Airtel iCreate 2019

Submission Guidelines

Case Challenge Name

Team Name:
Campus:
Members:
Executive Summary - Guidelines

• File naming convention to be followed is (Case Stream_Campus Name_Team Name)

• Your submission must not exceed 5 relevant slides.

• Anything mentioned outside the first five slides will not be considered in the review process

• You may add a maximum of 2 annexures (1 slide each), if required

 1. Case Analysis & Findings:

 The Telecom industry is one of the biggest playfield in terms of number of customers to serve and the demand of data
consumption is increasing exponentially.
 With the entry of a new player which had huge investments ,offered freebies(4G LTE) and bundled per customer
pricing at a very cheaper rate disrupted the entire market due to which many players were forced to move out.
 Data usage per person increased drastically since 2 years and now the customer demands of more data with high
speed.
 3-4 Players that survived were forced to change their pricing strategies and there was a huge decline in revenue of
telecom industry.
 The 3-4 also invested lots of money on spectrum as well as took spectrum from other players. To engage more and
more customers they devised and launched reward programmes as well as entertainment and music apps.
 In order to sustain in this competitive market the companies should be agile, flexible and always ready to inherit the
new technological, business changes.
 In order to be at par with the competitor a company should always make sure that their points of parity are same as
their competitors point of differences.
(For ex.- AlphaTel also started providing Music & Entertainment services similar to Betatel.
 For a new player like Betatel to enter in the market it is very important to first gain maximum market share which leads
to higher long run profit.
 For every player in such a competitive market it is very necessary to analyze competitors price, costs and offers which
Alphatel did.
2. Approaches followed by Alphatel & Gammatel/Deltatel
ALPHATEL
Approach:
 It bought 2 players and their network capacity, as well as,
spectrum from 6 other operators. Thus making its network
strength a notch higher than the competition.
 It also changed its pricing strategy wherein it moved from a
per GB model to bundle product offering.
Pros:
 The company still working independently.
 They increased their assets.
 Venturing into new business model.
 Customer retention is not an issue
Cons:
• There is an increase in expense for the company.
• There is a
GAMMATEL/DELTATEL
Approach:
 Being the number 2 & 3 players they decide to go for merger
in order to survive in the hyper competitive market.
 This merger was done keeping in mind the economies of
scale and collective network strength.
Pros:
 The merger helps in the survival of the companies.
 There is an opportunity for companies to increase their
market share.
 Use of financial resources of other company
 Tax savings
Cons:
• It can create distress in the employee base of each
organization.
• There is a chance of low consumer retention.
Business Model for Industry & BetaTel
AlphaTel’s Approach to consolidate Market Share:

 Alphatel to consolidate market share, can target 3 sectors mailny; :

• Entertainment-
 They can acquire video streaming apps, which provide entertainment and sports videos. This will help them to retain the
majority of youth customers.
 They can also look for partnerships in various online entertainment providers. Merging with these entertainment
providers, will provide AlphaTel’s customers use these services for free.
• Mobile Companies-
 They can tie up with mobile companies in such a way that if a customer buys a particular phone of a brand, it will come
along with AlphaTel’s sim with a half yearly or yearly post paid plan.
• Other Network Providers-
 They can try acquiring other service providers so that they can further increase their network coverage area.
 They can also merge with other players, if not in 4G may be in other services. This will help them in economies of scale
and may create other sources of revenue.
 This may also help them penetrate the market from an all new dimension.
AlphaTel’s Approach to Grab share and in minds of cosumer:

• They can enter feature phone market and launch them with an AlphaTel sim which provides 4G services to the customers
at a cheaper rate.
• They can also come up with more music and entertainment related app, which can be free of cost for customers who take
up the 4G plan.
• They can tie up with mobile phone brands and can provide one year of subsidized postpaid plans.
• They can tie up with video streaming application specially sports so that they can reach out to a large number of
customers.
• They can also tie up with Big sports event like pro kabaddi league so that their brand visibility increases.
•