A

PROJECT REPORT

ON

BHARTI AIRTEL LIMITED

SUBMITTED TO SUBMITTED BY

PROF. SWARUP DUTTA GROUP – 10

GROUP MEMBERS

ANAL TRIVEDI - 55

AJIT VAGHASIA - 56

KRISHNA VANIDANI – 57

RUCHITA VARYANI – 58

VISHAL VASANT – 59

SILVI VORA – 60

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CONTENT

SR NO.

PARTICULAR PAGE NO.

1. Telecom Industry Overview 32. Bharti Airtel Limited 53. SWOT Analysis

BCG Matrix Ansoff Matrix Porter’s Generic Strategies Boston Matrix

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4. Industry Analysiso Subscription datao Market shareo Industry Porter’s structure modelo Porter’s five force Analysis of Telecom industry

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5. Environmental Analysis 336. Conclusion 347. Bibliography 34

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Telecom industry

• The Indian Telecom sector is third largest network in the world.

• Subscriber numbers already crossed 250 million.

• Average growth rate of over 40% in respect of subscribers.

• Monthly additions of above 7 million phones.

• Growth impetus from wireless segment with 84% wireless and 16% wired.

• National teledensity at 26%.

• Rural teledensity stands at 7%, while the urban at 57%.

• Further access is provided by 54 lakh PCOs and 5 lakh VPTs.

• 9 million Internet and 2.5 million broadband subscribers.

• More than a thousand cities have been provided with broadband connectivity out a total of five thousand cities

• In recent years, the Indian telecom industry has witnessed phenomenal growth. A conducive business environment, favourable demographic outlook and the political stability enjoyed by the country have contributed to the growth of the industry. India achieved the distinction of having the world's lowest call rates (2–3 US cents), the fastest sale of million mobile phones (1 week), the world's cheapest mobile handset (USD 19) and the world's most affordable colour phone (USD 31).

• Telephony services (mobile and basic) and Internet services dominate the Indian telecom services

• The Indian telecom market generated revenues of approximately USD 32 billion in 2007–08. It registered a CAGR of approximately 32 percent from 2002–03 to 2007–08. The CAGR from 2008–08 to 2011–12 is expected to stabilise at 21 percent. Apart from mobile telephony services, other value-added services are also gaining importance.

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Bharti Airtel Limited

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One of the fastest growing cellular markets in the world in terms of number of subscriber additions – 261.07 million (March 2008)

Expected to reach total subscriber base of about 500 million by 2010 (i.e., more than one phone for every household)

Annual growth rate of the telecom subscribers – 42 percent (2007–08)

More GSM subscribers than fixed-line subscribers

Indian Telecom Industry – Facts

Total telecom subscribers – 300.49 million (March 2008 Cellular + Fixed Line )

Tele density – 26.22 percent (March 2008)

Number of new mobile subscribers added last quarter – 27.62 million (March 2008)

ARPU for GSM – USD 5.28* (USD./sub/ month)

Telecom equipment market – USD 34,100 million (2007–08)

Handset market – USD 7,250 million (2007–08)

Introduction

India's largest and world's third largest cellular service provider with more than 82million subscribers –Bharti Airtel is a merger between Bharti Group and Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector.

Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business.

It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti

Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services.

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.

The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with India’s, best direct to home (DTH) service, digital TV in more than 150 cities.

Business Divisions

1. Enterprise Services Enterprise Services provides a broad portfolio of services to large Enterprise and

Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise Services is regarded as the trusted communications partner to India's leading organizations, helping them to meet the challenges of growth.

2. Airtel Telemedia Services The group offers high speed broadband internet with a best in class network.

With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with India’s best direct to home (DTH) service digital TV in more than 150 cities

3. Mobile services

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Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.

Vision of Airtel

By 2010 Airtel will be the most admired brand in India:

Loved by more customers Targeted by top talent Benchmarked by more businesses

MISSION

Customer service focus

Empowered employees

Innovative services

Cost efficiency

Bharti Airtel - Organization Structure

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Bharti Enterprises - Organization Structure

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SWOT ANALYSIS

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Following is the SWOT Analysis for AIRTEL

STRENGTH

VERY FOCUSED ON TELECOM Bharti Airtel is largely focused on thetelecom, around 93% of the total revenue comes from telecom(Total telecom revenue Rs3,326).

