Bharti Airtel Ltd.: Going Global


Bharti Airtel Ltd.: Going Global
Case Code: BSTR384
Case Length: 25 Pages
Period: 2007-2010
Pub Date: 2011
Teaching Note: Not Available
 Price: Rs.600
Organization: Bharti Airtel Ltd.
Industry: Telecom
Countries: Global; Africa; Middle East; Asia
Themes: Globalization, International Management, Merger and Acquisition
Bharti Airtel Ltd.: Going Global
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case study is about Bharti Airtel Ltd. (BAL), the market leader in the Indian telecommunication industry and its globalization strategy. BAL's telecom model was considered as the new model for telecom and effective for emerging markets like India, according to experts. BAL had established itself as a dominant player in India with its innovative business processes and strong brand, but was witnessing tapering growth because of increasing competition and saturation of the more lucrative urban markets. While more and more players were eyeing the fast-growing Indian mobile market which was experiencing high growth, BAL put its sight on foreign shores.

The acquisition of Zain Group's telecom business in fifteen African counties in 2010 gave it a footprint in the African continent. While concerns regarding whether BAL had overpaid for the deal remained, industry observers were keenly observing to see whether the company could replicate its successful telecom model in these developing and emerging markets. Africa posed an intriguing environment with different cultures, political forces and socio-economic environment. After completing the deal, BAL was in the process of giving shape to its strategy for the African markets.

Issues

The case is structured to achieve the following teaching objectives

  • Understand the issues and challenges in globalization, especially the critical success factors in emerging markets
  • Understand the importance of business process innovation and strategic partnerships
  • Appreciate the role of tailoring strategy to fit a specific industry and business environment
  • Analyze BAL's strengths, weaknesses and its external opportunities and threats
  • Understand and discuss cross-country differences in Cultural, demographic and market conditions and its possible impact on business
  • Probe the role, importance and pros and cons of legal and regulatory framework
  • Explore the ways a business can be successful in international markets

Contents

Keywords

Globalization, Low cost model, Strategic innovations, Innovative business models, 'Minutes to Factory Model', 'Subscriber-Led Model', Regulatory hurdles, Geopolitical risks, Market leader, Emerging markets,Competition, Post-merger integration, Indian mobile telecom market, Acquisition, Africa, Zain

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