Professional Documents
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Case facts
Pioneer of cost leadership telecom model with tariffs of less
Vision: To win
than 1 cent/min
customers for life
Became pan-India operator in 2004 by running operations in all
through an exceptional
23 circles
experience
Distribution network of 2.5 million retailers in India +
distributions in South Asia and Africa by 2011
Mission: Meet the
By February 2012, acquired 256million subscribers in South
mobile communication
Asia and Africa producing 2.8 billion minutes/day
needs of the customer
In 2004, company slashed local call tariffs by 60%
through error-free
Revenue increased from $54m in 1999 to $8.2b in 2009
service delivery,
Bhartis market share reached a steady 33% by 2009
innovative product and
Outsourced majority of their operations so that they can focus
services, cost efficiency
on marketing strategies and Customer Relations
and unified messaging
Adopted Matchbox Strategy for distribution to reach larger
SWOT Analysis of African Telecom
Porters Five Force Analysis of African
Market
Telecom Market
Strengths
Weaknesses
Relatively
large Lack
of
Buyers Threat: Low-Medium as the mobile
and
young
liberalization in
users in African market were relatively inpopulation
international
elastic to the price charged per minute for a
Spectrum
gateways
call
of
allocation process Cost
Suppliers threat: Medium-High Due to
transparent than
accessing mobile
limited availability of skilled workforce, the
that in India
network is high
cost of labour was higher than getting an
Growing Economy Monthly minutes
equivalently skilled labour from India to Africa
and the second
of
use
per
Rivals threat: High Well established Telecom
largest
mobile
customer
was
service
providers
like
MTN,
safaricom,
market
in
the
low
Vodacom were already leading in some of the
world
African countries
Opportunities
Threats
Substitutes
threat:
Medium
with
Expected to
Lack of skilled
increasing internet subscription the changes of
bypass fixed line
workforce
and
using Skype/Google for making international
communications
high
cost
of
calls also increases. However, the voice quality
96% prepaid
labour
issue in internet telephony is the reason for
Limited supply of
mobile
moderate power of substitutes
subscription in
infrastructure
New entrants threat: Low-Medium Due to
2011 with
needed to run
high capital investment requirement and nondominating voice
the business
Competition
revenues
Value added
from stablished
mobile services
players already
were major
in market
drivers of
industrys growth
M&A:
Need/motivation: The market share of Bharti Airtel in India reached a steady 33% and hence they
wanted to look for new growth regime in telecom industry to expand their operations. The African
Submitted by Group E2
Submitted by Group E2
Submitted by Group E2