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Transcript of C.I Retail Management 111
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Table of contents:
EXECUTIVE SUMMARY INDUSTRY OVERVIEW INTRODUCTION-BHARTI AIRTEL LIMITED
CHAPTER 1:
GLOBAL COMPETITIVE ENVIRONMENT
CHAPTER 2:
STAKE HOLDERS RELATIONSHIPS
CHAPTER 3:
RETAIL MIX
CHAPTER 4:
RETAIL ORGANIZATION USE OF TECHNOLOGY
CHAPTER 5:
ETHICAL AND ENVIRNOMENTAL ISSUES
CONCLUSION:
BIBLIOGRAPHY:
ONLINE REFERENCES:
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JOURNALS:
BOOK REFERENCES:
EXECUTIVE SUMMARY:
Industry Overview:
Telecommunications industry distributes the actions and assistance of transmittingcommunication through electronic systems of cables, telephones radio or television.
The growths of telecommunications industry are,
New technology
Competitors.
In the past datas are transmitted using coaxial or twisted pair cables. Now technologyhas shown tremendous growth for using optical fibers. Using communication satellites thetelecommunication industries came as flourishing industry. Cellular phone network became avital role after the increase of improved telecommunications engineering. Top enterprisesbecame to share their investment in this telecommunications industry.
Telecommunication industry is becoming a numeral one. Inter Services Digital Network(ISDN) make the industry as a numeral system and enhanced the speed and quality of the
Wireless communication. Wireless communication is the distances occupied to be short or verylengthy. When the situation is obvious its abbreviated as "wireless". Generally wirelesscommunications is considered be a division of telecommunications.
Source (:http://www.economywatch.com/world-industries/telecommunications/)
Introduction-Bharti Airtel Limited:
Bharti AirTel Company that Formulated on 7th July, 1995.Its a public limited company.Internationally, Bharti AirTel owns 3rd biggest mobile operator in Asia.
Its a leading integrated telecom services giving by Bharti AirTel limited. Bharti AirTelLimited has grown successfully in partnership with various leading companies of theworld -, Vodafone, Singapore Telecom, Warburg Pincus, and British Telecom.
First operator in India to cross the total customer base of 96 million.
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Airtel is now a fully ISO 27001:2005 Certified Organization. The ISO
27001:2005 certification (from BSI: British Standards Institute) ensures ahigh quality information security environment within Airtel.
Business Divisions:
Four Business Divisions are there
1. GSM technology in India & Srilanka.2. Total customers 11, 05, 11,416 inIndia.3.13,62,464 outlets.4. Network in 4, 34,795 towns andvillages 83% coverage.
5.1million customers within six monthsof launch in Srilanka.
1. Provide broadband services, dataand telephone services in 95 cities.
2. That arrounds.29, 28,254 customers.
.
1. Long distance wholesale voice and
data services
1.1.3 million customers
Vision/Mission of Bharti AirTel:
"To provide global telecom services and delight customers
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Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We will meet the mobile communication needs of our customers through:
Error- free service delivery
Innovative products and services
Cost efficiency
Corporate responsibility:
Bharti Airtel limited promotes the employees to take judgment and devise the industry -relationship process between the public and surroundings.Corporate Social Responsibility in Bharti Airtel limited covers more public contactprograms. This program is connecting the business of Bharti Airtel.
The spirit of Bhartis dedication to CSR is surrounded in the company Values, which curtail itswarm seized idea. The ethics are:
Respond to the needs of customers
Expectation and Good result From employees
Progress the services resourcefully
Visible and insightful in dealings with the shareholders
morals, equality and life form will be proper
conference and going away from submissive and lawful necessities
Esteem greetings given towards shareholders and the public. Developing the atmosphere
CSR way of life and pledge all through a three-split approach:
Engage with shareholders
Guarantee the policies and performs to the Shareholders
Conducting programs for employees, and for the public.In Bharti Airtel Limited, each employee is aware to Corporate Social Responsibility issuesand thus procedures are prejudiced.
CHAPTER 1:
Global Competitive Environment:
Global Environmental
Global competition characterized by networks of international linkages that bind countries,institutions, and people in an interdependent global economy.
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Macro Environmental
Macro environmental forces the larger societal forces that affect the wholemicroenvironment demographic, economic, natural, technological, political and cultural forces.
- Kotler
PESTEL ANALYSIS:
Political Analysis:
In 1985 DOT (Department of telecommunication) was trust worthy to grow uptelecommunication Industries.
Due to high taxes the tariff rate are more over high earlier.
At the moment it becomes little bit low due to permit fees with income sharing plan andextended the permit period from 10 years to 20 years.
US$23 billion contract among South Africa's MTN and India's Bharti Airtel Limited whichtake place after the difficult scheme concerned much interference beginning from supportingleaders and unions.
Economical Analysis:
Earlier Inflation rates were higher. Singapore Telecommunications (SingTel) purchasedadditional 1.52% shares in Indias leading private telecom Bharti Airtel limited and will pay upto INR 3008.4 crore in three part payment collection more than 18 months.
