This website uses cookies to ensure you have the best experience. Learn more

Bharti Airtel In Africa Essay

1898 words - 8 pages

Case #2: Bharti Airtel in Africa
Competition in African markets is fierce. It really is a war zone. And, as with any conflict, the outcome hinges on decisions regarding strategy – and the available weaponry.
Winning wars is not just a matter of having the best weaponry, although that helps. Without a strategy, chaotic retreat is the order of the day.
Roy Johnson
Bharti Airtel has a history of making first moves and emerging as the winner just because of that. This is what built the company’s success in India, where it remains the top MNO and second-largest fixed-line operator. In fact, thanks to the massive market it ...view middle of the document...

Consumers haven’t responded to lower tariffs by talking more, which would at least sustain revenue. Instead, “in Africa, subscribers use the money saved on lower-calling rates to buy food and not to talk more.”[2]
Many theories abound as to why Airtel’s low-cost strategy failed to work in Africa. Some point to the realization that demand for airtime in Africa is inelastic. The specialist of Blue Label Telecoms issues that the demand for cell phone airtime is fairly inelastic and a decrease in consumer demand for general products in South Africa, as a result of a tightening in monetary policy, should not have a significant effect on the demand for prepaid airtime[3]. At the same time others point to wrong strategy execution.
To solve the case problem we need to start with the understanding of the value system of Africans. It`s is based on how well people perceive him as opposed to personal accomplishments. The social nature of Africans is evident in every aspect of life from child naming style, functions such as weddings, funerals, rites of passage and music. Children are named after relatives or occasions, weddings are communal and not a private affair as is in most western societies, funerals as also communal and the more the people attending a funeral, the more the prestige.
Richard M. Steers, Carlos J. Sanchez-Runde and Luciara Nardon suggest that “the concept of personal values in Africa is perhaps best described as a clan value that requires members to serve the needs of other group members even at their own expense. It is communal in the sense that it requires people to share what they have when someone else is in need, regardless of who worked to acquire it[4].”
This fact means that if Africans use mobile phone they speak for long irrespective of the calling rates. It`s supposed to be rude for them if one call another and straight away go to the subject matter; an African will first need to know how you have been, how your family is doing and so on.
Particularly it means that talk time is always constant. With Airtel’s low-cost strategy it is only that initially, it used to cost the African more to say the same thing than it costs today. Africans were ready to pay more to exchange pleasantries because of how high they placed the society they lived in. Lowering call tariffs means that the African will save on calling costs but will have nothing more to say because what he can and would have said is already said anyway. As it was said before “African mobile users are using the money saved from lower calling rates to buy food and not talk more”[5].
Airtel low-cost strategy worked in India because as telecoms professional Tom Makau suggests that “Indians love to share information, more airtime on an Indians handset means that other than talking to you on what he intended to, he will also go further and tell you more about the neighbors, family, work because it’s perfectly normal to do so. But in...

Other Papers Like Bharti Airtel in Africa

Airtel Case Analysis

565 words - 3 pages 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

Mobile Infrastructure, Broadband, Operators in India

701 words - 3 pages million customers, making it the second largest mobile operator by subscribers after Bharti Airtel, and just ahead of Vodafone. Mobile broadband penetration has grown strongly in India over the past few years driven by a strong and growing mobile subscriber base. Further strong growth is predicted over the next year to 2017. Mobile broadband is set to grow exponentially throughout India, driving digital inclusion and economic growth for India's

Factors Influencing Consumers’ Buying Pattern Toward Telecom Operator in Bangladesh: a Study on Airtel Bangladesh Limited

3385 words - 14 pages Introduction: Airtel Bangladesh Ltd. is a GSM-based cellular operator in Bangladesh. Airtel is the sixth mobile phone carrier to enter the Bangladesh market, and originally launched commercial operations under the brand name "Warid Telecom" on May 10, 2007. Bharti Airtel Limited of India took management control of the company and its board, and rebranded the company's services under its own Airtel brand from December 20, 2010. The Bangladesh

Telecoms Infrastructure, Operators, Regulations in India

637 words - 3 pages cable broadband provider YOU Broadband for INR4 billion (USD59.9 million). Companies mentioned in this report: Aircel/Dishnet, Bharti Airtel, Loop Mobile (BPL Mobile), Idea, Reliance Communications, Tata Teleservices, Vodafone Essar, Uninor (Unitech), Videocon, S Tel, Bharti Telenet, Reliance Infocomm, Tata Teleservices, Sistema (Shyam Telelink), Swan Telecom, Videsh Sanchar Nigam Ltd (VSNL), Bharat Sanchar Nigam Ltd (BSNL), Mahanagar

Telecom

4154 words - 17 pages , rather than produce their own brand mobile TV service Examining the business model for the service Evaluating customer take-up of the service, and assessing the impact of the Sky co-branding on the success of the service Bharti Airtel Case Study: Building And Managing A Leading Mobile Brand In India Developing a brand strategy for Airtel - building a brand from scratch Understanding and using emotional drivers to attract customers and keep them

