The Strategic Analysis of BhartiAirtel
The analysis of the strategic management of BhartiAitel involves a look into its Strategic Audit which is important in the examination of the current strategy and determines the company’s marketing positioning. The Strategic audit therefore can help to determine whether the organization has enough resources that can help the company to comfortably compete with other companies and improve its current position. Strategic Audit employs the use of various management tools such as SWOT analysis, Industry Life Cycle Analysis and analysis of Porters Five Forces.
BhartiAirtel’s mission statement is to be ‘A spirit charged with energy, creativity and a team driven to seize the day with an ambition to become the most admired telecom service provider globally’.
SWOT Analysis maps out the company’s current position and profile. It is a summary of the key issues that arise from the internal and external environment of the company. Internal Environment refers to those factors that operate within an organization and the organization has control of these factors. External environment refers to those factors that operate outside an organization and influence the organization’s operations but the organization has no control over these factors. In the SWOT Analysis, internal environment involves an examination of the firm’s Strengths and Weaknesses while External environment is an analysis of the Opportunities and Threats.
Strengths refer to those factors that operate within the control of the company and give the company a competitive advantage over others. BhartiAirtelboasts of a well-established global infrastructure. This makes adoption of new technology much faster due to the available infrastructure. Airtel has a superior quality of network. This makes the organization very reliable in its provision of mobile services. The fact that it penetrates the most interior locations makes it preferable by its customers.Airtel has a high brand of products and services. This is important in attracting consumers because they prefer high quality with a good brand name. Airtel also has good customer and partner relations with buyers and suppliers as well as business partners.
Weaknesses refer to factors within the control of the organization that gives the company a competitive disadvantage.High and stiff competition in the telecommunication industry causes a tough price competition. This makes it difficult to keep earning more profits as they keep on adjusting prices downwards to ensure survival in the industry. The late embracing of wireless technologies and 3G as a result of uncertainty caused by regulatory authorities caused the customers to switch to their competitors because they provided faster internet connections.
Opportunities refer to those factors which the company can take advantage of in order to gain a competitive edge. Merging with other telecommunication companies such as Etisalat provides an opportunity to serve a greater customer base due to synergies developed from the merger. The increase in customer need for cheaper and faster internet speeds has provided an opportunity for the organization to increase its consumer base because this is its area of core competence.
Threats on the other hand refer to the factors that are more likely to reduce the operations of the company by causing trouble. Different regulatory environments exist across the world. Regulatory unfriendliness such as heavy taxation and strict legislation on its operations threatens the organization’s global expansion. Economic recession and financial crises that last for quite some time reducethe earnings of the company.
Porters Five Forces
This is an analysis of the dynamics of the competitive organization of an industry. In this case, the external environment is analyzed in terms of the company, general environment and the competitive industry…
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