SingTel supposed, it has penetrated into a unconfirmed share pay for agreement withBharti Group body to procure an further 7,30 thousands of issue shares in Bharti Telecom, asupporter company of BhartiAirTel.
Bharti AirTel Limited holds approximately 45.3% of the share capital of Bharti telecom.
As a result of the acquisition, SingTels efficient curiosity in Bharti Telecom will increasemarket share in growing mobile market and has more than 110 million customers.
Bharti Airtel Limited has standard economic growth and development of Indias economyregistered a growth of 21%.
(IANS) the price war in the telecom sector firm has in use of duty pay on Bharti AirtelLimited, which place a net turnover of INR.2, 209.8 crore (INR.22.098 crore/$479 lakh) for thesection ended December 31, a modest 2.4 % rise from the year-ago period.
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Social Analysis:
Bharti Airtel Limited binds up with twitter in this year.
Bharti Airtel Limited, the leading mobile carter in India, said it has attained a pact withApple(AAPL) to vend the iPhone in the upcoming month.
Bharti Airtel said it has put forward a bid to participate in the countrys 3G bandwidth publicsale; winning bidders would be permitted to offer 3G services.
Bharti Airtel selects long-term and contrarians funds are believed to be collecting shares oftelecom firm.
Bharti Airtel which registered 2.5 million downloads of mobile applications contained by 30days to begin of its application stores; its possibly the first pointer that operators, and nothandset makers, will drive this space in emerging markets.
Fifty-year-old Mittal took over the charge from Harsh Pati Singhania after the conclusion ofFICCIs 82nd Annual General Meeting (AGM) which was attended by Finance MinisterPranab Mukherjee.
1. Educate and Inspire2. Support Talent to Bloom Scholarships and Mentorship3. Public Health4. Rural Empowerment5. Disaster Relief6. Cultural Connect - Be one with India's diversity
Source: (http://www.economictimes.indiatimes.com-news/by/industry-telecom-Mobile-applications-business-to-keep-telcos).
Technological Analysis:
Bharti AirTel Limited provides roaming services and other value added services first time inIndia telecomm industry.
Customer care services are efficient. Gateway of e-commerce, Bharti AirTel LimitedIntroduced the broadband services, extensive distance services, and internet services.
Nokia Siemens will be expanding and upgrading the operator's 2.5G network to increasenetwork capacity by 50 percent in eight service areas.
Bharti Airtel Limited has started its Internet Protocol Television (IPTV) services, this service
play a vital role in the country. Bharti AirTel Limited invest Rs 500 crore in network improvement and another Rs 100crore in connected activities in the current economic in the North East region.
Legal Anaysis:
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http://online.barrons.com/quotes/main.html?name=&symbol=aaplhttp://economictimes.indiatimes.com/markets/stocks/views/recommendations/Heard-on-the-Street-Funds-playing-long-lap-up-Bharti-Airtel/articleshow/5704373.cms#%23http://www.economictimes.indiatimes.com-news/by/industry-telecom-Mobile-applications-business-to-keep-telcoshttp://www.economictimes.indiatimes.com-news/by/industry-telecom-Mobile-applications-business-to-keep-telcoshttp://online.barrons.com/quotes/main.html?name=&symbol=aaplhttp://economictimes.indiatimes.com/markets/stocks/views/recommendations/Heard-on-the-Street-Funds-playing-long-lap-up-Bharti-Airtel/articleshow/5704373.cms#%23http://www.economictimes.indiatimes.com-news/by/industry-telecom-Mobile-applications-business-to-keep-telcoshttp://www.economictimes.indiatimes.com-news/by/industry-telecom-Mobile-applications-business-to-keep-telcos -
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Bharti AirTel is connected with Mobile Virtual Network Operator (MVNO) .MVNOs having
complete power over the SIM tag, brand name, advertising, invoice, and customer carefunctions.
OSS and BSS to maintain the MVNO, Bharti AirTel Limited nearly keep own OSS/BSSprocesses and procedures to separate those of the MVNOs.
The government of India is marketing three to four slots of spectrum across the nation. It has fixed Rs 3,500 crore as the reserve price for pan-India spectrum Bharti AirTel takes this
opportunity to reserve the place in spectrum.
Leading Indian mobile service provider Bharti Airtel plans to expand its service in otherSAARC (South Asian Association for Regional Cooperation) countries including Bangladesh.
Government of India going to Launch Mobile NumberPortability (MNP).
The mobile number portability (MNP) would allow the users to switch service providerswithout changing phone numbers.
However, the service got delayed due to security clearance from the government.
At present its introduced by Bharti AirTel Limited in Chennai and Bangalore.
Source :(http://www.india-server.com/news/government-to-launch-mobile-number-21513.html)
Demographics Analysis:
Free market democracy. Product development and back office processing are one of thebenefits.
Steady profitable position, elongated improvement.
Bharti Airtel having enormous market prospective in the largest consumer markets.
