Description
PROJECT ON AIRTEL FINANCIAL ANALYSIS
GRAND PROJECT REPORT ON BHARTI AIRTEL LIMITED
SUBMITTED BY;Piyush Gaur
CONTENTS
Executive Summary Intr !ucti n History Change in Brand Logo & Taglines O%&ective' Mission Company Overview Subsidiary Company Or+ani'ati n Structure Strate+ic Bu'ine'' ,nit Mar.et S/are 0 Airte1 Subscriber Trend & Growth Competitors Bu'ine'' Partner' 2 Partner' R 1e Mar.etin+ Mix 4a1ue C/ain Strate+y 5inancia1 Ana1y'i' Company's Revenue Company's or!ing Capital "nalysis Company's "dvertisement #$penditure Revenue %rom &alue "dded services Mar.etin+ Ana1y'i' 'orters generic Strategy BCG (atri$ )*+orce (odel S ,T "nalysis A7ar!' 2 Rec +niti n' Research Methodology
3 "#$
(
)* )* ))-# )"
)" )3 )( -*# -6
-6# -(
3* 3*
E8EC,TI4E S,MMAR9
This report on Bharti "irtel is done to %ind out certain ob-ective regarding the strategic approach adopted by "irtel to stand strongly in the competitive Telecom mar!et. "irtel mar!eting strategy analysis is done using various models li!e 'orters generic Strategy/ BCG (atri$/ )*+orce (odel & S ,T "nalysis o% "irtel etc. "lso the detailed study o% +inancial 'osition o% Company is done to %ind out its position in (ar!et. The study includes Revenue "nalysis/ or!ing Capital "nalysis/ "sset turnover ratio o% "irtel/ & its e$penditure on "dvertisement as a percentage o% Sales in recent period. The report gives in%ormation about how "irtel ad-usted itsel% in changing mar!et conditions/ what are the various strategies it ta!es to become 0ndia1s 2st company by Subscriber & Revenue.
INTROD,CTION Bharti "irtel Limited %ormerly !nown as Bharti Tele*&entures LT3 4BT&L5 is an 0ndian company o%%ering telecommunication services in 26 countries. 0t is the largest cellular service provider in 0ndia/ with more than 272 million subscriptions as o% "ugust 8929. Bharti "irtel is the world's third largest/ single*country mobile operator and %i%th largest telecom operator in the world with a subscriber base o% over 2:9 million. 0t also o%%ers %i$ed line services and broadband services. 0t o%%ers its telecom services under the "irtel brand and is headed by Sunil Bharti (ittal. Bharti "irtel is the %irst 0ndian telecom service provider to achieve this Cisco Gold Certi%ication. To earn Gold Certi%ication/ Bharti "irtel had to meet rigorous standards %or networ!ing competency/ service/ support and customer satis%action set %orth by Cisco. The company also provides land*line telephone services and broadband 0nternet access 43SL5 in over 6; cities in 0ndia. 0t also acts as a carrier %or national and international long distance communication services. The company has a submarine cable landing station at Chennai/ which connects the submarine cable connecting Chennai and Singapore.
HISTOR9 O5 AIRTEL
• Bharti Cellular launched cellular services '"0RT#L< in 3elhi in 266)/Himachal 'radesh in 266=/ >arnata!a and "ndhra 'radesh circles in 2666 0n 266:/ Bharti Telenet obtained a license %or providing %i$ed*line services in (adhya 'radesh circle and in the same year/ Bharti Telecom and British Telecom %ormed a )2? @ 76? -oint venture 0n 2666/ Aew Bor! Li%e 0nsurance +und acCuired a D? eCuity interest in Bharti Cellular. 0n 8992/ Bharti Cellular entered into a -oint venture/ Bharti "Cua net/ with SingTel %or establishing a submarine cable landing station at Chennai. 0n 8998/ Bharti Cellular entered into license agreements to provide cellular services in eight new circles. 0n 8998/ Bharti Cellular Ties up with Secondary School Certi%ication Board/ Hyderabad/ where Bharti will announce SSC results to its customers on their mobile phones. 0n the same year/ 8998/ 0C0C0 Ban! ties up with Bharti %or pre*paid mobile cards via "T(s. 0n 899D/ Bharti Group's cellular brand "irtel has unveiled %ree multimedia messaging services 4((S5 %or its customers. The company has also rolled out pan*0ndia G'RS 4General 'ac!et Radio Services5 %or its corporate subscribers. Launches its E0ndia,ne (eetFpress' audio*con%erencing service4899D5
•
• •
• •
• •
•
• • •
"irtel provides S(S %acilities to hearing impaired in Chennai4899D5 0n 899D/ "irtel Subscribers e$ceed D million mar!. 0n 8997/ Bharti Cellular entered into license agreements to provide cellular services in ; new circles including Gttar 'radesh 4#ast5/ est Bengal & "ndaman Aicobar/ ,rissa/ Bihar and Hammu & >ashmir. Same year "irtel launches G'RS services %or pre*paid customers.
