sm project_section b_group 2.docx

8/19/2019 SM Project_Section B_Group 2.docx

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STRATEGY

MANAGEMENTPROJECT

COMPANY:AIRTELSubmitted to: Prof. Veeresh Shrm

!" Se#tio$ !: Grou% &

14P087 Mohana Kodipaka14P088 Mukul Panchineni14P091 Nidhi Kumar

14P102 Sameer Jain14P105 Jaydeep Sarnaik14P110 Srijan ha!na"ar

AC'NO(LE)GEMENT

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(e *ou+d +i,e to th$, Prof. Veeresh Shrm for his #o$ti$uous -uid$#e $d

su%%ort duri$- the #ourse. is %r#ti#+ i$dustr" e/%erie$#es h0e bee$

i$strume$t+ i$ the su##essfu+ #om%+etio$ of the %ro1e#t. (e *ou+d +i,e to th$,

him for his -uid$#e $d e$#our-eme$t *hi#h +ed our *" $d -uided us

throu-hout the #om%+ete durtio$ of Strte-i# M$-eme$t #ourse.

TA!LE O2 CONTENTS

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3. E/e#uti0e summr"44444444444444444444444444444444444444444445&. About Airte+444444444444444444444444444444444444444444444444444467. E/ter$+ Audit44444444444444444444444444444444444444444444444448

7.3 Po+iti#+ f#tors4444444444444444444444444444444444444444444497.& E#o$omi# f#tors4444444444444444444444444444444444444444447.7 Te#h$o+o-i#+4444444444444444444444444444444444444444444443;7.5 )emo-r%hi#44444444444444444444444444444444444444444444443&7.6 I$dustri+444444444444444444444444444444444444444444444444444357.8 G+ob+444444444444444444444444444444444444444444444444444444387.9 So#i+4444444444444444444444444444444444444444444444444444444397. Com%etiti0e4444444444444444444444444444444444444444444444443

5. I$ter$+ Audit444444444444444444444444444444444444444444444444444&;5.3 Prese$t %ositio$ of Airte+44444444444444444444444444444444&35.& S(OT A$+"sis4444444444444444444444444444444444444444444&75.7 Core #om%ete$#"44444444444444444444444444444444444444444&

6. Re#omme$dtio$s 44444444444444444444444444444444444444444444&<6.3 !CG Mtri/44444444444444444444444444444444444444444444444796.& T(OS Mtri/4444444444444444444444444444444444444444444447

8. Co$#+usio$444444444444444444444444444444444444444444444444444447<9. Refere$#es444444444444444444444444444444444444444444444444444445;

E=EC>TIVE S>MMARY

The re%ort *s #ommissio$ed to $+"?e the deti+ed mr,et s#e$rio for Airte+ $d re#omme$d future

#ourse of #tio$ to be fo++o*ed b" Airte+ bsed o$ its #ore #om%ete$#ies $d #urre$t mr,et s#e$rio. The

re%ort i$#+udes:

@ E/ter$+ e$0iro$me$t $+"sis to stud" Airte+ i$ -+ob+ #o$te/t b@ I$ter$+ e$0iro$me$t $+"sis to stud" Airte+s #ore #om%ete$#ies $d its stre$-ths $d

*e,$esses

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#@ Re#omme$dtio$s for Airte+ to susti$ i$ the te+e#om i$dustr" s m1or %+"er

Airte+B h0i$- fo++o*ed strte-" of outsour#i$- its #ore o%ertio$s hs bee$ b+e to #o$0ert ++ fi/ed

#osts to 0rib+e #osts. This hs he+%ed Airte+ er$ %rofit b" fo++o*i$- the mi$ute f#tor" mode+ s

-i$st subs#riber bse mode+ fo++o*ed b" other ser0i#e %ro0iders. Airte+ hs m1or mr,et shre i$

I$di $d Afri#B *hi#h %uts Airte+ i$ defe$si0e %ositio$ to reti$ its %ositio$ s the mr,et +eder i$ the

te+e#om se#tor.

A $umber of e$0iro$me$t+ f#tors h0e *or,ed i$ the f0our of Airte+ $d fe* -i$st it. Re-u+tio$s

+i,e A)C or $titrust +*s %ut b" CCI i$ I$di $d ICASA i$ South Afri# h0e de0e+o%ed #om%etitio$ i$

the te+e#om se#tor. A$+"si$- the i$dustr" e$0iro$me$t usi$- Porters fi0e for#esB *e s* tht br-i$i$-

%o*er of su%%+iers is +o* $d tht of bu"ers is 0er" hi-h. There is +ot of ri0+r" mo$- e/isti$-

#om%etitors $d due to 3;;D 2)I i$ te+e#om $d $umber of re-u+tio$s %ut u% b" the )e%rtme$t of

Te+e#ommu$i#tio$ )oT@B the thret of $e* e$tr$ts is 0er" +o*.

Airte+ ho+ds u$iFue %ositio$ i$ the te+e#om i$dustr" bei$- the +eder i$ South Asi *ith res%e#t to the

subs#riber bse *hi#h #rosses &;; mi++io$ subs#ribers i$ &;35. (he$ *e #o$sider the third Furter fi-ures

for the #om%$" i$ the "er &;35436B the %rofit fter t/ of 3578 #rore *s more th$ t*o fo+ds of the

%rofit of 83; #rore i$ the sme Furter of the %re0ious "er. This s%e,s 0o+umes of the he+th" rte t

*hi#h Airte+ is ddi$- o$to its subs#riber bse *hi#h i$ tur$ is tr$s+ti$- i$to hu-e %rofits for the

#om%$".

After $+"?i$- irte+ ser0i#es throu-h !CG mtri/B *e s* tht differe$t ser0i#es %ro0ided b" Airte+ +ie

i$ differe$t Fudr$ts of !CG mtri/ $d he$#e $eeds to be #tered toB ##ordi$-+". Mobi+e $umber

%ortbi+it" i$trodu#ed b" TRAI hs i$#resed +ibi+it" o$ %rt of ser0i#e %ro0iders to im%ro0e #ustomer

thereb" redu#i$- #ustomer s*it#hi$- rte. I$ this re-rdB Airte+ #ou+d -o for %ro0idi$- +o"+t" %oi$ts $d

better ser0i#e to im%ro0e #ustomer rete$tio$. A+soB Airte+ $eeds to strte-i#++" -e$erte hi-her re0e$ues

b" h0i$- #om%etiti0e %ri#i$- for the ser0i#es. (e +so see tht irte+ mo$e" is o$e of its ,i$d $d is

#o$#e%t sti++ i$ its $s#e$t st-es. e$#eB Airte+ $eeds to #ome u% *ith i$$o0ti0e mr,eti$- strte-ies to-e$erte more re0e$ue throu-h this ser0i#e.

A!O>T AIRTEL

!hrti Airte+ is $ I$di$ mu+ti$tio$+ te+e#ommu$i#tio$s ser0i#es #om%$". Airte+ %ro0ides GSMB 7G

$d 5G LTE mobi+e ser0i#esB fi/ed +i$e brodb$d $d 0oi#e ser0i#es #ross &; #ou$tries i$ South AsiB

Afri# $d Ch$$e+ Is+$ds. Airte+ hs fo++o*ed strte-" of outsour#i$- its #ore o%ertio$s. Airte+ hs

outsour#ed its ITB $et*or, te+e#om eFui%me$t@ $d tr$smissio$ to*ers et#. i.e. ++ busi$ess o%ertio$s

e/#e%t mr,eti$-B s+es $d fi$$#e. Airte+ fo++o*s the mi$ute f#tor" mode+ s -i$st the subs#riber

bse mode+ fo++o*ed b" other ser0i#e %ro0iders. Throu-h its busi$ess mode+B Airte+ hs bee$ b+e to

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#o$0erted ++ m1or fi/ed #osts to 0rib+e #osts *hi#h hs *or,ed i$ the f0or of Airte+. (ith the he+% of

Eri#sso$B b" %"i$- for i$st++tio$ $d mi$te$$#e rther the$ bei$- %id u%fro$tB Airte+ hs brou-ht

do*$ #++ rtes subt$ti++" for its subs#ribers. Airte+ hs the +r-est mr,et shre i$ the I$di$

sub#o$ti$e$t mo$- other ser0i#e %ro0iders. There re $umber of %ri0te $d -o0er$me$t %+"ers i$ the

I$di$ te+e#om i$dustr"B $me+" Vodfo$eB re+i$#eB ideB do#omo et#. This hs %osed m1or #h++e$-e

for Airte+ i$ terms of its mr,et $d its %ositio$ s m1or +eder i$ the te+e#om i$dustr".

(e *ish to $+"se the i$ter$+ $d e/ter$+ e$0iro$me$t for Airte+. (e sh++ fo#us o$ 0rious %o+iti#+B

e#o$omi#B te#h$o+o-i#+B so#i+ $d -+ob+ $d fi-ure out the %ositio$ of Airte+ i$ the te+e#om i$dustr".

2urtherB *e *ish to e/mi$e the %rese$t $d %st strte-ies of the firmB $+"se its #ore #om%ete$#ies $d

ide$tif" threts $d o%%ortu$ities of the firm i$ the $tio$+ $d -+ob+ #o$te/t. (e *ish to %ro%ose

future strte-" for the firm i$ the +i-ht of the i$ter$+ $d e/ter$+ udit of the firm *ith res%e#t to the

e$0iro$me$t $d its o*$ #ore #om%ete$#ies.

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E=TERNALA>)IT

POLITICAL FACTORS:3. CONS>MER PROTECTION LA(:

As %er Se%tember &;;


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h$d+ed outside the #ourt *ith the he+% of )e%rtme$t of Te+e#ommu$i#tio$ throu-h rbitrtio$.

This +ed to #om%+i$ts -oi$- u$ddressed due to the $o$ fesibi+it" to re#h $d #o$$e#t to )oT.I$ &;3&B Su%reme Court reestb+ished tht the #om%+i$ts re-rdi$- Te+e#ommu$i#tio$s *ou+d

be ddressed i$ #o$sumer #ourts too. This brou-ht more tr$s%re$#" i$ the s"stem $d +ed to

fster redress+ of #o$sumer -rie0$#es.

&. ANTITR>ST LA(S:

The ro+e of Com%etitio$ Commissio$s of I$di CCI@ is to %re0e$t mo$o%o+" i$ the #ou$tr" $d

%romote #om%etitio$. )ue to the emer-e$#e of $umber of %ri0te %+"ers i$ the I$di$ Mr,etB

mo$o%o+" of -o0er$me$t %+"ers +i,e !SNLMTNL hs dro%%ed but the" sti++ ho+d $ o0erru+i$-

%o*er. !SNL MTNL do $ot %" $" +i#e$se fee to the -o0er$me$t to ##ess their f#i+ities

*heres ++ the %ri0te %+"ers i$ the mr,et re e/%e#ted to %" the +i#e$se feeB *hi#h is m1or

to++ o$ their i$iti+ #osts. A+soB ++ the %ri0te %+"ers $eed to %" A)C A##ess )efi#it Chr-es@

to !SNL MTNL to %ro0ide their ser0i#es i$ rur+ res. This be#omes re0e$ue sour#e for the

-o0er$me$t %+"ers $d hu-e #ost for %ri0te %+"ers. SoB $titrust +*s h0e $ot *or,ed for

%ri0te %+"ers i$ broder +e$s. I$ Afri#B Com%etitio$ A#t of 3


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me$s to boost +o#+ m$uf#turi$-. This *ou+d i$fuse eFuit" i$ strt4u%s %romoted b"

te#h$o#rts $d s#ie$tists of I$di$ ori-i$.(ith f0orb+e %o+i#ies b" the -o0er$me$t $d the emer-e$#e of 5G te#h$o+o-" i$ I$diB r%id

-ro*th is e/%e#ted *ithi$ the $e/t fe* "ers. 2orei-$ eFuit" of 95D is %ermitted for te+e#om

ser0i#es4 bsi#B mobi+eB IL)B ISPs4 $d -+ob+ mobi+e %erso$+ #ommu$i#tio$s b" ste++ite.

