A comprehensive analysis of strategies of Orascom Telecom Bangladesh Limited

Letter of transmittal December 14, 2011 Course instructor Faria Rashid Business Strategy (MGT 401) BRAC Business school 66, Mohakhali, Dhaka 1212. Subject: Submission of the term paper on “A comprehensive analysis of strategies of Orascom Telecom Bangladesh limited (Banglalink)”. Dear Madam, Here is the project report that we have completed as part of fulfilling the requirement for our Business Strategy (MGT 401) course. This report was completed in two weeks by the undersigned students. During this analysis we have enriched and gained experience regarding practical aspects of SME Banking System. We believe that the report contains comprehensive information about the strategic plan of Banglalink. We have tried our best to follow your instructions to complete the term paper. It has been great and worthwhile experience for us to work on this topic. We here by submit the report for your perusal and request you to accept our report. Sincerely yours, Farhana Jabin peuly Sumona Haque Marzanul Hasan Rajib Roy Nazmul Hasan Duranta Jannat Shahria 08204003 08204016 08304051 07304012 09204138 09104075 .......................................... ......................................... .......................................... ........................................... ............................................ .....………………………...

Acknowledgement

We would like to thank Mr. Quazi Abid-ur-Rahman, Accounts Payable Officer from Accounting & Finance department for helping us with the relevant information about some of the Strategic Action Plan of Orascom Telecom Bangladesh Limited (Banglalink) that we needed to prepare this report. We are especially thankful to Mr. making appointment with Mr, Limited (Banglalink). , Bangladesh, for his contribution in , Financial Executive of Orascom Telecom Bangladesh

We think the developed strategic plan analyzing their overall market environment would help them further to progress in expanding their network coverage as well as other product packages and service benefits for its customers. we tried our best to gather all the information within our reach. Orascom Telecom Bangladesh Limited is working to fulfill the demand of consumer. Our term paper intends to find out and analyze their strategy according to its industry and company situation. we tried to relate it to the real practice of Orascom Telecom Bangladesh limited. Banglalink being no exception tries to adopt best strategic plan matching to its competitive position in the matured industry as the runner-up company. Our term paper provides relevant strategic. which would contribute to their larger profit margin and increased number of market share compared to its two near rivals like Grameen Phone and Robi. financial objectives both for short-term and long-term according to the company’s set mission and vision. In today’s world of business. Banglalink carries on offensive strategies mainly to challenge its main key rival Grameen Phone. . developing an effective strategic plan plays a significant role in achieving organizational goals and targeted performance. Having read in our course book about the topic. Our term paper also provides some recommendations for improving its performance that ultimately leads them to achieve their particular objectives.Executive Summary As assigned by our course instructor to prepare a term paper on comprehensive analysis of strategies of Orascom Telecom Bangladesh Limited. They prefer to promote their marketing activities through different media.

.Table of content Topic Page Number 1 2-3 3 4 5-8 8-10 11-14 14 15-16 17-18 18-19 19 Conclusion References Objective of the report: General The general objective of our report is to discuss the strategic action plan of Orascom Telecom Bangladesh Limited. We have focused on comprehensive analysis of strategies as well as have tried to come up with some recommended actions to improve performance by taking some longterm and immediate actions.

journals and articles from newspapers as our secondary data. Accounts Payable officer. Methods: We have used qualitative research technique. • • Limited source of data. internal newsletters. Company Overview: . he was the primary source of our relevant information and data. Primary data: We went to Orascom Telecom Bangladesh Limited and took interviews from some of the members of Banglalink. They did not provide any negative information about their company. Methodology: Data: Basically in this report we used primary and secondary data. Quazi Abid-ur-Rahman. Limitation of the data: We faced some problems to collect the information. Accounting & Finance.Specific To compare theoretical ideas with practical working environment and to explore different terms of business strategy. only the website and the interview of official persons. published annual reports on their website. Some obstacles are given in the below• Lack of Co-operation for their official confidentiality. they did not disclose any of their financial objectives related matters. Secondary data: We also took abundant help of website of Orascom Telecom Bangladesh Limited. We compared theory and our leanings with the actual and real practice of the company in a qualitative way.

