Airtel Money Can the African success can be replicated in India. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Airtel Money Can the African success can be replicated in India. Case Solution

Introduction

Airtel money is the product of Airtel m Commerce services limited that is wholly owned subsidiary of Bharti Airtel. Bharti Airtel has ensured their presence in 20 countries of the world by March 2013 with 275 million customers in India. Airtel was one of the leading telecom companies in the world, headquartered in Delhi India. It offers various products which includes Wireless mobile, mobile commerce, fixed line service and high speed broadband services.

Under Airtel m Commerce services Limited Company offers a semi closed wallet by name as Airtel Money. Airtel was the first company to launch such facilitating and convenient facility to mobile users in India and through this they got first mover advantage in telecom industry. Through this service one can make payments with deposited amount onto cellphone in contrast with full mobile wallet which offers both facilities of making payments and withdrawing cash any time when you need.

By using airtel money facility Airtel GSM user can make payments for various activities like shopping, dining, and utilities bills payment. In addition to paying for activities one can also transfer the amount to other airtel GSM user or any bank account. Success of this facility was limited to India itself; Airtel launched this facility in South Africa prior to India.

This campaign went very successful in African countries because of their openness and flexible rules and regulations. In Ghana they got Ghana telecom award because of their valuable services. Now it was time to replicate that African success into Indian market. It seems little bit difficult because of tight regulations regarding cash out by RBI.

Therefore the objective of the case is to identify the network operators and their way to communicate the customers with different offerings and the impact of social, economic and political that is immeasurable ad also to determine the competition for ISP in that Kenya sub sector.

Problem Identification

Replicating African success into Indian market is somehow complicated work because it requires lots of medication into strategic and business model. That is just because of cultural differences. If we compare literacy rate of Kenya and India then Kenya has more literacy rate than India. In terms of regulations both countries are also diverse. Africans Banking regulations are not much strict as Indian regulations are hence this fact provides rapid growth in African market. Now the question arises how Bharti Airtel should modify its model in order to get widespread acceptance across India. Also, the MMT may provide risk in adopting new technology as the public does not want to change traditional way of money transferring.

Another major issue is Airtel offered limited amount to be transfer from one place to another that made difficult for customers in making transactions. Also the competition has been increased that offering same services and the Airtel faced the challenge of aggressive promotion andadvertisement campaigns by media and other market researchers.

Case analysis

(a) What socio-cultural and economic differences and similarities are there between India and Africa that would influence the success of mobile money transfer in India?

The Socio- Cultural:

One of the most important factors is of population. India is world’s 2^nd most populous country, so in India many people lives outside their home for earning. Then they had to send/transfer that money to their home. This thing encourages use of mobile commerce facility. For this Airtel had to launch their m Commerce application with multilingual facility because many languages are being spoken in India. In India 100 million migrants live so also they have to transfer amount. Still lots of factor will contribute to the growth of m Commerce facility. Only 20% of Indian population has Bank account but 75% of the people use cell phone. So this thing triggers the growth in Indian market. 90% of the Indian population, shops by using cash and these people can bring exemplar shift in m Commerce industry......................

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