Ntio$+ Te+e#om Po+i#ies NTPs@ h0e brou-ht bout m1or tr$sformtio$ i$ the I$di$Te+e#om Se#tor. Po+i#" i$ititi0es +i,e tht of NTP


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2i-ure: %&P' () Minu!e) o* ')eH5

5. INVESTMENTS 2ROM MNCS TO TE TELECOM IN)>STRY:

The i$0estme$t from mu+ti $tio$+ #om%$ies hs i$#resed i$ I$di$ te+e#om i$dustr". Pirm+

i$0ested Rs. 6


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I$ Afri#B s o$ &;37B +ess th$ 3;D househo+ds hd ##ess to i$ter$et t home. The i$ter$et

us-e rtes re hi-hest i$ (ester$ C%e &;.7D@ $d +o*est i$ Lim%o%o &.7D@. H6

2i-ure: Gr%h de%i#ti$- subs#riber bse $d te+ede$sit" i$ I$di H8

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&. 2OC>S ON TECNOLOGICAL E22ORTS:

Gro*th of 7G i$ I$di hs bee$ treme$dous. 7G dt re#orded -ro*th of 335D i$ &;35. A+soB

due to the emer-e$#e of 7G i$ the te+e#om mr,etB the %rdi-m shift hs bee$ i$ f0or of &G 53

%er#e$t@. A+thou-h 5G is i$ $s#e$t st-es i$ I$diB I$di +red" hs 6.6 mi++io$ 5G #%b+e

de0i#esB bsed o$ the -ro*i$- dem$d $d $ti#i%ted mr,et #o$ditio$s. This %ro0ides $

o%%ortu$it" for the i$dustr" for the su##essfu+ ro++out of 5G $et*or,s $d ser0i#es i$ I$di. The

first 5G ser0i#e *s +u$#hed b" Airte+ i$ 'o+,t. )ue to the i$#om%tibi+it" *ith de0i#esB 5G

+u$#h is stumb+i$- hurd+e but due to better Fu+it" $d s%eed of ser0i#eB 5G *ou+d be redi+"

##e%ted i$ the I$di$ mr,etB thereb" further stre$-the$i$- the -ro*th of te+e#om i$dustr" i$

I$di.

2i-ure: The mobi+e brodb$d e#os"stem +7,

7. GOVERNMENT SPEN)ING AN) S>PPORT IN TERMS O2 RK):

Pi+ot %ro1e#ts o$ e/isti$- $d emer-e$t te#h$o+o-ies h0e bee$ t,e$ u% b" -o0er$me$t. This

i$#+udes %ro1e#ts +i,e (iM/B 7G et#. (ith further em%hsis o$ rur+ #o$$e#ti0it"B -o0er$me$t is

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redu#i$- the brriers of -ro*th for te+e#om i$dustr". To im%ro0e RK) i$frstru#ture i$ te+e#om

se#torB #demi# i$stitutesB #e++u+r o%ertors $d Go0er$me$t of I$di h0e set u% Te+e#om

Ce$tres of E/#e++e$#e COEs@.

DEMOGRAPHIC ENVIRONMENT3. GRO(T RATE O2 POP>LATION:

South Asi is di0erse re-io$ *ith %o%u+tio$ of 3.9 bi++io$. I$di itse+f hs %o%u+tio$ of 3.&

bi++io$B *hi#h hs bee$ -ro*i$- t rte of 3.&D e0er" "er. There hs +so bee$ $ i$#rese i$

the dis%osb+e i$#ome of the %eo%+e. These f#tors *or, i$ f0or of te+e#om i$dustr" due to

i$#resi$- dem$d. !ut o$ the other h$dB *e +so $eed to #o$sider tht m1orit" of our

%o%u+tio$ is rur+. Tht is o$e reso$ *h" I$di$ mr,et is o$e of the +o*est %e$etrted mr,ets

i$ the *or+d. The -r%h sho*s the i$#rese of te+e#om %e$etrtio$ i$ I$di hs $ot bee$ ref+e#ted

mu#h i$ the rur+ mr,etB *hi#h u$ders#ores the rur+ mr,et *hi#h %rese$ts $ o%%ortu$it".

&. LI2ESTYLE CANGES:

Lifest"+e #h$-es h0e +ed to the -ro*th i$ us-e of ser0i#es $d he$#e for#ed the ser0i#e

%ro0iders to im%ro0e $d e$h$#e their ser0i#es. V+ue dded ser0i#esB +i,e 0ideo4o$4dem$dB

musi# do*$+ods et#. re i$#resi$-+" -i$i$- %o%u+rit". This hs *or,ed i$ f0or of the

te+e#om o%ertors.

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7. E)>CATIONAL GRO>PS:

The I$di$ %o%u+tio$ f++s i$to fi0e so#i+ -rou%s: i++itertesB hi-h s#hoo+ dro%outsB hi-h

s#hoo+ di%+oms or se#o$dr" s#hoo+ #ertifi#tesB #o++e-e de-rees $d %rofessio$+ de-rees.

)ue to the i$#rese i$ the +iterr" rtes $d i$#resi$- edu#tio$+ +e0e+sB more %eo%+e re

be#omi$- *re of the +test te#h$o+o-ies. A+soB -ro*th of di-it+ te#h$o+o-" i$ s#hoo+s $d

#o++e-es hs +so %romoted -ro*th of te+e#om se#tor.

2i-ure: Liter#" rte of I$di H

INDUSTRY ENVIRONMENT

The i$dustr" #$ be best $+"sed throu-h the PORTER’S FIVE FORCES MODEL s it %ro0ides $

o0er++ %ers%e#ti0e of the #om%etiti0e i$te$sit" of the i$dustr" i$ *hi#h the firm e/ists.

1. Bargaining Po!r o" S#$$%i!r& The su%%+iers i$ the te+e#om i$dustr" #$ be #+ssified i$to

three #te-ories:

• Mobi+e To*er Pro0iders The number of mobile tower providers is %rett" hi-h i$ this i$dustr".

There re i$de%e$de$t+" o*$ed to*er #om%$ies e-. Viom Net*or,s Limited@ s *e++ s

te+e#om #om%$ies o*$ed to*er #om%$ies e-. !hrti I$frte+ LimitedB I$dus To*ers

Limited@. O*i$- to the +r-e $umber of mobi+e to*er %ro0idersB their br-i$i$- %o*er is +o*.

• The cost of switching from one supplier to $other for the te+e#om o%ertors is +so +o* s the

%rodu#t mobi+e to*er@ is $ot u$iFue %rodu#t $d is bei$- de0e+o%ed b" m$" mobi+e to*er

%ro0iders.

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• Net*or, EFui%me$tMi$te$$#e Pro0iders The $umber of $et*or, eFui%me$t %ro0iders is

+imited e-. Eri#sso$B TEB u*eiB No,i Sieme$s@ $d he$#e their br-i$i$- is hi-h $d #$

ofte$ i$f+ue$#e the strte-i# %+$s of the o%ertors.

A+thou-h the br-i$i$- %o*er of $et*or, eFui%me$t %ro0iders #$ be #o$sidered to be hi-hB but

due to the i$ter$+ #om%etitio$ of these %ro0iders $d the %re0i+i$- #o$ditio$s of the te+e#omi$dustr"B the o0er++ br-i$i$- %o*er of su%%+iers is LO(.

'. Bargaining Po!r o" B#(!r& This #$ be determi$ed bsed o$ 0rious f#tors:

• The ser0i#e %ro0ided b" the te+e#om %ro0iders is u$differe$tited $d he$#e bu"ers h0e the

o%tio$ br-i$i$- for better s#hemes $d ser0i#e from their #urre$t #hoi#e of te+e#om o%ertor.

• The s*it#hi$- #ost for bu"er to s*it#h to differe$t te+e#om o%ertor is %rett" +o*. Mobi+e

Number Portbi+it" MNP@ hs +so mde it esier for #o$sumers to s*it#h from o$e o%ertor to

$other.

Loo,i$- t the bo0e t*o f#torsB it #$ be sid tht the br-i$i$- %o*er of bu"ers is IG i$

the te+e#om i$dustr".

). Ri*a%r( a+ong !,i&-ing o+$!-i-or&

• The %rese$#e of +r-e $umber of te+e#om o%ertors i$ this i$dustr" me$s tht the ri0+r" to

-i$ %ie of the mr,et shre is IG.

• The si?e of m$" of the te+e#om o%ertors su#h s !hrti Airte+B Vodfo$eB !SNLB Re+i$#e $d

Ide is 0er" +r-e. e$#eB e#h #om%etitor hs the #%bi+it" to offer simi+r %rodu#ts $d

ser0i#es +edi$- to i$te$se ri0+r".

ThusB the ri0+r" mo$- e/isti$- #om%etitors i$ the te+e#om i$dustr" is IG.

/. T0r!a- o" S#&-i-#-! Pro2#-& or S!r*i!&

. Voi#e o0er I$ter$et Proto#o+ VoIP@ ser0i#es +i,e S,"%e re be#omi$- i$#resi$-+" %o%u+r b. So#i+ $et*or,i$- *ebsites +i,e 2#eboo, $d mess-i$- %%+i#tio$s +i,e (hts%% re

#o$ti$uous+" eti$- i$to the re0e$ues of te+e#om o%ertors. A+thou-h the bo0e t*o f#tors

i$di#te tht the thret of substitute %rodu#ts is si-$ifi#$tB te+e#om o%ertors %ro0idi$- i$ter$et

dt f#i+ities o$ mobi+e %ho$es re f#ed *ith MO)ERATE +e0e+ of thret of substitutes.

3. T0r!a- o" N! En-ran-& . I$#resi$- of 2)I to 3;;D i$ the te+e#om se#tor hs mde it esier for forei-$ #om%$ies to

e$ter the I$di$ mr,et. o*e0erB the te+e#om i$dustr" is sti++ hi-h+" re-u+ted b" the

)e%rtme$t of Te+e#ommu$i#tio$s )oT@

b. The te+e#om i$dustr" is #%it+ i$te$si0e i$dustr" *hi#h reFuires hi-h setu% $di$frstru#ture #osts

#. The +i#e$se fees tht $eeds to be %id for strti$- o%ertio$s is hu-ed. Produ#tser0i#e is hi-h+" u$differe$tited $d he$#e the ttr#ti0e$ess of the mr,et to $e*

e$tr$ts is re+ti0e+" +o*.