has since become their corporate positioning. “making a difference” or “din bodol”. which is reflected in the slogan. Banglalink became the fastest growing mobile operator of the country with a growth rate of 257%. When Banglalink entered the Bangladesh telecom industry in February 2005. Strategic Action Plan: 1. was formerly known as Sheba Telecom Pvt. aggressive improvement of network quality and dedicated customer care. services. Banglalink GSM Ltd. CSR. in 2004. be it through their products. This has been achieved in just three and a half years.A. Company Vision: . The mobile phone has since become the symbol of a positive change in Bangladesh. When Banglalink began operations in Bangladesh in February 2005.Orascom Telecom Bangladesh Ltd. Banglalink is the second largest cellular service provider in Bangladesh after Grameen Phone. Sheba Telecom Private Ltd.E. Making a difference is the central theme that resonates through everything that they do. Bangladesh. As of September 2. And its telecommunication services were re-launched under the brand name Banglalink.) Limited (“Sheba”). its impact was felt immediately: overnight mobile telephony became an affordable option for customers across a wide range of market segments. Banglalink currently has 15 million subscribers as of May 2010. Banglalink GSM Ltd. the 6th largest mobile phone operator in the world. This positive change.A. 2004.'s name was changed when it purchased 100% of the shares of Sheba Telecom (Pvt. the scenario changed overnight with mobile telephony becoming an extremely useful and affordable communication tool for people across all segments. The company was founded in 1998 and is based in Dhaka. by Orascom Telecom Holding S. and effective communication that emotionally connected customers with Banglalink. This milestone was achieved with innovative and attractive products and services targeting the different market segments. the ultimate parent company of the group is vimpelcom. Ltd. As a result of acquisition of Sheba Telecom Pvt Ltd. the fastest growing mobile company in Bangladesh. quite rightly attributed to Banglalink. or other activities.A. representing a market share of 26%. Within one year of operation. Banglalink is today the 2nd largest mobile operator in the country and recently celebrated with 1 crore customers. operates as a subsidiary of Orascom Telecom Holding S.E. (Banglalink) is the wholly owned subsidiary of Egyptian Orascom Telecom.

Moreover. All the Banglalink family members have one thing in common. All members of the Banglalink family are highly passionate individuals. but also in its products and services which makes difference to the lives of its customers. Its mission is “To maintain its position as the leading mobile service provider in Bangladesh. 1. Company mission: Banglalink understands customer needs best and will create and deliver appropriate communication services to improve people’s lives and make them easier. All their work is aimed towards meeting their vision. fully committed to achieving the vision that they have set themselves.a passion to serve. which is. Reliable. They want to be Straight-forward. All employees of Banglalink demonstrate the following values in their day-to-day activities to ensure “making a difference” in every area of operations. and proudly contributing to the development of their community. Banglalink’s success is based on a simple mission: "Bringing mobile telephony to the masses".” .” The company aims to make a difference in the lives of the people. top value for its shareholders. The customers' needs matter most to them. providing the best quality service to its customers. Their vision is “To be part of people’s daily lives by providing reliable and simple products and services that help people interact and communicate better. they have established a few corporate values that it tries to instill in its employees. the best working environment for its employees. Passionate. Banglalink’s slogan "making a difference" does not only reflect in the telecom industry. To ensure the fact that Banglalink’s vision gets achieved. Banglalink wants to go that extra mile.As Banglalink aims to understand peoples' needs best and develop appropriate communication services to improve peoples' life and make it simple. so that customers can have the best possible service as well as paving way for investing in the future of Bangladesh.B. Innovative and above all. making their customers’ life simple and improving is all that they actually want.

C. The principal objective of the Company is to provide telecommunication services across Bangladesh through the installation and operation of telecommunication facilities. Objectives actually convert mission and vision into specific performance outcomes. and then living with whatever results they deliver is clearly insufficient. Company objectives: After setting the company mission and vision there is need to set company objectives.1. and future business prospects. From our course we have come to know that there are two types of performance yardsticks are required for all company. A company’s set of financial and strategic objectives ought to include both near-term and longerterm performance targets. Company objectives represent a managerial commitment to achieving particular results and outcomes within a given time frame. The objectives functions refer that how the organization is doing company personally to try hard or do the best they can. In strategic and financial objectives there are some crucial points which enrich company’s value than the other rival company. competitive vitality. Strategic Objectives: Strategic objectives relate to target outcomes that indicate a company is strengthening its market standing. Short-term objectives: Commitment to the Customers to achieve customer satisfaction: Banglalink’s main business objective is to maintain their leadership in providing the best quality service and best value for money to their customers. Its outcomes are mainly focused on improving competitive vitality and future business position. They are committed to the highest level of . For our project report we have selected one of the most renowned telecom company Banglalink which is holding the second leading position in Telecom Company in Bangladesh. they also have some set of objectives for their company. Strategic objectives and Financial objectives. Objectives help achieve the targeted outcome of a company which greatly improve a company’s actual performance.