LEADERSHIP IN FAST GROWING CELLULAR SEGMENT

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Airtel is holding leadership position in cellular market.. Bharti Airtel is one of India'sleading private sector providers of telecommunications services based onan aggregate of 27,239,757 customers as on August 31, 2006, consistingof 25,648,686 GSM mobile and 1,591,071 broadband & telephonecustomers.

PAN INDIA FOOTPRINT

Airtel offers the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over 240 networks. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 92 cities.

THE ONLY OPERATOR IN INDIA OTHER THAN VSNL HAVINGINTERNATIONAL SUBMARINE CABLES.

Airtel, the monopoly breakershattered the Telecom monopoly in the International Long Distance space with the launch of International Submarine cable Network i2i jointly withSingapore Telecommunications Ltd. in the year 2002. This has brought a huge value to the IPLC customers, delivering them an option besides theincumbent carrier, to connect to the outside world.

WEAKNESS

Price Competition from BSNL and MTNL . Airtel is tough competition from the operators like BSNL nd MTNL as these two operators are offering services at a low rate.

Untapped Rural market .

Although Airtel have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is loosing revenue from the rural sector.

OPPORTUNITIES

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THE FAST EXTENDING IPLC MARKET

An IPLC (international private leased circuit) is a point-to-point private line used by an organization to communicate between offices that are geographically dispersed throughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. Airtel Enterprise Services and SingTel jointly provide IPLCs on the Network i2i. The Landing Station in Singapore is managed by SingTel and by Airtel in Chennai (India). Each Landing Station has Power Feeding Equipment, Submarine Line Terminating Equipment and SDH system to power the cable, add wavelengths and convert the STM-64 output to STM-1 data streams respectively.

LATEST TECHNOLOGY AND LOW COST ADVANTAGE

The costs of introducing cellular services for Airtel are marginal in nature, as it needs only to augment its cellular switch/equipment capacity and increase the number of base stations. The number of cities, towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology. As a late entrant into the cellular market, it has dual advantage of latest technology with modern features, unlike other private cellular operators who started their service more than 4-5 years back and low capital cost due to advantages of large scale buying of cellular switch/equipment.

HUGE MARKET

The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for Airtel to enter /expand in this market. Besides there is a vast ruralsegment where the cellular services have not made much headway and many customers are looking towards Airtel for providing the service to them. With its wide and extensive presence even in the remotest areas, Airtel poised to gain a big market share in this segment when it expands cellular services into the rural areas.

THREATS

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COMPETITION FROM OTHER CELLULAR

It is time for BSNL to improve/expand its cellular services. Fierce and cut-throat competition is already in place with the markets ever abuzz with several tariff reductions and announcement of attractive packages, trying to grab most of the ‘mind share’ of the ‘king’ - ‘the consumer’, whose benefits are increasing with passing of everyday. If BSNL is not innovative and agile, its cellular service will be a flop. It needs to be proactive with attractive packaging, pricing and marketing policies lest its presence in the market be treated with disdain by the private cellular companies. The launch of WLL services by Reliance Infocomm has aggravated the situation.

MARKET MATURITY IN BASIC TELEPHONY SEGMENT

Although Airtel entered in the basic telephony market it’s a biggest there for the company as the basic telephony market has reached

BCG Matrix

BCG Matrix is used to find out the relative growth prospects of the product line. Within the Airtel product line leased, private, circuit are among star.

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Airtel is going to have a submarine cable between Singapore and Chennai with the collaboration of singtel. This wills airtel to maintain its position in IPLC market. Right in India only VSNL have such cables.

Ansoff Matrix

To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused on the firm’s present and potential products and markets /customers. He called the four product-market strategic alternatives

1. market penetration [existing market + existing product],2. market development [existing product + new market],3. product development [existing market + new product], and4. Diversification [new product + new market].

The company should follow all four strategies depending on the demand andproduct as indicated in the matrix. The company perhaps needs to focus more onthe comparatively neglected area of diversification.

1. MARKET PENETRATION:

Airtel entered in broadband and fixed phone line market.

