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Business & Strategy

 
Created by : Namrata Pathak, Accounts Manager, American Express  | 09 20 2010 06:32:49 +0000
Industry : Consumer DurablesFunctional Area : Gadgets(Personal Interests)
Activity:  721 views;  last activity : 12 24 2010 09:28:55 +0000

In what could give jitters to companies like Nokia and Samsung, Bharti on Sunday announced its entry into the fast-growing mobile handset business as group firm Beetel launched eight models in the Rs 1,750-Rs 7,000 price range.

Beetel Teletech’s executive director and CEO Vinod Sawhny said, “The market is huge and there is a room for Indian players... But, too many players don't you think will spoil the game here, customers will be spoit for choice....So, what do you think people., Will this Bharti Airtel's move be a success??

 
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Hmmmm yes infact, as they have the largest customer base in India with more than 140 million subscribers and it recently acquired Zain Telecom in Africa to expand its footprint in 16 countries. And Phones in the range of Rs 2,000-Rs 6,000 are witnessing tremendous growth and the plan to offer a good combination of feature-rich phones at affordable prices by Bharti Airtel is a good move indeed.


By Namrata Pathak, Accounts Manager, American Express  09 20 2010 06:32:49 +0000
 
Top Argument
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It would be a very tough fight and probably it may also bomb out. 

Most of these handsets are manufactured in China where the cost is very low. 

See, companies with experience would do well. Well, there are more than 10 players who are offering low cost handsets. So, how does one become a successful player than an "also ran". The main thing required to succeed in this market is to differentiate in terms of what is inside the cell; what is the features that the cell phone offers. It is these features that would help in deciding the winner. Rather than take what the Chinese offer, the brand owner must specify the features (new and useful and user friendly) and the software that are being used. 

Better and friendly the features, the better the brand would do. I think Barthi doesnt have thinkers and people who have the expertise / common sense to come out with better features and hence it would also become an after ran. 


By G A Narayan, VP - Marketing, KE Housing P. Ltd.  09 20 2010 07:18:04 +0000
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Yes, provided they can beat the chinese in the game on both cost and quality fronts.They will have an uphill task though in cutting costs, because of an invisible cost factor in the form of Indian Political establishment. In china they eliminate it by executing any one who indulges in corruption at the level indian politicos operate.
By Himanshu Joshi, Regional Manager, INCS  | 12 24 2010 09:28:55 +0000
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The success journey of Bharti started with the telephone instrument manufacturing which were lapped up by BSNL in major proportions. So an organization they should have the "ZING" in their genes if both value engineering and market penetration knowledge is properly in records. 

Their forays into Mobile Telephony, Insurance, Retail, Education, Contract Farming, DTH markets etc are differentiated by Customer Service Delivery, IT Engagement, Cost Consciousness & Pin Pointed Marketing. Many innovative & forward thought processes in the country's service market place owe paternity to Bharti Top Mgmt, including Sunil Mittal, Akhil Gupta, Manoj Kohli etc..

All their moves are with their head properly and firmly on their shoulders...

Let Bharti script one more success story which is purely INDIAN....


By Deeso Manjila, Head - FTZ  | 10 03 2010 13:43:24 +0000
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Yes Good move by Airtel, there will be a healthy competition.

Thanks Mr.Namrata.

 


By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 09 23 2010 17:27:51 +0000
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Hello Namrata, Indeed it is a welcome more. Let us wait for their product. Of course the product is good, appeal and the price is very competitive, they can stand in the market.

K Rajagopalan.


By k Rajagopalan, Area Manager, Amitex Polymers (P) Ltd.  | 09 22 2010 17:12:25 +0000
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It is a welcome move provided they set up manufacturing and not trading as the latter will add reasons for failure and change.

Thanks, Namrata.


By Ravindra Sharma, Managing Consultant, CHEF-India  | 09 21 2010 10:58:45 +0000
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Yes it will be a success since airtel itself its launching the cell phones it may give more offers to its customers and also better voice clarity..


By Ravishankar , M.Sc student, M.S. Ramaiah College Of Science, Bangalore  | 09 20 2010 18:17:45 +0000
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Yes it will create a dent in the market. But the question is what features are going to given. From 1500 to 7000  is the price tag fixed. It is a wait and watch game .


