A market leader should generally adopt a defense strategy.
Six commonly used defense strategies.
* Position Defense
* Mobile Defense
* Flanking Defense
* Contraction Defense
Bharti Airtel limited is a leading global telecommunication company . The company offers mobile voice & data services, fixed line, high speed broad band, IPTV, DTH and national & international long distance services to carriers. It operates a GSM network in all countries.
Airtel is the fifth largest telecom operator in the world with over 200 million subscribers as of October 2010. It is the largest cellular service provider in India, with over 143 million subscribers
as of September 30, 2010. It has a
29.00% market share
of the GSM mobile service in India
This involves the defense of a fortified position.
This tends to be a weak defense because you become a sitting duck. It can lead to a siege situation in which time is on the side of the attacker, that is, as time goes by the defender gets weaker, while the attacker gets stronger.
Position defense Example:
Airtel Enjoying tariff plans as they wish before Tata Docomo came with per paisa billing (06thAugust, 2009) now Airtel also adopted the same plan. Initially they use to charge high message charges according to different plans but when message packs started they also came with that. Tata Docomo was the first operator to instigate ISD price war by a whopping reduction of 83 percent, bringing ISD call equal to Local calls. Reverse CRBT Idea Cellular was the first company
to launch (30Th March 2010) the reverse ring back tone service, by the name Pre Tones. Tata Docomo launched the service next, and called it My Song. Bharti Airtel was the third operator to roll out this VAS for its customers
This involves constantly shifting resources and developing new strategies and tactics. A mobile defense is intended to create a moving target that is hard to successfully attack, while simultaneously, equipping the defender with a flexible response mechanism should an attack occur.
Mobile defense Example:
* Radio streaming to mobiles - Bharti Airtel partnered with private FM station Radio Mirchi to launch Mirchi Mobile (April 26, 2010) initially in Delhi & Mumbai. * DTH recording via mobile - Airtel Digital TV, the DTH service from Bharti Airtel, is the first to launch a set top box which enables TV recording through a mobile phone, remotely (April 7,2010) Mobile Applications SNAPTU- Connect with your friends on facebook, twitter and IM, no matter where you are. * Bharti Cellular EDGE service -The company was the first to conduct field trials in November with its equipment supplier Ericsson. Airtel has diversified into
a) Airtel Broadband
b) Airtel Digital TV
This involves the re-deployment of your resources to deter a flanking attack. You protect against potential loss of market share in a segment, by strengthening your competitive position in this segment with new products and other tactics.
EXAMPLE of FLANKING
Untapped Rural market- Although Airtel have strong Presence throughout the country but still they are faraway from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is loosing revenue from the rural sector. Now Airtel is moving into rural areas as well. 0.facebook.com - Facebook had deals with Video con and Reliance in the Indian market. The service is totally free except for access top hotos and video content on the network which is charged. They have recently added Airtel to the group.
Withdraw from the most vulnerable segments and redirect resources to those that are more defendable.
By planned contraction or strategic withdrawal
In 2004, Bharti Airtel had struck a 10-year deal worth $750 million with IBM to...