................................................................... 6 3.3. Regular...
Words: 4849 - Pages: 20