Grameenphone and Strategies

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Grameenphone and strategiesDocument Transcript

1. A CASE STUDY ONGRAMEENPHONE LTD. & THEIR STRATEGIES Submittedto: Mohammad Masum Billah Assistant Professor of Management Department of

Business Administration Northern University Bangladesh Submitted by: A. F. M.

Rubayat-Ul-Jannat BBA080160714 2. December 7th 2010Mohammad Masum BillahAssistant Professor of

ManagementDepartment of Business AdministrationNorthern University Bangladesh

Subject: Submission of a Case StudyDear Sir.With due regards and respect GP state that

GP are very thankful to you as you assigned us this CaseStudy on Strategies thatapplying by National or Multinational organizations. It is a greatopportunity for us to

acquire theoretical and practical knowledge about Strategies that makes aCompany

Successful. GP have tried out best to gather what GP believe to be the mostcompleteinformation available.Your kind acceptance and any type of appreciation would

surely inspire us. GP would always beavailable and ready to explain further any of the

context of the whenever asked.Sincerely yours,A.F. M. Rubayat-Ul-JannatID:

BBA080160714Cynthia IrinID: BBA080160723Md. Nazmul IslamID: BBA080160660 3. INTRODUCTION Evolution and HistoryNovember 28th 1996GrameenPhone was

offered a cellular license in Bangladesh by the Ministry of Posts andTelecommunications,

Government of the Peoples Republic of Bangladesh.March 26th1997GrameenPhone

launched its service on the Independence Day of Bangladesh.November 5th2006Afteralmost 10 years of operation, GrameenPhone has over 10 million subscribers.September

20th2007GrameenPhone announces 15 million subscribers.November 30th 2009After

almost 10 years of operation, Grameenphone has over 10 million

subscribersNowGrameenphone is now the leading telecommunications serviceprovider in the countrywith more than 27 million subscribers as of October

2010.Presently, there are about 60 million telephone users in the country, of which, a

little over onemillion are fixed-phone users and the rest mobile phonesubscribers.Starting its operations on March 26, 1997, the Independence Day of

Bangladesh, Grameenphonehas come a long way. It is a joint venture enterprise between

Telenor (55.8%), the largesttelecommunications service provider in Norway with mobilephone operations in 12 othercountries, and Grameen Telecom Corporation (34.2% ), a

non-profit sister concern of theinternationally acclaimed micro-credit pioneer Grameen

Bank. The other 10% shares belong to10% to general retail and institutionalinvestors.Over the years, Grameenphone has always been a pioneer in introducing new

products andservices in the local market. GP was the first company to introduce GSM

technology inBangladesh when it launched its services in March 1997.The technological

know-how andmanagerial expertise of Telenor has been instrumental in setting up such

an international 4. standard mobile phone operation in Bangladesh. Being one of the pioneers in

developing theGSM service in Europe, Telenor has also helped to transfer this knowledge

to the localemployees over the years.GP VisionGrameenphone exist to help theircustomers get the full benefit of communications services intheir daily lives. The one and

only vision of them is We Are Here to HelpGP MissionGrameenphone is the only

reliable means of communication that brings the people ofBangladesh close to their lovedones and important things in their lives through unparallelednetwork, relevant


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innovations & services.GP Managerial Values MAKE IT EASY Everything GP produce

should be easy to understand and use. GP should always remember that GP try to make

customerslives easier. KEEP PROMISES Everything GP do should work perfectly. If it

doesnt, theyre there to put things right. Theyre about delivery, not over-promising.

Theyre about actions, not words. BE INSPIRING They are creative. GP bring energy

and imagination to our work. Everything GP produce should look fresh and modern. BERESPECTFUL GP acknowledge and respect local cultures. GP want to be a part of local

communities wherever GP operate. GP want to help customers with their specific needsin a way that suits way of their life best.

5. REASONS FOR BEING WITH GRAMEENPHONE GrameenphoneLargestNetwork Coverage Rajshahi Dist:16 Sylhet Upa: 134 District: 4 Upa: 39 Districts 6 1 out

of 64 Dhaka Dist: 17 Upa: 14 4Thana 50 6 Indoor and Khulna Highway Dist: 10Coverage Upa: 6 6 Barisal Dist: 6 Upa: 4 1 Chittagong Dist: 8 Upa: 8 2

6. STRATEGIES Applied by Grameenphone Business Level Strategies: Using productfeatures or services GP is distinguishing the firms offerings from its competitors.Some

product features are Apon, Bondhu, Sohoj, Djuice, Xplore, Business Solution, Internet

SIM, Public Phone, Village Phone etc. To increase market share by expanding thenetwork, The Company was successfully listed in November 2009which was the

largest IPO in the history of the Bangladesh capital market. Functional Level Strategies:

Grameenphonesfocus is on efficiency, quality, innovation, and customer

responsiveness. Their main focus on After Sales Service thats why for the first time they

introduce 24 Hours Helpline and many GPC with the motto, We are Here to Help

GPs Human Resource & People management procedure is so much powerful rather than

the other telecom companies, which are helping the company to achieve the first place.

Under Grameenphone there are more than 5000 Employees working all over the country.

7. Global Level Strategies: Grameenphone (The Company of Telenor Group) is usingmultidomestic strategies because it expanded its telecom business under differentcountries with different name. Such as: o Grameenphone in Bangladesh, Uninor in India,

Telenor in Pakistan, Norway, Hungary; DiGi in Malaysia, dtac in Thailand etc. Its also

follows transnational strategies, like Telenor Group provide different strategies fordifferent countries depend on the people demands. So Grameenphone segmented our

Bangladeshi market depending on what people actually need, thats why they invented

different types of SIM, Packages Plan, Internet Options and Handsets for BD people.

