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GROUP 2:

Rakesh S K
Giriraj Navander
Anjani Krishna K S
Narla Venkat Nikhil
Ajay Milind Halepaty
Koppineni V N S Rohit Kumar

INTRODUCTION
Incorporated on July 7, 1995 for promoting telecommunications services.
It is one of Indias leading private sector providers of telecommunications
services with more than 249.31 million customers with market share of
24%.
Its revenue for financial year 2014-15 stood at 920,394 million
The net profit for the financial year 2014-15 was 51,835 million
The ROE of Airtel is 8.52%
Growth rate of the company is 7% for the financial year 2014-15
Growth rate of the Indian telecom industry for financial year 2014-15 is 11%
Purpose of the Analysis:
We are doing this analysis to understand how the Airtel company is presently
dominating the telecom market in India. What are their strengths and weaknesses
internally and opportunities and threats externally and what strategy they have to
adopt in order to maintain their position and to compete with their competitors.

Value Chain
Firm infrastructure - CRM tools, MIS, ERP, Networking

Primary Activities

Supporting
Activities

Equipment, Telecom equipment for coverage and signal strength,


IT Infrastructure
HR
management - IT skilled work force, Telecom engineers,
Customer service & Telesales training, Franchisee management,
staffing and training.
Technology development - Creating a 3G enabled network,
mChek - Launching M commerce by tie ups with banks and credit
cards.
Procurement - Established a SCM network to acquire networking &
Telecom tools, Maintain long term relation with suppliers to provide
handsets & services
Inbound
Logistics
Network
Infrastructure
1. Equipment
vendor
2. Equipment
Manufacturer Routers, Switch
level
3. Equipment
Manufacturer Chip Level
Software and
content
provider
1. Software
Vendor
2. Application

Operations
Network
Integration
2. System
Integration
3.Infrastructur
al
Development
4. GSM
Services, VAS,
BASE

Outbound
Logistics

Marketing &
Sales

Post Sale
Service

1. Outsourcing
major services
1. Sound
Distributor
2. Retail
network
across India
for both
prepaid and
post paid
services
3. Online
Ordering of
VAS

1. Online
marketing
2. Celebrity
endorsement
3. Brand
positioning
4. Promotional
Bundle offers
Extra
minutes/ Text
or Handsets
5. Promotion
at events,
organizations

1. Multilingual
Customer
Service Center
2. Informative
website
3. Customer
Retention
4. Easy online
payment
options for
both pre paid
& post paid
services

1.

Key Primary Activity


Outbound LogisticsB2B services to IBM - manages all IT services like billing,
CRM
Hinduja TMT, Mphasis and IBM Daksh - Customer Service
call centres
Ericsson, Nokia and Siemens - Network Management,
network managing and deployment and operation of base
stations
References:
http://
articles.economictimes.indiatimes.com/2015-09-15/news/66568614_1
https://
books.google.co.in/books?id=wBjyApjS5R0C&pg=PA44&lpg=PA44&dq=ou
tsourcing+make+or+buy+airtel

VRIO Analysis:
Primary Activity

Valuabl Rare
e

Inimitabl
e

Seamlessly
Organised

VRIO
Compatibili
ty

Inbound
Logistics
Equipment
Vendor Chip
level.

Yes

No

No

Yes

No

Operations
Network
integration

Yes

No

No

Yes

No

Outbound
Yes
Logistics
Outsourcing and
Sound
Distributor

Yes

Yes

Yes

Yes

Marketing
and Yes
Sales
Online Marketing
&
Brand

Yes

Yes

Yes

Yes

The Strengths and weaknesses on the


basis of VRIO compatibility
The strengths are:
1 Outbound Logistics
2 Marketing and Sales
The Weaknesses are:
1 Inbound logistics
2 Operations
3 Post Sale Services

Porters Five forces analysis of Indian


Telecom Industry.
Bargaining power of Suppliers
There are number of suppliers providing tower
services.
Companies have contact with more than one Sim
Card supplier.

Bargaining Power of Buyers


Maintain Less Product Differentiation
Low Switching and New Connection Costs
Have Easy Information Access
HIGH Buyer Power

LOW Supplier Power


Industry Rivalry
Close Market share
Similar products
Innovations Quickly Copied
HIGH industry rivalry

Threat of New Entrants


Is a capital intensive industry
New entrants have nothing really innovative to
offer.
Obtaining telecom license can be a barrier.

Threat Of Substitutes
Revenue being effected by internet telephonic
services such as Whatsapp, etc.
Issue of Reliability, Flexibility and Portability exist
and also switching costs associated make mobiles
preferred choice.

LOW New Entrant Risk

MODERATE Substitute Threat

Opportunities and Threats derived


from the analysis of Porters Five
Forces Model
Opportunities:
As it is highly Innovation driven industry, airtel should come up
with more innovative products and have the first mover
advantage.
Airtel can also focus much on the untapped rural markets of
India.
As there is very high competition in the Indian Telecom Industry,
airtel should also focus on other developing countries.
Another opportunity is to increase their strategic partnerships
with device manufacturers. Ex: Xiaomi Redmi, Apple iPhone 6s.
Threats:
The major threat for the company is the MNP (Mobile Number
Portability).
High visibility of the competitors.
Innovations are quickly copied.
High price competition.

Strengths
Strategic Alliance
Strong Brand Image
Well Established
Infrastructure
Renowned Company

Weakness
Outsourcing Operations
Less Rural Presence
Perceived as Expensive
Brand

Internal
Analysis

SWOT
Oppurtunities
Untapped Rural Market
3G & 4G markets
Strategic Partnerships
Entering into
Developing Economies

Threats
Mobile Number
Portability
Strong Visibility of
Competitors
Continuous Improvement
in Competitors Services

External
Analysis

Opportunitie
s

Aggressive
Strategy

Strength
s

Weakne
ss

Threats