truthful. Other short-term objectives include• • • Achieving desired revenue through introducing new and innovative products and services Discovering new segment of customers Consistently creating new usage of its product Achieving technological leadership Having stronger national sales and distribution capabilities than rivals • • Long-term objectives: Being customer oriented to increase customer base: Banglalink’s ultimate aim is not only to increase revenues but also to build long-term relationships and loyalty with their customers in order to sustain their success in the future. Protecting customer information: Customer information is strictly confidential. it is the official sponsor of Bangladesh Tourism Corporation. they provide customers with accurate.customer satisfaction by meeting their customers’ needs. Banglalink safeguards customer information stored in their records and information systems in compliance with the Telecom. Banglalink continues to play an active role in the area of corporate social responsibility (CSR). . For example. Strengthening the company’s brand name appeal: Banglalink’s another main short term objective is creating its brand associations by doing CSR activities. Banglalink has chosen the tourism sector as to be one of the major platforms for CSR activities. Banglalink is contentiously putting its effort to make contribution for the potential sectors where national interest is involve. Beautification of the city towns. complete and consistent information concerning their products and services. To do so. the voting campaign to vote for Cox-bazaar and sunder-boon and cleaning Cox-bazaar etc. and offering a great customer service experience.Banglalink focuses its CSR on the field of Tradition & culture of Bengal. They simply attempt to overtake key competitors on product performance or quality. providing superior network quality and the widest network coverage.

It is shaping a challenging. religion. fair. 1. All employment applications are considered without regard to age. Financial objectives: Financial objectives relate to the financial performance targets management has established for the organization to achieve. To ensure 20% increase in return on equity within three to five years. . D. Short-term objectives: • • To increase annual revenues of its products and services by 5% during year 2012. or marital status. Attaining a positive EBITDA (Earnings before Interest and Tax Deduction and Amortization • To achieve an annual increase in after-tax profits of 10% during year 2012. firm. It strives to reward high performance and promises to be responsive to the needs of the employees. and productive work environment. The company is committed to providing equitable compensation. gender. disability. and teamwork of the employees. excellent working conditions. which emphasizes mutual respect and team-work. and a fair atmosphere with great opportunities for professional growth. Like other telecommunication network provider company it has got some common financial objectives. diversity. Long-term objectives: • • To achieve larger profit margins. Equal Employment Opportunity: Banglalink is an equal opportunity employer and takes the pride itself with the Equal Employment Opportunity policy (EEO). These are actually set as a means to achieve the anticipated results.Commitment to their employees: Banglalink’s employees are their most valued asset. skills. knowledge. Its ability to succeed depends on the integrity.

Regarding the market development strategies the company formulates strategies in accordance with the changing trends and increasing the level of competition. for making conference calling and ring tone or logo downloads possible. The Loyalty & Retention team is responsible for the designing of the special offers launched from time to time in an attempt either to increase customer base and The VAS division is responsible for the continuously adding valuable services to provide a complete solution to existing customers. Loyalty & Retention and International Roaming. They coordinate and work directly with the advertising agency. so their main and basic functional strategy is to set an effective marketing strategy. The primary role of a functional strategy is to support the company’s overall business strategy and competitive approach.D. These two teams together are in charge of making the customers experience with our network more satisfying. for example. Marketing Mix (4 Ps): . Banglalink aims at establishing or strengthening a business unit’s competencies and capabilities in performing strategy-critical activities so as to enhance the business’s market position and standing with customers. Their Marketing team actually consists of several teams. Value Added services (VAS). Besides. Public Relations and Communication is responsible for designing and developing all promotional materials for the marketing of any new product or package and any other activities. There are approximately eight functional departments in the organization. To ensure stable earnings during periods of recession. They set the managerial game plan for running the sales and marketing part of business. The functions of these departments are described briefly in the following sections: Marketing: Since Banglalink’s products and services are customer-oriented. which includes PR and Communications. Functional strategies: Functional-area strategies concern the actions.• To ensure sufficient internal cash flows to fund new capital investment. approaches and practices to be employed in managing particular functions or business processes or key activities within a business. • 1. vendors and procurement.

enterprise personal. call waiting/call holding. personal call and control. Product: Banglalink became the first company to provide free incoming calls from BTTB for both post-paid and pre-paid connections. Internet. targeted at the SME segment.The marketing mix of the company can be broken down into the "4 Ps" of marketing. It provides the pre paid connection with zero monthly subscription fees. These packages are known as personal package. Banglalink CU. They divide all of these products into four categories. personal supplementary. short messaging. targeted at the corporate segment. There are different postpaid and pre paid packages that are considered as the main quality offering from Banglalink. Banglalink CU package is targeted at the shopkeepers. voice mail. Companies under the enterprise package are provided with a dedicated enterprise relationship manager who provides them with personalized customer care round the clock. Banglalink offers a number of products and value added services to its valued subscribers. such as call forwarding/divert. subject to the internal and external constraints of the marketing environment to make decisions focusing on the customers in the target market in order to create perceived value and generate positive response. and instant recharge etc. conference call. Currently there are three postpaid plans from Banglalink for its tail customers. The second important service provided by this industry is the data transfer service i. The tangible products of the industry are Internet modems. Banglalink Enterprise. caller line identification presentation. Banglalink enterprise offers a wide range of products and services to suit the needs of the business community. enterprise SME. These are the parameters that the marketing manager can control. Price: . these are-Pre-Paid. picture messages. The current packages are: enterprise corporate. All the prepaid plans come in two phases—Standard (T&T incoming and outgoing with NWD and ISD) and M2M. Internet is provided in the form of EDGE & GPRS by the operators. Post-Paid. call barring. which offers PCO facility to the general public. The company also provides various value-added services. ring tone and logo downloads.e. Banglalink currently offers two prepaid plans. These attractive products and services are designed to cater to the needs of the individual subscribers.

