Eic Analysis Airtel

In: Business and Management

Submitted By anchald14
Words 1244
Pages 5
E-I-C Analysis
Bharti - Airtel

1. Economy Analysis
GDP Growth Rate

Annual GDP Growth Rate
% change over the previous year
12 9.6 9.3 9.4 9.7 8.5 7.8 7.5 8.6 10 8 6 4 2 0 2008 2009 2010 2011 2012 9.4 9.3 8.9 8.3


Percentage change over previous year at 2004-05 prices at current prices 2010-11 2011-12 2010-11 2011-12 7.0 2.5 17.7 12.6 5.0 7.6 3.0 8.0 11.1 10.4 4.5 -2.2 3.9 8.3 4.8 11.2 9.1 5.9 21.5 14.7 10.2 16.5 18.2 21.7 15.3 15.0 11.9 9.2 14.6 18.7 19.3 15.6

1 Agriculture, forestry & fishing 2 Mining & quarrying 6.1 5.3 3 Manufacturing 4 Electricity, gas & water supply 6.1 5.8 6.3


5 Construction 6 Trade, hotels, transport & communication 7 Financing, insurance, real estate & business services

8 Community, social & personal services

Figure 1.1 Annual GDP Growth Rate (tradingbusiness.com)

Figure 1.2: Total GDP Industry Wise percentage change (www.indiabusiness.nic.in 8.4 6.9 17.5 15.7

INR performance
1 $ = 55.2028 INR

Rates & Ratios
Inflation Rate: 7.25 % Repo Rate: 8 % Reverse Repo Rate: 7 % CRR: 4.75 %

Low GDP growth rate implies an economic slowdown in the country due to various factors like the global economic slowdown and policy paralysis within the country. It indicates a lower disposable income with the masses and a decrease in consumerism. High inflation rates partly derived from the poor performance of Rupee, supply chain bottlenecks have forced the RBI to maintain high interest rates which result in slower economic growth.


2. Industry Analysis
2.1. Growth Rate
  Tele-density has increased from 4.3 in March 2002 to 78.1 in February 2012. The share of telecommunication services (excluding postal and miscellaneous services), as per cent of the total gross domestic product (GDP), has increased from 0.96 in 2000-01 to 3.78 in 2009 -10.

2.2. Government Policies and…...

Similar Documents


...Airtel pricing : There are two segements of consumers-High demand and Low demand consumers.High demand consumers will have higher utility for services than low demand consumers.High demand users will be willing to pay higher entry charge to avail the service than low demand consumers.Therefore,Airtel will extract maximum consumer surplus from high demand consumers (40.5 in this case)by keeping the entry fees high and in order to expand their market they will charge lower entry fees(3.125) from low demand users.As the talktime requirements are more for high demand consumers price/minute will be low to encourage more usage(.1 being the corresponding price for 40.5 entry fees).On the other hand price/minute will be high for low demand consumers because of limited usage(.2 being the corresponding price for 3.125 entry fees)The payoff in this case Is also maximum(4050+3200=7250).No other combination provides a better payoff. Yes it is possible to have two different plans for each group of customers.For high demand customers by using profit maximization equation of Mr= Mc, Airtel can charge per unit price of 55 cents per minute and for low demand customer Airtel can charge 30 cents which leads to higher revenues as compared to when airtel is charging 25 cents flat for both categories of customer . Airtel can keep high demand customers and low demand customers from switching by offering positive incentives to high demand customers and no incentive to low demand......

Words: 278 - Pages: 2

Eic Analysis

...implementation costs due to a common template • Reduced application maintenance costs • Lower integration cost due to standard interfaces • Lower infrastructure costs With an awareness of the best practices and a good understanding of ERP project complexities, the risks in an ERP implementation are usually outweighed by the benefits. The ERP discussion on investment return is one of mindset more than one of standalone business cases. Six ERP Design Challenges for Steel Companies A steel company presents six industry-specific design challenges for implementing ERP, as described below. A successful ERP project will start by analyzing these challenges in detail across all of the company’s integrated processes. This analysis will result in the basic decisions that will be the foundation of the ERP project. Challenge 1: More than one planning strategy Steelmakers often use a combination of production planning strategies. Typically the flat or strip products are make-to-order, whereas the long products are make to- stock. Depending on the existence of a “de-couple point”, finish-to-order could be a relevant planning strategy as well. Such a combination of planning strategies affects the design of most ERP processes, including supply chain processes as well as the financial/cost control processes. Cost control in make-to-stock tends to go for standard price approaches, but in a make-to-order environment costing happens on an individual order cost......