•
Brand Log o
T "GL0A#S ,+ BR"A3
7er t . ee; in T uc/ < =) ( ( 6 >
:T uc/ t m rr 7< =) ( ( ( >
:L iv eE v ery M m en t: =* * >
:E x ;re' 'y ur' e10< =* * 3 >
+ollowing are the reasons %or change in Tagline o% "irtel 7er t 9EAR# )((6#)(($ SIGNI5ICANCE# ** The tag line ''ower to !eep in Touch' used in the brand promise was designed to ma!e the user %eel 'in controlIpower%ul' ** 'ositioned in premium category aimed at elite class o% society. ** 'erception o% aspiration and li%estyle brand REASON 5OR CHANGE# ** Aow/ cellular service operators could drop their prices and target new customer segments. ** "s the category developed with prices going down sharply/ "irtel began tal!ing to a wider spectrum o% potential users. This gives the birth to the new Tagline. :T uc/ t m rr 7< 9EAR# )(((#-**) SIGNI5ICANCE? ** "irtel started tal!ing to new segments by positively positioning and establishing itsel% as a brand that improved the Cuality o% li%e. ** Aew loo! and the %eel o% the brand tagline indicated the core values o% the brand i.e. leadership/ per%ormance and dynamism. REASON 5OR CHANGE# ** "irtel started to loo! %rom a regional level to pan 0ndia position .ee; in T uc/<
** Redi%%ussion 3B&R/ which is the ad agency that too! charge o% revamping "irtel's brand image thought/ To become a 0ndian leader/ "irtel need to change its tagline :Live Every M ment: 9EAR? -**-#-**3 SIGNI5ICANCE@ ** This was the %irst time " R Rehman had agreed to wor! %or any brand/ anywhere in the world. The music %rom the commercial became the most downloaded ring tone in the history o% telecommunications. ** Tagline denotes that each and every person in 0ndia live every moment 4emotions/ %eelings etc.5 o% the li%e with "irtel. REASONS 5OR CHANGE? ** Redi%%ussion 3B&R/ which is the ad agency that too! charge o% revamping "irtel's brand image again changed the tagline to give better tagline to "irtel which catches some emotional appeal.
:Ex;re'' y ur'e10< 9EAR# -**3#-**$AAB SIGNI5ICANCE@ ** Pr 0i1eE# • Suni1 B/arti Mitta1 • He started his career at a young age o% 2: a%ter graduating %rom 'un-ab Gniversity in 0ndia and then he %ounded Bharti. • Chairman & (anaging 3irector since ,ctober 8992 • "ge@ 76 years
• Today/ at 76/ he heads a success%ul enterprise/ amongst the top ) in 0ndia/ with a mar!et capitaliLation o% over GSM 79 billion and employing over D9/999 people. • He is an alumnus o% Harvard Business School/ GS". • He has been con%erred one o% the highest civilian award N 'adma Bhushan. • He has been con%erred the degree o% 3octor o% Science by the G B 'ant Gniversity o% "griculture & Technology.
5IG,RES 2 5ACTS • Total ireless subscribers in 0ndia 0n Hune 96 & Huly 96 are )*-F33GF$$) & )F *6F)GGF336 respectively. • Total ire line subscribers in 0ndia 0n Hune 96 & Huly 96 are -F$-GF$$- & -F$3)F$-- respectively.
