Bharti Airtel is an India-based multinational telecom organization. The company offers different services including postpaid prepaid broadband and DTH. The company also launched the first online payment feature called Airtel Payments Bank which was established in 2017 for electricity landlines, bill payments, DTH recharges, and more.
To understand how the company operates and what are its unique features, let us study the SWOT analysis of Airtel which will talk about the strengths, and other factors of the company.
About Airtel
Sunil Mittal founded Bharti Telecom Limited in 1984. The company initially sold push-button cell phones. The company imported these cell phones from the Taiwan-based company- Kingtel. Thereafter, Airtel collaborated with Siemens AG of Germany with the aim to manufacture cell phones. Bharti Airtel also got the manufacturing of fax machines, telecom gear, and cordless phones as well.
Airtel was then incepted in 1995 by Mr. Sunil Mittal. Currently, Airtel provides services like Wynk music, Airtel Thanks app, Airtel Payments Bank, among others.
Airtel could reach the peak of success with its inevitable voice and network connectivity services. Apart from that, the company also provides services like data and application-based services, cloud-based services, data center-based services, etc.
Airtel at a Glance
| Present CEO | Gopal Vittal |
| Year of Establishment | 7 July 1995 |
| Annual Revenue (as of FY24) | Rs 34.5 crore |
| Net Profit (as of FY24) | Rs 24,345.40 crore |
| Origin | Delhi, India |
| Type of Company | Public |
| Total no. of employees | 67,774 |
| Total assets (as of FY24) | 7.3 Million |
SWOT Analysis of Airtel
When assessing Airtel, a SWOT analysis refers to noting the company’s weaknesses, its potential growth areas, and the threats it faces. This analysis helps in analyzing exactly where the companies are lacking and what the opportunities are in front of the company to execute plans and reduce risks.
Let us dive now into detail in the SWOT analysis of Airtel.
Strengths of Airtel
Below mentioned are the strengths of Airtel that are attracting its customers.
-
Huge customer base
Airtel has approximately 360 million subscribers. As per the recent data Airtel has 450 million users across the globe. The company also has a global submarine cable system that connects Singapore to India. It has a very strong customer foundation in various countries like Africa, Bangladesh etc.
-
Innovative marketing
Airtel has been investing usually in marketing strategies and has been trying to create marketing activities to grab the attention of its potential users. The company has made such massive and impressive marketing campaigns that have attracted a whole lot of customers in the market. They are widely available and super active in social media marketing which has helped them retain their customers.
-
Strong market position
Airtel has obtained a very strong position in rural parts of India. To achieve this the company had made strategic investments in network infrastructures.
-
Sturdy infrastructure
The company has collaborations with Idea and Vodafone to develop the Indus Tower. To attain this, Airtel has expanded infrastructure across the country that helps in gaining fresh customers.
-
Consistent advertising
Many celebrity brand ambassadors have substantially upgraded Airtel’s image which in turn escalates its popularity. The company has very uplifted brand visibility in the forms of television ads, social media ads, as well as banners, etc.
Weaknesses of Airtel
Weaknesses are those areas of an organization or a business that still has room for improvement. So let us know to check some of the major weaknesses that Airtel holds.
-
Outsource operations
Airtel has been outsourcing its operations to reduce its prices. It includes the major is to stay independent of other companies that may affect the functionality of the company.
-
Competitive market condition
The telecom industry is dominated by a number of forms which creates one of the significant challenges for Airtel. It has intense competition from Vodafone Idea and Jio. It’s a cutthroat competition among the telecom companies which makes it very challenging for Airtel to find out ways.
-
Operations from Africa
Airtel bought Zain’s African business in 2013 at a very hefty amount of 10 billion dollars. But the company is here to disclose any prophets so far made from this investment.
-
High debt
The company has a huge debt due to their acquisitions turning out a bad investment with high credit and very low-profit margins.