ThereforeB the thret of $e* e$tr$ts to the te+e#om i$dustr" is LO(.

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SOCIAL ENVIRONMENTThe so#i+ e$0iro$me$t of $ i$dustr" re+tes to +ot of f#tors +i,e -ro*th rte of the %o%u+tio$ $d

other #hr#teristi#s of the %o%u+tio$ su#h s bu"i$- $d #u+tur+ tre$ds.

I$di hs the *or+ds +r-est "outh %o%u+tio$ *ith %%ro/imte+" 76; mi++io$ %eo%+e f++i$- i$ the

#te-or" of 3;4&5 "ers of -e. H


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Fig#r! 1: T!%!42!n&i-( 0ar-

5)6

The #u+tures $d $eeds of #ustomers 0r" si-$ifi#$t+" throu-h differe$t %rts of I$di. The i$#resi$-

#om%etitio$ i$ the te+e#om i$dustr" hs mde it e/#eedi$-+" tou-h for o%ertors to #Fuire $d ho+d o$ to

#ustomers usi$- simi+r %%ro#hes i$ differe$t %rts of I$di. Tr-eti$- the rur+ se-me$t is differe$t

b++ -me s #om%red to the urb$ te+e#om #ustomers. The fo++o*i$- %oi$ts $eed to be t,e$ i$to

##ou$t *hi+e tr-eti$- rur+ I$di$ #ustomers:

•

Rur+ #ustomers re e/treme+" #o$s#ious bout the #ost of the %rodu#t or ser0i#e 0i+ed. e$#eBser0i#es $eed to be %#,-ed i$ su#h m$$er tht the" de+i0er -retest 0+ue for mo$e" $d

%%e+ to them. 2or e/m%+eB triff %+$s i$ rur+ res $eed to be %%ro%rite+" desi-$ed.

• After4s+es ser0i#es form $ i$te-r+ %rt of the %ur#hse de#isio$ of the rur+ #ustomers.

ThereforeB it is esse$ti+ for te+e#om o%ertors to i$$o0ti0e+" %ro0ide fter4s+es su%%ort to this

#ustomer se-me$t.

• Rur+ #o$sumers *$t so+id de0i#e *ith sim%+e ser0i#e to o%erte. The de0i#e $eeds to be

es" to o%erte *ith $ot too m$" hss+es. Voi#e ser0i#es remi$ the to% %riorit" for the rur+

#ustomers $d o%ertors $eed to #o$so+idte their im-e first s 0oi#e ser0i#e %ro0ider $d the$

+e0er-e this im-e to se++ V+ue Added Ser0i#es VAS@.

GLOBAL ENVIRONMENT

Te+e#om o%ertors throu-hout the *or+d h0e #h$-ed their busi$ess mode+s. The er+ier mode+ of

h$di$- out stisf#tor" ser0i#es $d for#i$- #ustomers to +o#, themse+0es i$to subs#ri%tio$s is ++ but

1$


17/39

o0er te+e#om #om%$ies $o* $eed to e$ti#e #ustomer se-me$ts *ith %%ro%rite $d disti$#ti0e 0+ue

%ro%ositio$s. Simu+t$eous+"B o%erti$- #osts $eed to be +o*ered to %ro0ide ser0i#es t #he%er rte $d

this hs +ed to effi#ie$#" e$h$#eme$ts i$ m$" te+e#om #om%$ies.

Te+e#om o%ertorsB $o*d"sB fi$d themse+0es sFuee?ed i$ hi-h+" competitive e$0iro$me$t.

E#o$omi#+ te+e#om o%ertors from Asi re tredi$- i$ter$tio$+ bou$dries to emer-i$- $d e0e$ e$ter

the de0e+o%ed mr,ets. 2or e/m%+eB Airte+ is %rese$t i$ three Asi$ #ou$tries I$diB Sri L$, $d

!$-+desh@ s *e++ s i$ se0e$tee$ Afri#$ #ou$tries. A+soB Airte+ hs bee$ i$0o+0ed i$ m$" mer-ers

$d #Fuisitio$s s *e++ s 1oi$t 0e$tures i$ these res.

Net*or, shri$- is bei$- i$#resi$-+" used to #ou$ter the thret of risi$- o%ertio$+ #osts. 2or e/m%+eB

T4Mobi+e $d Or$-e shre $et*or,s i$ se0er+ #ou$tries. H3&

O$ the technolog! fro$tB fi$$#i+ tr$s#tio$s re r%id+" -oi$- mobi+e throu-hout the *or+d. Te+e#om

#om%$ies #$ $o* dd 0+ue to this #hi$ b" m$-i$- b$,i$- tr$s#tio$s. Te+e#om o%ertors #$ use

their e/%ertiseB i$frstru#ture $d distributio$ $et*or, to further he+% i$ the -ro*th of the b$,i$-

ser0i#es bei$- %ro0ided o0er the mobi+e.

The r%id -ro*th of e4#ommer#e rou$d the -+obe is $o* %0i$- %th for m4#ommer#e or mobi+e

#ommer#e. A #+ssi# e/m%+e of this is tht $ e4#ommer#e #om%$" +i,e S$%de+ i$ I$di is re#ei0i$-

rou$d 8;49; %er #e$t of its orders from smrt%ho$es. This tre$d is e/%e#ted to -ro* s the $umber of

smrt%ho$e users rises rou$d the *or+d. E4#ommer#e #om%$ies h0eB he$#eB strted i$0esti$- he0i+"

i$ de0e+o%me$t of mobi+e %ho$e %%+i#tio$s. Smrt %ho$es h0e +so f#i+itted the d0e$t of mobi+e

*++ets. Airte+ %ro0ides *++et ser0i#e i$ the $me of Airte+ Mo$e".

"ustomers re +so sh%i$- the *" te+e#om o%ertors fu$#tio$ rou$d the -+obe. Customers re s%oi+t for

#hoosi$- their te+e#om o%ertor s more $d more o%tio$s be#ome 0i+b+e. ThereforeB it be#omes

im%erti0e for te+e#om o%ertors rou$d the *or+d to %ro%er+" se-me$t their #ustomers $d meet e#h

se-me$ts dem$ds i$ differe$t m$$er. This be#omes e/treme+" #ru#i+ *he$ rur+ #ustomers $eed

differe$t ser0i#e %#,-i$- th$ the urb$ #ustomers.

COMPETITIVE LANDSCAPE

The #o$tributio$ of the te+e#om se#tor to I$dis G)P hs bee$ #o$siste$t+" i$#resi$- o0er the %st fe*

de#des from 3D i$ the 3


18/39

Fig#r! ': Mar7!- S0ar! o" 8ir!%!&& S!-or in '91) 51/6 Fig#r! ): Mar7!- S0ar! o" 8ir!%!&& S!-or

in '91/ 5136

The te+e#om i$dustr" is hi-h+" #om%etiti0e mr,et. The firms re -e$er++" %ri#e t,ers $d $ot %ri#e

m,ers. The te+e#om i$dustr" is domi$ted b" fe* +r-e %+"ers m,i$- it $ o+i-o%o+isti# mr,et. The

i$trodu#tio$ of Re+i$#e Commu$i#tio$s i$ &;;& +ed to %ri#e *r i$ the i$dustr" *ith te+e#om

o%ertors *ooi$- #ustomers b" --ressi0e %ri#i$- $d i$$o0ti0e strte-ies.

The redu#tio$ i$ triffs +ed to $ u%sur-e i$ the mobi+e %e$etrtio$ $d i$#resed the $umber of

subs#ribers. Lo*ered triffs *ere %redi#ted to resu+t i$to more t+, time $d he$#e more re0e$ue for the

o%ertors. o*e0erB thi$-s did$t -o s %er %+$. ARP> A0er-e re0e$ue %er user@ strted to de#+i$e.

I$#resi$- $umber of %+"ers i$ the mr,etB #ost of im%+eme$ttio$ of Mobi+e Number Portbi+it" MNP@

$d -o0er$me$t re-u+tio$s %ut further %ressure o$ the mr-i$s of the o%ertors. The de#+i$i$- ARP>s

#$ be see$ i$ Tb+e 3. H6

The de#+i$i$- ARP>s h0e +ed to o%ertors ser#hi$- for other 0e$ues for re0e$ue -e$ertio$. )t

ser0i#esB redu#tio$ i$ de+er mr-i$s $d #Fuisitio$ of hi-h 0+ue #ustomers re bei$- thou-ht of s the

$e* modes of re0e$ue -e$ertio$. Pri#e is $o +o$-er the #om%etiti0e d0$t-e i$ this i$dustr".

Com%$ies i$ this i$dustr" re $o* fo#usi$- o$ bui+di$- better re+tio$shi%s *ith their #o$sumers b"

offeri$- Fu+it" ser0i#es $d better %ost4s+es e/%erie$#e. The #om%etitio$ i$ this i$dustr" is mo0i$-

to*rds #Fuisitio$ of rur+ #ustomers $d tr"i$- to edu#te them bout the ser0i#es bei$- offered $d

their usefu+$ess i$ d"4to4d" +ife.

18


19/39

INTERNAL

A>)IT19


20/39

PRESENT POSITION OF AIRTEL

Airte+ ho+ds u$iFue %ositio$ i$ the te+e#om i$dustr" bei$- the +eder i$ South Asi *ith res%e#t to the

subs#riber bse *hi#h #rosses &;; mi++io$ subs#ribers i$ &;35. (he$ *e #o$sider the third Furter fi-ures

for the #om%$" i$ the "er &;35436B the %rofit fter t/ of 3578 #rore *s more th$ t*o fo+ds of the

%rofit of 83; #rore i$ the sme Furter of the %re0ious "er. This s%e,s 0o+umes of the he+th" rte t

*hi#h Airte+ is ddi$- o$to its subs#riber bse *hi#h i$ tur$ is tr$s+ti$- i$to hu-e %rofits for the

#om%$".

Re#e$t tre$ds h0e sho*$ tht Voi#e se-me$t *ou+d $ot be m1or #o$tributor to the re0e$ue i$ the

futureB but )t *i++ be the se-me$t to *t#h out for. (ith the #om%$" seei$- redu#tio$ i$ the

re0e$ues from 0oi#e i$ the 2Y36B its A0er-e Re0e$ue Per Mi$ute ARPM@ hs +so de#+i$ed. e$#e the

#om%$" is ri-ht+" fo#usi$- most of its tte$tio$ o$ )t re+ted te#h$o+o-". It is the o$+" ser0i#e %ro0ider to offer 5- LTE ser0i#es to 39 #ities #ross I$di. This is bou$d to dd to the #om%$"s 0+ue i$

the #omi$- future. I$ the fourth Furter of &;3& *here the dt us-e for the #om%$" stood t 3;;;;

mi++io$ M!B it -re* to 99&; mi++io$ M! i$ the third Furter of &;36. Thus the #o$tributio$ of dt to the

o0er++ re0e$ue of the #om%$" i$#resed from 5 %er#e$t to 38 %er#e$t o0er the sme %eriod. This 1ust

-oes to sho* the future %ote$ti+ of 7-5- ser0i#es i$ +r-e+" u$t%%ed smrt %ho$e mr,et of I$di.