By sudhakar , BUSINESS CONSULTANT  | 09 20 2010 13:15:52 +0000
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it will help bharti garner their market share by now offering cost effective handsets touching a larger user base... it is indeed a good move on the company's part to have a complete package.
By Kiran Sethumadhavan, Partner, Sunrise Associates  | 09 20 2010 12:49:31 +0000
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Mr. B-P .Singh,

Why can not they Invest with Govt schemes in mind?. Now-a-days You must be knowing it. Govt plans to give mobile communication to people free. Particularly, keeping in mind of people living below poverty-line, Bharati can redeem its investment by tying with Govt schemes.

Cheaper does not mean that people will not buy it. Millions are there, they have not seen a mobile -phone-use till now. Barati can take advantage of it & exploit to enhance its business. I hope it will win a bit also.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 09 20 2010 12:49:15 +0000
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I support your views, Namrata.

Good move by Bharti/Airtel.


By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 09 20 2010 09:09:54 +0000
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yes it does look like a profitable venture. The cell phone market is forever expanding and with their new budget line and the backing of successful brand like Airtel, I think they come into this market with enormous experience. Very good move and good timing as well


By Abhimanyu Mukherji, Manager Information Systems Division, Bharti Walmart  | 09 20 2010 09:09:53 +0000
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i agree with Namrata,features and price apart,"Airtel" is a renowned name.The hands set market will feel the ripples.


By Mohammad Bakhsh, Project Leader/Managing Consultant, Freelancer  | 09 20 2010 08:57:42 +0000
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Yes they can do wonders in this field personally i believe that the leader is playing very major role of any comapny & a company whoes owner is itself Mr Bharti Mittal who always ready to grasp new technology & techniques a man with vision & right attitude towards work can make drastic changes in this industry nw we ll enjoy the latest technology & features at the end of the day its customers who is going to g.et the reward of it
By Tejaswi Dubey, CEO, Aastha HR Solution/www.aasthahrsolutiuon.com  | 09 20 2010 08:56:38 +0000
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Will definitely be a success.,With an excellent brand image,infrastructure,money power,provided they give value for money products.


By s.baalu , Consultant, XYZ LTD  | 09 20 2010 08:29:23 +0000
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NAMRTA THANKS FOR REFREL,IT'S A GOOD MOVE ATLEAST CONSUMER WILL HAVE ONE MORE CHOICE.THIS COMPETITION WILL GIVE US/CONSUMERS BETTER OPTIONS IN PROCURMENT OF MOBILE SETS.


By rakeshbhatnagar , GM Projects., wig brothers india pvt.ltd.  | 09 20 2010 08:11:21 +0000
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None the less even today when every person owns a mobile phone, everyone is still looking at an alternative which would not be heavy on pockets. An economic phone is always a best alternative.


By Nikhil More, Marketing Manager, Rigel Networks LLC  | 09 20 2010 08:01:36 +0000
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YES... WITH NEARLY 150 MILLION CUSTOMER BASE, WHY NOT ?

AIRTEL, I would say is a bit late... BUT Better Late than Never.

NOW... they have an additional Network ( ZAIN ), so their Claims to success are well backed by Logistics too. Just Imagine... Even If just 1% of their customers decided to go for their Handsets to start with, Means 1.5 MILLION HANDSETS SOLD, I only said Imagine.

If any company has such a strong customer base, they should go ahead & do it. It is only giving more confidence to their Customers & making good money in the process... FAIR ENOUGH ! 


By Naushad H.L., Creative Director, MAD COMMUNICATION  | 09 20 2010 07:38:40 +0000
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Bharti Group, led by the the visionary Sunil Bharti Mittal, has already proven the sub-continent as well as the world, of its prowess and ideas to make things work. Their recent acquisition of Zain-Africa is one such point that proves that Bharti knows how to make things work and that is the fact that even after the 'price war' in India, they still lead the pack.
Frankly putting in, I never knew about Beetel being a Bharti Company and neither did i expect it to be. Beetel is a renowned brand in India and across the globe in the field of fixed LLs and now since the name of Bharti group more highlighted in the news, they are sure to achieve and manage their success in the field of the large dominated mobile phone market as well.
Its just a matter of wait and watch on the features they provide in their offerings and how aggressive they price each handset.