Words: 4650 - Pages: 19

Airtel- Financial Ratio Analysis

...FINANCIAL ANALYSIS FOR THE TELECOM SECTOR- A REPORT BY GROUP-4, SECTION-C AMAN SAHNI(4C) GAURAV SHARMA(16C) NEHA DEOLIYA(24C) PRATEEK GOEL(28C) SRIVATHSAN S.(43C) 1 INDEX 1. INDUSTRY OVERVIEW 2. COMPANY ANALYSIS 3.COMPETITIOR ANALYSIS 4. CONCLUSIONS 3 6 11 15 2 1. INDUSTRY OVERVIEW Introduction The telecommunication industry has been growing at a tremendous rate in India for the last few years. More than 18 million subscribers are added every month. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future. The telecom industry has been divided into two major segments, that is, fixed and wireless cellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have been discussed in brief in the report. In today’s information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionising human communication. Although the Indian telecom industry is one of the fastest-growing industries in the world, the current teledensity or telecom penetration is extremely low when compared with global standards. India’s teledensity of 36.98% in FY09 is amongst the lowest in the world.......

Words: 4878 - Pages: 20


...May 9, 2013 Result Update KEY DATA Market Cap (INR bn) Market Cap (USD mn) 52 WK High / Low Avg Daily Volume (BSE) Face Value (INR) BSE Sensex Nifty BSE Code NSE Code Reuters Code Bloomberg Code Shareholding % Promoters MF/Banks/Indian FIs FII/ NRIs/ OCBs Indian Public Performance Chart 2Q 68.0 8.0 17.0 7.0 1295.2 23984.4 370 / 238 507834 5 19990 6069 532454 BHARTIARTL BRTI.BO BHARTI IN 3Q 68.0 8.0 18.0 6.0 4Q 69.0 9.0 17.0 5.0 CMP : INR 324 Rating : Buy Target : INR 410 Bharti Airtel Margins contract due to higher network costs and fuel expenses… Operating matrics in India improves, while that of Africa disappoints … Voice realization in both India and Africa continues to remain under pressure, but higher AMOU in India is a major positive… Headline tariffs are set to improve… Maintain 'Buy' rating on the stock with revised price target of Rs 410 Bharti Airtel's consolidated net profit during Q4FY13 missed our estimates as well as the consensus estimates due to price realization pressure in India & Africa, high network rollout costs and sharp rise in interest cost and higher tax expenses during the quarter. Although the number of subscribers on the company's network increased both in India and Africa resulting in higher total minutes on the network (TMOU), the realized revenue per minute (ARPM) continued to remain under pressure. The average revenue per user (ARPU) though increased due to increased data usage from its 3G user base and higher voice minutes of usage...

Words: 5319 - Pages: 22


...Net Profit | 7.70 | 5.70 | 4.71 | 5.73 | -- | | | | | | Dividend Payout Ratio Cash Profit | 3.79 | 3.56 | 3.28 | 3.99 | -- | | | | | | Earning Retention Ratio | 92.16 | 94.25 | 94.78 | 95.22 | 100.00 | | | | | | Cash Earning Retention Ratio | 96.18 | 96.41 | 96.48 | 96.50 | 100.00 | | | | | | AdjustedCash Flow Times | 1.22 | 0.97 | 0.40 | 0.61 | 0.66 | | | | | | | | | Mar '12 | Mar '11 | Mar '10 | Mar '09 | Mar '08 | | | | | | | Earnings Per Share | 15.09 | 20.32 | 24.82 | 40.79 | 32.90 | | | | | | Book Value | 130.16 | 115.42 | 96.24 | 145.01 | 106.34 | | | | | | | | | | | | | | | | | | Source : Dion Global Solutions Limited | | | | | | Profit & Loss For Bharti Airtel Ltd. (Rs in Cr) | Mar' 12 | Mar' 11 | Mar' 10 | Mar' 09 | Mar' 08 | Income : | | | | | | Operating Income | 41,603.80 | 38,015.80 | 35,609.54 | 34,048.32 | 25,761.11 | Expenses | | | | | | Material Consumed | 18.30 | 244.10 | 313.63 | 281.65 | 33.85 | Manufacturing Expenses | 15,138.50 | 14,204.20 | 11,882.41 | 8,627.13 | 7,339.01 | Personnel Expenses | 1,391.50 | 1,304.50 | 1,401.66 | 1,397.54 | 1,297.88 | Selling Expenses | 0.00 | 3,180.20 | 2,404.91 | 2,210.43 | 1,842.51 | Adminstrative Expenses | 11,411.80 | 5,680.00 | 5,982.64 | 8,608.03 | 4,588.53 | Expenses Capitalised | 0.00 | 0.00 | -293.31 | -269.25 | 0.00 | Cost Of Sales | 27,960.10 | 24,613.00 | 21,691.93 | 20,855.54 | 15,101.78 | Operating......