Competitors Analysis:
Bharti Airtel is such a unique outstanding private Limited, its having many competitors,there are
Telephone Line Operators Cellular Phone Operators
BSNL Vodafone Essar
MTNL Aircel
Reliance Communications Reliance (GSM & CDMA services)
Tata Teleservices Tata Indcom
MTS Uninor-Telenor
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Idea, acquired 40.8% stake off spice communication at Rs 77.30a share for Rs 2,716 cores.There was a share swap in which spice share holder got 49 idea shares for every 100 spiceshares held.Telenor unitech deal, Telenor is in the process of acquiring controlling the stake of 67.25% inunitech wireless via equity infusion.
TTSL-DOCOMO Deal, 26 % shareholder in Tata Tele Services (TTSL), Japanese carrier NTTDOCOMO acquired.
Government Regulation Analysis:
Bharti Airtel Limited is awaiting 2G Spectrum in 10 circles. Under government telecom policy,all telecommunication Industries band to pay their License fees of 6 % to 10 % and another 2% to 6 % of their annual revenues as spectrum charge.
These mechanisms are not valid to internet service providers. Bharti AirTel announced that it wills set-up a new terrestrial cable network in the Himalayan
Kingdom of Bhutan.
The company signed a MoU to this effect with the Royal Government of Bhutan.
CHAPTER 2:
Stake holders Relationships:
A Stakeholder Analysis is an approach that is frequently used to identify and investigate theforce field formed by any group or individual who can affect or is affected by theachievement of the objectives of an organization.
Stakeholder Analysis identifies the ways in which stakeholders may influence theorganization or may be influenced by its activities, as well as their organization and its
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targets.
List of typical stakeholders:
Owners and stockholders, investors
Banks and creditors Partners and suppliers
Buyers, customers and prospects
Management
Employees, works councils and labor unions
Competitors
Government (local, state, national, international) and regulators
Professional associations, Industry trade groups
Media
Non-governmental organizations
Public, social, political, environmental, religious interest groups, communities
Mendewlows Frame work:Mendewlows Frame work:
The shareholders with the highest combination of power and interest are likely to be thoseThe shareholders with the highest combination of power and interest are likely to be those with thewith the most actual influence over objectives.most actual influence over objectives. Power is the shareholders ability to influencePower is the shareholders ability to influenceobjectives (how much they can), while interest is the shareholders willingness (how much theyobjectives (how much they can), while interest is the shareholders willingness (how much they care).care).
Influence = Power x Interest. (Using kotler theory)Influence = Power x Interest. (Using kotler theory)
Although it is a useful basic framework for under standing which shareholders are likely toAlthough it is a useful basic framework for under standing which shareholders are likely to be the most influential, it is very hard to find ways of effectively measuring each shareholdersbe the most influential, it is very hard to find ways of effectively measuring each shareholders power and interest.power and interest.
Internal and external stakeholders:Internal and external stakeholders:
Inputs to the development of the company mission:
Internal Stakeholders
Executive officersBoard of directors
Stockholders
Employees
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External Stakeholders
Customers
Suppliers
Creditors
Governments
Unions
Competitors
General public
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The easiest and most straight forward distinctions of shareholders are inside the organizationThe easiest and most straight forward distinctions of shareholders are inside the organization and outside the organization.and outside the organization.
Internal shareholders resolve workers and administration.Internal shareholders resolve workers and administration.
External shareholders will terminate customers participant and dealer.External shareholders will terminate customers participant and dealer.
Several share holders have strength of character and difficult to sort and trade unions havingSeveral share holders have strength of character and difficult to sort and trade unions having
the intention of elements both interior and exterior of the organizations.the intention of elements both interior and exterior of the organizations.
The investments are done in the different areas like Government securities, Mutual funds andDebentures.
The changes in current assets were due to the Debit outstanding for period exceeds sixmonths, Advances and loans given to subsidiary companies like Bharti comtel, Airtel (USA),Bharti Hexacom, Bharti Broadband Ltd.
The changes in current liabilities are due to the outstanding due of small scale industriesundertakings, Advance received form customers is decreased and Advance Billing.
The change in the share capital is due to
a) 1,516,390,970 Equity Shares issued as fully paid up bonus shares out of Sharepremium account.b) 20,088,445 Equity Shares are allotted as fully paid up upon the conversion of OCRDwithout payment being received in cash.c) 19,591,420 Equity shares are allotted as fully paid up on the conversion of FCCBsd) 2,772,125 Equity Shares are allotted as fully paid up under the scheme ofamalgamation without payments being received in cash.
The loans in above balance sheet were secured from banks as advances and also as termloans and vehicle loans
The inventory i.e. Stock in-Trade was increased. The Expenditure was increased by 39.783 percent this is due to the inter connect charges,
Installation, Power & fuel, Rent, Insurance , Repairs and Maintenance and also due to theLeased line Gate way charges, Increase in the cost of goods sold, Personnel expenditure likesalaries, wages, Bonus & Provident fund contribution, Staff welfare and Recruitment andtraining.
The difference of Network operation is due to the Interconnect Charges and PSTN Rentals,Installation, Power and Fuel, Insurance, Internet Access and Bandwidth Charges.