STRATEGIC B,SINESS ,NIT O5 AIRTEL
MARHET SHARE
S,BSCRIBER GROCTH
PREPAID 2 POSTPAID ,SERS
COMPETITORS Aational Long 3istance • BSAL/ R#L0"AC#/ &SAL/ &,3"'H,A#/ T"T"/ 03#"
0nternational Long 3istance • &SAL/ R#L0"AC# / BSAL
B,SINESS PARTNERS Out' urcin+ Dea1' Aetwor! outsourcing & maintenance 4en! r'IPartner' #ricssion Ao!ia siemens networ! 5eature'IA!vanta +e' #ase in networ! planning 'ayments Lin!ed to *Gsage & Aetwor! Cuality * Service level agreement 0n%ormational technology 'assive in%rastructure 0B( Bharti 0n%ratel 0ndus Towers 'ricing & payment as a ? o% Revenue Reduced cape$ spend 0ncrease %ocus on sharing passive 0n%rastructure Call center outsourcing 0B( 3a!sh (phasis #nhanced & Consistent customer e$perience
Hindu-a T(T "egis B', Aortel
Common plat%orm across the group
Partner' R 1e Service (obile services Partner'I4en! r' #ricission & Ao!ia R 1e Aetwor! #Cuipments partners
0B( 3a!sh (phasis Hindu-a T(T Tele tech Telemedia & #nterprise services 0T reCuirements Siemens Aortel 0B( #Cuipments suppliers Group wide technology reCuirements Call center technology reCuirements Call center operations
Aortel
,TH#R "LL0"AC# 0n 899=/ Bharti "irtel has entered into %ollowing ma-or agreements and alliances@
•
ith (icroso%t t o%%er so%tware and services %or the Small and (edium Business 4S(B5 mar!et in 0ndia.
• "s part o% the agreement/ "irtel will bring Google search to the "irtel Live mobile "' portal. Google will also incorporate advertising through its (obile "ds product on the "irtel Live mobile portalO • " three*year contract with N .ia at an estimated value o% GSM 799 mn to e$pand its managed GS(P G'RSP#3G# networ!s in eight "irtel circles and deploy a pan 0ndia "' solution across its networ!sO • The company has a strategic alliance with SingTel. The investment made by SingTel is one o% the largest investments made in the world outside Singapore/ in the company.
MARHETING MI8
PROD,CTS • "irtel Connections 'ostpaid • "irtel Connections 'repaid • "irtel 3ata Cards • "irtel Blac!berry phones * On 19 October 2004 Airtel announced the launch of a Blackberry Wireless Solution in India. he launch is a result of a tie!u" bet#een Bharti ele! $entures %i&ited and 'esearch In (otion )'I(*.
• "irtel 0 'hones * As of 22 Au+ust 200,- the A""le i.hone /0 is a1ailable in India on Airtel and $odafone. • "irtel 3igital T& * On 9 October 200,- Airtel 2oined the 3 4 band#a+on in India #ith Airtel 3i+ital $- a 3irect!to!4o&e ele1ision ser1ice S,BSCRIBER BASE • The "irtel subscriber base according to TR"0 * Telecom Regulatory "uthority o% 0ndia as o% +ebruary 8996 was@
3elhi * 7/;=2/2== (umbai * 8/=62/6;D (adhya 'radesh * =/;69/;96 Gu-arat * D/6:2/;;9 "ndhra 'radesh * :/:68/D)D >arnata!a * 6/:89/:28 Tamil Aadu * ;/99D/979
PRICE ? Customer based pricing strategies. ? +le$ible pricing mechanism ? Controlled by TR"0.
PLACE ? 0t has wide and e$tensive presence even in the remotest areas ? "irtel Customer Care Touch 'oints ? 3istributors li!e #.g. 'aan shops/ grocery stores/ chemists/ outlet etc. PROMOTION ? Large scale print and video advertising. ? Big celebrities li!e SR> and Sachin are roped in to endorse the product because it . ? 0n 8998 "irtel got its Signature tune %rom ".R. Rehman/ this signature tune is the most downloaded tune in 0ndia. ? 'rovides innovations such as Bollywood movie premiers/ music services such as ring bac! tones & many more.
