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Airtel faces strong bargaining power from buyers due to the availability of substitutes and low switching costs, compelling the company to provide quality products at competitive prices. Supplier power is relatively weak, resulting in moderate pressure on Airtel's terms. The competitive landscape is intensified by rivalry with major players like Reliance Jio and the threat of substitutes, while the threat of new entrants remains moderate due to high brand development costs.

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26 views2 pages

2222

Airtel faces strong bargaining power from buyers due to the availability of substitutes and low switching costs, compelling the company to provide quality products at competitive prices. Supplier power is relatively weak, resulting in moderate pressure on Airtel's terms. The competitive landscape is intensified by rivalry with major players like Reliance Jio and the threat of substitutes, while the threat of new entrants remains moderate due to high brand development costs.

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3) Competition

• Bargaining Power of Buyers

The bargaining power of buyers is very strong. It forces Airtel to deliver quality products to the
buyers at the best possible price. The main reasons behind the bargaining power of the buyers are
the availability of close substitutes, plenty of alternatives, and low switching costs.

• Bargaining Power of Suppliers

The power of the supplier is, therefore, relatively weak as there are many suppliers with limited
control over the distribution networks. This consequently translates to a moderate to weak
pressure from the suppliers to influence Airtel's terms.

• Competitive Rivalry

Airtel faces strong competitive rivalry challenging its market growth. Low product differentiation,
competition from players such Reliance Jio, VI (Vodafone + Idea), MTNL, and BSNL heighten the
competitive rivalry.

• Threat of Substitutes

The threat of substitutes increases with technological changes and shifts in consumer preferences.
This threat is raised by the high performance-to-cost ratio of the substitute products and low
switching costs.

• Threat of New Entrants

The threat of new entrants is only moderate because of the high cost of brand development and
high capital requirements. However, the low switching cost remains a risk.

3) Competition

• Bargaining Power of Buyers

The bargaining power of buyers is very strong. It forces Airtel to deliver quality products to the
buyers at the best possible price. The main reasons behind the bargaining power of the buyers are
the availability of close substitutes, plenty of alternatives, and low switching costs.

• Bargaining Power of Suppliers

The power of the supplier is, therefore, relatively weak as there are many suppliers with limited
control over the distribution networks. This consequently translates to a moderate to weak pressure
from the suppliers to influence Airtel's terms.

• Competitive Rivalry

Airtel faces strong competitive rivalry challenging its market growth. Low product differentiation,
competition from players such Reliance Jio, VI (Vodafone + Idea), MTNL, and BSNL heighten the
competitive rivalry.

• Threat of Substitutes
The threat of substitutes increases with technological changes and shifts in consumer preferences.
This threat is raised by the high performance-to-cost ratio of the substitute products and low
switching costs.

• Threat of New Entrants

The threat of new entrants is only moderate because of the high cost of brand development and high
capital requirements. However, the low switching cost remains a risk.

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