Airtel Case Study
Q. Assume Siemens, or Nokia, is considering the proposal from Bharti. Should they agree? Justify your stand. What would be the risks if they agree?
Siemens, or Nokia there will be benefits at the same time there will be trade-offs if they consider the proposal from Bharti. Benefits and trade-offs of proposal are listed below:
Below are the potential benefits for Siemens, or Nokia in case they agree to the proposal of Bharti:
Business Opportunity: The proposal can be a milestone for the company in terms of business as it will provide an opportunity to do business with a major player like Bharti, as business brings more business with it, it can be a milestone in expansion of company itself.
Competitor Advantage: Though the deal may be lucrative and involve risk but can provide them competitor advantage by strengthening market value, relation with Bharti and thus providing cutting edge advantage in the market and strengthening their brand value.
Market Share and Operation Increment: The deal along with all other proposal brings in an opportunity of getting more market exposure in India where there is growth, development in all operations which the vendors are looking for a while and the deal can help them to achieve the same.
Listed below are the trade-offs and risks of the deal for Siemens, or Nokia if they agree to the proposal of Bharti:
Absorption of Bharti Employees: One of the major short term challenge for Siemens, or Nokia will be to absorb hundreds of Bharti employees from the outsourced departments, with completely changed environment and infrastructure being another bottleneck to accommodate and uncertainty to handle sudden expansion,
Huge Investment: With the deal, they will have to purchase which involves huge investments and there will always be risk that Bharti may