PH9SICAL EN4IRONMENT
INNO4ATION
4AL,E CHAIN PROCESS Te1ec m ;r ce'' Detai1
Cu't mer Im; rtance* +irst they %ind the customer
reCuirements.
Tec/n 1 +y* Latest change in telecom technology. C m;etitive ; 'iti n*
competitors Conduct S ,T "nalysis o%
Ca;a%1e Su;;1ier'* Start*
Suppliers capable o% component design
3ecide which service we are going to provide using which technology/ who is our customers/ &endors & partners.
CORPORATE C,STOMERS ? Hathway N 0nternet gateway. Aational Long distance services. ? #+3 Corporation * ? Raymond ? Ba-a- "llianL ? (phasis ? ipro
? 0B( 3a!sh
? Large Stoc! Bro!ing Company
5INANCIAL ANAL9SIS
• ireless Customer mar!et share leadership at 87.= ?. • Total minutes on networ! carried in QD N 27D billion. • Total employee strength N 8)/))D. • Balance sheet strength @ • • • "ssets * M 28 billion Aet 3ebt * M ;== million Aet 3ebt to #B0T3" N 9.82 times
Economies of scale and efficient working capital management helped boost profit margin
Company’s policy of retaining entire profits helps in keeping the D/E low despite surging loan book
Better controls helped check bad debt losses
Economies of scale help reduce the percentage cost of advertisement expenditure
Value Added Services (VAS)
? VAS Contribution is 10.6 % of total revenue (for 2007-0 ). ? VAS revenue is 2 !! cr. "n 2007-0 .
Co#$osition of VAS %evenue (2007-0 )
Source*0(RB Reserch
"0RT#L R#&#AG# T#L#C,( S#CT,R 899=*9:
("R>#T0AG "A"LBS0S
TARGET C,STOMERS • Gp mar!et pro%essionals • #ntrepreneur with business plans • Low income mass category • Bouth • omen and senior citiLens by post paid connection
PORTER GENERIC STRATEG9 NARROC MARHET BROAD MARHET #.g.@ &#RG0A (,B0L# #.g.@ &,3"+,A# ,NIJ,ENESS COMPETENC9 #.g.@ "0RT#L LOC COST COMPETENC9
BCG Matrix
0 B/arti AIRTEL STAR* 3TH & 0'T&/ BR,"3B"A3 K* R#T"0L 0ASGR"AC#
MARHET GROCTH HIGH
MARHET GROCTH LOC
COC* (,B0L# S#R&0C#S MARHET SHARE HIGH
DOGS* +0F#3 L0A# S#R&0C#S MARHET SHARE LOC
)*+,RC# (,3#L
2.Custo#er &ar'ainin' (o)er
? Lac! o% di%%erentiation am ong Service 'roviders ? Cut throat Com petition ? Low Switching Costs ? Aumber 'ortability will have N&e 0 mpact ? Businesses & Consum ers
H IG H
*.Su$$lier &ar'ainin' (o)er
L O C
!. +,reat of Substitutes.
? Landline ? C3(" ? &ideo Con%erencing
D IMIN IS H IN GMAR H E T
H IG H
? &,0 ' * S!ype/ Gtal!/ Bahoo (essenger ? e*(ail & Social Aetwor!ing ebsites
B R O A D B A N D S E R 4 IC E S
GR,G' =
;9
-. +,reat of .e) /ntrant.