Dominos

635 words - 3 pages The Top 100 Powerful CEO’s in India Name | Company/Group | Rank | | | 2010 | 2009 | Ratan Tata | Tata Sons | 1 | 1 | Mukesh Ambani | Reliance Industries | 2 | 2 | NR Narayana Murthy | Infosys Technologies | 3 | 3 | Anil Ambani | Reliance ADAG | 4 | 4 | Sunil Mittal | Bharti Group | 5 | 9 | Azim Hasham Premji | Wipro | 6 | 10 | Kumar Mangalam Birla | AV Birla Group | 7 | 11 | Rahul Bajaj | Bajaj Auto | 8 | 19 | Anand G

A Study of the Technological Environment of Mobile Services Industry of India

5269 words - 22 pages , News came about Bharti Airtel,s eyeing a bid for Africa’s largest telecom firm MTN, which has operations in more than 20 countries. The successes of the deal, According Bharti, catapult them in the league of the most powerful mobile phone operators in emerging market. MTN has 68.2 million subscribers and its market capitalization stood at $33 billion, as against Bharti Airtel’s $44 billion. The sources familiar with the matter said that

Mobile Number Portability

3321 words - 14 pages , which we are paying right now. TATA-DOCOMO has launched SMS services like pay per character rather than pay per whole message in the existing plans. All the operators are likely to focus on the competitive plan for the basic services like calling and messaging rather than on value added services. Currently Vodafone and Bharti Airtel are the leader in the value added services. • • • • 5 Monarch Project & Finmarkets Ltd Key

Preferences Of Mobile Network Customers - A Case Study

9718 words - 39 pages systems in India, USA, Europe, Middle East and the Asia Pacific region. Reliance Communications paid 5864.29 cores for 3G spectrum in 13 circles. Infotel Broadband, a subsidiary of Reliance Industries, won pan-India license in the auction across 22 circles, the only telecom operator other than state-owned BSNL/MTNL to do so, Infotel paid the government Rs. 2847.77 core for the license. Bharti Airtel Ltd Bharti Airtel Ltd (limited) is a provider

Telecoms, Mobile, Broadband and Digital Media in India

819 words - 4 pages unified licence, virtual network operators (VNOs). The TRAI published new regulations on net neutrality, prohibiting operators from providing discriminatory tariffs based on content. Vodafone signed an agreement to acquire cable broadband provider YOU Broadband for INR4 billion (USD59.9 million). Idea launched its first 4G platform Companies mentioned in this report: Aircel/Dishnet, Bharti Airtel, Loop Mobile (BPL Mobile), Idea, Reliance

Marketing of Hul

1898 words - 8 pages part of the Reliance - Anil Dhirubhai Ambani Group. Numbers start with '3'. • AirTel: Newest of the landline operators. Airtel numbers start with '4’ Bharti Airtel is one of the most valued company of India. It is also the leading telecom provider in India. Reliance Communications follows Airtel in market capitalization. Interestingly the same order holds good for the total number of subscribers these telecom companies has. 3) Education

Related Essays

Information Systems Research Paper

751 words - 4 pages management tools does this association utilize. BHARTI AIRTEL was the primary one to offer mobile facilities in the private division. It also gives internet as well as mobile services in ninety cities. BHARTI AIRTEL succeed the prize for most excellent Knowledge supervision at the MIS Asia in the year 2006, and also which shows the industry's robust competence in retaining, and also aligning along with relating the information technology. (Bharti Airtel

Airtel India Essay

5293 words - 22 pages [pic] INTRODUCTION PORTFOLIO OF THE COMPANY INCORPORATION AND HISTORY AIRTEL, India (Formerly ‘Bharti Tele-Ventures Limited - BTVL’) was incorporated on July 7 1995, under the laws of India for promoting investments in telecommunication services. The AIRTEL, India is the leading telecom service provider in India. The AIRTEL India’s principal shareholders include Bharti Telecom Limited, Singapore Telecommunication International PTE

Customers Satisfaction Of Airtel Bangladesh Essay

1813 words - 8 pages 2.1 Theory: Airtel Bangladesh Ltd. is a GSM-based cellular operator in Bangladesh. Airtel is the sixth mobile phone carrier to enter the Bangladesh market, and originally launched commercial operations under the brand name "Warid Telecom" on May 10, 2007. Warid Telecom International LLC, an Abu Dhabi based consortium, sold a majority 70% stake in the company to India's Bharti Airtel Limited for US$300 million. Bharti Airtel Limited

Acer Group’s R&D Strategy – The China Decision Strategic Outsourcing At Bharti Airtel Limited

731 words - 3 pages Acer Group’s R&D Strategy – The China decision Strategic Outsourcing at Bharti Airtel Limited “The concept of absolute cost advantage leads us to believe that successful firms ultimately locate in the lowest cost environment (or country) for their business. Compare the Acer and Bharti Airtel cases (and relevant materials) to either agree or disagree with this view.” I disagree with this statement as we can see in both cases for Acer