Peo%+e h0e o$+" strted to re+i?e the uti+it" tht smrt %ho$es $d mobi+e i$ter$et h0e o$ offer. So the

te+e#om i$dustr" is 1ust s#rt#hi$- the surf#e *he$ *e t+, bout the dt us-e mr,et. H38

>$fortu$te+" thou-hB the #om%$"s o%ertio$s i$ Afri# h0e $ot bee$ resou$di$- su##ess *he$

#om%red to the #om%$"s o%ertio$s i$ South Asi. The %rofit mr-i$s h0e #o$tr#ted from &5 %er#e$t

to && %er#e$t i$ the third Furter of &;36 from the %re0ious Furter. It hs hi-h +e0e+ of debt *hi#h the

#om%$" is tr"i$- to redu#e b" se++i$- some of the to*ers there. The rtio$+e behi$d this de#isio$ is tht

the #om%$" *ou+d +ese the to*ers i$sted of o*i$- them. ThusB +thou-h the re$t+ +ese *i++ dd o$ to

the e/%e$sesB but the #om%$" *ou+d s0e o$ de%re#itio$ #ost $d em%+o"ee #ost. ThusB the #om%$" is

ho%i$- to redu#e the $et im%#t o$ the mr-i$s.

The )T busi$ess of Airte+ is +so doi$- de#e$t+" *e++ *ith the #urre$t subs#riber bse st$di$- t


21/39

o$ Furter. A+soB b" the estimtio$ of $+"stsB the #om%$" is e/%e#ted to -ro* its re0e$ues from the

)T busi$ess t the rte of 3& %er#e$t #om%ou$ded $$u+ -ro*th rte from the "er &;35 to &;39.

The most *ited e0e$t of the "er &;36 is the s%e#trum u#tio$ to be #o$du#ted i$ the mo$th of Mr#h.

Its m,e or bre, -me for m$" of the mobi+e ser0i#e %ro0iders *hose +i#e$ses re u% for re$e*+.

!ut Airte+ is i$ %rett" #omfortb+e $d $ e$0ious %ositio$ i$ the -me of s%e#trum. I$ the u#tio$s of

2ebrur" &;35B Airte+ hd %ur#hsed s%e#trum for most of the #ir#+es *here its +i#e$ses hd $ered e/%ir".

It +i#e$ses #omi$- u% for re$e*+ i$ si/ #ir#+es *heres for its ri0+s +i,e IdeB the +i#e$ses re u% for

re$e*+ i$ < #ir#+es $d for Vodfo$e the" re u% for 9 #ir#+es. The --ressi0e biddi$- i$ the s%e#trum

u#tio$s is $ot +i,e+" to ffe#t Airte+ mu#h s there is o$+" o$e #ir#+eB tht of A$dhr Prdesh *here

+i#e$ses of both Ide $d Airte+ re #omi$- u% for re$e*+. So the o0er+% bei$- o$+" i$ si$-+e #ir#+e is

$ot +i,e+" to ffe#t Airte+s fortu$es *he$ the biddi$- for this #ir#+e strts. I$ ++B Airte+ $eed $ot %+" its

#rds --ressi0e+" i$ the u#tio$s. This %uts the #om%$" t si-$ifi#$t+" +o*er ris, s #om%red to its

#om%etitors. H39

PAST AND PRESENT STRATEGIES

Airte+ is o$e of the most i$$o0ti0e te+e#om o%ertors i$ the *or+d. It #hm%io$ed the Mi$utes 2#tor"

mode+ b" ,ee%i$- ti-ht #o$tro+ o$ #osts. I$ effe#tB ++ the o%ertio$s e/#e%t fi$$#eB mr,eti$- $d s+es

*ere outsour#ed to other #om%$ies. This he+%ed the #om%$" to ,ee% +o* #osts +edi$- the #om%$" to

%ss o$ this be$efit to the subs#ribers b" s+shi$- the triffs. This +ed to #++ 0o+umes sori$- u% *hi#h i$

tur$ +ed to more re0e$ues for the #om%$". At its %e,B the mr-i$s of the #om%$" *ere 5; %er#e$t

hi-her th$ its ri0+ Ide Ce++u+r. This strte-" do%ted b" Airte+ is sub1e#t of m$" busi$ess #se studies

t to% busi$ess s#hoo+s of the *or+d.

o*e0erB i$ the +st fi0e "ersB risi$- #osts $d %ri#e *rs mo$- the te+e#om o%ertors h0e see$ %rofit

mr-i$s bei$- dri++ed to the -rou$d. This hs +ed to Airte+ do rethi$,i$- of its strte-" of #om%+ete

outsour#i$-. Airte+ hd %re0ious+" e$tered i$to outsour#i$- -reeme$ts *ith #om%$ies +i,e Eri#sso$ $d

No,i Sieme$s $et*or, for $et*or, m$-eme$tB I!M for the IT s"stems m$-eme$tB it e$tered i$to

1oi$t 0e$ture *ith I$dus To*ers for mi$ti$i$- the %ssi0e i$frstru#ture for the te+e#om eFui%me$t. Its

#++ #e$ter o%ertio$s *ere outsour#ed to I!MB M%hsisB i$du1B Ae-is !PO $d Norte+. Airte+ hs

de#ided to bri$- some of its outsour#ed o%ertio$s i$ house to bri$- more #o$tro+. The #o$tr#t *ith I!M

*hi#h the #om%$" re$e*ed i$ A%ri+ is $ i$di#tio$ for thi$-s to #ome. It hs t,e$ b#, some of the IT

o%ertio$s i$ house. O$e of the reso$s for Airte+ to outsour#e its IT o%ertio$s hs bee$ the +#, of

tri$ed te#h$i#+ e/%erts. !ut *ith the I$di$ IT i$dustr" -ro*i$- m$ifo+ds i$ the +st de#deB it hs

be#ome #om%rti0e+" sim%+er for the #om%$" to hire %eo%+e *ho re +red" tri$ed i$ the te+e#om ITo%ertio$s *hi#h #$ s0e the #om%$" tri$i$- #osts o0er the em%+o"ees.

A$other i$$o0ti0e -reeme$t *hi#h the #om%$" m$-ed to #h+, out *ith No,i Sieme$sB Eri#sso$

$d u*ei Te#h$o+o-ies *s tht of Per Er+$- mode+ of outsour#i$-. >$der the -reeme$tB Airte+ hd

to o$+" %" for the trffi# tht #me out of the bo/es mou$ted o$ the to*ers. It did $ot h0e to thi$, bout

ho* mu#h more $eeded to be s%e$t o$ i$frstru#ture. A++ the de#isio$s re-rdi$- *ht +e0e+ of $et*or,

uti+i?tio$ *i++ +ed to setti$- u% of dditio$+ #%#it" *ere +eft to the 0e$dors. e$#e Airte+ *s rid of

21


22/39

m,i$- ++ the de#isio$s re+ted to #%it+ e/%e$diture. o*e0erB *ith the +i,es of Ide $d Vodfo$e

h0i$- $ i$ house $et*or, %+$$i$- tem for t,i$- these de#isio$sB the" #ti0e+" mo$itored the $et*or,

#osts $d fi-ured out $e* so+utio$s to he+% the #osts #ome do*$. O$e of them i$#+udes i$st++i$- soft*re

so+utio$s o$ the bse sites for i$#resi$- effi#ie$#" s o%%osed to setti$- u% $e* sttio$s for the %ur%ose.

ThusB the #om%etitors *ere b+e to -et better effi#ie$#" out of their i$frstru#ture $d #%e/ *s do$e

o$+" i$ sites *here it *ou+d +ed to hi-her us-e of the #ustomers.

Airte+ hs thus strted to do mi$i ro++b#, o$ its strte-" to outsour#e ++ the #ore o%ertio$s of the

#om%$". A$other si-$ of this is the termi$tio$ of its A+#te+4Lu#e$t 1oi$t 0e$ture for m$-i$- the

brodb$d $d the +$d+i$e busi$ess of Airte+ i$ *hi#h &8 %er#e$t of the st,e *s *ith Airte+ $d the rest

*ith A+#te+4Lu#e$t. No* it hs t,e$ o0er 3;; %er#e$t o*$ershi% of this 0e$ture. Airte+ thus re+i?ed the

be$efit of bri$-i$- su#h fu$#tio$s i$ house s it he+%ed the #om%$" im%ro0e o$ its #ost effi#ie$#ies.

MARETING

(ith the #ore fu$#tio$s bei$- outsour#edB Airte+ *s m1or+" s+es $d mr,eti$- #om%$" i$ effe#t $dit did %rett" -ood 1ob t tht. Airte+s %rodu#ts #o$sist of brod+" t*o #te-oriesB tht isB %re%id $d

%ost%id. It se-me$ted the I$di$ mr,et 0er" *e++. I$ &;;5B s resu+t of its JV *ith RIMB Airte+ *s

b+e to +u$#h !+#,berr" *ire+ess ser0i#e i$ I$di. Airte+ hd %ositio$ed its br$d s +ifest"+e $d $

s%irtio$+ br$d *he$ it set out %rimri+" be#use of the hi-h #++ rte. ThusB it tr-eted the u%%er e$d of

tr-et mr,et #o$sisti$- of busi$ess %eo%+e. o*e0erB +ter it +so #me u% *ith +o* triff %+$s to #ter to

the $eeds of the midd+e $d +o*er midd+e #+ss. It %+"ed -ood ro+e i$ mr,eti$- its %rodu#ts to the

#o$sumers b" #++i$- them u% i$di0idu++" to +et them ,$o* bout the $e* ttr#ti0e offers $d %+$s. It

+so did se-me$ttio$ o$ the -eo-r%hi# $d demo-r%hi# +e0e+s. Airte+ hd 0riet" of differe$t %+$s for

e#h of the sttes the #om%$" hd its o%ertio$s i$. The demo-r%hi# di0ersit" of I$di mde the

#om%$" #ome out *ith differe$t %+$s for differe$t -e -rou% su#h s %+$ for se$ior #iti?e$s *hi#h

offered he0" dis#ou$ts o$ ST) #++s $d the 2rie$ds %+$ *hi#h s%e#ifi#++" tr-eted the "outh of

I$di.

It *s first mo0er i$ m$" %rodu#t i$$o0tio$sB +i,e -i0i$- +ifetime 0+idit" to subs#ribersB %ro0idi$-

e+e#tro$i# re#hr-eB e++o Tu$es $d ##ess to musi#. It #me out *ith $e* +o-os $d #t#h" t-+i$es to

ref+e#t the #h$-i$- times $d #h$-i$- #o$sumer s%irtio$s. Its first +o-o hd t-+i$e Tou#h

tomorro* to -i0e futuristi# %%e+ to the br$d. The $e/t +o-o $d its t-+i$e *s the most %o%u+r of

++. Airte+ si-$ed AR Rhm$ to #om%ose si-$ture tu$e for Airte+. The #om%$" #me out *ith

b+it?,rie- d #m%i-$ *ith me+odious #t#h" tu$e *ith t-+i$e Li0e E0er" Mome$t. The $e/t +o-o

hd t-+i$e E/%ress "ourse+f +so ##om%$ied b" $ i$$o0ti0e d #m%i-$. The re#e$t +o- of Airte+

is #++ed The (0e. It tries to %ortr" the d"$mism of the br$d tht Airte+ is tod". It si-$ed 0rious

#e+ebrities s its br$d mbssdors. The most %romi$e$t of them re S#hi$ Te$du+,rB Shhru,h 'h$B

Sif A+i 'h$B 'ree$ '%oor $d the +i,es. Its #o br$di$- strte-ies +so %id di0ide$ds *he$ it si-$ed

-reeme$ts *ith No,iB RIM $d I%ho$e. It he+%ed i$#rese the br$d 0+ue of the #om%$".