L O C
?Huge License +ees to be paid up%ront & High gestation period ?#ntry o% i("F operators ?Spectrum "vailability & Regulatory 0 ssues ?0 n%rastructure Setup Cost * High ?Rapidly changing technology
GR,G' =
;2
Strength • 0ar1et 2eader • %eco'ni3ed 4loball5 • Stron' &rand "#a'e • Stron' .e) &usiness 6evelo$#ent tea# • Stron' 7inancials • 2ar'est +eleco# (la5er 22.6% Opportunities • 2o) &roadband (enetration9 %ural • &,arti "nfratel : Cuttin' 6o)n cost in %ural area • Current +ele-6ensit5 : *0.6 is still lo) a#on' develo$in' countries
Weakness • 8utsourcin' of core s5ste# • .et)or1 Covera'e
Threats • "ntense Co#$etition ; S,orta'e of &and)idt, • .e) (la5ers co#in' in "ndia •
PROJECT ON AIRTEL FINANCIAL ANALYSIS
GRAND PROJECT REPORT ON BHARTI AIRTEL LIMITED
SUBMITTED BY;Piyush Gaur
CONTENTS
Executive Summary Intr !ucti n History Change in Brand Logo & Taglines O%&ective' Mission Company Overview Subsidiary Company Or+ani'ati n Structure Strate+ic Bu'ine'' ,nit Mar.et S/are 0 Airte1 Subscriber Trend & Growth Competitors Bu'ine'' Partner' 2 Partner' R 1e Mar.etin+ Mix 4a1ue C/ain Strate+y 5inancia1 Ana1y'i' Company's Revenue Company's or!ing Capital "nalysis Company's "dvertisement #$penditure Revenue %rom &alue "dded services Mar.etin+ Ana1y'i' 'orters generic Strategy BCG (atri$ )*+orce (odel S ,T "nalysis A7ar!' 2 Rec +niti n' Research Methodology
3 "#$
(
)* )* ))-# )"
)" )3 )( -*# -6
-6# -(
3* 3*
E8EC,TI4E S,MMAR9
This report on Bharti "irtel is done to %ind out certain ob-ective regarding the strategic approach adopted by "irtel to stand strongly in the competitive Telecom mar!et. "irtel mar!eting strategy analysis is done using various models li!e 'orters generic Strategy/ BCG (atri$/ )*+orce (odel & S ,T "nalysis o% "irtel etc. "lso the detailed study o% +inancial 'osition o% Company is done to %ind out its position in (ar!et. The study includes Revenue "nalysis/ or!ing Capital "nalysis/ "sset turnover ratio o% "irtel/ & its e$penditure on "dvertisement as a percentage o% Sales in recent period. The report gives in%ormation about how "irtel ad-usted itsel% in changing mar!et conditions/ what are the various strategies it ta!es to become 0ndia1s 2st company by Subscriber & Revenue.
INTROD,CTION Bharti "irtel Limited %ormerly !nown as Bharti Tele*&entures LT3 4BT&L5 is an 0ndian company o%%ering telecommunication services in 26 countries. 0t is the largest cellular service provider in 0ndia/ with more than 272 million subscriptions as o% "ugust 8929. Bharti "irtel is the world's third largest/ single*country mobile operator and %i%th largest telecom operator in the world with a subscriber base o% over 2:9 million. 0t also o%%ers %i$ed line services and broadband services. 0t o%%ers its telecom services under the "irtel brand and is headed by Sunil Bharti (ittal. Bharti "irtel is the %irst 0ndian telecom service provider to achieve this Cisco Gold Certi%ication. To earn Gold Certi%ication/ Bharti "irtel had to meet rigorous standards %or networ!ing competency/ service/ support and customer satis%action set %orth by Cisco. The company also provides land*line telephone services and broadband 0nternet access 43SL5 in over 6; cities in 0ndia. 0t also acts as a carrier %or 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.
HISTOR9 O5 AIRTEL
• Bharti Cellular launched cellular services '"0RT#L< in 3elhi in 266)/Himachal 'radesh in 266=/ >arnata!a and "ndhra 'radesh circles in 2666 0n 266:/ Bharti Telenet obtained a license %or providing %i$ed*line services in (adhya 'radesh circle and in the same year/ Bharti Telecom and British Telecom %ormed a )2? @ 76? -oint venture 0n 2666/ Aew Bor! Li%e 0nsurance +und acCuired a D? eCuity interest in Bharti Cellular. 0n 8992/ Bharti Cellular entered into a -oint venture/ Bharti "Cua net/ with SingTel %or establishing a submarine cable landing station at Chennai. 0n 8998/ Bharti Cellular entered into license agreements to provide cellular services in eight new circles. 0n 8998/ Bharti Cellular Ties up with Secondary School Certi%ication Board/ Hyderabad/ where Bharti will announce SSC results to its customers on their mobile phones. 0n the same year/ 8998/ 0C0C0 Ban! ties up with Bharti %or pre*paid mobile cards via "T(s. 0n 899D/ Bharti Group's cellular brand "irtel has unveiled %ree multimedia messaging services 4((S5 %or its customers. The company has also rolled out pan*0ndia G'RS 4General 'ac!et Radio Services5 %or its corporate subscribers. Launches its E0ndia,ne (eetFpress' audio*con%erencing service4899D5
•
• •
• •
• •
•
• • •
"irtel provides S(S %acilities to hearing impaired in Chennai4899D5 0n 899D/ "irtel Subscribers e$ceed D million mar!. 0n 8997/ Bharti Cellular entered into license agreements to provide cellular services in ; new circles including Gttar 'radesh 4#ast5/ est Bengal & "ndaman Aicobar/ ,rissa/ Bihar and Hammu & >ashmir. Same year "irtel launches G'RS services %or pre*paid customers.