They have been passionately promoting the preservation and celebration of national and cultural heritage through sponsored initiatives like Jagoroner Gaan. Banglalink’s price effective strategy has enabled them to capture the capture the second highest market chunk so far. They have their own customer care centers almost in all the important areas of almost all the different regions of the country. New7Wonders. Boshonto Uthshab and many more. There are various rates for various packages of Internet service. their unusual and informal distribution system is the most effective one where people can not only buy new connections but they can also get their queries entertained as well regarding their current package and for the forthcoming packages as well. Banglalink in their HR department set strategies as such that ensures for the employees a . Their unique selling proposition is innovativeness of their value added features.Maintained prices are mostly offered revolving around a certain figure. Besides their own customer centers. Place: Banglalink has established their distribution facilities almost everywhere in Bangladesh. For a telecom giant like Banglalink. they believe that their teamwork is their greatest asset. often acquiring the services of leading media producers and actors to direct and play out TV commercials. from the body of the buses to billboards. Promotion: In the case of promotion. The Banglalink family is made up of a group of passionate individuals. Useful contributions made by each individual bring them that much closer to their goals. Banglalink is currently operating in 64 districts of the country where they are making their presence felt through franchises. from print media to Internet.from TV to radio. It can be on volume basis (dependant on bytes downloaded or transferred) or at fixed rates. Human Resources department: At Banglalink. They place their ads in every possible media . Banglalink adapted aggressive marketing strategy. uniquely qualified from diverse disciplines but working towards its vision. there are one or more authorized dealers in every district. Modhu Mela. Operators spend enormous amounts of money on advertisements.

But in terms of other financial marketing or other activities they follow corporate unit strategies. maintenance of a true quality of professionalism that can be found in all world-class multinational companies. Budgets for all marketing strategies are decided based on previous budgets and if a new strategy is launched. Aggregate planning is basically for the lower level jobs and succession planning is basically for management positions. Finance: The Finance department is the largest department in the head office. Proper statistical analyses using the modernized and up to date statistical tools are being used and the company data is properly checked as well as the balance sheets and financial statements are periodically made. The HR department is also responsible for disseminating internal communication to all users and in the process of developing compensation packages for its employees. company discusses it in an open meeting and then the budgets are allocated. are of high quality and constitute the best value for the money. professional and mutually supportive environment that encourages their people to develop their potentials to an optimal level. ensuring right process and maintaining appropriate control. Their business unit strategy is following short term rather than long term strategies because they need immediate results and outcomes for their organization. Accounting & Finance department of Banglalink is a very important value adding function within the organization. it follows a system which recognizes and rewards groups as well as individuals for their efforts and contributions to the company. Speed. Banglalink maintains their corporate unit strategy with specific growth. this Department ensures that the methods of procurement are fair and equitable and that the products procured meet all bid specifications. who contribute to the greater whole of the organization through their participation in decision making situations.friendly. Accuracy and Commercial sense when providing service to their Internal and External stakeholders. It holds belief that Accounting and Finance Department has the strategic role to add value to Banglalink’s business by providing right information on time. . co-operation between the team oriented professionals. Moreover. They also use Aggregate planning and Succession planning. To achieve this goal the organization provide highest importance to the Automation. Also. It consists of the Procurement and Cash Management divisions among many others.

Currently Banglalink provides customer care services to its clients through Banglalink sales & care centres. accessories and providing selected customer services like SIM replacement. reconnection. Others includeSales: From their point of view. Their strategy aims at providing a complete mobile solution.000 customer care points across the country – the largest network of its kind in the industry. They are strategically located at key points around the country.And according to their interview. marketing activities are targeted and conducted in such a way that ultimately facilitate them to lead their company to make greater revenue from sales. the sales department is responsible for all the sales activities of the organization. Banglalink service points Banglalink care lines are call centers serving customers 24 hours 7 days a week with instant solutions. One of the most important links in the chain. handsets. So after the marketing area they consider their sales department as the second most important functional department. Here their strategy lies in delivering customer care using its call centers and customer care networks. This is segmented. connections. consisting of the Customer Care division itself. IT & Billing: . Corporate Sales. Distribution Sales and Sales Support. Banglalink points. Customer Care: Unlike any other organizations Banglalink considers its customer care important department in their organization and functions as a separate department. Credit Management Unit and the Support Services Unit. they do not have any Research and Development department within the organization. They are responsible for handling customer queries and providing solutions to any problems faced by the subscribers. and then there is Care Line. bill payment etc. Banglalink pioneered the concept of taking customer service closer to its stakeholders through the introduction of more than 1.Direct Sales. It is divided into four divisions.