2. PRODUCT DEVELOPMENT: IPLC products

3. MARKET DEVELOPMENT:

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Airtel is now looking for overseas market. Company has already make his presence in Nigeria and Seychelles

4. DIVERSIFICATION : Airtel has now outsourcing sum of its services like customer services with IBM

Porter’s Generic Strategies-

The Boston Matrix

Strategies

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Business Process Management  

Process Innovations and Continuous Improvement through People Involvement   Problem Investigation by "Fact Based - Root Cause Analysis"  

Customer-Defined Business Processes  

Based on Customer Specifications, AirTel have webbed many business processes on the following concepts:  Delivery time  Turn around time  Lead-time  Time to market  Other performance indicators

Result Oriented Approach  

Each process has been designed by first planning the desired result. The targeted results are then arrived at through identification of the following:

The next-customer and end-customer expectations.  Quantifiable purpose of the process and key result areas.  

Past experience of "What went wrong and can go wrong". Naturally, the target customer was clearly defined: elite, up market professionals and

entrepreneurs.

"We positioned AirTel as an aspirational and lifestyle brand, in a way that trivialized the price in the mind of the consumer. It was pitched not merely as a mobile service, but as something that gave him a badge value,“ – recalls Hemant Sachdev, chief marketing officer (mobility) and director, Bharti Tele-Ventures.

• In 1999, the rules of the game changed. The New Telecom Policy came into effect, replacing licence fees with a revenue-sharing scheme and extending the licence period from 10 to 20 years.

• Now, cellular service operators could drop their prices and target new customer segments. As SEC B became part of the catchment area, Airtel's communication changed from "power" to "touch tomorrow".

• In 2002, Airtel signed on music composer A R Rahman and changed its tune to "Live every moment": Rahman's signature tune for Airtel is, perhaps, the most downloaded ringtone in India. But that was just part of the ongoing communication.

Industry Analysis

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Subscription Data(Data As on 30th June 2009)

Telecom Subscribers (Wireless +Wireline)

Telecom Subscribers (Wireless +Wireline)Total Subscribers 464.82 Million% change During Quarter 8.17%Urban Subscribers 328.55 Million (70.7%)Rural Subscribers 136.27 Million (29.3%)Teledensity 39.86Urban Teledensity 95.05Rural Teledensity 16.61

The number of telephone subscribers in India increased from 429.72 Million in Mar-09 to 464.82 Million at the end of June-09, registering a growth rate of 8.17%. The overall Teledensity in India has reached 39.86 as on 30th June 2009.

Subscription in Urban Areas increased to 328.55 Million and Rural subscription increased to 136.27 Million. Rural Teledensity reached 16.61 and urban Teledensity 95.05 at the end of June-09. The share of rural subscribers increased to 29.3% in total subscription.

Composition of Telephone Subscribers

Wireless Subscribers

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Wireless SubscribersTotal Wireless Subscribers 427.29 Million% change During Quarter 9.07%Urban Subscribers 301.34 Million (70.5%)Rural Subscribers 125.95 Million (29.5%)GSM Subscribers 328.83 Million (77.0%)CDMA Subscribers 98.46 Million (23.0%)Teledensity 36.64Urban Teledensity 87.18Rural Teledensity 15.35

With 35.53 Million net additions during the Quarter, Total Wireless (GSM + CDMA) subscriber base increased to 427.28 Million at the end of June-09, and wireless Tele-density reached 36.64.

Wireline Subscribers

Wireline SubscribersTotal Wireline Subscribers 37.53 Million% change During Quarter -1.14%Urban Subscriber 27.21 Million (72.5%)Rural Subscribers 10.32 Million (27.5%)Teledensity 3.22Urban Teledensity 7.87Rural Teledensity 1.26Village Public Telephones (VPT) 0.56 MillionPublic Call Office (PCO) 6.11 illion

Wireline subscriber base declined to 37.54 Million at the end of June-09, taking the wireline teledensity to 3.22.

Internet & Broadband Subscribers

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Internet & Broadband SubscribersTotal Internet Subscribers 14.05 Million% change During Quarter 3.80%Broadband Subscribers 6.62 MillionWireless Data subscribers 126.97 Million

Internet subscribers increased to 14.05 million at the end of June 2009 registering a quarterly growth rate of 3.80%. However, this growth rate is lower than the growth rate seen in the previous quarter (5.3%).

Share of Broadband subscription in total Internet subscription increased from 46% in Mar-09 to 47% in June-09. 86.66% of the Broadband subscribers are using Digital Subscriber Line (DSL) technology.