•
Brand Log o
T "GL0A#S ,+ BR"A3
7er t . ee; in T uc/ < =) ( ( 6 >:T uc/ t m rr 7< =) ( ( ( >
:L iv eE v ery M m en t: =* * >
:E x ;re' 'y ur' e10< =* * 3 >
+ollowing are the reasons %or change in Tagline o% "irtel
7er t 9EAR# )((6#)(($ SIGNI5ICANCE# ** The tag line ''ower to !eep in Touch' used in the brand promise was designed to ma!e the user %eel 'in controlIpower%ul' ** 'ositioned in premium category aimed at elite class o% society. ** 'erception o% aspiration and li%estyle brand REASON 5OR CHANGE# ** Aow/ cellular service operators could drop their prices and target new customer segments. ** "s the category developed with prices going down sharply/ "irtel began tal!ing to a wider spectrum o% potential users. This gives the birth to the new Tagline. :T uc/ t m rr 7< 9EAR# )(((#-**) SIGNI5ICANCE? ** "irtel started tal!ing to new segments by positively positioning and establishing itsel% as a brand that improved the Cuality o% li%e. ** Aew loo! and the %eel o% the brand tagline indicated the core values o% the brand i.e. leadership/ per%ormance and dynamism. REASON 5OR CHANGE# ** "irtel started to loo! %rom a regional level to pan 0ndia position .ee; in T uc/<** Redi%%ussion 3B&R/ which is the ad agency that too! charge o% revamping "irtel's brand image thought/ To become a 0ndian leader/ "irtel need to change its tagline :Live Every M ment: 9EAR? -**-#-**3 SIGNI5ICANCE@ ** This was the %irst time " R Rehman had agreed to wor! %or any brand/ anywhere in the world. The music %rom the commercial became the most downloaded ring tone in the history o% telecommunications. ** Tagline denotes that each and every person in 0ndia live every moment 4emotions/ %eelings etc.5 o% the li%e with "irtel. REASONS 5OR CHANGE? ** Redi%%ussion 3B&R/ which is the ad agency that too! charge o% revamping "irtel's brand image again changed the tagline to give better tagline to "irtel which catches some emotional appeal.
:Ex;re'' y ur'e10< 9EAR# -**3#-**$AAB SIGNI5ICANCE@ ** Pr 0i1eE# • Suni1 B/arti Mitta1 • He started his career at a young age o% 2: a%ter graduating %rom 'un-ab Gniversity in 0ndia and then he %ounded Bharti. • Chairman & (anaging 3irector since ,ctober 8992 • "ge@ 76 years
• Today/ at 76/ he heads a success%ul enterprise/ amongst the top ) in 0ndia/ with a mar!et capitaliLation o% over GSM 79 billion and employing over D9/999 people. • He is an alumnus o% Harvard Business School/ GS". • He has been con%erred one o% the highest civilian award N 'adma Bhushan. • He has been con%erred the degree o% 3octor o% Science by the G B 'ant Gniversity o% "griculture & Technology.
5IG,RES 2 5ACTS • Total ireless subscribers in 0ndia 0n Hune 96 & Huly 96 are )*-F33GF$$) & )F *6F)GGF336 respectively. • Total ire line subscribers in 0ndia 0n Hune 96 & Huly 96 are -F$-GF$$- & -F$3)F$-- respectively.
