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International Expansion Strategy of Airtel

In: Business and Management

Submitted By puneet85
Words 6716
Pages 27
EXECUTIVE SUMMARY
This report examines the international expansion process of Bharti Airtel as a result of increasing competition in the Indian telecom industry during the last 2-3 years. The report provides a detailed account of the evolution of the Indian telecom industry analysis. It gauges the industry through YIP’s globalization drivers and measures industry attractiveness through Porter’s Five Forces model. It also provides information about the increasing saturation and declining Average Revenue per User (ARPU) and the strategies major operators such as Bharti Airtel, Vodafone, Idea Cellular Ltd, Reliance Telecom Ltd, etc. are following to safeguard their profitability.

The report discusses about the two fold strategy of tapping the rural market within India and netting talkers in emerging economies, followed by mobile operators in India to de-risk them.

Whether it is the rural Indian market or other emerging markets, operators would be busy acquiring subscribers. This, in turn, may result in erosion in profitability. There is no question of profitability. It is all about registering your presence and building psychological pressure.
On the other hand, the Indian market has yet to take-off when it comes to offering data-intensive mobile value-added services like m-commerce, healthcare services, governance, education, information and location-based services. But these areas are already contributing to revenues in many African and Middle Eastern countries. In rural India, the cell phone is not replacing anything of importance. In all probability, operators would experiment with voice services for 18-24 months before offering such value-added services. Further, extensive networks alone would not ensure better business. Branding, marketing and making relevant services available are more important.
Whether Indian telecom companies' rural and emerging

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