bharati enterprises
DESCRIPTION
industry strategy analysisTRANSCRIPT
Started off as a Bicycle Parts Manufacturer in 1976
Now it’s India’s Largest and
World’s 4th Largest Telecom Service Provider
Bharti Enterprises
Enterprises
1976- Started as a Bicycle Parts Manufacturer
1980- Tied up with Suzuki to Import and Distribute Portable Gensets
1985-88 - Strategic Alliance with Siemens for Manufacturing Push Button Phones
1990- Manufactured Fax Machines, Cordless Phones
1992- Bharti Cellular Ltd. Formed , Bids for Mobile Telecom License
1994- Won GSM License for Delhi NCR
1995- Launched Airtel GSM Brand
Enterprises 1998-First Indian Company to Launch Telecom Services outside India in Seychelles
2004-Bharti & Rothschild form a 50:50 Joint Venture – Field Fresh
2004- Airtel Exclusively brings Blackberry to India
2005-First company to cover National Footprint in all Circles
2005-Ventured into Life Insurance formed Bharti Axa Joint Venture
2006- Forays into Retail Sector by signing MoU with Walmart
2007- Bharti Axa gets into General Insurance Business
Enterprises
2008-Easy Day Retail stores launched in Ludhiana
2008- Indus Towers Joint Venture Bharti(42%),Idea(16%) and Vodafone (42%)
2008- Airtel Digital TV Launched
2009-Bharti Walmart Launches Best Price
2012- Airtel Crosses 200 Million Customers ( Mobiles,Fixed Line, DTH)
2012- Partners with Qualcomm,4G Services Launched in Kolkata
2014 -Acquired Loop for 700 Crore
2014 - 200 Million Mobile Customers in India
Porters 5 Forces Analysis(Cellular Telecom Sector)
Intensity of Competition : High
Competition from Rivals
Consolidated Oligopoly
Mobile Number Portability
Price Wars
Cellular Players
Leader : Airtel
Challenger : Vodafone
Follower : Idea, Reliance, BSNL,Aircel,Tata etc
Nicher : Loop (Now Part of Airtel)
Porters 5 Forces Analysis(Cellular Telecom Sector)
Threat of New Entrant : High
New Licenses given to others in Existing Circles
100% FDI in Telecom Sector
Threat from Foreign Big players
Porters 5 Forces Analysis(Cellular Telecom Sector)
Bargaining power of Suppliers
Tower Suppliers : Low (Enjoy Monopoly) Own Tower Business, Infratel and Indus Tower Joint Venture
Handset Suppliers : Low (Fragmented Market) Compete Amongst themselves
Network Devices Suppliers : High (Oligopoly) Consolidated Market : ZTE, Huawei ,Ericsson , Nokia etc.
Porters 5 Forces Analysis(Cellular Telecom Sector)
Bargaining power of Buyers: High
Low Switching Cost
Govt. Initiatives like MNP
Less Differentiation amongst competition
Similar Tariff Plans
Porters 5 Forces Analysis(Cellular Telecom Sector)
Threat of Substitute: High
Internet Base Rising
Rise of Skype, WhatsApp and other Comm. Apps
Video Conferencing
Recommendations
Continue with the Telecom Business
Scaling of 4G network across India
Tie Ups with App Makers like Skype and other Communications Apps
Tie ups with Rising Local Players like Micromax
BCG Analysis of Bharti EnterprisesCompany Leader/
FollowerGrowth
RateRMS
Airtel (A) L 4 1.22X
Bharti Realty Ltd (BRL) F 3 0.1X
Easy Day (ED) F 7 0.2X
Infratel (I) L 10 3X
Digital TV (DT) F 6 0.5X
Life Insurance (LI) F -1 0.1X
General Insurance (GI) F -1 0.1X
5%
-5%
1X 0.1X
G r owt h
R a t e
Relative Market Share
GE Analysis Bharti Enterprises
References
http://www.bharti.com/home/about_us/milestones http://business.mapsofindia.com/business-leaders/sunil-bharti-mittal.html Airtel India TRAI Press Release 2013 http://www.zdnet.com/at-and-t-makes-another-attempt-to-enter-india-7000012497/