STRATEGIC B,SINESS ,NIT O5 AIRTEL
MARHET SHARE
S,BSCRIBER GROCTH
PREPAID 2 POSTPAID ,SERS
COMPETITORS Aational Long 3istance • BSAL/ R#L0"AC#/ &SAL/ &,3"'H,A#/ T"T"/ 03#"
0nternational Long 3istance • &SAL/ R#L0"AC# / BSAL
B,SINESS PARTNERS Out' urcin+ Dea1' Aetwor! outsourcing & maintenance 4en! r'IPartner' #ricssion Ao!ia siemens networ! 5eature'IA!vanta +e' #ase in networ! planning 'ayments Lin!ed to *Gsage & Aetwor! Cuality * Service level agreement 0n%ormational technology 'assive in%rastructure 0B( Bharti 0n%ratel 0ndus Towers 'ricing & payment as a ? o% Revenue Reduced cape$ spend 0ncrease %ocus on sharing passive 0n%rastructure Call center outsourcing 0B( 3a!sh (phasis #nhanced & Consistent customer e$perience
Hindu-a T(T "egis B', Aortel
Common plat%orm across the group
Partner' R 1e Service (obile services Partner'I4en! r' #ricission & Ao!ia R 1e Aetwor! #Cuipments partners
0B( 3a!sh (phasis Hindu-a T(T Tele tech Telemedia & #nterprise services 0T reCuirements Siemens Aortel 0B( #Cuipments suppliers Group wide technology reCuirements Call center technology reCuirements Call center operations
Aortel
,TH#R "LL0"AC# 0n 899=/ Bharti "irtel has entered into %ollowing ma-or agreements and alliances@
•
ith (icroso%t t o%%er so%tware and services %or the Small and (edium Business 4S(B5 mar!et in 0ndia.
• "s part o% the agreement/ "irtel will bring Google search to the "irtel Live mobile "' portal. Google will also incorporate advertising through its (obile "ds product on the "irtel Live mobile portalO • " three*year contract with N .ia at an estimated value o% GSM 799 mn to e$pand its managed GS(P G'RSP#3G# networ!s in eight "irtel circles and deploy a pan 0ndia "' solution across its networ!sO • The company has a strategic alliance with SingTel. The investment made by SingTel is one o% the largest investments made in the world outside Singapore/ in the company.
MARHETING MI8
PROD,CTS • "irtel Connections 'ostpaid • "irtel Connections 'repaid • "irtel 3ata Cards • "irtel Blac!berry phones * On 19 October 2004 Airtel announced the launch of a Blackberry Wireless Solution in India. he launch is a result of a tie!u" bet#een Bharti ele! $entures %i&ited and 'esearch In (otion )'I(*.
• "irtel 0 'hones * As of 22 Au+ust 200,- the A""le i.hone /0 is a1ailable in India on Airtel and $odafone. • "irtel 3igital T& * On 9 October 200,- Airtel 2oined the 3 4 band#a+on in India #ith Airtel 3i+ital $- a 3irect!to!4o&e ele1ision ser1ice S,BSCRIBER BASE • The "irtel subscriber base according to TR"0 * Telecom Regulatory "uthority o% 0ndia as o% +ebruary 8996 was@
3elhi * 7/;=2/2== (umbai * 8/=62/6;D (adhya 'radesh * =/;69/;96 Gu-arat * D/6:2/;;9 "ndhra 'radesh * :/:68/D)D >arnata!a * 6/:89/:28 Tamil Aadu * ;/99D/979
PRICE ? Customer based pricing strategies. ? +le$ible pricing mechanism ? Controlled by TR"0.
PLACE ? 0t has wide and e$tensive presence even in the remotest areas ? "irtel Customer Care Touch 'oints ? 3istributors li!e #.g. 'aan shops/ grocery stores/ chemists/ outlet etc. PROMOTION ? Large scale print and video advertising. ? Big celebrities li!e SR> and Sachin are roped in to endorse the product because it . ? 0n 8998 "irtel got its Signature tune %rom ".R. Rehman/ this signature tune is the most downloaded tune in 0ndia. ? 'rovides innovations such as Bollywood movie premiers/ music services such as ring bac! tones & many more.
PH9SICAL EN4IRONMENT
INNO4ATION
4AL,E CHAIN PROCESS Te1ec m ;r ce'' Detai1
Cu't mer Im; rtance* +irst they %ind the customer
reCuirements.