Most professionals and even students nowadays have credit or debit cards. pharmacies. This website can be made . but many work off site. the following recommendations are made: • First of all. thus reducing the risk of default arising from large debt position. But most of us have not had the experience to purchase something using our cell phones. we have developed some creative and new strategies that we believe will help Banglalink become the top telecom operator in this country in the next 3 years. Banglalink could introduce a service naming emarket. The various divisions of this particular department include Access Network. we identified several opportunities. they should improve their equity position to fund expansion. Administration: Along with the Administration division. as is evident from the name. is in charge of all the hardware.The IT & Billing department. Core Access etc. Recommended actions to improve performance: Since its inception. take care of BTS or BSCs. Based on the findings of the reports. or from websites like ebay. the department also consists of the Legal division and the Project Management Office. books stores etc. Banglalink has always endeavoured to provide its customers with innovative products and services on a regular basis. It will have to negotiate and sign contractual agreements with providers such as grocery supermarkets.com. In order to recommend some actions for Banglalink. If the suppliers have the resources for home delivery then they can register their products with Banglalink. • • Banglalink could launch a website with the selected products from these participating vendors (a site not similar to grameenphone’s cellbazaar). Technical: The technical people are all located at Hosna Tower in Gulshan – 1. In addition. software and program requirement of the other departments. amazon without a physical transaction. They also generate the bills for the company subscribers (post-paid).

but it is limited to only two banks. • Like Nokia Vodafone. . along with their own brand. When they give the dealership to PCO they should give also this authority to pay people in cash when they transfer balance.Tata indicom or idea global in India has introduced a variety of handsets. but it needs more idea like this. just needs to fulfill some requirements. Banglalink should launch Nokia Banglalink and Samsung Banglalink phone sets. Here the business process does not need huge investment.accessible from desktops. it is open to all to register as the suppliers of banglalink emarket. and price must be below market price. They will make a contract and customize the different and popular models of nokia and Samsung with their own operating system and appearance. • Banglalink should introduce to convert phone balance in to cash. However. also get the customers who use much. the quality of the device and price clearly indicate that it is meant for the mid to low income population. and with some other extra benefits. just some contracts with strong and reliable suppliers. Here banglalink can earn money both from cellphone usage and suppliers registration/contract fee. Also one can use your phone balance when shopping in various stores by transferring money to the cellphone of those shops/stores. they will be the pioneer of real ecommerce. But phone sets will be locked. only for Banglalink SIM. It does not need any new technology. However. • Banglalink has already introduced remittance system. and cutting cellphone balance for value added services. It needs to increase the number of associate banks. ranging from expensive and sophisticated to cheap and functional. online banking. We recommend that Banglalink employ the same strategy and introduce a diverse set of handsets that are designed by brand name manufacturers such as Nokia and Samsung etc. and also advertise this offer massively especially in rural area as people in rural area need to receive money from their foreign relatives at large extend. Remittance is good idea in this regard. Because in corporations they can sell in bulk amount. Banglalink has already the system of power menu. • It should attract the corporations. GP has introduced own branded handset. as they are using similar technology in “Banglalink bill-pay service”. and customizing sims and mobile operating system for the corporation. laptops and cell phones using wap services and also without internet using power menus. Thus.

Price competition among the rival mobile phone operators (Grameenphone. Porter’s Generic Strategy: If we closely look at the market situation. we think that Banglalink is following “Best Cost Provider” strategy. 5. It has passed already 2 years GP has announced 3G. But analyzing each of the existing rivals in this industry. In mobile communication industry. According to GP’s website. 3. we will see that the market situation is perfectly suitable for following “Low Cost Provider Strategy” because: 1. Most customers use the product in the same ways. Customers incur low costs in switching their purchases from one operator to other operator as the price of mobile phone SIM card of different mobile phone operators is almost same. there are 27 million subscribers where 7 million is active internet users but Banglalink has less than 0. A company can grab most of the customers by offering low price. As its products have similar types of attributes comparable with one of its key rivals like Grameen phone. Thus Banglalink attempts to achieve best-cost status which makes its customers to consider it as the best cost for them. Rival companies are offering similar products. A. it maintains its standard quality service of network coverage along with comparably attractive customer service and offers a bit or slightly lower price than industry average (competitors). Airtel) is vigorous. Banglalink aims at delivering much of the same attributes of key rival’s offering to buyers by satisfying their expectations performance or service features. as it needs very lengthy business process like 1 to 3 years to setup 3G or 4G Technology. that is. Banglalink. Industry newcomers (Airtel) are using introductory low price to attract buyers and building a customer base. Banglalink’s one of the main drawback is data service. Robi. the . 2. So then it will be difficult for GP to switch 4G quickly. They do not want change their investment very soon too.01 million internet subscribers from its 17 million users.• As it needs huge investment Banglalink can invest money for 4G. Again to make it unreachable for banglalink GP has invested 220 million US dollar in 3G system. 4. 2.