Words: 1092 - Pages: 5

Regional Analysis Airtel

...Executive Summary Bharti Airtel, a leading telecommunications provider in India has seen an enormous growth since the opening up of the Indian economy after the economic reforms initiated by the then PM of India, Mr. P.V.Narasimharao towards liberalization, globalization and privatization. Airtel is now the fourth largest telecom company in the world in terms of subscriber base and is the leading telecom carrier in India. The phenomenal growth of Airtel has been due its outstanding and unique business model where it retained its core-functions to itself such as marketing and finance and outsourced its IT functions to companies such as IBM. Airtel has expanded significantly since 1992 due to the competitive advantage it had in the domestic market ( pan-India presence) and only since 2005-06 it started going global foraging into Africa. Significant threats to Airtel come from the lowering of FDI influx into Indian economy and increasing government regulations in the spectrum allocation frame work ,political interference and lobbying. Also the unstable economic conditions in the countries such as Central Africa were not favorable for its expansion in the global markets. Bharti Airtel (or simply Airtel) is an Indian telecommunications company with operations in 20 countries across Asia and Africa. It is headquartered in New Delhi India and was originally conceived and set up by Sunil Bharti Mittal in 1995. At present, Airtel is the world’s fourth largest......

Words: 2782 - Pages: 12


...TERM PAPER ON: “CONSUMER PERCEPTION OF E-ADVERTISING” TOPICS: Airtel Bangladesh Ltd. SUBMITTED TO Mahmud Zubayer Assistant Professor Department Of Business Administration East West University SUBMITTED BY Hasnat Jahan Nira: 2012-2-10-229 Md. Abul Kalam: 2012-2-10-126 Md. Abu Bakar Siddique Bhuiyan: 2010-2-10-327 LETTER OF TRANSMITTAL 10th December, 2013 To, Mahmud Zubayer Assistant Professor Department of Business Administration East West University. Subject: Consumer perception of e-advertising about “Airtel Bangladesh Ltd.” Dear Sir, It gives us an immense pleasure in submitting to you the term paper Consumer perception of e-advertising about “Airtel Bangladesh Ltd.” Which is the topic under our observation? While preparing the report, we closely focused on the topic & tried to collect most complete information available. We believe that it will provide you a clear scenario of e-advertising about the company. We thank you for giving us the opportunity to do a report on the above mention point. This term paper will definitely give us experience which we can be used in our professional life. We will be always available for any further query and to answer any questions on this paper. Thank you Truly yours Group- Scanner, Course- MKT201; Section- 01 Hasnat Jahan Nira _______________________________ Md. Abul Kalam _________________________________ Md. Abu Bakar Siddique Bhuiyan ......

Words: 4010 - Pages: 17

Report on Airtel

...Report on Air Tel Company Introduction Bharti airtel is a leading telecommunications company with services in 20 countries across south Asia, Africa and the channel islands.it was established in 7 July, 1995 as a public limited company, its headquarter is in new Delhi, India and employed 15,563 people approximately. The Bharti airtel have been organized their businesses into four strategic business units by the services such as Airtel Tele media (fixed line), mobile services, digital TV and enterprise services means carrier and services to corporates. This company ranks amongst the top 4 mobile service companies in terms of its customers. In India, company offer products include 2G, 3G, and 4G mobile services, mobile banking, DSL broadband services, DTH, fixed line services, national and international long distance services to transporters through enterprise services and it offers 2G,3G wireless services and mobile banking services. Airtel had approximately 299 million subscribers at the end of June 2014(Airtel.in, 2014) Bharti airtel limited offers its services to the customers under the name, Airtel brand and is running by Sunil Bharti Mittal.it is the first telecom company to get Cisco gold certification, to earn this certification company had to meet the requirements which is set by Cisco, it includes networking proficiency, satisfaction among customers, services( slide share.net,2014)Company’s proportionate revenues are Rs.229, 616 million ,audited 30, june2014 and......