Broadcasting & Cable Services

Broadcasting & Cable ServicesTotal Number of Registered Channels with I&B Ministry

447

Number of Pay Channels 136Number of FM Radio Stations 248DTH Subscribers 15.17 MillionNumber of Set Top Boxes in CAS areas 816,192

Total Number of channels registered with Ministry of I&B is 447. There are reportedly 136 pay TV channels in existence.

The number of private FM Radio stations in operation increased from 245 in March-09 to 248 in June-09.

Besides free DTH service of Doordarshan, there are 6 private DTH licensees. 5 DTH licensees are offering pay DTH services to the customers as on 30.06.2009 and their reported subscriber base is 15.17 million.

Number of Set Top Boxes (STBs) installed in CAS notified areas of Delhi, Mumbai, Kolkata and Chennai increased from 7,70,053 in Mar-09 to 8,16,192 in June-09.

Telecom Financial Data (for the QE June-09)

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Telecom Financial Data (for the QE June-09)Gross Revenue during the quarter Adjusted Gross

Rs. 39,108.33 Crore

% change in GR during Quarter -3.30%Share of Public sector undertaking’s in GR 23.92%Revenue (AGR) Rs. 29,732.52 Crores% change in AGR during Quarter 0.02%

Gross Revenue (GR) and Adjusted Gross Revenue (AGR) of Telecom Sector for the QE June-09 has been Rs 39,108.33 Crore and Rs. 29,732.52 Crore respectively. There has been a reduction of 3.3% in GR as compared to previous quarter. AGR has shown slight increase of 0.02% vis-à-vis previous quarter.

Revenue & Usage Parameters (for the QE June-09)

Revenue & Usage Parameters (for the QE June-09)Average Revenue Per User (ARPU) GSM Rs. 185Average Revenue Per User (ARPU) CDMA

Rs. 92

Minutes of Usage (MOU) GSM 454 MinutesMinutes of Usage (MOU) CDMA 342 MinutesMinutes of Usage for Internet Telephony 131.94 Million

Average Revenue Per User (ARPU) for GSM-Full Mobility service declined by 10% from Rs. 205 in QE Mar-09 to Rs. 185 in QE Jun-09.

ARPU for CDMA – Full mobility service declined by 7.2% from Rs.99 in QE Mar-09 to Rs. 92 in QE June-09

MOU per subscriber for GSM – Full mobility service continued to show a declining trend. It declined by 6.19% from 484 in QE Mar-09 to 454 in QE Jun-09. The outgoing MOUs declined by 5.30% and incoming by 7.04%.

MOU per subscriber for CDMA-full mobility service declined by 4% from 357 (Q.E March 2009) to 342 (Q.E June 2009). The Outgoing MOUs declined by 2.7% and Incoming MOUs declined by 5.2%.

Market Share

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1.Access Service

Composition of Access subscription – Wireline & Wireless

Subscribers (Rural & Urban) & Market share

Bharti is the leading operator in Access segment in terms of number of subscribers, followed by BSNL.

2. Wireless Service

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List of Cellular Mobile (GSM & CDMA) Service Providers currently providing service [As on 30th June 2009]

Wireless Market Share – Rural & Urban

Growth in Wireless Subscribers

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Wireless Subscription: GSM vs CDMA9

GSM subscription has been growing at a faster rate and the ratio between the growth rates of GSM & CDMA has also been increasing. In the QE June-09 growth rate of GSM was 2.53 times the growth rate of CDMA, as against 2.29 in the previous quarter. At the end of June-09, GSM subscribers constituted 77% of the wireless market.

GSM Services

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The GSM subscribers were 328.83 million at the quarter ending June 2009 as against 297.26 million at the end of the previous quarter, showing a growth of 10.62%. Bharti with 102.37 million subscribers continues to be the largest GSM mobile operator followed by Vodafone (76.45 million), BSNL (49.1 million) and Idea (47.08 million).