A++ these strte-ies he+%ed Airte+ #rete $ e$duri$- br$d i$ the e"es of the #o$sumers. It *s i$#+uded i$

the +ist of 3;; most 0+ub+e br$ds *hi#h *s #om%i+ed b" the reser#h firm Mi++*rd !ro*$.

22


23/39

S8OT ANALYSIS

S-r!ng-0&

3. Airte+ is the +r-est #e++%ho$e dmi$istrtio$ su%%+ier i$ the *or+ds se#o$d bi--est

te+e#ommu$i#tio$s mr,etB I$di. 0i$- more th$ 9; mi++io$ mobi+e $d *ire+ess subs#ri%tio$sB

I$di %ositio$s se#o$d fter Chi$ i$ the #e++%ho$e $d mobi+e busi$ess se#tor. Airte+ hs m$-ed to

-r$er humo$-ous &&.&D of the I$di$ mr,et. Mobi+e te+e%ho$e membershi%s $o* t,e fter the

t"%i#+ %o%u+#e s+$ts %re0+e$t rou$d the -+obe.

&. It hs *e++4bui+t $et*or, #ross the $tio$ bse *ith e/#e++e$t i$frstru#ture Airte+ hs bee$ i$ the

busi$ess for +o$- time more th$ 3 "ers@ $d therefore hs to*ers $d b#,hu+ e0er"*here

throu-hout the $tio$. 0i$- su#h $ e/te$si0e $tio$*ide setu% %ro0ides mssi0e d0$t-e to it

i$ this i$dustr". Arr$-eme$t of $e* i$$o0tio$s or e/%$di$- the +imits o$ o##sio$s ob+i-e

%ro-rmmi$- $d $e-+i-ib+e eFui%me$t o0erhu+. 0i$- its fou$dtio$ +id 0er" effe#ti0e+" o$ the-rou$d m,es ++ these %ro#esses mu#h fster $d smoother. 2urthermoreB it is sim%+er to #t#h $e*

#+ie$ts if te+e#om #om%$" hs su#h #om%rehe$si0e+" 0st s"stem set u%.

7. E$ormous br$d 0+ue Airte+ is mo$- I$dis most ob0ious br$ds i$es#%b+e i$ m$" %rts of the

#ou$tr" throu-h TVB %ri$tB so#i+ medi $d 0rious other t"%es of %romotio$s $d d0ertiseme$ts.

E$dorseme$ts b" %o%u+r #e+ebrities su#h s #ri#,eters$d !o++"*ood strs $d #reti0e %ub+i#it" tht

#om%rehe$d the bet of busi$ess se#tor re #o$siderb+e %er#e$t-e of the be$efits of the Airte+

br$d.

5. Ver" hi-h Fu+it" $d de%e$dbi+it" !hrti Airte+ +o$-side Vodfo$e@ ru$s o$e of the better

0ersti+e s"stems i$ I$di. The" h0e %e$etrted i$ +most ++ res #ross the $tio$ e$tr$#e $d+beit there is $o +#, of #ustomer -rie0$#es i$ re-rds to dro%%ed #++s $d moderte i$formtio$

-i$st Airte+B re-rd+ess it sti++ offers su%erior Fu+it" te+e#om dmi$istrtio$ e$#ou$ter *he$

#o$trsted *ith other differe$t te+e#om #om%$ies..

8!a7n!&&!&

3. I$te$se ri0+r" i$ the te+e#om se#tor Airte+B i$ the sme *" s ++ other dmi$istrtio$ su%%+iers i$

I$diB hs bee$ u$f0orb+" ffe#ted b" the #om%e++i$- 0+ue ri0+r" i$ the te+e#om i$dustr". I$ s%iteof the f#t tht the $orm+ #++i$- rtes h0e -o$e u% s of +teB the" *ere s +o* s Rs. ;.8mi$. 3

%isse#o$d@ #ou%+e of "ers %rior. This #ti0it" is #om%rti0e *ith the rtes of 7G $d dt

ser0i#es. A##ordi$-+"B the or-$i?tio$ hs bee$ re%orti$- dimi$ishi$- %rofits for +o$- time s the

ARP> A0er-e Re0e$ue %er user@ hd bee$ shri$,i$-B o*e0erB Airte+ s *e++ s other m1or

or-$i?tio$s i$ the te+e#om i$dustr" re e/hibiti$- si-$+s oh soo$ %osti$- -ro*th si$#e it seems to

h0e hit its +o*est %oi$t.

2#


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&. Lr-e debts $d fi$$#i+ issues As %er its most re#e$t Furter+" re%ortB Airte+ is +oded b"


25/39

brodb$d #$ %ro0ide for desirb+e $d fesib+e so+utio$. Airte+ hs +ed the %#, *ith this

d%ttio$ of LTE i$ 5 urb$ #ommu$itiesB "et it is im%erti0e for it TO mo0e fster i$ this domi$

$d e$h$#e the de%+o"me$t of LTE #ross #ities. Re-rd+ess of %o*er+ess LTE #ommu$it" i$ I$diB

Airte+ ou-ht to de%i#t itse+f s the embr#er of this i$$o0tio$ $d must see, fter the mobi+e h$dsets

$d de0i#es m,ers to #rete LTE e$b+ed -d-ets for I$di $d fter*rd +ed the %#, i$ the

estb+ishme$t of LTE for mobi+e %ho$e $et*or,s s *e++.

5. Joi$t 0e$tures $d Mer-ers $d A#Fuisitio$s The MKA re-u+tor" mesures i$ our #ou$tr" re

%rett" #umbersome $d diffi#u+t for te+e#om #om%$ies to m$-e. E0e$ thou-h it *s form++"

%ro#+imed +beit +teB tht medi re%orts h0e re#omme$ded tht or-$i?tio$s m" be %ermitted to

form mer-ers or #Fuire #om%$ies s +o$- s their shre i$ e0er" #ir#+e is u$der 6;D. Airte+B *ith

%ie#e of the o0er++ i$dustr" of &&.&D shou+d +oo, to #Fuire sm++er te+e#om #om%$ies to de#rese

ri0+r" $d e$h$#e its #ustomer bse. Su#h #Fuisitio$s *i++ i$iti++" #use imme$se r$-e #ostsB "et

it #ou+d be *e++ 1ustified i$ the +o$- hu+. A+soB 0e$turi$- i$ the forei-$ mr,ets is $other s%e#t

Airte+ sh++ i$0esti-te to form strte-i# %rt$ershi%s $d subseFue$t+"B estb+ish itse+f s +edi$-

-+ob+ te+e#om #om%$".

T0r!a-&

3. >$suitb+e dmi$istrti0e e$0iro$me$t The te+e#om busi$ess i$ I$di hs bee$ torme$ted b" $

$t-o$isti# $d f+ims" dmi$istrti0e $d re-u+tor" situtio$. This hs u$f0orb+" i$f+ue$#ed the

busi$ess estimtio$ $d the *ire+ess $d te+e#om #om%$ies. (hi+e some #+rit" hs strted to

de0e+o%B $umerous ru+es re +o$- *" from bei$- #erti$. Airte+ hs hd its o*$ shre of re-u+tor"

issues *ith TRAIB )OT $d 0rious sttes $d the #e$tr+ -o0er$me$t $d this thret seems to

#o$ti$ue +i$-eri$- i$ the $er future u$+ess drsti# ste%s re t,e$ to smoothe$ 0rious %ro#esses.

&. Re4frmi$- $d u#tio$s of s%e#trum b$ds I$ order to -r$er +r-e re0e$ues for itse+fB the

Go0er$me$t of I$di $d the Te+e#om Re-u+rit" Authorit" of I$di TRAI@ hd %ut u% hi-h reser0e

bse %ri#e for the u#tio$s of the 7GB &G $d 0rious other s%e#trum b$ds. I$iti++"B Airte+ hd s%e$t

Rs. 3&7 bi++io$ for 7G *ire+ess tr$smissio$s. Si$#e the %rofits re moderte be#use of +o* #ustomer

bse of 7GB %ur#hsi$- these r$-es t hi-h #ost is hi$deri$- the %erform$#e of the te+e#om i$dustr".

Re4frmi$- the


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ORGANI;ATIONAL STRUCTURE

The uthoritti0e stru#ture tht e/isted ti++ s of +te fo#used o$ the #hi$ of im%ort$#e of the o%ertio$s

$ot be$efits@ i$side the or-$i?tio$ ++ i$ ++. It +id more em%hsis o$ the hierr#h" re+ted to the

o%ertio$ $d $ot ser0i#es.

The stru#ture %ortr"s the #om%ri$- o%ertio$distri#t of di0erse i$4#hr-es $d thus it did$t #o$sider

$"bod" ##ou$tb+e for e#h of its ser0i#es.SoB the or-$i?tio$ thou-ht tht it *s ide+ to rebui+d its

hierr#hi#+ out+i$e $d it #me i$to effe#t from Au-ust 3B &;33.

The #h$-ed uthoritti0e stru#ture *i++ h0e t*o u$iFue Customer !usi$ess >$its C!>@ *ith #+er

#o$#e$trtio$ $d em%hsis o$ bothB !&! !usi$ess to !usi$ess@ s *e++ s !&C !usi$ess to Customer@

se#tio$s.

I$ this %ro#ess of stru#tur+ tr$sformtio$B Airte+ $o* ims to fo#us more o$ its #ustomers rther th$

o$+" +"i$- em%hsis e$h$#i$- te#h$o+o-". It hs $o* shifted its fo#us o$ %ro0idi$- user4frie$d+"

ser0i#es to its #+ie$t bse.

A+soB Airte+ hs $o* re+i?ed tht %%" em%+o"ees m,e %%" #ustomers $d hs he$#eB de#ided to

%ro0ide more %o*er $d uto$om" to its em%+o"eesB es%e#i++" se$ior m$-eme$t to s%eed u% the

de#isio$ m,i$- %ro#ess $d +so mi$ti$ $d further i$#rese the +o"+t" of its em%+o"ees to*rds

Airte+.

R!*a+$!2 S-r#-#r! in In2ia an2 So#-0 A&ia

Airte+ re#e$t+" reshuff+ed its dmi$istrtio$ stru#ture t,i$- #re of I$di busi$ess *herei$ the #urre$t

three #e$ters *i++ %rt i$to ei-ht #e$ters $s*eri$- dire#t+" to A1i PuriB *ho hs bee$ 0ested *ith the

res%o$sibi+it" of h$d+i$- $e*+" #reted %ostB )ire#torB Mr,et O%ertio$sB *ho i$ tur$B *i++ re%ort to

Go%+ Vitt+B CEO $d Joi$t M) I$di $d South Asi.

