Human Resource Management

2010

BS2021 INTERNATIONAL BUISNESS AND INSTITUTIONS

Group Assignment 2010/11

To what extent did Bharti Airtel accomplish their anticipated benefits by entering the African market?

Group Members:

Bhavesh Shah: K0961082

Jenita Soni: K0961093

Sanam Rawal: K0961080

Semil Sheth: K0961079

Word Count: 2000 words

EXECUTIVE SUMMARY

Right from 1995 till 2010, Bharti Airtel has revolutionized the Telecom Industry leaving a mark of an authentic successful entity. With 110,511,416 customers, it provides an array of services; from Digital TV to mobile networks. With the development of enduring strategies like the ‘Minute-factory model' and the ‘Matchbox Strategy', Bharti Airtel's revenues have been escalating ever since. With its globally acclaimed success stories in Sri Lanka, Bangladesh and India its now aiming to expand its way into the African market. Known for the upcoming telecom transformation and changing demographics, Africa attests to be an ideal location for such a firm. With the preeminent strategy of acquiring 100 percent shares, Bharti Airtel proved to reinforce its stratagem tactics. Acquiring Zain Telecom was Bharti Airtel's step to put forth an example of how a loss bearing company can prosper under the right guidance. With a net loss of USD $112 million in 2009, choosing Zain Telecom as its merger partner was a challenge in itself. Although, due to favorable motives and enduring advantages, this agreement had become one of the biggest acquisitions the Indian Market had ever witnessed.

The objective of this report is to examine the foreign market entry strategy of Bharti Airtel. It also projects Bharti Airtel's progress from a national entity to a international entity through its diverse tactical approaches. With the use of theories and notions, a profound appraisal has been presented of the opportunities offered to Bharti Airtel by entering into the South African market. Furthermore, the assignment demonstrates the evaluative advantages and disadvantages Bharti Airtel will face due to its acquisition with Zain Telecom. With an overall analysis of the firms entry into the African market, a critical assessment of the choice of entry is exhibited preceding recommendations to overcome difficulties it might face in the coming years.

With overall combined profits of $1.74 billion, Bharti Airtel and Zain Telecom together assure to provide their customers with substantial services over the coming years. Although Bharti Airtel will face a lot of difficulties in terms of political risks, loss altering and market capturing, the company guarantees immense effort and endeavor to succeed in this Sub-Saharan region. To do this, they will need to abolish the inconsistency gap between both the firms. Along with this, massive investments will be essential with the combination of skilled labor and affordable prices. Known to have a history satiated of triumphed achievements, Bharti Airtel proves to be just the right firm for this new venture.

TABLE OF CONTENTS

Executive summary 2

Bharti airtel - A Benchmark 4

Acquisition – A ‘win – win' situation 4

Bharti Airtel – Appraising future scope 5

Diamond Model – Analyzing bharti airtel 5

The beneficial vs the detrimental – Bharti Airtel 6

Diversify to unify - A revolutionary approach 7

Impact on future stance - Bharti Airtel 8

Bibliogrpahy 9

References 9

Websites 9

Journals 9

Articles 9

Appendices 10

Aiagrams 10

Meeting logs 14

Individual contirbution sheets 24

BHARTI