PESTLE, Porter's Five Forces, and Demand Analysis for Airtel in Canada

This report provides a comprehensive analysis of Bharati Airtel Ltd's potential expansion into the Canadian market. It begins with an introduction to global business and the factors influencing international expansion, followed by a detailed overview of Airtel. The core of the report uses PESTLE analysis to examine the political, economic, social, technological, environmental, and legal factors impacting Airtel's business in Canada. Porter's Five Forces analysis is then applied to assess the competitive landscape, including the threat of new entrants, the bargaining power of suppliers and buyers, the threat of substitute products, and the rivalry among existing competitors. Furthermore, the report includes a demand supply chain analysis to determine customer requirements. The analysis highlights the opportunities and challenges Airtel might face, providing insights into the market's dynamics and strategic considerations for successful market entry and operation in Canada. The report concludes with a summary of findings and recommendations for Airtel's expansion strategy.

PESTLE of CANADA
and expansion of a
company in Canada

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL analysis of Bharati Airtel Ltd......................................................................................2
Porter's Five Forces analysis Bharati Airtel Ltd........................................................................4
Demand supply scheme Bharati Airtel Ltd................................................................................5
CONCLSUION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Global business refers to the activity of operating and running business in different
nations of the world with the purpose of fulfilling consumers needs & demands and maximising
profit & productivity. There are diverse global business environment factors that affect the
business of a company who operate and want to expand its business in different nation of the
world. These components can be term of geographical, political, social and technological etc.
that can create favourable and unfavourable impact on the firm in different manner. This
assignment is supported to Bharati Airtel Ltd which is an Indian mutational telecommunications
services company (Akhtari, Sowlati and Griess, 2018). It provide its telecommunication services
all over the world to fulling consumers needs. This written document will discuss information
about business environment by using PESTEL analysis and the impact of different factors on the
company. Apart form it, Porter's five force analysis will be explain about Canada in term of
analysing competition for that company who want to expand in this nation. Further will define
about demand supply chain analysis to determine the requirement of customers in term of
monitoring their necessities.
MAIN BODY
Background of the company
Bharati Airtel Ltd is also known as Airtel and it is an Indian global telecommunication
services which operate it business in multinationally or cross wise the world. This organisation
was established in 1995 by Sunil Bharati Mittal and headquarter in Delhi, India. It runs in 18
nations across South Asia and Africa and also in the Channel Islands. The company operate its
businesses with its different products like Fixed line telephone, Mobile phone, Broadband,
Satellite television, Digital television and Internet television. There are 14,818 employees make
their contribution in running the business of the firm. Due to operating its business globally there
are different externals and macro environment factors that create their influence of the business
of the firm in diverse manner (Amin, Zhang and Akhtar, 2017). There are different business
strategies and plan of action that are designed by the management of the firm to deal with these
kind of issues. These complexities are faced by respective organisation when it operate and
expand its business in another nation and the national authorities make change sin their plans and
policies then it influence business activities and operations.
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Apart form it, there are several companies operate in respective sector that create
competition for Airtel. High level of competition also negatively affect the firm in different
manners in term of affecting its sales and profit margins. To deal with rivalry in specific sector,
the administration of the firm develop its existing plans and policies or frame new strategies so
that they can get over the competition (AYDIN, 2017). If respective company operate its
business in that nation in which it does not exist then it is useful to the firm that it should make
good relations with suppliers and customers. So that providers can offer needed material on time
and the firm can fulfil customers requirements in most appropriate manner.
PESTEL analysis of Bharati Airtel Ltd
It is an analysis and framework that is used by the firm to monitor the impact of external
atmosphere factors that affect the business activities and operation of a company in different
manners by creating opportunities as well as threat. With the help of this framework a company
can get information about different components of a country that can information business of a
business. For example, In context of Bharati Airtel which a telecommunication service provider
and want to expand it business in Canada so there are different external environment factors that
create impact ion organisation. To determine the impact of them on business, the administration
of respective company can use PESTEL analysis of Canada and brief description of it as under:
Political factor- It is the first factor of this analysis and consist different factors like
political stability and instability, government policy, foreign trade policy, tax policy, labour law
and trade restrictions etc. These are all components that require to be taken into account when
analysing the attractiveness of a potential market. The political environment is full of risks for
telecommunication industry. The traditional threats for telecom are the ones connected to
regulations,m network licensing and nations trade barriers. For example, In Canada, the
government maintain trade barrier against telecom organisations that can negatively affect Airtel
because to expand ion this nation the management of the company should effectively consider
trade rules and policies (Baxter, 2019). Another factor is changing in taxation policy in term of
good in comparison to UK so it can be easy for the respective establishment to expand it
business in Canada because tax rate of UK is high than Canada.