The $e* stru#tureB tht hd #ome i$ effe#t from Mr#h 3B &;35 *s imed t #o$stru#ti$- better i$ter4

#o$$e#ted or-$i?tio$ $d subseFue$t+"B ssisti$- it i$ mo0i$- #+oser to the mr,ets.

A fe* other rerr$-eme$ts +so too, %+#e *herei$ some e/e#uti0es *ere desi-$ted differe$t %ositio$s

$d res%o$sibi+ities. The #urre$t stru#ture of !hrti Airte+ for I$di $d South Asi hs bee$ de%i#ted

be+o* throu-h f+o*#hrt:4

2$


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CORE COMPETENCY

!hrti Airte+ hs +id out its #ore #om%ete$#ies *ith %rimr" fo#us o$ #ustomer $eeds $d for %ro0idi$-

su%reme #ustomer ser0i#es. Its #e$tr+ bi+ities re to u$derst$d the #+ie$ts $e#essities $d bui+d

si-$ifi#$t br$d esteem. Mr. Su$i+ !hrti Mitt+B the ed o$#ho of the !hrti e$ter%rise $d Chirm$

of Airte+B hd de#isio$ to m,e: e$de0or to e/te$d the #e$tr+ #%bi+ities of Airte+ to ##ommodte

these e/tr bi+itiesB or to sti#, to his strte-" $d fi$d differe$t or-$i?tio$s to su%%+eme$t the %titudes

tht Airte+ *s defi#ie$t i$ $d he$#eB f#ed the d$-er of de%+o"i$- -e$er++" u$tested mode+ i$side te+e#om #om%$".

A$d the$ be-$ the m1or ts, of Outsour#i$-B o$e of the m1or #om%ete$#ies of Airte+. It de#ided to

#o$tr#t re$o*$ed $et*or, eFui%me$t se++ers su#h s Eri#sso$B No,i $d Sieme$s to %ro0ide su%erior

Fu+it" ser0i#es. Li,e*iseB it deft+" %i#,ed I!M to h$d+e the IT $et*or,sB $ e/treme+" #riti#+ %rt for

te+e#om #om%$". E#h of these se++ers *s %id o$+" s ser0i#e %ro0iders $d 0e$dors $d $ot s

o%ertio$+ 0e$dors.

27


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RECOMMEN

)ATIONSAN)

CONCL>SION

28


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8HY AIRTEL OUTSOURCED<

The d0$t-es Airte+ hd due to out sour#i$- reB it redu#ed the o0er++ #osts i$#+udi$- +bour #ostsB

+o*ers o%ertio$+ #osts $d *ou+d h0e o%%ortu$it" to shre best %r#ti#es of other #om%$ies $d #$

he+% im%ro0e the effi#ie$#" of their o0er++ o%ertio$s.

There re fe* disd0$t-es:

@ the #om%$" *ou+d $ot h0e #o$tro+ o0er the o%ertio$s of the othersB b@ differe$t #om%$ies *ou+d h0e differe$t missio$ stteme$ts *ou+d #use #o$0o+uted busi$ess

-o+sB#@ The #om%$"s fi$$#i+ *e++4bei$- de%e$ds o$ the fi$$#i+ *e++4bei$- of the $other #om%$"

to *hom it hs out sour#edBd@ There is thret of #o$fide$ti+it" $d se#urit"

SHOULD AIRTEL CONTINUE TO

OUTSOURCE<

Airte+B duri$- its i$iti+ "ers $d duri$- their e/%$sio$ i$ &;;54;6B hd outsour#ed $d it *s hd

su##ess. I$ its i$iti+ "ersB Airte+ did$t h0e the #%bi+ities $d +so the i$frstru#ture to %erform ++

o%ertio$s i$ house. Curre$t+"B Airte+ is $ estb+ished %+"er $d it $o* $eeds to mo0e *" from the

te+e#om mr,eti$- #om%$" $d shou+d h0e m$" of its #ore o%ertio$s i$ house to redu#e the #osts $d

+so to h0e more #o$tro+ o0er their o%ertio$sB I$ er+" &;;;s the IT i$frstru#ture *s $ot ffordb+e

$d to re#ruit IT %eo%+e *s #ost+" but $o* the Airte+ #$ fford $d +so re#ruiti$- IT %rofessio$+s is $ot#ost+". So Airte+ $eeds to i$#rese its hum$ resour#e $d bri$- IT i$ house to redu#e the #osts s other

Com%etitors.

Airte+ hs the hi-hest mr-i$s #om%red to other te+e#om o%ertors but of +te Airte+ is +osi$- o$ the

mr-i$s $d the other o%ertors re i$#resi$- their mr-i$s. No* Airte+ #$ strt bri$-i$- m$" of its

#ore o%ertio$s i$ house $d it *ou+d de#rese the #osts $d +so i$#reses the #o$tro+ Airte+ +so hs

strted to re#ruit IT %rofessio$+s $d +so strted to bui+d +ot of future $d $e*er i$$o0tio$s i$ house@

29


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Air-!% Min#-! "a-or( +o2!%:2or +most m$" "ersB I$di$ te+e#om o%ertors used subs#riber4+ed mode+ $d $obod" #ou+d er$

mo$e" bsed o$ tht mode+. I$ &;;34;&B !hrti Airte+ hs #ome u% *ith mi$ute f#tor" mode+ *hi#h

+ed to boost i$ its re0e$ue. 2urther e+borti$- o$ mi$ute f#tor" mode+B this mode+ is m$uf#turi$-

m$tr d%ted b" the ser0i#e se#tor. E/%+i$i$- i$ +"m$ termsB it me$s ,ee%i$- the #osts +o* $d

i$#resi$- the us-e. !hrti Airte+ hs do$e it the sme *"B it mi$ti$ed it #osts ti-ht+"B redu#ed triffs

$d fo#ussed o$ i$#resi$- the us-e. It is robust mode+B i$ *hi#h Airte+ hs outsour#ed ++ its #ti0ities

+i,e $et*or, %+$$i$-B IT *hi#h is #o$sidered b#,bo$e for the o%ertio$s $d reti$ed o$+" mr,eti$-B

s+es $d fi$$#e to itse+f. Thereb" +teri$- fi/ed #osts i$to 0rib+e #osts $d this e$b+es the o%ertor to

#o$tro+ the #osts ti-ht+". Pre0ious+" the %rofitbi+it" of te+e#om o%ertor used to be determi$ed b" the$umber of subs#ribers $d hi-h triff rtes o$ #++s. !ut Airte+ redefi$ed the m$tr of su##ess usi$- the

mi$ute f#tor" mode+B *here the %rofitbi+it" *s dri0e$ b" the -ro*th i$ us-e. Mi$ute f#tor" mode+

si-$ifies tht the subs#ribers to the Airte+ fo+d es#+te treme$dous+" $d more $d more users te$d to

i$#rese their us-e due to +o* triff rtesB these f#tors #umu+ti0e+" i$#rese the %rofits. This mode+ hs

e$h$#ed Airte+ to tr-et the msses *ho re the bu$d$t sour#e of re0e$ue to the o%ertor.

A##ordi$- to busi$ess out+oo,.#om mi$ute f#tor" mode+ hs i$#rese the us-e b" 683D due to

redu#tio$ i$ triffs b" 69D. This is 0er" su##essfu+ mode+ im%+eme$ted i$ I$diB but hs$t mde -ret

differe$#e i$ Sri L$,. !ehi$d the #+osed doorsB !hrti Airte+ hs f#ed %rob+ems to im%+eme$t mi$ute

f#tor" mode+ i$ Sri L$, due to fi/ed f+oor rtes. )ue to *hi#h Airte+ hs$t bee$ su##essfu+ i$

i$#resi$- the users to Airte+ fo+d. Ne0erthe+essB !hrti Airte+ is Fuite bu++ish bout the mode+B $d is

%+$$i$- to im%+eme$t it i$ Afri#. As Airte+ is mr,et +eder i$ 3; out of 36 mr,ets $d is the se#o$d

+r-est %+"er i$ four #ou$tries. This *i++ he+% Airte+ %e$etrte dee%er i$to the mr,ets $d i$#rese the

subs#ribers to Airte+ fo+d i$ Afri#. The *ho+e ideo+o-" behi$d the im%+eme$ttio$ *s to dro% %ri#e $d

e$#our-e Afri#$s to i$#rese their us-e i$sted of i$#resi$- the bud-et of %eo%+e. H3

The strte-" of fo++o*i$- mi$ute f#tor" mode+ *ou+d be su##essfu+ s it +red" hs estb+ished itse+f s

se#o$d to% o%ertor i$ Afri#. So it is be+ie0ed tht im%+eme$ti$- the strte-" *ou+d be esier to estb+ish

#0


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$d im%+eme$t. 0i$- sid thtB the $e-ti0e s%e#t of im%+eme$ti$- the strte-" i$ Afri# is tht it

*ou+d be #h++e$-i$-B -i0e$ the +e0e+ of urb$i?tio$ i$ Afri#. A##ordi$- to 2orbesB the +e0e+ of

urb$i?tio$ i$ Afri# is &;D 4 7;DB this me$s tht the subs#riber %o%u+tio$ is *ide+" s%red #ross the

#ou$tr".

INNOVATIVE MARETINGSTRATEGY

Airte+ hs im%+eme$ted i$$o0ti0e mr,eti$- strte-". It e$--es i$ --ressi0e mr,eti$- strte-ies of

both trditio$+ $d so#i+ medi mr,eti$- #h$$e+s. Airte+ *s the first o$e to #ome u% *ith e++o

Tu$es *hi#h *s m1or hit mo$- the #ro*d $d i$#resed its 0isibi+it" to 0er" +r-e e/te$t. It hs

re%ositio$ed itse+f from time to time to e$h$#e their #o$$e#ti0it" *ith their #ustomers. It hs used 0er"

e$--i$- d0ertiseme$ts to %ositio$ itse+f s most +o0ed br$d mo$- the msses. Off +teB Airte+ hs

u$0ei+ed $e* #m%i-$ of mu+timediB throu-h *hi#h it *s e$#our-i$- the us-e of mobi+e dt $d

smrt %ho$esB s Airte+ hs fou$d re0o+utio$i?ed o%%ortu$it" of re0e$ue i$ mobi+e dt us-e. (ith the

mr,et mo0i$- to*rds mu+timedi $d 0oi#e bsed offeri$-B Airte+ hs su##essfu++" %ositio$ed itse+f s

most %referred $et*or, there b" -i$i$- $ d0$t-e mo$- its te+e#om #om%etitors.

THE GAME CHANGING STRATEGY4

MOBILE DATA

The $e/t -me #h$-i$- strte-" to be im%+eme$ted b" Airte+ is tr-eti$- mobi+e dt. The us-e of

mobi+e dt b" I$di$s hs bee$ o$ r%id rise -i0i$- o%%ortu$it" to the o%ertors. The estimtes -i0e$ b"

IAMAI $d IMR! re the #urre$t %o%u+tio$ usi$- )t is &57 mi++io$ subs#ribers. The e/%editious

-ro*th is dri0e$ b" 0rious f#tors.

