Sunday, May 3, 2020
Changing Business Environment for Model of Airtel- myassignmenthelp
Question: Discuss about theChanging Business Environment for Model of Bharti Airtel. Answer: Compare Bharti Airtels Approach to Internationalization with that of European MNEs. It is a fact that in order to achieve profit-making opportunities, organizations desire to go international and they adopt several different ways and tactics which they think will provide them competitive advantage. In the foreign markets, the organizations intend to increase the sale of their production and services and therefore, they sell their products and services at very lower cost. The same strategy is used by the Bharti Airtel in its business operation. It expands its business through low-cost models and targets the other emerging countries for more sale of its services (Aggarwal, 2013). The uniqueness of Bharti Airtel lies in the fact that it has entered into the emerging new markets. The very first advantage that it receives is that it can get benefit for the capabilities and resources of those emerging countries that always seek for getting an opportunity for expanding their services. Hence, in most of they get merged along with the leading organizations such as Bharti Air tel (Damodaran, 2013). Curwen and Whalley (2014), have stated that Airtel shares its stake with the other industries in the field of telecommunication like they did with the Warburg pictures in order to ensure better industrial growth. Such a diverse collaboration is indeed an unique approach which is not followed by the other European MNEs. Along with that, the model of Bharti Airtel is regarded as a unique model for the telecom as it is an effective model for every emerging market like China and India. In many countries apart from these, Airtel has emerged as a dominant player because of its innovative and unique method of business as well as strong brand. Most of the companies belonging from the same industries, focus on getting a hold of the Indian markets, while on the other hand, Airtel is continuously thriving to put more concentration on the international markets. The management team of Airtel has realized that the extensive experience of the company that it has gathered fro m the Indian markets, with its distinctive business model will help to grab the opportunity that is provided by the other developing markets. This has resulted in Airtel, claiming the Zain Groups telecom business in more than ten different countries of Africa (White, 2013). This has given the company a good start in the African continent as well. However there are several other factors that Airtel fouces on and these factors also contribute to the uniqueness of the Airtel. These factors are mentioned below: Bharti Airtel is dedicated towards understanding the importance for strategic partnership and innovation of the business model. The management team of the company always appreciated the tailoring strategy as this helps them in getting fit to a particular business atmosphere. Moshi (2017) has mentioned that the team of RD in the organization quickly understood and implemented the cross-country differences in the demographic and cultural market conditions. The company has always invested in figuring out the methods through which their business could be successful in the international markets. One of the most unique models of Airtel that makes it different from the other European MNEs is that of its minute factory model, which they have used in Bangladesh after gaining the Warid Telecom (Satanarayana, Sambasiva Krishnamurthy, 2017). Furthermore, its international corporate level strategies are also unique to that of the MNEs. They are mentioned below: Local responsiveness- The management of the organization completely depends on the consumer demand and delivers them solutions according to their needs and requirements. They address the local responsiveness with an utmost importance and this is helping the company to grow further within its industries. Cost responsiveness- The domestic or local pricing model of Airtel differs from one country to another along with state to state. It also relies on the consumers demands and the demographical segment. Promoting and creating a value through diversification- The management team of airtel continuously tries to find a value through diversification by moving around the businesses which are both corporately connected and at the same time, are operationally connected as well. The two most notable strategies of Bharti Airtel in its business model is the reduction in the cost and the high share of the important resources (Cappelli et al., 2015). What are the implications of the rise of emerging economy MNEs such as Bharti Airtel for globalisation? - The primary motive of a brand for attaining competitive advantage and profit-making opportunities are two of the factors that affect the brand recognition in order to develop all over the world. These motives could be achieved by changing the global environment. In this context, Zhu, Sarkis Lai (2013) have been stated that such an expansion of a business could easily take place through encouraging the development of the organizational performance and minimizing the trade barriers. There are several organizations such as the manufacturing or retail companies that is going hand in hand with the trend and has been adopted the modern technology of computerization in order to reach their customers around the world, notwithstanding the fact that they do not have any outlet or any kind of physical store present in that country. With the same, organization such as the Bharti Airtel always looks forward towards the present of opportunities in order to access the resources from other nation s around the globe. They search for an opportunity so that those resources could be obtained through acquiring the other companies in the same field of the developing or emerging nations. Deshmukh, Deshmukh and Thampi (2013) have stated that companies such as Bharti Airtel also reduce their cost with an intention that more number of people from the new nation could use their products. Along with that, the stability in the relation of the international organization and the development of technologies that made it so easy to trade in the international market and incensement has also driven the internationalism of Bharti Airtel. References Aggarwal, R. (2013). Adjusting to BRICs in glass houses: replacing obsolete institutions and business models.Thunderbird International Business Review,55(1), 37-54. Cappelli, P., Singh, H., Singh, J., Useem, M. (2015). Indian business leadership: Broad mission and creative value.The Leadership Quarterly,26(1), 7-12. Damodaran, S. (2013). New strategies of industrial organization: outsourcing and consolidation in the mobile telecom sector in India. Deshmukh, S. P., Deshmukh, P., Thampi, G. T. (2013). Transformation from E-commerce to M-commerce in Indian Context.International Journal of Computer Science Issues (IJCSI),10(4), 55. Moshi, G. C., Mwakatumbula, H. J. (2017). Effects of political stability and sector regulations on investments in African mobile markets.Telecommunications Policy,41(7-8), 651-661. Satyanarayana, D., Rao, K. S., Naidu, S. K. (2017). The impact of Reliance Jio on Indian mobile industry-A case study on mergers and acquisitions of ideaVodafone and AirtelTelenor.IJAR,3(3), 209-212. White, L. (2013). Emerging powers in Africa: Is Brazil any different?.South African Journal of International Affairs,20(1), 117-136. Zhu, Q., Sarkis, J., Lai, K. H. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices.Journal of Purchasing and Supply Management,19(2), 106-117.
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