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Top Facts
In 2009, Africas Mobile penetration was 30% hence it had a large potential for rise in
user base.
In 2009, Bharti Airtel had 33% of the market share in India.
By 2012, the company had 246 million subscribers and produced 2.8 millions a day.
Africa was the worlds poorest and most underdeveloped continent yet six of the top 10
fastest growing economies in the world were from Africa.
Middle class in Africa was expected to reach 100 Million in Africa mirroring that of India.
The internal analysis of the Bharati Airtel and the differences it faces regarding the business
model, population, operations and its alignment and compatibility with both the regions is
AF1
Bharti Airtel in Africa
shown below.
Strength
Weakness
CRM
Financials
Opportunit
y
Emerging Markets
Room for tarrif cuts
Rural markets
Area expansion for telecom
Cut throat competition
Poor infrastructure
Threats
MODEL
DIFFERE
POPULATION
NCE
High volume
low cost
Medium cost
medium
volume
Homogenous
India
Heterogenous
Africa
OPERATIONS
Operational
Efficiency
Operational
inefficiency
MODEL
ALIGNMENT
Compatibility
Incompatibility
AF1
Bharti Airtel in Africa
Bharti-Airtel enjoyed first movers advantage in India. However in Africa there
were existing players like MTN, Vodacom, Orange, safaricom. The working model
for the African telecom sector was based on European players. Therefore when
Indian player moved in Africa it had to face lots of challenges in terms of
operational efficiency due to misalignment.
Why Acquire Zain?
Increase the
market share.
Smart pricing
strategy
Flexible pricing .
Region based
strategy for
bringing in high
volume -low cost
models.
Paathway to
success
Talent shortage
Rising Costs
Outsourcing
Obstacles
Multiple
countries
Cultural
Diferences
The competition faced by Bharti Airtel in Africa was from brands like MTN,
Vodacom, Orange, Safaricom.
Competitor
Revenue
Subscribers
2011 figures.
MTN
$12.5 billion
115 million
VodaCom
$8.5 billion
53 million
Orange
$4.8 billion
64.9 million
Safaricom
$1.4 billion
18.6 million
Prior to the acquisition, Zain had registered revenue of $3.7 billion and in 2011
4.2bn. The subscriber base in 2011 was 51.2 mn.
Thus Bharti Airtel faced a stiff competition from MTN which was the leader in
African Markets.
MTN focused on acquiring, retaining and upselling customers. It enhanced its
distribution channels, segmented customer service and was implementing its
mobile payments offering and defining its mobile health strategy.
Thus Bharti Airtel has to take into account all the competitor strategies while
making one to generate a sustained competitive advantage in the African region
where it was expanding its subscriber base.