The first $d foremost f#tor e$h$#i$- the -ro*th is the stu%e$dous -ro*th i$ smrt %ho$e subs#ribers.

There is hi-h #orre+tio$ bet*ee$ the smrt %ho$e users $d mobi+e dt us-e. Gi0e$ the f#t tht the

f++i$- %ri#esB hs ##e+erted the smrt %ho$e mr,et b" %er#e$t-e of &


32/39

i$#resed the us-e of mobi+e dt. This i$du+-e$#e of o$+i$e sho%%i$- hs bee$ m1or f#tor to use

mobi+e dt.

These #o$tributi$- f#tors hs ,e%t o$ tb+e $ o%%ortu$it" to Airte+B Airte+ hs u$derstood this %ote$ti+

$d hs #ome u% *ith i$$o0ti0e %rodu#ts $d %ro%er $et*or, #o0er-e to e$--e subs#ribers $d

i$#rese the subs#ribers i$to the Airte+ fmi+". It hs offered #om%etiti0e %ri#i$- for dt Gi0e$ tht Airte+

hs bee$ b+e to #hie0e o$e of the hi-hest dt ARP> $d it is *" behi$d its #om%etitors i$ %ro0idi$-

the mobi+e dt %#,-es to the #ustomers.

ANALYSIS OF AIRTEL STRATEGY

USING 34 LEVEL BUSINESS

STRATEGY

After h0i$- $+"sed the i$dustr" e$0iro$me$t $d its i$ter$+ e$0iro$me$t +o$- *ith the im%ort$t $d

-me #h$-i$- strte-ies im%+eme$ted b" Airte+B it is u$derstood tht Airte+ s te+e#om o%ertor is

%ositio$ed itse+f s susti$b+e $d su##essfu+ o%ertor due to its mi$ute f#tor" mode+.

6 +e0e+ busi$ess strte-ies re%rese$t the strte-" fo++o*ed b" the or-$i?tio$ er$ re0e$ue $d e$h$#e

their %rofits. It is the method used b" the o%ertor to #o$du#t their o%ertio$s $d e/e#ute their busi$ess

fu$#tio$s. There re 6 differe$t ,i$ds of busi$ess strte-ies bsed o$ the or-$i?tio$s #om%etiti0e

d0$t-e $d brod tr-et. Airte+ bsed o$ its #om%etiti0e d0$t-e $d brod tr-et f++s u$der the first

$d foremost #te-or" of Cost Ledershi% duri$- its er+" "ers i$ the te+e#om i$dustr".

2urther e+borti$- o$ the #te-or" Airte+ #o$#e$trtes $d hs used mi$ute f#tor" mode+ to i$trodu#e

+o* #ost triff rtes. It hs estb+ished itse+f s +o* #ost +eder b" #o$#e$trti$- o$ %ro0idi$- the

ser0i#es effi#ie$t+" i.e. b" $e* i$te-rted $d estb+ished $et*or,s #ross the %+#e to %ro0ide re+ib+e

#o$$e#tio$s. >si$- its mi$ute f#tor" mode+ it *s b+e to #h$-e fi/ed #osts i$to 0rib+e #osts $d

redu#e the o0er++ #osts of the 0+ue #hi$ s"stem there b" %ro0idi$- +o* #osts to #ustomers. >si$- its

+o* #ost %ositio$i$- i$ the i$dustr" it ho+d $ ttr#ti0e %ositio$ i$ the i$dustr" i$ terms of its f+e/ibi+it"

i$ %ri#i$- +o* triffs $d stro$- $et*or, 0i+bi+it". It #o$ti$u++" im%ro0es its effi#ie$#" $d #ost

redu#tio$. Gi0e$ the si-$ifi#$t e$tr" brriers to %ote$ti+ #om%etitors i$ the te+e#om i$dustr"B the

ttr#ti0e %ositio$ is 0+ub+e defe$#e -i$st its ri0+s.

Off +teB due to -+ob+i?tio$ $d -+ob+ e$tr" of Airte+ i$to the i$ter$tio$+ mr,etsB It strted fo++o*i$-

the strte-" of I$te-rted #ost redu#tio$ Ledershi%. It hs used it i$te-rted $et*or, to outsour#e its

$et*or, $d IT re+ted $d -i$ #om%etiti0e d0$t-e i$ redu#i$- its #osts. It hs su##essfu++"

im%+eme$ted the strte-" to -i$ its re#hB ri#h$ess $d ff+i#tio$ mo$- its #ustomers b" stisf"i$- them

$d effe#ti0e+" m$-i$- its re+tio$shi%s *ith #ustomers. It hs determi$ed its #ore #om%ete$#ies $d

e$sured tht it +e0er-es them to stisf" its #ustomers. !" do%ti$- this %rti#u+r strte-" of i$te-rted

+o* #ost +edershi%B it hs effi#ie$t+" %ro0ided ser0i#es to #ustomers #ross the -+obe *ith differe$tited

ttributes. The ttributes i$#+ude effi#ie$#" of the ser0i#e b" %ro0idi$- +o* #ost ser0i#e to #ustomers $d

effi#ie$#". It hs #o$#e$trted to be#ome #om%ete$t i$ this t*o #ore #om%ete$#iesB %rimr" $d

#2


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se#o$dr" #ti0ities. >si$- this strte-"B Airte+ hs im%ro0ed its bi+it" to d%t to the e$0iro$me$t $d

+er$ $e* s,i++s $d te#h$o+o-ies. It tries to +e0er-e its #om%ete$#ies #ross busi$ess u$its +i,e Airte+

I$diB Airte+ Sri L$,B Airte+ !$-+desh $d i$ Afri# $d %rodu#t +i$es +i,e dtB #++i$- #rds $d

mess-i$- %#,s. >si$- this strte-" it hs su##essfu++" tried to m$-e the fi0e for#es $d #hie0e

strte-i#++" hi-h %ositio$ i$ the te+e#om i$dustr".

CURRENT SCENARIO AND THE 8AY

AHEAD

The #om%etitio$ is 0er" i$te$se i$ I$di $d tht hs ffe#ted the %ri#i$- $d this hs resu+ted i$ 0er" +o*

rtes $d rtes i$ I$di re +o*est #om%red to most of the de0e+o%i$- #ou$tries.

Thou-h I$di hs o$e of the +r-est subs#riber bseB +o* mobi+e triffs $d i$te$se #om%etitio$ to be

+eder i$ the 0o+ume -me hs im%#ted the %rofitbi+it". The #urre$t A0er-e re0e$ue %er user ARP>@ is

1ust rou$d Rs. 3.

##


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As the 0oi#e re0e$ues re u$der %ressureB Airte+ $eeds to #o$#e$trte o$ the $o$40oi#e re0e$ues +i,e dt

ser0i#es $d mobi+e *++et.

EY CHALLENGES AND 8AY

FOR8ARD FOR AIRTEL

I. Pri! in"%!,ii%i-(:

Customers re 0er" %ri#e se$siti0e $d #ustomer +o"+t" is 0er" +o*B the #h++e$-e for Airte+ is to $ot +ose

o$ its mr-i$s $d i$#rese the #o$sumer bse. Com%$" $eeds #ome u% *ith #ustomi?tio$ %+$sB

thou-h Airte+ hs #ustomi?tio$ %+$ but the o%tio$s re +imited. It $eeds to #ustomi?e %+$ for the

#ustomer bsed o$ the us-e $d it shou+d $ot +ose the #ustomer bse for the %ri#e i$f+e/ibi+it"

II. Si+i%ar $ro2#-&:

The mobi+e ser0i#e %ro0iders h0e +o* brriers to e$tr" $d there is $o differe$titio$ i$ the %rodu#ts

bei$- offered b" differe$t te+e#om #om%$iesB therefore #om%$" #$$ot h0e differe$titio$ strte-" i$

%rodu#ts bei$- offered. Airte+ $eeds to h0e differe$titio$ i$ ser0i#e. Airte+ hs +r-e bse $d $o* it

$eeds to #o$#e$trte o$ i$#resi$- #o$sumer +o"+t" b" -i0i$- +o"+t" %oi$ts $d offers to the +o"+

#ustomers $d +so shou+d -o for mss #ustomi?tio$. The %+$s $d s#hemes shou+d be #ustomi?ed bsed

o$ the us-e $d this *ou+d he+% i$ re-i$i$- #ustomers s for them to be e+i-ib+e for the #ustomi?tio$

%+$ the" $eed to st" *ith %rti#u+r $et*or, for #erti$ %eriod of time.

III. Moi%! n#+!r $or-ai%i-(:

Mobi+e $umber %ortbi+it" hs i$#resed the ese of #h$-i$- of the $et*or,s $d it +so hs inr!a&!2

-0! argaining $o!r o" -0! on+!r. Therefore Airte+ $eeds to i$#rese #ustomer +o"+t" $d #ome u%

*ith the +o"+t" %oi$ts $d #redits *hi#h *ou+d he+% the #om%$" reti$ $d h0e +o"+ #ustomers.

The mobi+e i$ter$et -ro*th is hi-h $d Airte+ $eeds to #sh it to susti$ its %rofitbi+it". o*e0erB there

re sti++ m$" brriers effe#ti$- mobi+e i$ter$et

@ The do%tio$ of mobi+e i$ter$et mo$- feture %ho$e #ustomers. The feture %ho$e #ustomers re $ot

usu++" do%ti$- mobi+e dt ser0i#es $d Airte+ $eeds to %ush $d m,e the users do%t mobi+e

i$ter$et.

b@ Mobi+e i$ter$et is +r-e+" used o$+" b" "outh $d me$. The mobi+e i$ter$et is more %re0+e$t o$+" i$"outh $d me$ $d Airte+ $eeds to t% the *ome$ mr,et *ith fe* offers to the *ome$ #ustomers b"

-i0i$- them the *hts%% dt ser0i#esB s it is so#i+ %% $d *hi#h $o* strti$- to be#ome more

%re0+e$t mo$- *ome$ #ustomers. After the i$iti+ us-e of the (hts%% the" *ou+d strt usi$- the

other ser0i#es.#@ Mobi+e i$ter$et users i$ Rur+ re re +imited

RECOMMENDATIONS:

#4


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!CG Mtri/

@ Air-!%’& T!%!+!2ia &!r*i! is the se#o$d +r-est mr,et shre $d the mr,et -ro*th rte of

i$ter$et i$ I$di is i$#resi$- $d -ro*th rte is hi-h so Airte+ shou+d tr" $d #o$so+idte $d#ome u% *ith better ser0i#e Fu+it" to i$#rese its mr,et shre. It is i$ the &-ar Fudr$t of the

!CG mtri/. It #o$tributes rou$d 3;D to the Airte+s re0e$ues b@ Digi-a% -!%!*i&ion +ar7!- is i$#resi$- t hi-h rte due to the -o0er$me$t %o+i#" to di-it+ise

this mr,et. As Airte+ is +red" %rese$t i$ this se-me$t $d it is mo$- to% 7 i$ user bse

Sour#e: Airte+ i$0estor %rese$ttio$ No035@. It hs -ood mr,et shre $d +so the mr,et is

