Q1. What were the sources of Bhartis success and the key competitive advantages built over 1995-

2003?

A1. Sources of success

1. They tied up with Siemens for delivery of complete list of telephone components before the

government had licensed it. When the license came through they beat the competition by 10

months

2. They made their presence felt by securing a partnership with Emtel, MSI and CGE of France to

bid in the cellular licensing.

3. Their call rates were cheaper as compared to competition

4. He expanded distribution to unconventional outlets e.g drugstores, corner groceries and stalls

5. They had single minded devotion to the project and the industry.

6. They were the first private operator to launch long distance service.

7. They targeted corporate which gave higher ARPU

Q2. How can a relatively small first generation entrepreneur compete and successfully outgrow

established incumbents, in a business that is capital intensive, especially in a time when the Indian

Financial markets lacked the breadth and depth to finance this growth?

A2. The success of the first generation entrepreneurs derives from the fact that they dont carry a

baggage of any industry. They bring fresh perspective to the industry and focus their energy completely

on a single target rather than simultaneously thinking about different available options. The case

example showcase that Sunil Mittal was clear in his vision about the industry, had deep domain

expertise and was willing to learn, listen and change. Under an inspiring leadership of the first

generation entrepreneurs, these start up gain their strength from the likeminded investors who are

willing to take big risks and are looking forward to gain first mover advantage in the developing market.

Also these first generation entrepreneurs are very passionate about the industry and are able to foresee

the changes and modify their business strategy accordingly. Such entrepreneurs find angel investors

even if the domestic capital market is not strong. There are always a few companies looking for big ideas

and an entry into the developing market through capital investments.

Q3. How should Bharti neutralize the threats posed by Reliance and Tatas, both larger in terms of

reputation & financial standing and , in addition, possessing an alternate cheaper switch technology

(WLL-M) that can depose Bharti in its chosen segments

A3. To neutralize threats by Tata and and Reliance, and WLL-M technology Airtel should adopt the

following approaches:

1. Reliance Infocom will focus on broadband data connectivity owing to the huge investments

made by the company. Airtel can significantly undermine this big ticket investment by offering

wireless 3G dongle services to the customers in future.

2. Tata Docomo is mainly is WLL-M service provider which means it will be able to offer services to

the customers with local mobility. Roaming tariffs will be high for WWL-M users. Airtel can come

up with attractive STD packs taking advantage of its operations in widely spread circles.

3. WLL-M technology needs specially enabled handsets. Customers have to maintain long lasting

relationship with WLL-M provider once they purchase the mobile device which can not be used

with any other network. Airtel can tie up with OEM mobile set manufacturers to offer

discounted price to the customers. Selling WLL-M phones was a mode of revenue generation for

Tata Indicom. Airtel can significantly hurt the company by making variety of mobile phones

easily available with its postpaid connections by tying up with mobile set companies.

Q4. What could Bhartis choices be in revamping its business model which would mean relooking at

its geographic network , investment plans, brand, Customer Value Proposition, technology , and

business infrastructure .

A4. As Bharti has proved its expertise in India, It should try extending the business to similar developing

nations or even underdeveloped nations. While in India even when it has captured a huge market, there

is still a huge scope for expanding it. It should try to innovate in terms of technology to stay as the

technological leader. It should provide various value added services to increase customer satisfaction. In

new markets it should use its fast service and new offers to attract customers. Overall, it needs to be

perceived as a brand that satisfies the customers needs and also innovate with time

Q5. How can Bharti be transformed into a well - run consumer business from what it is primarily - a

good project executor?

A5. Bharti faces stiff competition from other telecom giants like Vodafone, Reliance and Tata Indicom. It

has been a fine executer of its projects. However it should switch to being more a customer centric

business.

Bharti introduced 4G to the public, which has not been very successful. To make it popular it

must try to reduce the tariffs.

Bharti should take the opportunity to penetrate into various rural areas of the country where

teledensity is very low.

Bharti must tie up with the government in offering WIMAX services in tier one cities.

Broadband connectivity is very low in India due to high cost of devices such as PCs etc. Bharti

can take the opportunity of tying up with PC companies and offer broadband services.

There is lack of infrastructure in rural and semi- rural areas. Bharti Infratel, a subsidiary of Bharti

Enterprises which primarily makes towers should grab the opportunity of develop telecom

infrastructure in those areas.