Overview of the company
Bharti Airtel is said to be one of the leading telecommunication companies that are doing business in the countries of Africa and Asia. The headquarter of the company is situated in New Delhi, India. The company is ranked in 3rd position globally in terms of subscribers. The products that the company is offering are mainly 2G, 3G, and 4G LTE, VoLTE services. Recently, they came up with various other services such as high-speed internet, broadband services, DTH services, Enterprise services that include international and national services to carriers. The company provides broadband access through DSL and MPLS solutions. The company is holding a position of 57% market share across the countries in Asia and Africa.
Expansion of Airtel
The company needs to expand overseas because it has acquisitions that will help them to tap the emerging markets. Since the company has enough strength and resilience, therefore, they can take up any challenge, and moreover, the company wants to grow in their field. One of the main reasons for the expansion that is very obvious is generating more and more revenue, competing for the new sales, various types of new investment opportunities, diversification, and many more. The company believes in horizontal integration, which means to expand in their business and, at the same time, expanding its supply chain. The goal of this kind of integration is to capture the market and break the monopoly if there is any in that specific market. As Vodafone is one of the longest-running competitors of Airtel and is having a share of 21% according to the reports, they want to compete against it.
Introduction to the new market
As the UK is said to be one of the best and one of the prominent locations for expanding a business, therefore, Airtel also wants to expand in the UK; likewise, they have expanded before in the parts of Asia and Africa. Starting a business in the UK must sometimes be challenging, but if a company like Airtel, those are having the right set of tools and knowledge of expansion, they can easily dominate this market. This is said to be one of the greatest places for various kinds of business opportunities. One of the main reasons to choose the market like the United Kingdom is because the UK is an open market and is very much open to new ideas. The country is said to be having a track record of launching various market-leading innovations and developing them across all forms of the business or across all business sectors. From science to engineering and from ICT to environmental technologies, the country is said to be one of the leading in all of the mentioned aspects. While the country is very open to innovation, but their corporate culture is said to be risky in the adaptation of new technology. One of the reasons to choose the UK as the market is because Britain is having a greater number of software developers other than Silicon Valley. The country has a low tax rate, which is one of the biggest advantages for Airtel to business in the UK, and the workforce that are there in the UK are very much talented.
PESTLE Analysis
PESTLE analysis is said to be one of the important tools that are used to identify the various kinds of the external forces of the company. It helps in impacting the market and analyzing the factors that impact the business. This is used by the companies to track the environment they are operating their business into or are planning to launch a new project or service in a new market. Here the PESTLE of Airtel will be done on the basis of the UK market. PESTLE analysis gives a bird’s eye view of the environment from various angles and helps in contemplating on a certain idea.
Political factors
Recent political conditions in the UK promotes the environment of deregulation. As a result of that, the competition that has been emerged in the UK market and has increased the choices of the buyers. Moreover, with the result of the deregulation from Europe, the telecommunication market of the UK is expected to face various types of competition from other brands.
Economic factors
The economic meltdown that had happened in the UK resulted in the economy into a recession. Thus, the economic crisis influenced the public finances in the UK and let them with no visible path to get out of this problem. The national debt ratio of the UK was recorded to be 38%, and it seems to be exceeded by 100% in the coming years. Various jobs are lost, which leads to a decrease in the purchasing power of the population. That is the place where the economic scenario plays its part and hinders the growth of the mobile market in the United Kingdom.
Social factors
Social and cultural factors deeply influence this particular sector as the young generation is more into Facebook and Twitter to interact. According to the various kinds of studies, it can be seen that culture plays a huge impact on the buying behavior of the consumers. It is the culture that influences the decisions, acceptance of the technology, and adaptation of the same.
Technological factors
This section is very much important as technology is the main thing in this industry, and it is the cellular companies, and the service providers make the most of it to gain a competitive advantage over others. One such example is the introduction of 5G, which is very popular due to its high speed. Airtel, therefore, will be revolutionized this sector and will be more friendly and convenient than the others.
Legal factors
The Telecom sector will experience more deregulation in the coming years as these are adopted by the legislative bodies of the European Union. It directly affects this sector.
Environmental factors
This is said to be one of the sectors that are least affected by environmental factors, unlike the petroleum and the transportation sector. This is one of the fast-paced industry that has become one of the major contributors in the mobile phone industry. Globalization is another trend that is boosting this sector in operating in the international and domestic markets.