REGISTER NUMBER:
Company
Mission
10
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The change in Personnel is due to the Salaries, wages and Bonus, Contribution of Provident
and Other funds, Staff welfare Recruitment and Training.
The change in the sales in the marketing expenditure is because of the Advertisement andMarketing, Sales commission and Incentive, Sim card utilization.
The change in the administrative and other expenditure is due to Legal and professional,
Rates and taxes, Power and Fuel, Travelling and conveyance rent, Insurance, Provision fordoubtful debts and advances, Collection and recovery expenses.
The changes that took place in fixed assets are due to the capital work in progress i.e. capitaladvances and it also includes goods in transit and also for the license fees for unified accessservice for long distance for 7 to 17 years and 14 years.
The increase in current assets includes Goods in transit Rs.23,408 and also Net of Provisionfor diminution in value Rs. 43,113 and also for Intrest Acquired on Investment and Advancesin cash
The current liabilities are increased due to the advances to companies and also for Fringebenefits tax, warranty and wealth tax.
Investments in 2008 Increased due to the investment in Govt securities, Mutual funds,
Debentures and Bonds and also in IFFCO Kissan Sanchar Ltd of 100,000 equity shares.
The changes in the share capital was due to
a) 1,516,390,970 Equity Shares issued as fully paid up bonus shares out of SharePremium account.
b) 20,088,445 Equity Shares are allotted as fully paid up upon the conversion ofOptionally Convertible Redeemable Debentures without payment being received incash.
c) 21,315,734 Equity Shares are allotted as fully paid up opon the conversion of ForeignCurrency Convertible bonds.
d) 2,722,125 Equity Shares are allotted as fully paid up under the scheme ofamalgamation without payments being received in cash
CHAPTER 3:RETAIL MIX:
3.1 Location:
Company Name Bharti Airtel Ltd
Address Airtel Centre, Plot No 16Udhyog Vihar, Phase IV
Level of Office Head Office
Phone No (124) 4222222
Rank 2
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Website www.airtel.in
Industry Telecommunication/Mobile
City Gurgaon
State Haryana
Pin 122001
Group Bharti
Sector Private Sector
3.2 Merchandise:
AIRTEL offers its mobile GSM services in 95 cities.
1. Distributors like wholesalers and retailers.
2. Channel distributions.
3. Store outlets
4. Marketing through sales assistants
5. Street vendors
Implementing Merchandise Plans:
Gathering Information
Selecting and interacting with merchandise sources
Evaluation
Negotiation
Concluding Purchases
Receiving and stocking merchandise
Reordering
Re-evaluation
Reordering consists of four Critical factors:
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Order and delivery time
Inventory turnover
Financial outlays
Inventory versus ordering costs
3.3 Services:There are four different kinds of services in Airtel. There are
MOBILE BROADBAND DIGITAL TV FIXED LINE
Our seamlessmobile networkacross 23circles.
Speed upto16mbps on AirtelBroadband.
the magic digitalTV and a futureentertainment.
telephoneconnection at yourhome.
Mobile includes some different product like
1. Pre-paid
2. Post-paid
3. Blackberry
4. Wireless
5. Hand held.
Value Added Services (VAS):
VAS plays a vital role in AirTel Mobile Services.
The different value added services provided by Airtel are
Instantaneous sense of balance Enquiry
(24X7) boost ups facilities
Identification Caller line
Hello Tunes & Ring Tones
GPRS (General Packet Radio Service)
Easy Postpaid invoice collection
Company Solutions
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3.4 Price:
The Call rates in the minds of the consumers are one of the highest for Reliancecompared to other service providers. Further, the consumer seems to be spoilt with promotionaloffers, with almost all the players offering various
promotional schemes. Reliance, Hutch, Airtel, Idea, and Tata have nearly the same perceptionabout Promotional schemes among the consumers. From the survey it was found that theselection of a service provider was very much dependent upon both Price of the connection andcall rates as well as the Promotional schemes that the company launches.
Customer base cost strategy
Elastic price methods
Restricted by Telecom Regulatory Authority of India
AirTel Prepaid Plans
Tariff planShowing 6 PlansAirTel Regular Prepaid
ONE TIME CHARGESP - Rate 60 secondsPrice Pack (INR) INR.49Free Charge Airtime Pack (INR) Nil
Incoming Calls (INR)
Free while in abode
networkMONTHLY CHARGES (OPTIONAL)
Airtel Other GSMLocal Rates INR 1.00 INR 1.00Subscriber Trunk Dialing INR 1.50 / minutes INR 1.50 / minutes
International Subscriber dialing
America and European (Fixed Line),Hong Kong, Malaysia(Asian),Australia, Indonesia, New Zealand,Thailand, Singapore(Asian).