79 tk from 2nd minute GP-GP F&Fs are available at BDT 0. their target market is those value-conscious buyers who are looking for similar appealing features at an appealingly slight low price.99/min. at the same time.09 tk for 1st minute 0.customers want quality networking system at a cheap call rate. Therefore. they are also very much concerned about price and value. Banglalink as a Best Cost Provider strategy follower positions itself by providing its customers moderate quality product at below-average price. GRAMEENPHONE Name of the Product SHOHOj Call rate 1.49/min. If we go through the pricing policy of different mobile operator companies.79/min. during 12 hours of each day. it would be clear that Banglalink is competing with required or essential quality in its offerings and charging a slightly lower call rate than the average call rate. Moreover. “Best Cost Provider” strategy works best where buyers seek quality diversified products. Other than the 7 F&Fs at BDT 0. Any Grameenphone number APON 49paisa/ min. BONDHU 7 FnF numbers are available 1 other operator F&F at Tk 0. The rest 12 hours .

2. Other Number 1. 0.59 tk 3 FnF number Taka 0. 0.29 tk to 1.50/min SMILE the special hour Other operator DIJUICE at other peak and off – peak hours.allow you to talk at BDT 99 paisa/min to GP numbers. 1.00 tk.49/min All Grameenphone friends in Tk.38 tk BANGLALINK .49 to 1.49/min at Tk.

49 for B.49 tk 0.75 tk for 1st minute 0.50/min will be charged per minute during the 1st five minutes.77 tk/ minute .link number 0.29 tk for 1st minute 0.50/minute and from 36th to 60th minute.89 tk/ minute AK RATE FNF (banglalink and other operator) Normal rate 0. 0.link FNF numbers To other FNF numbers AIRTEL Name of the product GOLPO Airtel to Airtel Call rate 0.99 tk from 2nd minute 0. 0. 1. the tariff will be tk. 12.Name of the Product DESH Description To banglalink and other operator FnF Number Call rate 1. the call will be free of charge.29 tk for 1st minute 0.99 tk for 1st minute. the call will be free of charge.99 to other operator AK RATE DESH DESH AK To any number 0. From 6th to 30th minute.00am-5.00pm -1.45 tk from 2nd minute 1.69tk from 2nd minute. from 31st to 35th minute. Similarly.99 tk from 2nd minute DARUN DESH RONGDHANU BANGLALINK DESH 7fnf To B.

25 tk/ minute 0.88 tk/ minute The following table is showing the summary of the price of each operator at a glance – Summary Mobile operator Grameenphone Banglalink Robi Airtel Average call rate 0.49 taka/minute If we look at the call rate of the operator companies. So. it matches to the best cost provider strategy.84 tk/minute (14 paisa/sec) 0.59 tk/ minute 1.59 to 1.44 tk/ minute To other operator 0. it is clear that the call rate of Banglalink is at a moderate level.68 to 1.19 tk/ minute 0.6 taka/minute 0.00 taka/minute 0.29 tk/ minute 0.49 to 1.49 to 2.49 tk/ minute 0.77 tk/ minute 0.29 tk/ minute Call rate 1.6 tk/ minute 0.59 tk/ minute 1. .59 tk/ minute 1.19 tk/ minute 0.Other operator DOLBODOL Community Onnet Offnet KOTHA Airtel to Airtel Other operator ADDA Airtel to Airtel Other operator FnF ROBI Name of the product MUHURTO SHOROL NOBANNO GOTI PROTHOM To Robi and other operator To Robi and other operator To FnF number To Robi and other operator To Robi and other operator 0.84 tk/minute (14 paisa/sec) To Robi 0.68 tk/ minute 0.29 taka/ minute 0.

Even though it is not as good as Grameenphone but it possesses comparable benefits of minimum requirements for meeting customers’ need at the level of their expectations. After analyzing those statistics. • • .Product variation: Looking at the product criteria. 13.000 base stations are located in about 7. Continuously offering different new packages to the customers. it is clear that the service of Banglalink is maintaining moderate or medium-quality level at the best below-average price for its customers. Banglalink is following offensive strategy as it takes any initiative before something happens into environment. Customers can choose a suitable package according to their need from among the various kinds of packages. Banglalink’s principal offensive strategy options include the following things: • Offering moderate. we would see that Banglalink is offering various kinds of packages or diversified packages.200 Banglalink sites in operation around the country. 7400 base stations in more than 5300 sites. Non-Generic Strategies: Most every company must at times go on the offensive to improve its market position and try to build a competitive advantage or widen an existing one. Moderate networking coverage: Grameenphone Grameenphone’s network covers 99% of Bangladesh’s population and 89% of the total land area. it is clear that the service of Banglalink’s network coverage is better than its immediate market challenger Robi. Covered 61 districts. comparably good product at a lower price than the market leader Leapfrogging competitors by assuming future market condition and advertising its product according to that. 90% of Bangladesh’s population have been covered by its base ROBI station. So.

