Performance of the bharti airtel company

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Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest and world's third largest cellular service provider. Bharti Airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing technology companies in the world by business week. Bharti Airtel had 200 million customers across its operations.

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 agric - 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.

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Airtel comes 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. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM.

Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received certificate for commencement of business on January 18, 1996. The Company was initially formed as a wholly-owned subsidiary of Bharti Telecom Limited.

Source: Dion Global Solutions Limited

Literature Review

Globalization (or globalisation) describes the process by which regional economies, societies, and cultures have become integrated through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence. However, globalization is usually recognized as being driven by a combination of economic, technological, social cultural, political, and biological factors. The term can also refer to the transnational circulation of ideas, languages, or popular culture through acculturation. An aspect of the world which has gone through the process can be said to be globalized.

SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

Corporate social Responsibility

Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model

Ethical issue

There are a wide range of areas which come under ethical issues in business, ranging from professional ethics, particularly relating to certain professions such as doctors and lawyers, to employee rights. Employee rights include the right to a fair wage, a safe working environment and non-discriminatory policies. Ethical issues in business also exist in areas such as sales and marketing, whereby companies should not, for example, make false claims about products, indulge in anti-competitive practices such as price fixing, or break copyright laws.

Corporate governance

That is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade creditors, suppliers, customers and communities affected by the corporations' activities. Internal stakeholders are the board of directors, executives, and other employees.

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Strategic Aliances

A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations.

Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization,[1] shared expenses and shared risk.

PESTEL Analysis

The PESTEL framework is designed to provide managers with an analytical tool to identify different macro-environmental factors that may affect business strategies, and to assess how different environmental factors may influence business performance now and in the future.

The PESTEL Framework includes six types of important environmental influences: political, economic, social, technological, environmental and legal. These factors should not be seen as independent factors. Factors such as technological advances may probably affect the social and economic conditions in different markets.

GLOBAL STRATEGIES

BHARTI-AIRTEL: Behind its new global wholesale strategy

Posted on August 23rd, 2009

AS THE LATEST ENTRANT into the global wholesale business, Bharti-Airtel says it will forgo the traditional wholesale model of simply selling capacity on its global infrastructure and adopt a sales focus aimed at matching the commercial and business requirements of its customers.

To support the launch of its global wholesale business, Bharti-Airtel has in- vested as much as US$500 million over the past couple of years into its worldwide infrastructure, including a number of new cable systems. Airtel's current network consists of SMW4, i2i- which is fully owned, APCN2, c2c, JUCN, TGN, TAT14, Apollo, Hibernia. This will be integrated with investments in new cable systems including AAG, Unity North, EIG, IMEWE, EASSy and a couple more in the fray.

UNIQUE OFFERINGS: Those investments now offer Bharti-Airtel several unique capabilities in the market place, including the fact that it will have three diverse systems on key routes.

In addition to the global backbone, Bharti-Airtel has also invested in building its backhaul in key markets such as Singapore, Hong Kong, and Japan, as well as Europe, to facilitate access into its wholesale network.

INDIA AS HUB: Bharti-Airtel is not only focusing on the subsea segment, but is also extending its fibre network over terrestrial routes to its neighbours.

Another important area that we have been working on is connecting to our neighboring countries. From India, Bharti-Airtel has a terrestrial network that we are working on which connects Pakistan, Nepal, Bhutan and we are connecting on a similar route to China, Bangladesh.

NOT LOW PRICE: Despite all the new capacity that it will be receiving with the launch of the upcoming AAG and Unity systems, the operator has little intention of competing in the market on price alone.

Bharti-Airtel's global network will span some 200,000 kilometres and be accessible in 50 countries. At the same time, the operator is building out 17 POPs around the world, including coverage in Asia Pac, the US, Europe and Middle East, which will serve as network access nodes for a range of network services, including Ethernet, video transmission services, IP and MPLS services.

NO GLOBAL RETAIL OFFERING: However, Bharti-Airtel is adamant that it won't be entering the retail business of serving enterprise clients outside its home market. Indian companies that are becoming global and global companies who have large infrastructure expansion plans in India. In fact, Bharti-Airtel has no need to enter, for example, the Japan-US market. That is not its niche and not its focus. its international wholesale business is targeted to reach 20% of its wholesale revenue.

Tony Chan

 

The acquisition of Zain Group's telecom business in fifteen African counties in 2010 gave it a footprint in the African continent. While concerns regarding whether BAL had overpaid for the deal remained, industry observers were keenly observing to see whether the company could replicate its successful telecom model in these developing and emerging markets..

SWOT ANALYSIS BHARTI AIRTEL

Strengths

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Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services to both domestic and corporate customers.

Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world.

The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.

Weaknesses

When the business was started, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.

Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar.

The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature.

Opportunities

The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google.

Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.

Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns.

The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.

Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.

Threats

Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.

The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market.

Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.

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. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services.