INR 6.40
Gulf countries, Africa, Europe, and
SAARC . INR 9.20Sao Tome & Principe, Guinea Bissau,Diego Garcia, Cuba, Nauru, SolomonIslands, Sakhalin ,Vanuatu, Tuvalu,Cook Islands, Norfolk Island
INR 40.00
SMS
Home text INR 1.00Country Wide text INR 1.5
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World Wide text INR 5.00
OTHER DETAILS
**The SMS charges as applicable isper 160 characters
AirTel Wireless Broadband Tariff Plans:The following are the tariff plans available for AirTel Data Card:
Post-paid Regular Plan
Sketch 1 Sketch 2Unlimited
usageData Card Rental INR.49 INR. 350 INR. 599 INR. 999Free Usage - 500 MB 1 GB Unlimited
UsageAdditional Data Usage (/MB)
INR.0.10p/10KB
INR. 5/- INR. 3/- -
Free SMS/ Month - - 100 100
Bharti AirTel has also launched five new plans: Surf, Swift, Turbo, Freedom and Velocity. Allthese plans are affordable plans from AirTel and the tariffs have been considerably reduced tonew plans.
Free digital TV connection :Just pay for 12 month subscription - Rs4350/-
3.5 communications:
Bharti AirTel Limited provides Global System for Mobile Communications mobileservices across India in 24 telecom circles. Bharti AirTel Limited group offers broadband &telephone services in 94 cities The Enterprise services group into two subunits
Carriers
Services
Both these services are provided under the Airtel brand. AirTel Mobile Campus major powerto connect with anytime anywhere access to associates and community. Huge size publishesbanners and video advertising are the promotional activity to promote the sales. Bigcelebrities like Bollywood actor and actress and sports mens like Sachin are roped in toapprove the product. Bharti AirTel got its naming tune from A.R. Rahman, he is the Oscarwon person who delightful the music; this naming tune is the most downloaded tune in India.Extraordinary discounts in calling cards & sms services.
AirTel -Annual results in brief:
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March2009
March2008
March2007
Sales 34,014.29 25,703.51 17,794.43
OperatingProfit
12,991.06 10,501.03 7,116.95
Interest 1,763.98 483.71 255.84
Gross
profit
11,367.82 10,253.18 6,954.67
EPS(INR) 20.40 16.45 10.64
CHAPTER 4:
RETAIL ORGANIZATION USE OF TECHNOLOGY:
Market segmentation:
BEHAVIORAL SEGMENTATION:
Airtel has divided the market into two segments. And for these two segments airtel hasdeveloped multi featured services according to their requirement. Because each segment havehomogeneous needs characters and requirement from the services.Segments have gave the name by AIRTEL
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For you
For your business
FOR YOU:In this segment those people are selected which are related to non business activities like
students children household persons teachers and who want to entertainment features inservices. For them airtel offer such services benefits are parallel to their requirements.
FOR YOUR BUSINESS:In this segment those people are target who are related to business and want high and multifeatured services for them and mostly time spent by the member of these segment pass inbusiness matters and for their business they need typically business related services.
Partners:
Network EquipmentEquity Partner {Strategic}
Partners of Tele media services andLong Distance Services
Wipro, Tellabs, Cisco, Nokia, Siemens,Alcatel Lucent, ECI.
Partners of Information expertise IBM
Customer services operationIBM Daksh, First source & Aegis,Hinduja TMT ,Tele performance,
Mphasis,
Impartiality Partner SingTel
INNOVATION & TECHNOLOGY:
The Company signed the following major agreements relating to operations, customer service,innovation and technology:
With IBM, to handle Bharti's IT requirements in Sri Lanka. IBM will provide IT support forBharti's operations in Sri Lanka, which is an extension of the software major's contract inIndia.
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With IBM Daksh, to enhance its customer service experience for its top-end Platinum
customers through process and technology innovation.Under the six-year contract, IBM'smanaged business services unit IBM Daksh will provide voice and back-office servicesincluding customer service,collections, and customer retention from its centers. IBM Daksh
expects to have over 700 employees in the first year focused on providing services in over 11languages to elite Airtel customers across the country.
With Alcatel-Lucent, a venture to manage Bharti Airtel's pan-India broadband and telephoneservices and help Airtel's transition to Next Generation Networks to offer advanced serviceslike high-speed internet, Triple Play, media-rich VAS (Value Added Services), MPLS (MultiProtocol Label Switching), VPN (Virtual Private Network) for both retail and businesscustomers. Under the Joint Venture, Alcatel-Lucent will design, plan, deploy, optimize andmanage Bharti Airtel's broadband and telephone network across India. A new legal entity isbeing formed which will be managed and controlled by Alcatel-Lucent. This is the firstManaged Services partnership for broadband and telephone services in India.
With Infosys Technologies Limited (Infosys) to deliver superior customer experience to thecustomers of Airtel digital TV, it's Direct-To-Home (DTH) TV service. As part of its DigitalConvergence Platform, Infosys will provide a suite of products including devices, applicationservers and interactive applications that will focus on providing an enhanced digitallifestyle to Airtel digital TV customers.
With HP, to promote the penetration of broadband and personal computers. Under the scopeof the partnership, Airtel will offer consumers a broadband connection at discounted entrycost with every HP and Compaq notebook and desktop.