The supplier is not powerful in this case which is a plus for the company and the company can play with the price to keep the production cost low. When Grameenphone offers a call rate which is low and competitive. every customer nowadays uses more than one mobile phone or at least owns more than one connection. Now there are a number of players battling so hard for their respective market share and the consumers as well as the economy benefitted tremendously from this intense competition. Example: Grameenphone is improving its service through increasing customer care service. Though the first telecom company. Industry situation: The introduction of telecommunication industry has been pretty late in our country compared to those of the neighboring countries. Ever present promotions and advertisements. Deliberately attacking those market segments where its key rival (Grameenphone) makes big profits. • 2. It has been clearly noticed that. Now Banglalink is targeting those market segments by offering attractive packages (Banglalink Inspire. the device has not become so pervasive until 1997. After that the industry grew at such an incredible rate in just a decade that anyone could hardly imagine. Banglalink SME). the year when the biggest telecom of the country. Customers may want to switch from one operator to another for a better deal. Because there are a number of operators in the market. Grameenphone is offering different packages for the people of different occupation.• Adopting and improving on the good ideas of other companies. keeping pace with the growth rate of the market. Targeting the SME segments Banglalink introduced the only customized offer in the market for SMEs. Citycell. Banglalink is also following that. as the market is growing. was introduced ages ago. proportionally all the companies are getting new subscribers depending on their nationwide coverage. GrameenPhone hit the market with its GSM technology. . This trend is especially very dominant among the teenagers who constitute a major portion of the market share being very sensitive to price. most of which were highly innovative and attractive were also a key factor in the industry's success. In fact. the cost for switching loyalty is very low. Their market share is increasing. B. So. and uses them interchangeably. The current success of the telecom industry is primarily due to an intense demand from customers for their services and products. Example: Grameenphone is generating handsome profit by targeting the people of different occupation. Banglalink also offers that sort of package and call rate.

Banglalink provides value to its customers by constant innovation to cater to the needs of the market. Moreover. In a mature market. it can be said that telecommunication industry has entered into the maturity stage. Rongdhonu. A maturing industry is one that is moving from rapid growth to significantly slower growth. the effective strategic move that can help .Desh. demand consists of replacement sales to existing users. Also. bonus on usage). Mobile operator companies are encouraging the customers to use their existing connection rather than influencing them to buy new products (Giving bonus on recharging switched off SIM connections). If we look at the present market condition we would see that those attributes match to the telecommunication industry. Banglalink. the companies are emphasizing on creating more value with their services to retain their customers as much as possible. In order to enhance the overall value proposition it introduced music station. expanding their product line through offering different packages (Airtel. having a growth rate of customer base or economy as a whole under 5%. ADDA. wining the competition depends on attracting the few remaining new customers and to convince existing buyers to up their usage. If we concentrate on the promotional activities of different mobile phone operator companies we will notice that most of the companies are trying to grab the customers of one another towards their service offerings through cost reduction (offering suitable package at a cheaper call rate) and by providing better network coverage.GOLPO. Such initiatives helped in differentiating Banglalink as an innovator. SMS roaming for its international roaming customers. increasing FnF numbers. they are gaining access to additional sales outlets by increasing customer care centers as well as expanding the company’s geographic coverage in order to improve service quality. Banglalink existing in matured position competes mainly based on price and quality like other prevailing competitors in the industry. Driving by the new competitive character of the industry maturity.After analyzing the market situation. Every company should have an assessment of the market environment to estimate how the company could react in different circumstances. A dedicated hotline has been established for prospective customers to provide customers with required information and also provide sales service at their doorstep through a team of Business development officers throughout the country. Besides. which is. An industry is said to be mature when nearly all potential buyers are already users of the industry’s product. they are putting emphasis on convincing their customers to increase their usage.