Words: 3636 - Pages: 15

Case Analysis - Bharti Airtel

...Case Analysis: Bharti Airtel | | Introduction Bharti Airtel Limited is a major Indian telecommunications firm, with a particular focus on operating in the mobile services market. Founded in 1995, the company quickly tried to exploit growth opportunities arising from the liberalization of Indian telecommunication markets. The family owned business was soon able to generate profits and extend market shares. However, the pace of company growth challenges the firm in terms of being able to setup the necessary infrastructural elements, both within the firm as well as outside the firm. Therefore Bharti considers “reverse outsourcing” of IT infrastructure and network setup and maintenance to well-established firms from developed countries, such as IBM, Nokia and Siemens. This case analysis examines the proposed outsourcing deal both from the perspective of Bharti and from the perspective of potential vendors in order to find the most appealing solution for both parties. First, we talk about the success factors in the Indian mobile phone market and Bharti’s core competencies. Second, we will look into the outsourcing agreements outlined by Gupta and discuss the advantages and disadvantages of such agreements. Furthermore, we will discuss the question of how the contracts might affect Bharti’s core competencies. Third, we want to elaborate on the major concerns about entering in an outsourcing agreement with Ericsson, Nokia, Siemens and IBM respectively. ......

Words: 3542 - Pages: 15


...MARKETING STRATEGIES OF AIRTEL SUBMITTED UNDER PARTIAL FULFILLMENT OF THE REQUIREMENT FOR TRAINING SUPERVISOR: PROJECT ADVISOR: SUBMITTED BY: SESSION: ACKNOWLEDGEMENT I acknowledge the sincere assistance provided to me from several rather unexpected quarters during the course of execution of this study. It would be a mammoth task to place on record my gratitude to each and every one of them but a whole hearted attempt would be made nevertheless, least I be branded ungrateful. I am extremely thankful to Mr.Abhishek Yadav, (Unit Advisor) for giving me an opportunity to undergo training in BHARTI AIRTEL MARKETING and making my stay at AIRTEL MARKETING a memorable learning experience. Where the emotions are involved words cease to work. I am deeply indebt to ---------------------- for her encouragement, affections, valuable advice and guidance that helped me to complete this project successfully. 2 EXECUTIVE SUMMARY The project aims at understanding the Marketing strategies at Airtel and its impact on the perception of Airtel Cellular Services. Research has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one. And there is no better way to retain a customer than to exceed his expectations. For this purpose it is essential to know the level of customer satisfaction. The focus of my research was the measurement of customer satisfaction level for the services provided by Bharti Airtel. The......

Words: 12266 - Pages: 50


...Together good things happen... Bharti Airtel Annual Report 2009-10 Airtel centre The Airtel Centre – Inaugurated on November 13, 2009 Centre of excellence that houses more than 3,000 employees, 13 offices and spread over 600,000 sq.ft. Table Bharti Airtel Annual Report 2010 of contents 1 Corporate information 2 Corporate history and Top 30 shareholders 3 Performance at a glance 4 Awards & honours 5 Chairman’s message 6 Board of directors 7 CEO (International) & JMD’s message 8 CEO (India & South Asia)‘s message 9 Together good things happen 10 Corporate social responsibility 11 Directors’ report 12 Management discussion & analysis 13 Report on corporate governance 14 Secretarial audit report 15 Standalone financial statements with Auditors’ report 16 Consolidated financial statements with Auditors’ report 17 Notice of annual general meeting 2 3 4 5 6 8 12 14 18 24 32 40 46 63 64 115 159 1 Corporate Board of directors Sunil Bharti Mittal Chairman and Managing Director information Group General Counsel & Company Secretary Vijaya Sampath Statutory Auditors Manoj Kohli CEO (International) & Joint Managing Director Non-executive directors Ajay Lal Akhil Gupta Arun Bharat Ram Chua Sock Koong Craig Edward Ehrlich Lim Chuan Poh N. Kumar Nikesh Arora Pulak Chandan Prasad Rajan Bharti Mittal Rakesh Bharti Mittal Tan Yong Choo CEO (India & South Asia) Sanjay Kapoor S.R. Batliboi & Associates, Chartered Accountants Auditors – US GAAP Ernst & Young...