Tec/n 1 +y* Latest change in telecom technology. C m;etitive ; 'iti n*
competitors Conduct S ,T "nalysis o%
Ca;a%1e Su;;1ier'* Start*
Suppliers capable o% component design
3ecide which service we are going to provide using which technology/ who is our customers/ &endors & partners.
CORPORATE C,STOMERS ? Hathway N 0nternet gateway. Aational Long distance services. ? #+3 Corporation * ? Raymond ? Ba-a- "llianL ? (phasis ? ipro
? 0B( 3a!sh
? Large Stoc! Bro!ing Company
5INANCIAL ANAL9SIS
• ireless Customer mar!et share leadership at 87.= ?. • Total minutes on networ! carried in QD N 27D billion. • Total employee strength N 8)/))D. • Balance sheet strength @ • • • "ssets * M 28 billion Aet 3ebt * M ;== million Aet 3ebt to #B0T3" N 9.82 times
Economies of scale and efficient working capital management helped boost profit margin
Company’s policy of retaining entire profits helps in keeping the D/E low despite surging loan book
Better controls helped check bad debt losses
Economies of scale help reduce the percentage cost of advertisement expenditure
Value Added Services (VAS)
? VAS Contribution is 10.6 % of total revenue (for 2007-0 ). ? VAS revenue is 2 !! cr. "n 2007-0 .
Co#$osition of VAS %evenue (2007-0 )
Source*0(RB Reserch
"0RT#L R#&#AG# T#L#C,( S#CT,R 899=*9:
("R>#T0AG "A"LBS0S
TARGET C,STOMERS • Gp mar!et pro%essionals • #ntrepreneur with business plans • Low income mass category • Bouth • omen and senior citiLens by post paid connection
PORTER GENERIC STRATEG9 NARROC MARHET BROAD MARHET #.g.@ &#RG0A (,B0L# #.g.@ &,3"+,A# ,NIJ,ENESS COMPETENC9 #.g.@ "0RT#L LOC COST COMPETENC9
BCG Matrix
0 B/arti AIRTEL STAR* 3TH & 0'T&/ BR,"3B"A3 K* R#T"0L 0ASGR"AC#
MARHET GROCTH HIGH
MARHET GROCTH LOC
COC* (,B0L# S#R&0C#S MARHET SHARE HIGH
DOGS* +0F#3 L0A# S#R&0C#S MARHET SHARE LOC
)*+,RC# (,3#L
2.Custo#er &ar'ainin' (o)er
? Lac! o% di%%erentiation am ong Service 'roviders ? Cut throat Com petition ? Low Switching Costs ? Aumber 'ortability will have N&e 0 mpact ? Businesses & Consum ers
H IG H
*.Su$$lier &ar'ainin' (o)er
L O C
!. +,reat of Substitutes.
? Landline ? C3(" ? &ideo Con%erencing
D IMIN IS H IN GMAR H E T
H IG H
? &,0 ' * S!ype/ Gtal!/ Bahoo (essenger ? e*(ail & Social Aetwor!ing ebsites
B R O A D B A N D S E R 4 IC E S
GR,G' =
;9
-. +,reat of .e) /ntrant.
L O C
?Huge License +ees to be paid up%ront & High gestation period ?#ntry o% i("F operators ?Spectrum "vailability & Regulatory 0 ssues ?0 n%rastructure Setup Cost * High ?Rapidly changing technology
GR,G' =
;2
Strength • 0ar1et 2eader • %eco'ni3ed 4loball5 • Stron' &rand "#a'e • Stron' .e) &usiness 6evelo$#ent tea# • Stron' 7inancials • 2ar'est +eleco# (la5er 22.6% Opportunities • 2o) &roadband (enetration9 %ural • &,arti "nfratel : Cuttin' 6o)n cost in %ural area • Current +ele-6ensit5 : *0.6 is still lo) a#on' develo$in' countries
Weakness • 8utsourcin' of core s5ste# • .et)or1 Covera'e
Threats • "ntense Co#$etition ; S,orta'e of &and)idt, • .e) (la5ers co#in' in "ndia •