strategic management uses of airte

Topics: Strategic management, Bharti Airtel, Mobile phone Pages: 15 (1045 words) Published: August 15, 2014
Daffodil International University
Assignment on
Analysis of strategic management uses by
Airtel Submitted to-
Sheikh Abdur Rahim
Assistant professor & Head
Department of Real State and Commerce
Daffodil International University

Prepared by-
Amina Afrin
Department of Business Administration

Definition of Strategy
first we look at what is strategic management and what is the process of it-

Strategy: A firm’s theory about how to gain
Competitive advantage

The Strategic Management Process

Airtel Bangladesh Ltd., sixth cell phone carrier to enter the potential Bangladesh market runs Global System for Mobile Communications (GSM) –based cellular operation. Launching commercial operations on May 10, 2007 as Warid Telecom, this mobile telecom operator was rebranded to airtel in December 2010 following acquisition of 70% stake in Warid Telecom, Bangladesh, a subsidiary of the UAE-based Abu Dhabi Group by Bharti Airtel Limited in January 2010.

Bharti Airtel is making a fresh investment of USD 300 million to rapidly expand the operations of Warid Telecom and have management and board control of the company. This is the largest investment in Bangladesh by an Indian company. Dhabi Group continues as a strategic partner retaining 30% shareholding and has its nominees on the Board of the Company.

The new funding is being utilized for expansion of the network, both for coverage, capacity, and introduction of innovative products and services. As a result of this additional investment, the overall investment in the company will be in the region of USD 1 billion. This is Bharti Airtel’s second operation outside of India. The company launched its mobile services in Sri Lanka in January 2009 on a state-of-the-art 3.5G network. On July 19, 2007, the company crossed the 1 million customers mark in the first 70 days of operation. airtel Bangladesh had 4.37 million subscribers as of February 2011.

Strategic management used by Airtel

1. Mission
by 2015 Airtel will be the most loved brand, enriching the lives of millions.” "Enriching lives means putting the customer at the heart of everything we do. We will meet their needs based on our deep understanding of their ambitions, wherever they are. By having this focus we will enrich our own lives and those of our other key stakeholders. Only then will we be thought of as exciting, innovation, on their side and a truly world class company

2. Objectives
by 2020 Airtel will be the most admired brand in Bangladesh:

Loved by more customers
targeted by top talent
benchmarked by most business

External and internal analysis
1. pest analysis
Political Opposition to participation by the
private players
Govt support to promote FDI in Telecom sector
Banning of Phone Use in Certain Circumstances

Equipped with New Technology
Rapid Industrial growth rate induced by emerging technologies. Strong Fibre Optic Network
Utiilization of E- Commerce facilities
Efficient Customer Care Services
Cost of calls Being Driven Down
Worldwide Recession- Both Boon & Bane
Middle class consumer base growing due to accelerated economic growth Untapped markets in emerging Economies - New Opportunity
High End Phones becoming status symbol
Due to Intimate family bonding in Indian Culture, there is need to remain connected Tech Savvy Generation

3. Porter five forces

Customer bargaining power
Cut throat Competition
Low Switching Costs
Number Portability will have...
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