Bharti Airtels Strategies That Succeeded in Africa

Table of Contents

Introduction
Discussion
Conclusion
Reference

Introduction

Expanding abroad requires a firm to possess a steady grasp on its initial region and a set of tools that can stabilize the situation in newly established divisions. Bharti Airtel has operated in India since 2004 and has several European partners from whom it drew its experience (Palepu & Bijlani, 2012). Such a foundation enabled the company to use its expertise during the expansion in the African region. Although there were challenges linked to the critical differences between locations, there were several tactics that helped Bharti gain a portion of the African telecom market. In this essay, the strategies that were proven to be efficient during Bharti Airtels expansion in Africa will be discussed.

Discussion

Maximization of return on investments in developing regions is a challenging task that Bharti had a solution for through its experience in India. Bharti understood that the monthly plans were not feasible in Africa and utilized prepaid SIM cards (Palepu & Bijlani, 2012). Such a strategy enabled the firm to avoid unnecessary billing operations that could be a source of discontent among the target population. Moreover, Bhartis SIM cards were distributed through small shops rather than centralized company stores (Palepu & Bijlani, 2012). This feature was especially critical in Africa, as many of its locations are unsuitable for establishing dedicated offices. The acquisition of Zain also helped Bharti to capture an additional market share (Palepu & Bijlani, 2012). A low-cost approach requires a high number of customers for a firm to be successful in the market.

Conclusion

In conclusion, Bharti used its experience in the Indian market to establish its presence in African countries. The firm had a solution suitable for regions with low average revenue per user, which was proven to be efficient in developing states. Rechargeable prepaid SIM cards that were sold at local stores in locations regardless of the size of their population, alongside the acquisition of another provider, enabled Bharti to gain its initial foothold in Africa.