Corporate Level Strategies: Grameenphone is vertically integrated, now they establishsome plans for grab more rural customers by producing Handset BadhonGrameenphone C100, Grameenphone V100 at cheap price. Also they producing

Grameenphone Modem to establish and introduceinternet everywhere in Bangladesh

under the slogan of Alo Ashbei, which has the 100% mobility Grameenphone nowconcentrated on other field also. They are opening Grameenphone IT Ltd. as well asGrameenphone Communication Ltd. Management Team of Grameenphone

8. SWOT ANALYSISSTRENGTHS: Largest Geographical Coverage LargestInternational roaming Service Strong Distribution Channels Pre-Paid service that are soFlexible Low price handsets with quality and variability for rural people Lease of Fiber-Optic cable from Bangladesh Railway Market Leadership & financial soundness Good

Owner Structure Competitive Price Dynamic Management Team 24 Hours Customer


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Services Skilled Human Resource Access to the Widest Rural Distribution network

through Grameen Bank More Attractive VAS (Value AddedServices)OPPORTUNITIES: Unmet demand Possibility of further network expansion

Increasing interconnection with BTTB Favorable Regulatory Authority Possibility of

innovative products and services

9. WEAKNESS: Billing inflexibility Growing customer dissatisfaction Lack of follow-upfrom customers Deviation from original business plan Marketing plan.THREATS:

Introduction of BTTB mobile phones Aggressive marketing by competitors Possibility of

new entrances using GSM Technology. Better relationship of competitors with regulatorybody.

10. Findings & Overall ImpactFrom the above empirical description, GrameenPhone hascontributed to developmentin Bangladesh in several ways: Building technicalinfrastructure with increasingly more advanced services, working towards a critical mass,

where telecommunication impact on development will increase significantly. Through the

transfer of technology and managerial expertise. Building production and maintenance

capacity locally. Through strict codes of conduct possibly strengthening the norm against

corruption. Through high production and related high tax payments, as well as throughcontinuous investments in competition and product differentiation. This results in a larger

consumer Surplus. Wages and payments paid out to close 100,000 people, withconsiderable income effects. Through extended business activities such as CIC, BillPay

and Health Line reducing consumer costs of basic services. Through professional HR

practices and training programs enhancing human capital as well as setting a standard forbehavior and conduct. Through community services which help fund basic services for

poor people. It seems that the impact of GrameenPhone on the development of

Bangladesh is very significant, and also clearly beyond what is traditionally expected

from a private company, such as investments, wages and taxes. The code of conduct,HSE policy, HR practices and extended business activities seem to play an important role

in GrameenPhone and also have effects beyond the companys own specific goals. A

particularly interesting observation is the "intellectual domestication" process going on,

most likely implying increasing management independence.

11. RECOMMENDATIONBased on the findings & analysis, some realisticrecommendations are mentioned in thefollowing: QA department is strongly working but

the department should give more concentration on contractual employees in making thempermanent to make faster growth of GP than the present time. Besides existing

customers, other customers should be strongly targeted. Performance appraisal system

should be controlled and followed to measure the performance of each employee. Shouldgive more concentration on advertising & sponsorship. GP should increase the service

quality/after sales service.CONCLUSIONGrameenphone Company is still a growing

company, in spite of all the success it has achieved sofar. It holds a kind of a monopoly

position in the mobile telecommunications market. Completionis always on the lookoutfor new ideas and schemes. In order to maintain no: 1 position GP useto follow many

strategies like business level strategies, functional level strategies, global levelstrategies

& corporate level strategies.


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GP House

The head office of Grameenphone was

inaugurated on Tuesday, 23 November.

The head office of grameenphone is a unique building having a deep combination of

creativity, flexibility, innovation, transparency and workplace design. It is built around

people.

It comprehends the nation's pride, values, heritage, growth and global context. It styles

new idea, concept, design and practices both materially and spiritually.GPHouse - a truly sustainable architecture and contemporary art hub which incorporates

a new way of work, environmentally responsible work practices, materials and technologies

with an understanding of the culture of Bangladesh

GP House Tour

Level 2 [East wing]

GP SOC


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Explore the heart of our network at our Service Operation Centre. Meet the team that

Never Sleeps. Watching over the strongest network of the country 24 hours a day, 7 days a

week and 365 days a year. SOC is responsible for ensuring seamless service towards our

valued subscribers, monitors all the systems which are providing Voice & Data services.

The team ensures no interruption in Mobile Services for GP subscribers.

Level 2 [West wing]

CF Expo and Art Hub

Explore the 13 years journey of Grameenphone. Our treasure of achievements earned by

providing services to the valued customers, Enjoy the collection of contemporary arts from

leading as well as young artists from the Bangladeshi art scene. The unique identity of

Grameenphone is communicated through expression of local art forms intertwined with

heritage of Bangladesh and global presence of Telenor.

GP House highlights

1. Business vs. Creativity: Where rationality meets the humanness of our existence. Abalance that we strive to achieve.

2. Aesthetics vs. Functionality: An exhibition of how beauty can tag along with reason.

Where even the walls deliver both sustainability and beauty

3. Cost vs. Investment: Where the long-term view of our place n the world is seen as an

investment for our future generation . Where natural light is not seen as a substitute but an

essential element to our working conditions.

Level 4 [East wing]

The G Way

The way that defines how we work as a team, ensure equality amongst ourselves, work with

care for the environment, and live by the values of Grameenphone.

Level 4 [Open terrace] Connected Village

A dream that we are turning to a reality Showcases the journey from the Village phone to

the Community Information Center, Healthline, Studyline, Information Boat , Billpay, and

the Solar BTS- each element a huge step in bringing about the social revolution from the

heart of Bangladesh, the rural space.


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Grameenphone and Strategies