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Executive Summary Sheba, the third mobile operator, had been providing GSM (Global Service of Mobile) services

in Bangladesh since 1998. Orascom Telecom, a subsidiary of Orascom Telecom Holdings, bought 100 percent share of Sheba Telecom in 2004 and started its operation with new brand name --banglalink In Bangladesh, Banglalink aims to understand peoples' needs best and develop appropriate communication services to improve peoples' life and make it simple. All our work is aimed towards meeting our vision. To enter into Bangladesh market and to grab the market they had to face several problems as there was already a giant competitor. Though the problem exists but the proper and accurate strategy adoption helps them to compete. Here we divided the strategies into two stages which they adopt sooner or later. We build these strategies on the activities and performance of Banglalink as there were no specific or particular strategies in written format on their website and related area we have searched. Stages are Entry Strategy Current Strategy

After entering into market they attracted customer from the low level to high level by distributing their products with a few of cost sometimes it seems nothing and created an image on the mind of all level people that mobile phone for all. the strategies they had followed 1. Acquisition strategy 2. Offensive strategy 3. Market-Niche Strategy 4. Differentiation Strategy 5. Low cost leadership strategy Though banglalink achieve the top poison in the market with other market leader, to survive and to hold own position in the market Banglalink has to take some other strategies. As there are so tough competition so from our empirical view these will be appropriate1. Low-cost leadership strategy 2. Differentiate strategy 3. Harvest strategy

Introduction

The Problem How Banglalink grab the market when a strong competitor like Grameenphone exist in the market. Background information Sheba Telecom (Pvt) Limited has changed its name as Orascom Telecom Bangladesh Limited, says a press release. Sheba, the third mobile operator, had been providing GSM (Global Service of Mobile) services in Bangladesh since 1998. Orascom Telecom, a subsidiary of Orascom Telecom Holdings, bought 100 percent share of Sheba Telecom in 2004 and started its operation with new brand name --banglalink After its inception in Bangladesh market, the Egypt based brand had taken massive tariff reduction strategy to grab significant share of the market. By the end of 2007, the company among the six operators has become the second largest market player in terms of subscriber acquisition. Grameenphone is the leading operator. According to Bangladesh Telecommunication and Regulatory Commission (BTRC), Banglalink's total subscriber reached 7.88 million by the end of February 2008. Grameenphone's subscribers reached 17.20 million by the end of February. The BTRC's latest figures say, up to February 2008, the total mobile phone subscribers reached 37.55 million, increased by 68 percent compared to the same period a year earlier. The number of total mobile phone subscribers was 22.38million by the end of February 2007. Voice from Banglalink- In Bangladesh, Banglalink aims to understand peoples' needs best and develop appropriate communication services to improve peoples' life and make it simple. All our work is aimed towards meeting our vision. All members of the Banglalink family are highly passionate individuals, fully committed to achieving the vision that we have set ourselves. Our customers' needs matter most to us- making their life simple and improving it is all we want. To ensure our vision is achieved, we have set ourselves a few values, we want to be Straight Forward Reliable Innovative Passionate

All the Banglalink family members have one thing in common- a passion to serve. We want to go that extra mile, so that you can have the best possible service investing in the future of Bangladesh. The biggest barrier today for people is the cost of handsets. We will strive to lower the total cost of owning a mobile. We are here to help make a difference in people's lives by providing affordable and reliable connectivity solutions. We will strive to connect people and

link their lives by listening to them and by understanding their needs. We are here to help you speak your language. Objectives of the Study The root objectives are given below: To have an idea of Strategies which Banglalink has followed over the time. To identify problems regarding strategies in case of achieve the present position in the market and to face competition. To develop some recommendations regarding the problems found. Scope of the Study Focuses on strategies in capturing the market Determines the loyalty factor of Banglalink Present status of strategies and effect on the position of company Focus on the service provided by banglalink comparing with others specially Grameenphone Financial phenomenon