With Apple Inc. to bring the iPhone to India. iPhone 3G combines all the revolutionaryfeatures of iPhone with 3G networking that is twice as fast as the first generation iPhone.Bharti Airtel and RIM introduced the Blackberry Bold for its customers in India. TheBlackberry Bold smartphone is the first Blackberry smart phone to support tri-band HSDPAhigh speed networks around the world providing superior functionality and performance forbusiness professionals and power users
With Cisco(R) to launch Managed MPLS (Multi Protocol Layer Switching) Service. Thelaunch includes a Tier 1 MSCP (Managed Services Channel Program) certification fromCisco for their network and service capabilities, to provide Managed MPLS VPN(VirtualPrivate Network) services. With this Airtel has become the first service provider in
APAC (Asia Pacific American Coalition) to achieve Cisco Powered Managed Multi-ProtocolLayer Switching Provider status under CISCO MSCP Program. The certification places it in aleague of select global operators that are endorsed for carrier class MPLS networks andenterprise class MPLS service capabilities. Airtel has also obtained a certification from Ciscofor their Tele presence Connection capabilities, which recognizes Airtel MPLS network forrunning Hi-Definition video conferencing services, which give users real life-like experience.
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With Virtela signed a strategic agreement to significantly enhance its international managed
MPLS connectivity outside of India to more than 5000 PoPs (Points of Presence) across 190countries. Under the agreement, Bharti Airtel and Virtela have integrated their networksthrough connection points in South East Asia and Europe in order to expand Bharti's MPLSbased IP-VPN capabilities around the world. Bharti Airtel will now be able to offer
its Enterprise customers seamless managed MPLS connectivity and advanced managednetwork solutions to key business customers on a truly globalbasis.
With Pacnet (region's largest independent telecommunications service provider) for aNetwork to Network Interface (NNI) agreement to interconnect their respective networks,expanding connections to and from India. Under the agreement, the two companies willdirectly interconnect their network infrastructure to expand their respective MPLS based IPVPN capabilities and to provide advanced IP (Internet Protocol) solutions to key businesscustomers in the region. The agreement will enable both companies to deliver greatercoverage, seamless user experience and reliable technology to their customers. Airtel and
Pacnet have also announced a special 'Gateway to India' offering for highcapacity international Private Line circuits between the United States and India.
With IFFCO to herald the second Green Revolution to benefit millions of rural consumers witha Joint venture company, IFFCO Kisan Sanchar Ltd (IKSL) that will harness the power oftelecom to add value to the farm sector and empower the rural farmer by giving him accessto vital information, which will enhance his livelihood and quality of life. IKSL will offerproducts and services, specifically designed for farmers, through IFFCO societies in villagesacross the country. On offer are affordable mobile handsets bundled with Airtel mobileconnection and customized value added services.
With 15 global telecom majors to build Europe India Gateway (EIG), a cable system fromIndia to United Kingdom. Airtel is the only Indian service provider to be a part of thisconsortium, and will be operating the cable landing station in Mumbai. The other members ofthe EIG cable consortium include AT&T, BT, C&W, Djibouti Telecom, Du, Gibtelecom,IAM, Libyan Telecom, MTN Group Ltd., Omantel, PT Comunicacoes-S.A, SaudiTelecom Company, Telecom Egypt, Telkom SA Ltd, and Verizon Business.
With the country's flagship oil company - Indian Oil Corporation (IOC) - that will enable Airtelto access 18,000 retail outlets and 5,500 Indane cooking gas distributors of the oil giant totake the mobile opportunity home to more customers. This is an exclusive alliance betweenAirtel and IOC.
With First Source Solutions (a leading global BPO services provider), a three-yearoutsourcing agreement to provide a suite of BPO services covering both voice and backoffice in areas such as customer accounting, VAS (Value Added Services) provisioning, fraud& credit monitoring, customer service, collections, customer retention to Airtel.
With Australia Japan Cable (AJC) to interconnect their current and future networks in Guam.This landmark agreement will allow both parties to offer services from a number of locations
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including Singapore and the USA West Coast to Australia. The innovative agreement willutilize the undersea cable assets of Bharti Airtel and AJC. The joint network is expectedto carry commercial traffic by end of Q1 FY 09-10.
With asklaila, India's first local information service, enabling Airtel customers to get up-to-date
information about their city, free of cost, through asklaila's extensive city informationdatabase. The asklaila-powered Airtel city search' is accessible across six cities, includingDelhi, Mumbai, Chennai, Hyderabad, Kolkata and Bangalore.
NEW FRONTIERS:
New products/initiatives:
During the year, the Company launched various new and innovative products and services inthe market. This enabled the company to strengthen its leadership position despite intensecompetition.
The following are key launches and initiatives for the year:
The Company made its foray into media and television by redefining home entertainmentwith Airtel digital TV. The service is available to customers through 31,000 retail pointsincluding Airtel Relationship Centers across the country.
Launched its virtual calling card service Airtel Call Home' in UK, Singapore and Canada. Theservice is targeted at the huge Indian Diaspora, Non-Resident Indians (NRIs) and Indianstudents in these markets.