Words: 92085 - Pages: 369

Airtel Case Analysis

...CaseId – Bharti Case Title - Strategic Outsourcing at Bharti Airtel Limited Q1. Gupta’s proposal is comparable to “giving the family jewels to outsiders.” Why, or why not? Yes, if the core competence of a company is equivalent to family jewels, Gupta’s proposal is comparable to “giving the family jewels to outsiders”. Network management and operations expertise define a company like Bharti, it is the competitive differentiator and it takes a considerable number of years to achieve excellence in this area. Prioritizing the key revenue circles, if the deal goes through, will be done by an outside vendor i.e. Bharti will lose control some of the important areas that affect the business. How a network operator tackles the responsibility of maintaining the network in good working order decides its sustained profitability. By outsourcing the primary activity of a company, Bharti could be perceived as being at the “mercy of its vendors”. However Gupta’s proposal regarding IT outsourcing is not comparable to “giving the family jewels to outsiders”. IT is not the core operation of Bharti, and it could always tweak the deal to let in on more than one vendor. But one should carefully consider the capabilities of the IT vendor to maintain customer services, software, hardware and negotiations with their suppliers objectively. Q2. Assume the role of IBM or Nokia. What major concerns would you have about entering an agreement with Bharti? a. Firm and the outsourcing partner......

Words: 548 - Pages: 3


...Bharti Airtel has made strategic organisational changes to enhance its focus on expanding operations to international markets beyond India and South Asia. The company has created a new international business group, which will be responsible for the company's expansion plans. Manoj Kohli, joint managing director and chief executive of Indian and South Asian operations, has been appointed as the head the newly created international business division. Sanjay Kapoor, currently the deputy CEO of the company will be elevated to the position of CEO (India and South Asia), Bharti Airtel. In his new role, Mr Kapoor would have responsibility of leading India and South Asia businesses of Bharti Airtel and will drive growth and business synergies in mobile services, telemedia services, enterprise services and DTH. Sunil Bharti Mittal, chairman and managing director of Bharti Airtel, said: “The next phase of our journey is set to be another game changer - requiring superior thrust and focused leadership. We continue to win in the Indian telecom market, which is going through a phase of hyper competition. At the same time, we will be developing comprehensive plans for our journey to cover emerging markets beyond India and the South Asia.” “Bharti Airtel has one of the finest management teams in the country and a strong leadership pipeline. This new structure will leverage our management depth and build a strong platform for fulfilling our global vision. Manoj and Sanjay, are......

Words: 260 - Pages: 2

Pestle Analysis of Airtel Bd

...PESTLE ANALYSIS  Political Bangladesh Telecommunication Authority has been striving hard and trying its level best to create level playing field in the Cellular Mobile industry. Politically, Bangladesh is an unstable country where Government decisions and regulatory initiatives matter a lot. * Telecom deregulation Issuance of cellular mobile license * Reduction in Taxes and Duties * Independent Regulation * One windows regular facility Regulatory Initiatives by the government: 1. One windows regular facility 2. Simple liberalization Regime 3. CPP regime for cellular mobile subscriber 4. Level playing field royalties 5. Level playing field for all operators 6. Out of court statement of case with operators. Economic * In Bangladesh, Airtel considers long term and short term state of the trading market. * Inflation is controlling by state bank and under strict eyes * Unemployment rate is going up and up with the increase of level of poverty. Airtel contributes to lower the level of unemployment rate by providing job opportunities for different level of people. For example – beginning from customer care service staffs to Managing Director etc. Social During the formation of marketing strategies, Airtel looks after a lot of factors. Deep study of local culture and social setups is also one of the major factors which account much in successful strategy formation of Airtel. Varying types of consumer...

Words: 2653 - Pages: 11


...http://www.docstoc.com/docs/21061665/AIR-TEL-PPT http://www.authorstream.com/Presentation/rohit.arde123-323275-airtel-presentation-final-others-misc-ppt-powerpoint/ http://www.moneycontrol.com/company-facts/bhartiairtel/history/BA08 Company History - Bharti Airtel Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received certificate for commencement of business on January 18, 1996.The Company was initially formed as a wholly-owned subsidiary of Bharti Telecom Limited. The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is as follows: http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Bharti-Airtel-Ltd/532454 Company Snapshot Bharti Airtel provides telecommunication services primarily to corporate, and small and medium scale enterprises in India. It offers global system for mobile communication (GSM) services, broadband and telephone services, national and international long distance services, and enterprise services. The company's mobile communication services include information services, short message, and prepaid and post paid services, as well as wireless application protocol-enabled Internet access and roaming services. Its telephone services include telephone services, dial-up services, special phone plus services, unified messaging, and audio conference services; and......

Words: 1964 - Pages: 8