Economical factor- This factor include inflation and deflation rate, economic growth,
currency rate, interest rate, disposal income of consumers and unemployment rate. These all
components may have instant and long term impact on the firm and affect the buying behaviour
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of population of Canada. Now the recession has passed from telecom sector and people are
spending on telecom is back on track. It create a business opportunity for Airtel and firm can
expand its business. But interest rate is a factor that can negatively affect the company because
the taxation rate is high so the company will pay more tax if it expand its business in this nation.
Social factor- This component consider change in consumer needs and demands, culture,
beliefs, values, age, gender, health consciousness, lifestyle attitudes and cultural barriers. These
elements are specially beneficial for marketers during the time of targeting certain consumers.
This factor also have a deep impact on telecommunication in Canada and profitability of that
companies who operate their business in this industry (de la Rosa and et. al., 2019). For instant,
the main factor that can affect respective sector is change in consumers needs and demands
because needs of people are change rapidly. If they have not good service of a particular
telecommunication company then they can use the services of others. It can create business
opportunity for Airtel and company can expand it business in Canada with the motive of
fulfilling customers needs. Another factor is that social welfare and now these days people are
highly concern with it. If the company operate its business in term of providing security to
society by focusing of its online business operation that information should not be leak of any
customers.
Technological factor- This component refers to technology incentives, the extent of
innovation, automation, advance technology, artificial intelligence, technological change and
awareness. These elements affect determinations to enter or nor enter certain business in specific
business sector. In Canada, the entire business of telecom sector is supported to technology and
technological modifications affect in deep way. There are several big and small technologies that
will use a connect like biometrics whose use on smartphones is desired to develop. For example,
to expand business in Canada, Airtel can provide different functions in its Mobile phone
products and offer products that connect cars to smart homes and businesses, wearables, smart
cities etc. It will help in providing growth option to respective company in effective manner
(Debroux, 2017). By offering 5G which is able to minimise costs for the suppliers and speeding
up connections many times.
Environmental factor- It consist different components like raw materials, pollution target
and carbon footprint, weather, climate, environmental offsets and climate change. These all
factors highly affect the business of different companies when changes are occurred within them.
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In Canada, the climate of the country is good which favourably affect the business of
telecommunication sector. In for example, in context of Airtel, if the company expand in this
nation then climate factor positively affect the firm because the firm will effectively deliver its
telecom services to its customer and gain their attention. Smartphones are a large portion of e-
waste so b y make concentration on wastage management the firm can reduce its carbon intensity
which also positively affect the firm.
Legal factor- This component consists discrimination, antitrust, employment, customer
protection, copy right and health & safety laws. This factor consider information about the laws
and legislation that are formulate by the national authorities of a particular nation. For instant,
internationally legal compliance gives rise to big risks for the telecom providers (Frege and
Kelly, 2020). If Airtel will make expansion in its business in Canada than consumer protection
is an effective factor which will help in effective running of the company. By following
consumer protection law, the management of respective firm can provide protection to personal
information of its target consumer, employees and suppliers in Canada. It will assist in offering a
growth option to the firm.
Porter's Five Forces analysis Bharati Airtel Ltd
It is a model and concept that an be used by business organisations to determine the
competition in a specific nation. The number and power of a firm's competitive rivals, potential
new market entreats, suppliers, customers and impact of similar products an services can be
determined with the assistance of this analysis. This analysis can be used by Bharati Airtel in
context of gaining information in context of its competitors when it make expansion in Canada.
The description of it is as under:
Threat of new entreats- The entry of new entrants in any sector is impacted by entry
barriers in that specific sector. The factors that create barrier to a company are laws and finance
that are important to operate business any business industry. For example, in reference to Airtel,
if the company expand its business in Canada then this factor less affect the company business
due to laws and legislations of this nation. Each nation has its own law which are differ from
another nation (Hu, 2019)(Juutila, 2019). Airtel is a well establish company in UK so the
finance factor will not affect it in particular nation.
Bargaining power of suppliers- It is another factor that also provide information about
the suppliers and providers of the company who offer raw material and required resource to
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operate the business. The suppliers for Airtel are the handset provider, tower provider and
network equipment suppliers. Considering the amount of competition in particular sector, the
bargaining power of suppliers is very high because they negotiate with purchasers in easy
manner. They an easily switch to another buyer and they have lots of option in business industry.