Launched its mobile services in Sri Lanka under the Airtel brand. The Company haslaunched a suite of innovative services and redefined affordability on a state-of-the-art 3.5Gnetwork. Bharti Airtel plans to invest around USD 200 million in its Sri Lanka operations.
Expanded the footprint by launching its Mobile Services in Lakshadeep. Bharti Airtel is thefirst private mobile service provider in the islands.
Launched Triple Play with Airtel digital TV interactive - Telephone, Broadband and TV on asingle line. The Triple Play Service is initially available to customers in Delhi, Gurgaon andNoida. Airtel's state-of-theart IPTV Head-end, with best-in-class MPEG4-10 compressiontechnology, will allow it to offer more content and better quality images as well as serviceslike live broadcast television; network based time-shifted TV, real video-on-demand and ahost of other interactive services.
Pioneered 16 Mbps broadband thereby offering the fastest wire line broadband on DSL in thecountry. This service is powered by the Carrier Ethernet network and will be initially availablein the cities of Delhi NCR, Chennai and Bangalore with phased roll-out to additional cities of
Hyderabad, Pune, Mumbai and Kolkata. Announced the launch of the world's first Windows based Online Desktop-powered by
Microsoft and Nivio, giving access to a personal virtual desktop from any computerconnected to the internet for Airtel broadband customers. This initiative will pave the way foreasy and affordable access to computing and broadband in India. This service will beavailable to all Airtel broadband customers across 95 cities in the country.
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Launched Overseas Recharge Service, yet another first' in the Indian telecom market. Airtel
has partnered with ezetop International to make prepaid recharge available in over 150money exchanges in the UAE and online at www.ezetop.com
Introduced calling rate of 1 cent per minute on its online calling card servicewww.airtelcallhome.com. This will enable the Indian diaspora in US to call friends and family
back in India at the most competitive rates in the market. Launched VeriSign(R) Identity Protection (VIP) Services for its Enterprise customers in Indiain partnership with VeriSign. VIP Services is a comprehensive suite of authentication andfraud detection solutions that enables organizations to strengthen and protect theircustomers' online identities.
Spelled 'End of Distance' in India with unprecedented tariff reductions on STD and Roamingservices for its customers. While STD rates came down to Rs. 1.50/- minute from the earlierRs. 2.65/- minute, the reductions enabled Airtel customers to receive a call while roaming atRs. 1/- minute, as compared to the earlier Rs. 1.75/- minute. Further, while roaming, Airtelcustomers can make an outgoing local call at Rs. 1/- minute and an STD call at Rs. 1.50/min.
With mChek to offer the toll tag recharge through Airtel mobile for the Delhi GurgaonExpressway.
Expanded its Premium International Toll Free services from 80 countries for its Enterprisecustomers in India. These services enable enterprises to offer a convenient and cost effectiveway to their overseas customers, business partners and employees travelling abroad, tocommunicate with them, through an international toll free number.
CHAPTER 5:ETHICAL AND ENVIRNOMENTAL ISSUES:
Using the Boston consulting group approach company classifies all its SBUS accordingto growth share matrix.
Growth share matrix divide SBUS into 4 types
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1. star 2. cash cow3. question mark4. dog
Stars:Two SBUS of AIRTEL one is mobile and other is telemedia services falls into star categorybecause of increase in population and high growth rate and high relatively market share and anumber of it competitors AIRTEL has to invest relatively high on marketing advertising to captureand maintain its customers.
Cash cow:Enterprise SBUS of AIRTEL exist into cash cow stage because it generate high profit marginand has to invest less to the promotion of their sales because AIRTEL has already build trust ofits company and there is now low market growth rate. The reason of high margin profit is thatenterprise services prices are high.
Pricing: In this market situation/ competitors of telecom providers go well with local conditions,then there should be flexible pricing mechanism (either at central or local level.)
Improvement in technology: Bharti Airtel shift into third invention switches by replacing its c-dot switches. It will develop the quality of service to desired level and offer an instantaneousintegration with the nationally network. Transmission towers wants be improve to avoid nosignal pockets.
Increased Focus: To increase focus on low end consumers.
It should expand its rural network coverage to widen its customer base.
Flexible pricing mechanism
The majority of perspective customers are teenagers, so AirTel ads should be morefocused around them.
Internet charges should be reasonable to the customers.
Mms facility is also too costly
Majority information technology corporate company use internet so they might require ahigh speed process
AirTel need to make its on strong network to the Competitors.
Need more customer attractions.
Conduct extra curricular activities for the public to attract the social awareness.
Competitive Advantage:
Price gain
Present influential in superiority service
Biggest sharing network
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Capability to continuously improvement
Extremely skilled workers
Commercial enthusiasm
Airtels improved fair play and advertise top.Airtel became good network provider all over India. Using this Airtel can stops their declineperiod at the maturity period. Comparing to all other networks Airtel customer information andcustomer relationships is high and tremendous.
Further Developments:
Need to cover all urban areas, broad band connections are less. Network provider connections are very low, where the customers cant use the internet very
quick, so by increasing the network connections and internet connections the AIRTELremains stable positions in Maturity age.