By Sidharth Dugar, Marketing Manager, Sidharth Steels and Forgings  | 09 20 2010 07:34:49 +0000
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Yes it will be successful.


By obulesu , Design Engineer, Moldtek technologies limited  | 09 20 2010 07:09:25 +0000
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Bharti Airtel is in the consolidation and growth phase. They have the largest customer base in India and they have outsourced their IT requirements as part of a major contract to IBM.

Based on the analysis of the handset market, they have found that it is feasible to focus on the manufacture of handsets and also increase their revenue over a period of time when the customer base begins to get saturated in the future. By going in for integrated value added activities in the telecom domain, they are strengthening their position for the future.

In sharp contrast, Nokia despite being a major player in the Indian market has not done very well on the international front. They recently went in for a non Finnish person at the senior management level.

Thus, it is a clear indication that resting on one's laurels will not help an organization to stay ahead in the market over a period of time. The only way is to innovate and improve the value adding activities so that the organization can increase its revenue and keep ahead of other players in the market....


By Badri N Srinivasan, Head - Quality, Valtech India Systems Pvt. Ltd.  | 09 20 2010 07:06:58 +0000
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Yes it will be successful. Because lot of UNKNOWN players have already entered into the race and Airtel or rather Bharti Telecom is not new to this because they were the first to laucnh DTMF phones in India, so its a well known name in Phone INstruments market. So amongst the many choices people will go for their favorite name Airtel. Ofcourse Nokia and Samsung are the market leaders but third one can be Airtel. So i wud support the initiative.


By Sandeep Kule, Managing Director, Endeavor Finance & Tax Consultant  | 09 20 2010 06:58:02 +0000
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I'm a bit circumspect about this decision of backward integration by Bharti. Since Handsets are articles which everyone associates with dynamism- ever changing bounand indian consumers are more open for foreign handsets, we have already seen the domination of nokia,samsung...and downfall of indian reliance. More or less the Indian brands are bound to succumb due  to:

1. Heavy domination by foreign brands.

2. Lack of innovation

3. Since Bharti has done well in SIM business this could divert their concentration too.ys

I prefer to keep my fingers crossed...my heart goes out to them but my brain betrays me..

 


By Ravi Kumar Choudhary, Planning Manager, Encube ethicals Pvt. Ltd.  | 09 20 2010 12:54:35 +0000
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I'm a bit circumspect about this decision of backward integration by Bharti. Since Handsets are articles which everyone associates with dynamism- ever changing bounand indian consumers are more open for foreign handsets, we have already seen the domination of nokia,samsung...and downfall of indian reliance. More or less the Indian brands are bound to succumb due  to:

1. Heavy domination by foreign brands.

2. Lack of innovation

3. Since Bharti has done well in SIM business this could divert their concentration too.ys

I prefer to keep my fingers crossed...my heart goes out to them but my brain betrays me..

 


By Ravi Kumar Choudhary, Planning Manager, Encube ethicals Pvt. Ltd.  | 09 20 2010 12:51:50 +0000
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I support a NO because if we have to look around in india`s secound hand handset market is very bullish & cheap handsets are also in demand so every body know what happened to relince handsets with thier father`s name also involved into that plan & they had exported the sets from south asia also and Beetal is now exporting handsets from?i don1t get into this but rural market is now not only after cheap h.sets but with good/inovative features because our main users with long talk time are those only so now they want new features to communicate say-3G BECAUSE 2nd hand market,cheap market are in slums they used old technology so if they buy new sets may be cheaper they need something better now only name such as Airtel,Nokia, etc. does`nt have to offer in local h.set market, there are dozon other players like Maxx,etc.Airtel have to pay for its delaying and they are not not coming late but compition bring them here.Micromax is 3rd in having its share market after samsung if we are compare it with early times that beetal had done well this because of Govt. player MTNL. BSNL.U can sell connections in urban markets but selling a tangible product having after sale service and one time payment is old indian mentality of asking more out of more is there in rural markets.


By VEERINDER SINGH(B-P.VIHAR), Associate/Senior Associate, BHART CAPITAL SERVICES  | 09 20 2010 10:32:24 +0000
 
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