Opportunities for Airtel
Opportunities are those areas in which the company may consider its progress as per the present market situation. Airtel opportunities are discussed below –
-
Market development
There has been brutal competition in the telecom industry where margins have been shrinking. Hence entering into new markets or developing economics might prove a very successful strategy for the company.
-
Systematic collaborations
As mobile number portability is connected, collaborating with smartphone companies would be the smartest way. This plan will give fixed cash flows in the future and will also offer a huge customer base.
-
Changes in the current market
Airtel has been offering 4G & 5G network coverage. However, these networks should also be offered in rural areas. There was an opportunity to improve infrastructure for better telecommunications. Airtel should aim towards offering all of its services, including secure communication solutions, to most of the regions which will help the company get more profits and increase in customers.
-
5G network
Advancements in technology are transforming every day and 5G trials are the better success for Airtel. Airtel can also extend its 5G services by covering almost all regions of the country to get new customers.
Threats to Airtel
Below are the major reasons that are causing a decline in Airtel customers.
-
Intense competition
The prices in the Indian market have been constantly changing which is adversely affecting the rising margins of the telecom industries including Airtel. A few years back, Reliance Jio started free data as well as calling which cost a major loss of Airtel in the telecom sector. It is due to this major issue that the companies reduce the prices at that moment.
-
Mobile number portability
MNP offers customers an opportunity to change the telecom company while keeping the number the same. Airtel’s pricing is much higher than the rest of the service providers for this process. There is a major possibility of customers transforming to cheaper service options.
-
Government regulatory issues
Normal auctioning of the spectrum as well as changing government policies may pose a threat to the stability of Airtel in the market. The reason behind this is that companies having huge revenues are more likely to gain from these government auctions.
-
Jio 5G
Since its establishment, Jio has been offering speedy network services to its customers with the best advancements in 5G technology services. The company’s ethernet cable services called Jio Fiber have attracted a lot of customers due to its very low pricing and awesome internet speed with no fluctuations in the speed. Customers often perform a Jio Fiber speed test to check the consistency of their connection, which has consistently shown impressive results, further solidifying Jio’s reputation for reliable, high-speed internet services.
Top Competitors of Airtel
Here are the top 5 competitors of Airtel –
Vodafone Idea: This is one of the significant competitors of Airtel offering a wider range of telecom services and has a very strong presence throughout India.
Reliance Jio: Recently this has become a major leader in the telecom market of India. The company is very famous for its extensive five and 4G services and is a sister company of Reliance Industries.
Tata Communications: Tata Communications is another computer of Airtel in the international as well as enterprise market. The company offers a diverse range of not just IT infrastructure services but also offers a broad scope of telecom services in India.
MTNL: Mahanagar Telephone Nigam Limited has headquarters in Mumbai as well as New Delhi and offers very similar services to that of the BSNL.
BSNL: Unlike most companies, Bharat Sanchar Nigam Limited is a government-based organization. The company delivers various telecom services like mobile, broadband, landline, etc.
Conclusion
Airtel has been in the telecom industry for more than 20 years and today it is a very powerful brand that has attracted attention as well as discussion. The company has been popular with changing times irrespective of the quickly changing customer requirements as well as developing technology. Through a number of challenges, the company maintains its prominent position in the telecom industry by continuously reviewing and analyzing the best marketing campaigns.
The company has hugely benefited from wired communication as well as wireless communication services and is further planning to offer better and faster connectivity to its customers.
Airtel’s success is hugely dependent on marketing plans and the company is always looking for skilled professionals that would contribute to the growth of the company. To gain a competitive advantage in the cutthroat competition in the telecom industry, Airtel should convert its weaknesses into strengths and should also leverage opportunities.
Janardan Das is a seasoned Growth Lead with over five years of experience in digital marketing. He specializes in crafting effective marketing strategies, including SWOT analysis and digital marketing courses, to help businesses thrive in the competitive landscape. He is passionate about sharing his knowledge and insights, empowering others to succeed in their marketing endeavors.