In Canada, despite the accessibility of various choices of providers in marketplace, the power is
still with the suppliers and not the service providers.
Bargaining power of buyers- It is another factor that also affect the business of a
company due to arising change in customers needs and demands. In context of Airtel, with
increasing choice of substitute in marketplace, the purchaser have a huge bargaining power to
this company (Mayer and Phillips, 2017). At the time of expanding in Canada, bargaining power
of buyers can be high cause of no legal regulations and availability of several substitute products
in market. Another reason of high bargaining power can be high price of product and services
that are offered by respect9ive company in market.
Threats of substitutes products- This factor highly affect the bushiness of Airtel in
Canada because there are number of telecom company like BCS Inc, Sask Tel and others which
offer similar products and services like Airtel so it create a threat to respective company (Wood
and Logsdon, 2017). If the customer get quality product to low cost then they can switch to
another firm that generate issue of substitute products.
Rivalry among existing competitive- It refers to the threat which is generated by those
companies which operate their business in similar sector in which a business run. It create
competition for the business of respective company in term of offing same products and services.
In context of Airtel, there are number of telecom companies like Rogers communications. BCE
Inc, Telus Corporation, Shaw communication and Videotron etc. are some example of
telecommunication company that generate high level of competition for Airtel. It will create high
rivalry for the business of respective company.
From the above mentioned information, it can be analysed that if Airtel expand its
business in Canada then it face high competition in different factors like suppliers, substitutes
and competitors that can affect the business of respective company in unfavourable manner.
Demand supply scheme Bharati Airtel Ltd
Supply and demand are most effective factor that are beneficial to a company and play
and essential role in growth and development of the firm. Demand refer to requirement and need
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of people and customer of a particular market and country (Phelps and Wood, 2018). Whereas
supply refers to the offering of goods and services that are provided by the company to fulfil
consumers needs and necessities.
In Canada, wireless telecommunication sector supported 261,000 jobs in form of direct
employees, support staff and those indirectly employed. The Wireless industry provides high
value job opportunities and fulfilling the demand of unemployment in the nation (Soares, DBIA
and Akhnoukh, 2030). The use of mobile broadband and other data services experience quick
development stimulated by widespread coverage of advanced 3G services abilities. The mobile
content sector created approx $240m revenue in comparison to its previsions year.
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In reference to Airtel, if the company expand its business in Canada, then firstly the
management will determine the information about needs and demand of customers. For this, the
firm can analyse the past information and market analysis. When the establishment aware
consumer needs then they can offer product and services as per customers requirements. To
determine the supply and demand, the administration of the respective company can use supply
demand analysis (Tempest and Coupland, 2017). With the help of it, the firm can build effective
relations with suppliers, customer and retailers so that they can make contribution in establishing
the business of it in Canada with the purpose of fulfilling consumers demand and supply goods
and services as per their requirements.
CONCLSUION
It has been summarised form the above mentioned information that to operate a business
in global business environment, it is important that the firm should formulate effective plans and
policies that help in effective running of the business of the company. At the time of expanding
business in a nation, there are several issues that can be faced by the management. To determine
the impact of external factors, the company can use Pestle analysis and with the assistance, the
administration and analyse the positive and negative influence of macro environmental
components on business. Poter's five forces analysis assist in monitor the competition in related
industry. With the assistance of Demand supply chain analysis the management of respective
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company can build effective relation with suppliers and customers of that nation in which it
going to operate.
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REFERENCES
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de la Rosa, C.B. and et. al., 2019. PESTEL analysis with neutrosophic cognitive maps to
determine the factors that affect rural sustainability. Case Study of the South-Eastern
plain of the province of Pinar del Río. Neutrosophic Sets and Systems. 27(1). p.19.
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Phelps, N.A. and Wood, A., 2018. Promoting the global economy: The uneven development of
the location consulting industry. Environment and Planning A: Economy and
Space. 50(6). pp.1336-1354.
Soares, R., DBIA, P. and Akhnoukh, A.K., Global Construction 2030 Market at Top Three
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Tempest, S. and Coupland, C., 2017. Lost in time and space: temporal and spatial challenges
facing older workers in a global economy from a career capital perspective. The
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corporate citizenship (pp. 83-103). Routledge.
Online
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<https://pestleanalysis.com/pestle-analysis-of-the-telecommunication-industry/>.
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The Benefit to the Canadian Economy from the Wireless Telecommunications Industries: An
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