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    Airtel Entry Into African Markets

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    abhijitg22
    Airtel entered African markets to pursue growth opportunities with lower penetration levels and projected growth compared to saturated Indian markets. Airtel acquired Zain's African operations, gaining 70 million subscribers across 15 countries. This expanded Airtel's presence while benefiting from Zain's established networks and cultural understanding. A financial analysis showed Airtel had higher revenues, income, and average revenue per user than Zain. Airtel aimed to replicate its low-cost Indian model in Africa to increase penetration rates and customer base.

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    Airtel Entry Into African Markets

    Uploaded by

    abhijitg22
    275 views10 pages
    Airtel entered African markets to pursue growth opportunities with lower penetration levels and projected growth compared to saturated Indian markets. Airtel acquired Zain's African operations, gaining 70 million subscribers across 15 countries. This expanded Airtel's presence while benefiting from Zain's established networks and cultural understanding. A financial analysis showed Airtel had higher revenues, income, and average revenue per user than Zain. Airtel aimed to replicate its low-cost Indian model in Africa to increase penetration rates and customer base.

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    Airtel entered African markets to pursue growth opportunities with lower penetration levels and projected growth compared to saturated Indian markets. Airtel acquired Zain's African operations, gaining 70 million subscribers across 15 countries. This expanded Airtel's presence while benefiting from Zain's established networks and cultural understanding. A financial analysis showed Airtel had higher revenues, income, and average revenue per user than Zain. Airtel aimed to replicate its low-cost Indian model in Africa to increase penetration rates and customer base.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    275 views10 pages

    Airtel Entry Into African Markets

    Uploaded by

    abhijitg22
    Airtel entered African markets to pursue growth opportunities with lower penetration levels and projected growth compared to saturated Indian markets. Airtel acquired Zain's African operations, gaining 70 million subscribers across 15 countries. This expanded Airtel's presence while benefiting from Zain's established networks and cultural understanding. A financial analysis showed Airtel had higher revenues, income, and average revenue per user than Zain. Airtel aimed to replicate its low-cost Indian model in Africa to increase penetration rates and customer base.

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    Airtel s entry into African Markets

    Contents
    Why Airtel went International Why African Markets Market Evaluation Triadic Analysis Airtel Zain Collaboration Financial Analysis Suggestions

    Why Airtel is going International ?


    Saturation of Indian markets ( only some scope left in rural India ) High competition in India , price wars and Mobile Number Portability are hurting the Indian operators

    Why African Markets


    Penetration levels in African markets is quite less ( < 32%) Gets 70 Million subscribers by Zain s acquisition Opportunity in usage
    India 450-500 minutes / user Africa 60-70 minutes / user

    Respect for Indian companies is very high High projected future growth for Africa Moderate Competition ( only few players like MTN) Healthy Tariffs

    Market Evaluation : Triadic Analysis


    Market Attractiveness a) Teledensity b) Usage opportunity c) Data &3G

    Market Decision 1.Low cost plans , deep penetration 2. Outsourcing Risk 1)Political Risk : a) Civil War b) Clearance from regulators 2) Financial :- Debt 3) Ownership dispute : Econet Nigeria unit 4) Overcoming business & cultural difference

    Competitive Advantage 1. Management capability 2. Low cost advantage

    Airtel-Zain mutual benefit


    Airtel 1. Benefit from strong presence Zain has in Africa presence in 15 African countries 2. Has the capability of giving affordable service & having deep penetration 3. Low cost structure and tariff plans 4. Management capabilities and successful model Zain 1. Increase the profitability of Zain which was less earlier though average consumer spending was higher . Airtel has 50% higher ARPU 2. Culture and business acumen fitting the African culture 3. Widespread presence in 15 countries in Africa like Nigeria ,Uganda , Tanzania etc.

    Financial Analysis
    Bharti $ 6.32 Billion Total Revenues Net Income Customer Base Global Presence ARPU $1.67 Million 125.3 Million 5 Countries $3.14 Zain $6.17 Billion -$37 Million 71.8 Million 24 Countries $3

    Comparable revenues Income of Airtel high, Zain in losses Zain has larger presence but lower penetration Airtel has higher Average Revenue Per User

    Re- Branding

    Suggestions
    Replicate its domestic model in African markets Does not loose focus on home turf while eyeing new geographies Focus on cost reduction .
    This will reduce their costs and help them to pass savings to customers and increase their customer base.

    Still lot of opportunity in domestic markets Unending opportunity with advent of technology like 3G ,4G and so on

    Unveiled a new logo to make the next big leap in a bid to attain new brand identity and present itself as single and unified face to customers. However, this huge one-time re-branding exercise has come at a cost of Rs.3.4 billion to the telecom major

    Outsourcing Model

    Focus on Marketing & Sales Outsource operations

    Bridge Cultural gap Not frequent changes in Branding exercise

    Local top management in Africa Understanding local needs well

    People use to brand properties like old Logo Re-branding a costly exercise

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