Airtel : Strategic Management

Topics: Mobile phone, Bharti Airtel, Bharti Enterprises Pages: 32 (8561 words) Published: August 28, 2010
Submitted by
Dipti Ranjan Mohanty (14)
Kiranjyoti Mahasuar (19)
Saphallya Mishra (45)
Saumya Ranjan Swain (47)
Sk. Mosharaf Hussain (52)
Strategic Management
Assignment on Airtel
Topic Page
1 An Overview of Telecom
2 An Overview of Company and Its
Competitive Positioning
3 Key Operational Strategy 26-34
4 Key Promotional and
Communication Strategy
5 Strategies to beat the
6 Conclusions 41-42
7 References 42-43
Chapter I: An Overview of Telecom Industry
1. Introduction
The telecommunications industry is a system of switches and lines that interconnect to provide communication between multiple parties. Today, the telecommunications industry includes local telephone service, long distance telephone service, wireless telephone service, paging service, Internet service, Voice over Internet Protocol (VoIP), and a wide array of other competitive products and services. All of these different methods of communication operate through networks forming a global telecommunications industry.

1.1. Global Scenario of Telecom industry
World telecom industry is an uprising industry proceeding towards a goal of achieving two third of the world’s telecom connections. Over the past few years information and communications technology has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry.

1.1.1. World Telecom Industry
The world telecom industry is expected to rise with CAGR of 11 % at the end of 2010. The giant global players such as AT & T, Vodafone, SBC Communications, BELL South, Qwest Communications are in the race to achieve the expected growth be the no.1. these companies are working on telecommunications fields like broadband technologies, EDGE ( Enhanced Data rates for Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data service etc.

The World telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 % of the gross world products and is aiming at attaining more revenues. One statistical report concludes that approximately 17 % of the world population has access to the Internet. Over the last couple of years, world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their business with this 4

industry. The Government monopolies are now being privatized and consequently competition is developing. Among all, the domestic and small business markets are the hardest. 1.1.2. Industry Overview

Until the 1980s the world telecommunications systems had a simply administrative structure. The US telephone service was supplied by a regular monopoly, American telephone and telegraph (AT & T). Telegraph service was provided mainly by the Western Union Corporation. In almost all other countries both services were the monopolies of government agencies known as PTTs (for Post, Telephone, and Telegraph). In the US beginning in 1983, AT & T agreed in a court settlement to divest itself of the local operating companies that provided basic telephone service. They remained regulated local monopolies, grouped together into eight regional companies.

In the time line there were remarkable changes in the telecom industry in global scenario. After years of debate, structural separation is now taking place in many parts of the world including Hong Kong, New Zealand, Singapore and some European markets. Structural separation or at least full-blown operational separation is required to advance the entire industry and to create new business opportunities and innovations which will benefit our society, our economy and ultimately our industry.

The focus is also shifting away from broadband to what it can actually achieve. Next...

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