Airtel Acquiring Zain

Our group is proposing project on corporate strategy for the decision of Airtel of expanding into African territory by acquiring Zain’s Africa operations. In the whole topic we will analyze Indian telecom sector, the factors which led Bharti Airtel to move into international acquisition. The implications of this decision on Telecom sector & steps by competitors. In the whole report we will also analyze attractiveness of telecom industry in Africa. We also discuss strong signals sent by Airtel to global competitors & their steps. Bharti Airtel also tried to take essence of Indian trade in terms of service to other world market.

Bharti-Airtel Groups, with a customer base of more than 121million subscriber, form the largest cellular service provider of India. The Bharti group is now the world’s third-largest, single-country mobile operator and sixth-largest integrated telecom operator. The Bharti Groups always tried to take the brand of Airtel outside of India. To an extent it has been successful also in doing this as it has nearly started its operation in Srilanka and Bangladesh also under the brand name of Airtel. The companies always look for the maximization of profit, whether it may be through cutting down of cost or increasing the sales. If the market reaches a saturation point then there is no opportunity to increase the sale. And if the company cannot decrease the cost then it will try either to diversify or to expand it grip in the global market. If the areas like North America, Asia and Europe are already in a saturation point then the next growing market for the global player will be Africa continent. Some of the major players in the telecom sectors of Africa are MTN, Vodacom, STC & Zain etc.