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Write a 12 page essay on International Strategic Management.Airtel, as it is popularly known, is the leading mobile phone network company in India with 31.18% of the market share consisting of 481 mil
Write a 12 page essay on International Strategic Management.
Airtel, as it is popularly known, is the leading mobile phone network company in India with 31.18% of the market share consisting of 481 million mobile connections and the fifth largest in the world (COAI, 2010).
The company has extensive market shares in Asia and Africa and is strategically expanding to other parts of the world. This paper delves into the strategy that has led the company to experience success in a highly competitive environment while also taking a peek at some of the strategic gaffes that have cost it over the past few years (COAI, 2010).
Incorporated on July 7, 1995, as a limited company to provide services in the telecommunications sector, Bharti Airtel has grown rapidly into one of the largest telecommunications companies in the world. After launching its first cellular services in Pradesh in 1996, the company managed to sell shares to some international companies in subsequent years. These included STET International Netherlands 20% in 1996 and British Telecom 21% in 1997 (moneycontrol.com, 2010).
From then on the company kept acquiring shares in other pre-existing telecom companies thus expanding its own interests within India. This venture soon went international with the acquisition of a share in Telecom Italia in the year 2000 among others (moneycontrol.com, 2010)
However, the single most significant expansion move by the company was the acquisition of the Kuwaiti owned company Zain which had expansive interests in the African cellular telephony. The acquisition took place on the 8th of June 2010 at the cost of $10.7 billion which gave the firm ownership of cellular networks in 15 African countries including some of the continent’s largest economies like Ghana, Nigeria and Kenya among others.
Bharti Airtel is structured into four strategic business units: Mobile, Telemedia, Enterprise and Digital TV. The mobile segment is the largest with networks in 18 countries including India and across Africa. The Telemedia segment mainly specializes in broadband internet services, IPTV and fixed-line telephony, but is still limited to within India itself (Airtel.in, 2010). . .