Company Situation If we want to analyze the company situation in terms of industry situation we have to see the market share of some mobile phone operator companies. taking proactive actions to further expand its market share and trying to build a stronger market position in the industry. They are discussed below.29 million subscribers Based on the number of subscribers. 5. Banglalink is increasing its capital investment in purchasing network equipment and expansion into rural areas. Banglalink does so because it wants to increase the market share. Market share 27. C. Another reason is that this positive image may help the company to obtain the rival’s customer. • Banglalink often involves in agreement with the corporate groups.05 million. They do so because the market is becoming more competitive and their aim is to be the market leader. Banglalink has smaller market shares than the industry leader Grameen Phone. For this reason. Name of the company Grameenphone Banglalink Robi Airtel Market share 32 million subscribers.Banglalink is to put its main efforts on increasing sales to its present customers by coming up with different customer services and finding more ways for customers to use the product like offering minitue bonus. capital investment will reach more than 50 billion by 2014. 43. 2. it includes more prestige to the image of Banglalink if it can involve with a renowned corporate organization. Moreover. • According to Banglalink officials. It continues to invest heavily in network enhancement. Moreover. SMS bonus etc. so this the runner-up firm in telecommunication industry. 12. employing offensive strategies.54%. It also pioneered the concept of taking customer service . if we look through the strategic policies which have been adopted by Banglalink it will be clear to us that how Banglalink is challenging the market leader being in the runner-up position. Banglalink is challenging the market leader (Grameenphone).8% market share. Being a runner up firm.03% 14 million subscribers. The reason is that the corporate bodies have the maximum need of communication. Subscriber base of 20.07% market share Market share 6.

businesses and government entities. • If we look through the call rate of Banglalink we will find that they are charging the price of call near the call rate of Grameenphone. • In Bangladesh. Then they can offer a lower call rate to capture market. Banglalink has taken aggressive promotional strategy to attract the maximum number of customers. It is also following the strategy of Grameenphone in terms of improving customer service (increasing customer care center). based on the number of wireless subscribers. They can focus on devising unusual creative advertising by building their strategies around ways to make themselves stand out from competitors. not the Robi or Airtel. They have touched the lives of their customers in diverse ways – enhancing the quality of life economically. They are on a relentless pursuit to retain and attract subscribers by taking innovative actions to improve their customer care. advertising quality to the CSR activities that they have supported. most of the telecommunication industry’s target customers are very price sensitive. Conclusion: Banglalink is a communication company offering an extensive range of wireless communication services tailored to meet the needs of individual consumers. sales and distribution functions. They have carefully crafted their strategic operations to meet the specific needs of each of their targeted customer groups through focused communication solutions. Their continued dedication to their customers has firmly established them as the best in customer care service. • Other strategy that Banglalink employs or can continue using is the distinctive-image strategy.closer to its stakeholders through the introduction of more than 1000 customer care points across the country -the largest network of its kind in the industry. and the number is rapidly increasing. They are the second largest wireless company in Bangladesh. So Banglalink is trying to reduce their operating cost improving internal operating efficiency. from its innovative services. They continuously endeavor to improve their . socially and emotionally and have earned a place in the hearts of millions. Banglalink is following the pricing strategy of Grameenphone. This indicates that Banglalink is challenging the market leader. They make the highest investment in network expansion. Moreover. The corporate stance of “Making a difference” is reflected in everything Banglalink does. and brand awareness. with over 1000 Banglalink Service Points (BSP) across the country.

• • • • • • • http://www. New York. Aside from enhancing its brand image.com http://www. fortified by a major network expansion. References: • Thomson. and establishing a strong brand that emotionally connected customers with Banglalink.banglalinkgsm. which has further contributed to the strong customer acquisition.airtelbd. Crafting and Executing Strategy. Gamble (2011). Although they market their services using traditional print and broadcast media advertising.pdf http://bangladesheconomy.wordpress. committed to utilizing their resources to usher in positive changes all around them. and offering subscribers excellent value propositions with their wide range of customized pricing plans. aggressive improvement of network quality and dedicated customer care. introducing an ever increasing array of functions feasible over the phone.com/report/strategic-management-2/my-debate-in-strategicmanagement-course/ http://www. they remain steadfastly committed to making a difference through everything they do. ed. They have the best team that continues to achieve more than its competitors with fewer team members. and they look forward to the future with determined confidence. 16th.net/988/mobile-telecom-industry-in-bangladesh http://researchexamples. McGrawHill/Irwin. Strickland.com http://www.sb. Through the challenges and successes that cross their path. Growth over the last years have been fuelled with innovative products and services targeting different market segments. these initiatives further consolidate their role as a compassionate corporate citizen.grameenphone. creating an extensive distribution network across the country.edu.com/2010/04/12/banglalink-to-invest-tk-7-5b-innetwork-expansion-this-year/ http://www.bd/Nadia_Mreedula_intern_report_sum_2008.weeklyblitz.com . they also provide exposure to their brand name through various sponsorship activities of cultural and national significance.subscribers’ experience which includes improving their network performance by adding cell sites to expand the coverage and capacity of their networks.iub. They have reached out aggressively to rural areas.

com/marketing-plan-2/198-banglalink-marketingplan.com.TuM78egH3gw .robi.bd http://marketingmixx.• • http://www.html#.

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