Comparison between any two Competitive Companies
Submitted in partial fulfilment of the requirement For the Award Master of Management Studies
Under the Guidance of Prof. Mona Sinha Submitted by:Vailankanni D’souza MMS SEM I Roll no. 12
Why Airtel v/s Vodafone
The dominant players in India are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL but Vodafone drew my attention with its marketing strategy and Airtel with its Innovations and product development. To me both are striving hard to sustain the market pressure, playing their cards well & very good competition for each other.
A midst all the talk of slowdown in the Global world, telecom is one sector that has had a fairly good year in terms of subscriber additions and revenue growth in 2009. However, even as this gives some reason to cheer for the telecom incumbents, there are a few trends in key metrics of the companies that suggest increasing pressure on margins. After the telecommunication policies were revised to allow private operators, companies such as Bharti Telecom, Tata Indicom, Reliance MTNL, Idea, Vodafone and BPL have entered the space as Major Operators in India.
Airtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecom services providers with operations in India and Sri Lanka. Bharti Airtel since its inception has been at the forefront of technology and has pioneered several innovations in the telecom sector. • • The largest wireless service provider in the country, based on the number of customers Offers an integrated suite of telecom solutions to our enterprise customers, in addition to as of September 30, 2009. providing long distance connectivity both nationally and internationally. We also offer DTH and IPTV Services. • The company also deploys, owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus Towers Limited. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India. • With effect from April 24, 2006, the name of the Company has been changed from Bharti Tele-Ventures Limited (‘BTVL’) to Bharti Airtel Limited.
Name Business Description Bharti Airtel Limited. Provides GSM mobile services in all the 22 telecom circles in India, and was the first private operator to have an all India presence. Provides Telemedia services (fixed line and broadband services through DSL) in 95 cities in India. July 07, 1995, as a Public Limited Company Rs. 369,615 million (year ended March 31, 2009-Audited) Rs. 151,678 million (year ended March 31, 2009 - Audited) 3,796,842,330 as at Sept 30, 2009 The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE) Approximately Rs 1,236 billion as on 30th Dec 2009 110,511,416 GSM mobile and 2,928,254 .Telemedia Customers (status as on Sept 30,
Established Revenue: EBITDA: Shares in issue: Listings:
Market capitalisation: Customer base:
Airtel has targeted the bottom of the pyramid - C K Prahalad Concept Market segmentation: •Geographical segmentation – metropolitan & cities India •Demographic segmentation - low & middle income group •People age group of 20 to 28
• • • •
People living in cities and towns Poor and middle income groups Youngsters in big cities Businessmen
Creating brands Ads and promotion
• • • •
Price-low price strategy Place-maximum outlets and service centers Product -varieties available for various group Promotion -various schemes for prepaid and postpaid
Airtel strategy is to be leader in:
Innovations Network Offers and Services
Strategy of making customers educated about the services like: -
1. 2. 3.
“ What is roaming?” “ What is coverage area?” “ How...