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Space Analysis ??? Bharti Airtel STRENGTH Stake holders and Strategic alliance with Sony-Ericsson, Nokia – and Sing Tel Network in entire India Supplies broadband & telephone services WEAKNESSES: Outsourcing to Industry experts Failed deal with MTN could signal lack of real emerging market investment opportunity OPPORTUNITIES: Tie up with Google Global telecommunications and new technological brands see Airtel as strategic player Focus on average revenue per minute well suited for India operations Joint venture with Vodafone and Idea cellular to create a new independent tower company called Indus Towers. THREATS:
Vodafone acuisition of Hutch-Essar Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market Competitive Advantage -Market Share Airtel has the highest market share among all the market players Thus, the score allotted is -0. 06 -Product Quality August 7, 2008: Bharti Airtel adjudged the ‘Best Cellular Service Provider’ and ‘Best Broadband Service Provider’ at the 2008 V&D 100 Awards. May 26, 2008: Airtel was honoured with the prestigious ‘Wireless Service Provider of the Year’ award at the 2008 Frost & Sullivan Asia Pacific ICT Awards.
Score allotted is -0. 23 Product life Cycle The overall tele-density has increased to 31. 5% in October 2008. Market has huge potential for penetration. Score allotted is -0. 26 -Customer Loyalty June 11, 2008: Airtel voted the 2nd Most Trusted Service Brand in the Annual Economic Times-Brand Equity, Most Trusted Brands survey RCOM is slightly better in application of funds Airtel wins the Platinum Trusted Brand Award in the Mobile Service provider category in the Reader’s Digest Asia Trusted Brands Survey . Score allotted is -0. 5 Environmental Stability (ES) -Technological Changes Sector subject to rapid technological changes and advancements Demand is for latest 3G cellular mobile services Score allotted is -0. 5 -Rate of Inflation The inflation has softened from a high of 13% to 5. 91% in Dec’08 The fall in inflation will result in decrease in input cost However prices have firmed up during this period Inflation movement has been to advantage The cost for erection of tower also has reduced due to reduced cost of steel Score allotted is -0. 4 -Demand Variability Lesser demand variability for telecom subscribers in the near future. Rising demand contributed by rising disposable incomes and mobile connectivity becoming an item of necessity Score allotted is -0. 07 -Price Range of competing products Prices hover at around Re 1 for local calls for all players With similar pricing levels among players for long distant calls, the narrow spread makes the prices highly competitive Score allotted is -0. 36