-ro*i$- t r%id rte. Therefore )i-it+ ser0i#es *ou+d #ome i$ &-ar Fudr$t of !CG mtri/

$d Airte+ $eeds to #o$#e$trte $d i$#rese the user bse i$ this mr,et s mr,et is i$ -ro*th

st-e#@ Air-!% B#&in!&& #o$tributes bout 3D to the Airte+s re0e$ues $d it is I$dis +edi$- $d most

trusted %ro0ider of ICT ser0i#esB the mr,et -ro*th rte is s+o* $d the mr,et shre is 0er" hi-h

thereforeB it #ome i$ o Fudr$t of !CG. Airte+ $eeds to strte-i#++" -e$erte hi-her re0e$ues b" h0i$- #om%etiti0e %ri#i$- for the ser0i#es. H&3

d@ Moi%! &!r*i!& #o$tribute for the m1or %er#e$t-e of Airte+s re0e$ues $d it is +r-est mobi+e

ser0i#e %ro0ider i$ I$di $d third +r-est i$ the *or+dSour#e: Airte+s Furter+" i$0estors re%ort

%rese$ttio$@ the mobi+e ser0i#es #$ be di0ided i$to 0oi#e $d $o$40oi#e ser0i#es .e@ Voi! &!r*i!& +ar7!- is sturted $d its -ro*i$- t 0er" s+o* %#e $d therefore it is i$ the

o Fudr$t of !CG mtri/. Airte+ $eeds to #ome u% *ith differe$t #o$sumer +o"+t" strte-ies

+i,e i$di0idu+ +e0e+ #ustomi?tio$ of 0oi#e ser0i#es $d +so h0i$- +o"+t" %+$s to reti$

#o$sumers $d i$#rese +o"+t".f@ Non4Voi! &!r*i!& +ar7!- is -ro*i$- t +r-e %#e $d s Airte+ is the mr,et +eder i$ this

se-me$tB thereforeB it is i$ the &-ar Fudr$t of !CG mtri/.Airte+ $eeds to #ome u% *ith differe$t strte-ies to i$#rese the re0e$ues from the mobi+e dt

ser0i#es.-@ To!r in"ra&-r#-#r!: To*er i$frstru#ture #o$tributes bout &D to the Airte+s re0e$ues. The

mr,et -ro*th rte is s+o* $d Airte+ hs +r-e i$frstru#ture bse. Therefore it #omes i$ the

o Fudr$t of the !CG mtri/. It $eeds to #o$so+idte $d i$#rese its re0e$ues from this

mr,et se-me$t. H&&h@ Air-!% +on!( is +test $d o$e of its ,i$d of ser0i#e %ro0ided b" Airte+ $d it is i$ $s#e$t st-e.

As it is $e* mr,et the -ro*th rte is s+o* $d +so Airte+ hs +r-e mr,et shre therefore it

#omes i$ the ?#!&-ion +ar7 Fudr$t of !CG mtri/. Airte+ $eeds to #ome u% *ith -ood

#$


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mr,eti$- strte-ies $d tr-et the #ustomer bse *ho re more %ro$e to use the bo0e ser0i#es.

(ith i$#rese of the o$+i$e tr$s#tio$s $d e4#ommer#eB Airte+ $eeds to e/%+oit its first mo0er

d0$t-e $d h0e +r-e user bse $d tr" ttr#ti$- $e* #o$sumers throu-h this ser0i#e.

B. TO8S Ma-ri, Ana%(&i&:

TO(S mtri/ is used to $+"se the stre$-thsB *e,$essesB o%%ortu$ities $d threts of Airte+ $d to

su--est differe$t strte-ies for Airte+ i$ future to #ou$ter its threts $d *e,$esses *ith the o%%ortu$ities

$d stre$-ths.

S-r!ng-0&

i. No.3 o%ertor i$ I$di

$d No.& i$ Afri#ii. It hs *e++4bui+t

$et*or, #ross the

$tio$ bse *ithe/#e++e$t i$frstru#ture

iii. E$ormous br$d 0+uei0. Ver" hi-h Fu+it" $d

de%e$dbi+it"

8!a7n!&&

i. Lr-e debts $d

fi$$#i+ issuesii. Prob+ems fter the

A#Fuisitio$s i$ the

Afri#

O$$or-#ni-i!&

i. Ne* $d u$t%%ed

mr,etsii. Re0e$ues from 7G $d

dt ser0i#esiii. )e%+o"me$t of LTEi0. Tie u%s *ith mobi+e

%ho$e #om%$ies

Airte+ #$ +e0er-e its %ositio$

$d i$frstru#ture to t% the

$e* $d u$e/%+ored mr,ets.

It #$ +so use its robust

$et*or,s to de%+o" $d t,e

d0$t-e i$ %%+i#tio$ of LTE te#h$o+o-"

Airte+ $eeds to im%ro0e its

re0e$ues from the 7G $d dt

ser0i#es to #ut do*$ o$ the

debts $d +so the tie u%s $d

LTE *ou+d he+% Airte+ i$

redu#i$- the debts

T0r!a-&

i. >$suitb+e

dmi$istrti0e

e$0iro$me$tii. Re4frmi$- $d

u#tio$s of s%e#trum

b$dsiii. Mobi+e Number

Portbi+it" MNP

i0. Ne* e$tr$ts +o* %ri#e offeri$-

Its br$d 0+ueB hi-h Fu+it"

$d de%e$dbi+it" *ou+d he+%

i$ #ou$teri$- the MNP. As

Airte+ hs robust i$frstru#ture

$d it #$ +e0er-e it $d

redu#e its #osts to #ou$ter the

$e* e$tr$ts +o* %ri#es

Airte+s %erform$#e is -ood

$d it is $ estb+ished %+"er

to #ou$ter the threts $d

*e,$esses.

CONCLUSION

The rti#+e hs out+i$ed the e/ter$+ f#tors #om%rehe$si0e+" to -et #+er u$derst$di$- of the te+e#om

i$dustr" before de+0i$- i$to the $itt"4-ritt" of the te+e#om mr,et +eder Airte+. The %orters fi0e for#es

h0e brou-ht to +i-ht the %ro%er e0+utio$ of f#tors i$f+ue$#i$- te+e#om o%ertorB Airte+ i$ %rti#u+r.

#7


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Airte+ s mr,et +eder hs +e0er-ed its #ore #om%ete$#ies to susti$ the #om%etiti0e e$0iro$me$t. It

hs brou-ht to $oti#e tht the #om%etitio$ is 0er" i$te$se i$ the i$dustr"B but t the sme time it hs

medium brriers of hi-h i$0estme$t *hi#h is restri$i$- from i$#resi$- the #om%etitio$. The e/ter$+

$d i$ter$+ f#tors $+"?ed %re0ious+" sho*#ses tht Airte+ hs used its resour#es $d the e/ter$+

#o$ditio$s to its be$efit $d -ro* i$to -+ob+ #om%$" #urre$t+" o%erti$- i$ &; #ou$tries #ross Asi

$d Afri#. )uri$- its i$st++tio$ st-esB it #o$#e$trted o$ its foremost strte-" of outsour#i$- $dre0o+utio$i?ed the triff rtes i$ te+e#om i$dustr". The strte-" of mi$ute f#tor" mode+ hs %+"ed 0er"

#ru#i+ ro+e i$ #utti$- do*$ its #osts $d i$#resi$- the #ustomers us-eB *hi#h hs dire#t rise i$

re0e$ue. Airte+ hs bee$ 0er" i$te++i-e$t to ,ee% to itse+f the #ru#i+ %ro#esses +i,e mr,eti$-B s+es $d

fi$$#e. It is ,$o*$ to use i$$o0ti0e mr,eti$- strte-ies to -i$ #ustomers tte$tio$ $d +so stre$-th

its re+tio$shi% *ith them. The other %romi$e$t strte-" *hi#h he+%ed AirTe+ #h$-e its fi/ed #osts i$to

0rib+e #osts *s Per Er+$- mode+ of outsour#i$-B I$ this ,i$d of outsour#i$- mode+ the o%ertor 1ust

%"s for the trffi# #omi$- out from the bo/esB thereb" the 0e$dor #$ de#ide the #%#it" s %er the

$et*or, uti+i?tio$. >si$- this mode+ Airte+ #$ be #o$#er$ed bout 1ust #ustomer #Fuisitio$ $d

reti$i$- them. The !CG Mtri/ do$e to #+er+" ide$tif" the ser0i#es %rodu#ts to be #o$#e$trted i$ the

#omi$- future e$u$#ite tht AirTe+ te+e4medi $d mobi+e $o$ 0oi#e ser0i#e mr,et re str #om%o$e$tsB

AirTe+ s $ o%ertor hs to #%it+i?e the o%%ortu$it" to i$#rese its re0e$ue $d e$h$#e its mr,et

shre. TherefterB the strte-ies of Airte+ h0e bee$ $+"?ed usi$- 64!usi$ess +e0e+ strte-ies *hi#h

sho*#sed tht Airte+ *hi#h %re0ious+" used Lo* #ost +edershi% hs e0o+0ed s %er the busi$ess $d

-+ob+ reFuireme$ts $d is #urre$t+" uses I$te-rted #ost +edershi% )iffere$titio$. )iffere$titio$ *s

used to dhere to 0rious reFuireme$ts s %er their -eo-r%hi# re-io$s. The $+"sis hs +ed to

re#omme$di$- the future %robb+e strte-ies Airte+ hs to fo++o* to fi-ht the #om%etitio$ $d susti$ s

mr,et +eder $d s most %referred o%ertor i$ the te+e#om i$dustr". The %ro%ositio$s -i0e$ re bsed

o$ the #urre$t $d future %robb+e "er$i$-s for the #ustomers $d re +so bsed $ot o$+" o$

or-$i?tio$+ stru#ture but +so o$ s+es. The %ro%ositio$ of #o$ti$ui$- *ith I$te-rted #ost +edershi%B

usi$- mi$ute f#tor" %er Er+$- mode+B im%ort$#e to dt %#,-es he+%s Airte+ u-me$t its -+ob+

re0e$ue $d br$d.

H33


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4. http://www.medianama.com/2013/04/223-india-mobile-arpu-minutes-cdma-gsm-2/. http://mybroadband.co.za/news/internet/!1"-south-africas-internet-access-stats-

revealed.html

". h!!p-..///!rai"o(in.ri!e&eada!a.ha!)Ne/.ocumen!).3ndica!or

20&epor!)200108201#pd* #. h!!p-..///iip)en(i)nicin.a!a6a)e.Popula!ion4087a)p!. http://www.thehindubusinessline.com/features/smartbuy/tech-news/3g-drove-mobile-data-

traffic-growth-in-2014-study/article"$0$4$!.ece$. h!!p-..///dnaindiacom.india.repor!indiaha)/orld)lar"e)!you!h

popula!ionuni!edna!ion)repor!20#$2$210. h!!p-..///i6e*or".indu)!ry.!elecommunica!ion)a)p11. h!!p-..///do!"o(in.)i!e).de*aul!.le).%&20201#1420:n"li)h

20282291pd* 12. h!!p-..///mceamacom.indu)!ryeper!i)e.!elecom.13. h!!p-..///dn6coin.3ndia);eadin"3n*ra)!ruc!ure

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