Role of Multinational Company in Bangladesh. A study on Bharti Airtel (Airtel Bangla in Bangladesh) An assignment Submitted in partial fulfillment Of the requirements for the degree of Master of Business Administration At Independent University, Bangladesh 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Role of Multinational Company in Bangladesh.
A study on
Bharti Airtel (Airtel Bangla in Bangladesh)
An assignment
Submitted in partial fulfillment
Of the requirements for the degree of
Master of Business Administration
At
Independent University, Bangladesh
1
Assignment
On
International Business
(MBA- )
Submitted
To
Dr. Shibly Noman Khan
Associate professor
Business administration
Submitted
By
Md. Tashrique Shahab
ID# 1015004
Masters of Business Administration Program
Department Of Business Administration
Independent University, Bangladesh
2
Declaration
This is to notify that this assignment submitted in partial fulfillment of the requirement for the
degree of Masters of Business Administration of Independent University Bangladesh is my
original work and it has not been submitted else where for the award of any other degree,
diploma or other similar title or prize.
Md. Tashrique Shahab
M.B.A Program
ID# 1015004
Independent University Bangladesh
_____________
Signature
Independent University, Bangladesh
3
9th March’ 2011
Dr. Shibly Noman Khan
Associate professor
Department of Business Administration
Independent University Bangladesh,
Subject: Submission of Term paper.
Sir,
It’s my great pleasure to submit the Assignment. A study was making on a multinational
company that you have asked us to prepare and I have select “Airtel” to study. I tried my best to
follow the instruction that was given by you.
Throughout this study I tried to identify company’s background, product line, organization
structure and in Bangladesh perspective- Investment, employe size, industrial setup, marketing
techniques and detail information on that. While preparing this assignment I took help from
internet.
I sincerely hope that you will enjoy this assignment as I enjoyed while writing it. If you need any
further clarification or quarry in interpreting this analysis, I will be glad to oblige you.
Thank you,
4
Table of content:
1.0 Introduction 7
2.0 Company Background 8
3.0 Product/service line 9
4.0 Organization structure 12
5.0 Bangladesh perspective 13
5.1 Investment 14
5.2 Employee size 14
5.3 Industrial setup 14
5.4 Marketing plan 15
5.5 How they entered 16
6.0 Lesson I learned 16
7.0 Conclusion 17
5
Bharti Airtel
6
1.0 Introduction:
Bharti Airtel Limited commonly known as airtel is an Indian telecommunications company that
operates in 19 countries across South Asia, Africa and the Channel Islands. It operates a GSM
network in all countries, providing 2G or 3G services depending upon the country of operation.
Airtel is the fifth largest telecom operator in the world with over 207.8 million subscribers across
19 countries at the end of 2010. It is the largest cellular service provider in India, with over 152.5
million subscribers at the end of 2010. Airtel is the 3rd largest in-country mobile operator by
subscriber base, behind China Mobile and China Unicom. Airtel also offers fixed line services
and broadband services. It offers its telecom services under the Airtel brand and is headed by
Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve this Cisco
Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for
networking competency, service, support and customer satisfaction set forth by Cisco. The
company also provides land-line telephone services and broadband Internet access in over 96
cities in India. It also acts as a carrier for national and international long distance communication
services. The company has a submarine cable landing station at Chennai, which connects the
submarine cable connecting Chennai and Singapore. It is known for being the first mobile phone
company in the world to outsource everything except marketing and sales and finance. Its
network is maintained by Ericsson, Nokia Siemens Network and Huawei, business support by
IBM and transmission towers by another company (Bharti Infratel Ltd. in India). Ericsson agreed
for the first time, to be paid by the minute for installation and maintenance of their equipment
rather than being paid up front. This enabled the company to provide pan-India phone call rates
of Rs. 1/minute (U$0.02/minute). Call rates have come down much further. During the last
financial year [2009-10], Bharti has roped in a strategic partner Alcatel-Lucent to manage the
network infrastructure for the Telemedia Business. The company is structured into four strategic
business units - Mobile, Telemedia, Enterprise and Digital TV. The Telemedia business provides
broadband, IPTV and telephone services in 89 Indian cities. The Digital TV business provides
Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom
solutions to corporate customers and national and international long distance services to telcos.
7
2.0 Company Background:
Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was into an agreement with
Germany's Siemens to manufacture the company's push-button telephone models for the Indian
market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his
company became the first in India to offer push-button telephones, establishing the basis of
Bharti Enterprises. This first-mover advantage allowed Sunil Mittal to expand his manufacturing
capacity elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also
launched the country's first fax machines and its first cordless telephones. In 1992, Sunil Mittal
won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the
cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular
service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT
Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti
acquired control of Sky cell Communications, in Chennai. In 2001, the company acquired
control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was
listed on Mumbai Stock Exchange and National Stock Exchange of India. In 2003, the cellular
phone operations were re branded under the single Airtel brand. In 2004, Bharti acquired control
of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and
Nicobar. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010,
Airtel began operating in Bangladesh and 16 African countries. Today, Airtel is the largest
cellular service provider in India and fifth largest in the world.
8
3.0 Product/Service Line:
3.1 In India:
Mobile service: Airtel has nationwide presence and is the market leader with a market share of
almost completely (as of May 2010). It is 6th most valued brand according to an annual survey
conducted by Brand Finance and The Economic Times in 2010. On 19 October 2004, Airtel
announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-
up between Bharti Tele-Ventures Limited and Research in Motion (RIM). The Apple iPhone 3G
was rolled out in India on 22 August 2008 by Airtel & Vodafone. Both the cellular service
providers rolled out their Apple iPhone 3GS in the first quarter of 2010. However, high prices
and contract bonds discouraged consumers and it was not as successful for both the service
providers as much as the iPhone is successful in other markets of the world. There has been lot
of criticism about Airtel for its unauthorised VAS activation. Many of its services were activated
automatically according to a complaint forum. In return Airtel launched STOP/START 121
services for such issues.
3G: On May 18, 2010, 3G spectrum auction was completed and Airtel will have to pay the
Indian government 12,295 crore (US$2.67 billion) for spectrum in 13 circles, the most amount
spent by an operator in this auction. Airtel won 3G licences in 13 telecom circles of India: