Having achieved 100 million customers in the Indian market, Sunil Mittal is betting big on the MTN deal to create a Global Conglomerate, says Surbhi Chawla
“There are three pillars of our success – strong vision and unique strategy, scalability and strong execution forces. Our strong and unique business model for the Indian market can now be applied to any other emerging market,” shares Manoj Kohli, JMD, Bharti Airtel Limited with B&E. Airtel’s robust business model has earned it many accolades in the past and continues to be the backbone of its success. Recently, Airtel launched operations in the Sri Lankan region with the same business model as it practices in India. The initial results that the company has received from this region are satisfying and there are already one million subscribers within six months of its launch.
One critical value chain differentiator for Airtel has been Mittal’s belief in employing strategic partners (some call it outsourcing non-core functions) and nurturing them as it allows Airtel to focus on its core competence of providing mobility while its partners take care of other services like tower maintenance, customer care, et al, thereby enhancing its scale. This has given the execution culture fostered at Airtel and in all its projects (like the Sri Lankan roll-out) a world class image. Airtel, perhaps predictably, with an EPS of Rs.40.79 (for March 2009) stands much ahead of Reliance Communication, which has an EPS of Rs.11.40. MTNL and Idea Cellular lag way behind with Rs.3.41 and Rs.3.25 as their EPS respectively.
“Airtel has always had the advantage of being the first mover in the category. It had booked a large number of postpaid customers, which still continue to be its customers. Over the years, Airtel has maintained its positioning of being premium than its peers and that too has worked in its favour,” says Ravi Shekhar Gupta, Telecom Analyst, Springboard Research. Airtel was the first private company to offer services in all the 23 telecom circles of the country.
One critical value chain differentiator for Airtel has been Mittal’s belief in employing strategic partners (some call it outsourcing non-core functions) and nurturing them as it allows Airtel to focus on its core competence of providing mobility while its partners take care of other services like tower maintenance, customer care, et al, thereby enhancing its scale. This has given the execution culture fostered at Airtel and in all its projects (like the Sri Lankan roll-out) a world class image. Airtel, perhaps predictably, with an EPS of Rs.40.79 (for March 2009) stands much ahead of Reliance Communication, which has an EPS of Rs.11.40. MTNL and Idea Cellular lag way behind with Rs.3.41 and Rs.3.25 as their EPS respectively.
“Airtel has always had the advantage of being the first mover in the category. It had booked a large number of postpaid customers, which still continue to be its customers. Over the years, Airtel has maintained its positioning of being premium than its peers and that too has worked in its favour,” says Ravi Shekhar Gupta, Telecom Analyst, Springboard Research. Airtel was the first private company to offer services in all the 23 telecom circles of the country.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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