6. CONCLUSION:
Bharti Airtel Limited (Airtel) is most successful brand in India with largest marketdistributors. Apart from other competitors, Bharti Airtel limited moving number one in the
world.Success is based on three pillars-
1. Connectivity
2. Affordability and
3. Innovation
The heart is connectivity, i.e. the network
Pre paid traffic plan services are more luxurious than post paid plan service. Bharti AirtelLimited begins extensive and prominent division to go with that of the challengers. Thesupply group shall build the creation detectable along with presented to well-locatedpositions.
Bibliography:
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GPRS - General Packet Radio ServicesGSM - Global System for MobileCDMA - Code division multiple accessTRAI - Telephone Regulatory authority Of India
BSNL - Bharat Sanchar Nigam LimitedMTNL - Mahan agar Telephone Nigam LimitedTTSL - Tata Tele ServicesMNP - mobile number portabilityDOT - Department of telecommunicationIPTV - Internet Protocol TelevisionOSS - Operational support systemsMVNO - Mobile Virtual Network OperatorISDN - Inter Services Digital Network
Online References:
http://www.airtel.inhttp://www.airtel-broadband.comhttp://www.airtel-vodafone.je/http://www.app.airtel.in/pcsecure/http://www.trai.gov.inhttp://www.answers.com/topic/swot-analysis(Investment dictionary)
http://www.marketingpower.com/_layouts/Dictionary.aspx.http://marketing-dictionary.com/.http://www.learnmarketing.net/.http://www.learnmarketing.net/index.htm.
Journals:
Survey of Indian Industry -2004Survey of Indian Industry -2007
Survey ofIndian Industry -2008http://www.hindustantimes.comhttp://www.news.bbc.co.uk/2/hi/8515904.stmhttp://www.economywatch.com/world-industries/telecommunicationshttp://www.india-server.com/news/government-to-launch-mobile-number
http://economictimes.indiatimes.com http://www.thaindian.com/newsportal/business/bharti-sees-modest-rise-in-net-profit-lead
Book References:
1. Core text: Rose mary varley and mohammed rafiq (2003) principle of management.2. Saunders,M.., lewis ,A and thornhill,p.(2006) Research Methods for business students ,4th edition,FT prentice Hall3. Krafft,M..and mantrala ,M.k(2005)Retailing in the 21st century current and future trends ,1st Edition Routledge4. Reynolds,J and cuthbertson..c(2003) Retail Strategy,the view from the Bridge ,ButterWorth-Heinemann5. Kent .T(2002) Tetailing Paigrave Macmillan
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http://www.economywatch.com/world-industries/telecommunications/#%23http://www.airtel-vodafone.je/http://www.app.airtel.in/pcsecure/http://www.trai.gov.in/http://www.answers.com/topic/swot-analysis(Investmenthttp://www.marketingpower.com/_layouts/Dictionary.aspxhttp://marketing-dictionary.com/http://www.learnmarketing.net/glossary.htmhttp://www.learnmarketing.net/index.htmhttp://www.india-server.com/news/government-to-launch-mobile-numberhttp://www.thaindian.com/newsportal/business/bharti-sees-modest-rise-in-net-profit-lead_100307970.html#ixzz0hn7YQtUGhttp://www.thaindian.com/newsportal/business/bharti-sees-modest-rise-in-net-profit-lead_100307970.html#ixzz0hn7YQtUGhttp://www.thaindian.com/newsportal/business/bharti-sees-modest-rise-in-net-profit-lead_100307970.html#ixzz0hn7YQtUGhttp://www.economywatch.com/world-industries/telecommunications/#%23http://www.airtel-vodafone.je/http://www.app.airtel.in/pcsecure/http://www.trai.gov.in/http://www.answers.com/topic/swot-analysis(Investmenthttp://www.marketingpower.com/_layouts/Dictionary.aspxhttp://marketing-dictionary.com/http://www.learnmarketing.net/glossary.htmhttp://www.learnmarketing.net/index.htmhttp://www.india-server.com/news/government-to-launch-mobile-numberhttp://www.thaindian.com/newsportal/business/bharti-sees-modest-rise-in-net-profit-lead_100307970.html#ixzz0hn7YQtUGhttp://www.thaindian.com/newsportal/business/bharti-sees-modest-rise-in-net-profit-lead_100307970.html#ixzz0hn7YQtUG -
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6. Kotler, P (2000). Marketing Management. Prentice Hall.7. Kotler, P (1999) Kotler on Marketing. Simon and Schuster.8. Adam, -S., Armstrong, G., Brown, L., Kotler, P., (1998), Marketing, (4th edn.), PrenticeHall, Australia.9. Gabbott, M., Hogg, G., (1997), Contemporary Services Marketing Management, TheDryden Press, London.Marketing Association and BDRC.10. Schmidt-Bleek, F.(1993), MIPS Revisited. Fresenius Environmental Bulletin, 2, 407 412.
11. Ciancutti & Steding (2000) Built on Trust: Gaining competitive advantage in any organization,Contemporary Book, Chicago, Illinois.
12. Shearman (2000) Local Connections: Making the network for people and communities, communitiesonline.