Group-wise Market Share (in terms of subscription) within GSM Service as on 30th June 2009

CDMA Services

The CDMA Subscriber Base increased to 98.46 million during the quarter ending June 2009 from 94.49 million at the end of previous quarter. The growth in this quarter is 4.19% as against6.58% for the previous quarter. Reliance is the largest CDMA mobile operator with 54.19 Million subscribers, followed by TataTeleservices (37.12 million) and BSNL (5.27 million)

Market Share (in terms of subscription) within CDMA Service as on 30th June 2009

3.Wireline Service

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Service Providers providing Wireline service [as on 30 th June 2009]

Wireline Market share – Rural & Urban

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Group-wise Subscribers (Rural & Urban) & Market Share

Growth in Subscribers

Wireline subscriber base declined from 37.96 Million in Mar-09 to 37.53 Million at the end of June-09. Wireline eledensity is 3.22.

BSNL/MTNL, the PSU operators own 86.2% of the Market share. While major Private Wireline service providers have increased their subscriber base, BSNL/MTNL lost 0.57 Million subscribers during the quarter ending June-09. Wireline subscriber additions have been seen only in Delhi, Mumbai, Chennai & UP(W).

Public Call Offices (PCO)

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Total number of PCOs in the country as on 30th June 2009 is 61,13,423 as compared to 62,01,441 in the quarter ending March 2009, showing a reduction of 88,018 PCOs.

Number of PCOs

Market share of PCOs

(PSUs Vs. Pvt. Operators)

Village Public Telephones (VPTs)

There are 5,93,731 inhabited villages in India as per census 2001. In the quarter ending 31st March 2009 number of VPTs were 5,60,539. This increased to 5,64,337 in the quarter ending June-09. With the addition of 3,798 VPTs in this quarter, 95% of the total inhabited villages in India have been connected.

Growth in VPTs

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4. Internet Service

There are 14.05 million Internet subscribers at the end of June 2009 as compared to 13.54 million at the end of March 2009 registering a growth of 3.80%. This growth rate is lower as compared to QE March 2009 (5.30%).

The number of Broadband subscribers is 6.62 million at the end of June 2009 as compared to 6.22 million at the end of March 2009, thus registering a growth of 6.43% over the previous quarter.

Trends in Internet/Broadband subscription

Share of Broadband subscription in total Internet subscription increased from 46% in Mar-09 to 47% in June-09.

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Growth in the Internet Subscribers base is mainly driven by Broadband. Out of the 2.39 million Internet Subscribers added during the period June-08 to June-09; 2.24 million are Broadband Subscribers (94% of the net additions).

ISP Connectivity

The bandwidth owned by various ISPs for their ISP operations and Internet Leased lines is reported to be 245 GB for International and 208 GB for National during this quarter as compared to 209 GB for International and 174 GB for National at the end of March 2009.

Internet Subscriber Base & Market share of top 10 ISPs

BSNL holds 54.09% of the market share and reported a subscriber base of 7.60 million Internet subscribers at the end of June 2009 as against 7.26 million at the end of March 2009. MTNL is at second position (2.18 million) followed by Bharti (1.14 million).

Top 10 ISPs together hold 96.09% of the total Internet subscriber base.

Broadband Access - Technologies & Market Share

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DSL (Digital Subscriber Line) is the most preferred technology used by the Service Providers to provide Broadband Services and it constitutes 86.66% of total broadband subscribers. Cable Modem Technology follows with 7.36% connections.

INDUSTRY STRUCTURE PORTER’S MODEL

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The industry structure has become relatively unfavorable compared to earlier monopolistic times

The earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there was competition in virtually every segment. There are companies that provide local connectivity, those that function as long distance carriers, and those that provide only gateway links. Some integrated players operate in all segments.

The intensity of competitive pressures across the chain is reflected in the downward spiral being witnessed in tariffs and prices to customer. The value chain for cellular mobile service and Internet Service Providers (other than cable based net connections) are similar in as much as the calls reach the destination through similar local loop, long distance and international gateway.

Porter's 5 Forces Analysis of Telecom Industry

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1. Threat of New Entrants. 

It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. When capital markets are generous, the threat of competitive entrants escalates. When financing opportunities are less readily available, the pace of entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry. In the U.S., for instance, fledgling telecom operators must still apply to the Federal Communications Commission (FCC) to receive regulatory approval and licensing. There is also a finite amount of "good" radio spectrum that lends itself to mobile voice and data applications. In addition, it is important to remember that solid operating skills and management experience is fairly scarce, making entry even more difficult.

2. Power of Suppliers. 

At first glance, it might look like telecom equipment suppliers have considerable bargaining power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-optic cables, mobile handsets and billing software, telecom operators would not be able to do the job of transmitting voice and data from place to place. But there are actually a number of large equipment makers around. There are enough vendors, arguably, to dilute bargaining power. The limited pool of talented managers and engineers, especially those well versed in the latest technologies, places companies in a weak position in terms of hiring and salaries.

3. Power of Buyers. 

With increased choice of telecom products and services, the bargaining power of buyers is rising. Let's face it; telephone and data services do not vary much, regardless of which companies are selling them. For the most part, basic services are treated as a commodity. This translates into customers seeking low prices from companies that offer reliable service. At the same time, buyer power can vary somewhat between market segments. While switching costs are relatively low for residential telecom customers, they can get higher for larger business customers, especially those that rely more on customized products and services.

4. Availability of Substitutes. 

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Products and services from non-traditional telecom industries pose serious substitution threats. Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct lines into homes, offer broadband internet services, and satellite links can substitute for high-speed business networking needs. Railways and energy utility companies are laying miles of high-capacity telecom network alongside their own track and pipeline assets. Just as worrying for telecom operators is the internet: it is becoming a viable vehicle for cut-rate voice calls. Delivered by ISPs - not telecom operators - "internet telephony" could take a big bite out of telecom companies' core voice revenues.

5. Competitive Rivalry. 

Competition is "cut throat". The wave of industry deregulation together with the receptive capital markets of the late 1990s paved the way for a rush of new entrants. New technology is prompting a raft of substitute services. Nearly everybody already pays for phone services, so all competitors now must lure customers with lower prices and more exciting services. This tends to drive industry profitability down. In addition to low profits, the telecom industry suffers from high exit barriers, mainly due to its specialized equipment. Networks and billing systems cannot really be used for much else, and their swift obsolescence makes liquidation pretty difficult.

ENVIRONMENTAL ANALYSIS

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It is a systematic examination of all 3 levels of the environment with at least three purposes: Detecting important economic, social, cultural, environmental, health, technological, and

political trends, situations, and events Identifying the potential opportunities and threats for the institution implied by these

trends, situations, and events Gaining an accurate understanding of your organization’s strengths and limitations STEEP refers to changes in the social, technological, economic, environmental, and

political sectors that affect organizations directly and indirectly. A STEEP analysis of the macro environment indicates that economic (a phone call being

a cheaper way to stay in touch than outstation travel for example) and social factors (working outside the home town) have forced the pace of utilization of technology (Public Call Offices, mobile phones, networked companies).

Increasing customer awareness has raised expectations and vocal demands are being articulated for consumer rights; such political factors have in turn impacted the competitive environment by way of entry of private players, independent regulation, and a policy framework tilted towards a ‘level playing field’ for new entrants. A near environment analysis indicates that the competitors are becoming active resource rivals (political and financial) apart from applying pressures as customer rivals. The customer has, needless to say, benefited from increased choice from within the communications services basket itself.

CORE COMPETENCE

Airtel core competencies are sales & promotions and as of now Airtel is leading brand in mobile services in India. Airte have three big personality Viz. Sachin Tendulkar , Shahrukh Khan and music maestro A. R. Rahman for endorsing there product and services currently Airtel is outsourcing there no competence function and try to fully concentrate on his core competency that is sales promotion.

Conclusion Market Share- Airtel has the highest market share among all the market players

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Product Quality- August 7, 2008: Bharti Airtel adjudged the 'Best Cellular Service Provider' and 'Best Broadband Service Provider' at the 2008 V&D 100 Awards.

May 26, 2008: Airtel was honoured with the prestigious 'Wireless Service Provider of the Year' award at the 2008 Frost & Sullivan Asia Pacific ICT Awards. Score allotted is 0.23

Product life Cycle- The overall tele-density has increased to 31.5% in October2008.Market has huge potential for penetration.

Customer Loyalty- June 11, 2008: Airtel voted the 2nd Most Trusted Service Brand in the

Annual Economic Times-Brand Equity, Most Trusted Brands survey RCOM is slightlybetter in application of funds

Airtel wins the Platinum Trusted Brand Award in the Mobile Service provider category in the Reader's Digest Asia Trusted Brands Survey

Bibliographywww.google.comwww.trai.comwww.naukrihub.comwww.airtel.in/wps/wcm/connect/airtel.in/airtel.in/Homehttp://en.wikipedia.org/wiki/Airtel

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