Methodology The study was conducted based on only secondary data. The sources of those data are stated below: Secondary Source: The secondary data were collected from the following sources Internal newsletter of the company Various research journals of different research organizations Web pages Annual reports of the company Various books and other internal publications of the company Limitations Some of those limitations are mentioned as follows: One of the major limitations we faced that is the previous data is not available. Confidential information regarding past marketing and sales information was not accurately obtained As, we had more dependence on the secondary sources, so there might be some levels of inaccuracy with those collected information. There stated no strategy specifically which they followed and following. Many of the analysis on the obtained data are based upon our interpretation. This in result might bring some biases, as lack of knowledge and depth of understanding might hinder us to produce an absolute authentic and meaningful report.

Strategic Decision of Banglalink

Banglalink - making a difference


When banglalink entered the Bangladesh telecom industry in February 2005, the scenario changed overnight with mobile telephony becoming an extremely useful and affordable communication tool for people across all segments. Within one year of operation, banglalink became the fastest growing mobile operator of the country with a growth rate of 257%. This milestone was achieved with innovative and attractive products and services targeting the different market segments; aggressive improvement of network quality and dedicated customer care; and effective communication that emotionally connected customers with banglalink. At a Glance: Business Type: Industry: Founded: Headquarters: Area Served: ` Key people: Products: Revenue: Parent: Website: Subsidiary Telecommunication November, 1996[1] Tiger House, House # SW(H)04, Gulshan Avenue, Gulshan Model Town, Dhaka, Bangladesh 64 districts Ahmed Abou Doma, MD and CEO Telephony, GPRS US$288 million (2008), 49.2% from 2007 Orascom Telecom www.banglalinkgsm.com

Products and Services Banglalink entered the market with a promise of making mobile phone affordable for people. This promise was kept and banglalink was the first operator to introduce a flat rate for all calls (inside own network and to other operators) for the convenience and ease of customers. Thus "desh" was launched - the best prepaid package for making calls to any network. In addition, a new prepaid package, banglalink desh "rong" has also been launched. This package offers attractive tariff plan for customers who need to talk within the banglalink network. "Rong" is a Bengali word that means "color" - the objective is to give customers a brand that they can refer to as colorful and lively. banglalink desh is already a very popular and well-liked brand banglalink desh rong is a brand extension to enrich the brand.

Targeting the corporate and SME segments, banglalink has launched "banglalink enterprise" with state of the art services including GPRS, corporate SMS broadcast, dedicated customer relationship management, and customized packages. banglalink enterprise offers customized telecom solutions for different businesses as per their requirements and the objective of banglalink enterprise is to assist the clients at every step as their businesses grow. Banglalink also offers extensive range of value added services for customers. Recently, interactive voice portal has been launched for customers who are not SMS savvy. banglalink 'amar tunes' (CRBT) service is extremely popular with customers with a rich library of English, Hindi, Bengali and Arabic songs - all ready to be set as caller ring back tones. banglalink has also been the first operator to launch Missed Call Alerts for customers. In addition services like Song dedication; logo and ring tone download; and i'bubble (voice message) make the portfolio rich. banglalink has also launched GPRS in most major cities and will extend to major districts by end of 2007. Banglalink continues to offer products and services approaching different consumer segments with distinct communication needs. banglalink focuses heavily on enhancing service and quality as well. In 2006, enhancements were done in terms of network quality and customer service. There was aggressive improvement of indoor coverage, and wherever necessary, especially inbuilding solutions were installed in case of enterprise customers and corporate clients. To provide better customer service, a new, expanded, state of the art call center has also been established. At the end of the 2006, there have been a six customer care centers and 63 franchise centers across the country attending various customers with different queries. In 2006, banglalink also became a leader in terms of its advertising quality and setting very high standards for competition and others. The corporate TV commercial of "din bodol" based on the theme "making a difference in people's lives", touched everyone through out the country and was adjudged the best TVC of the year according to the leading dailies of the country like Prothom Alo and New Age. This TV Commercial has become a matter of national pride for Bangladesh as it has been nominated for the best TV Advertisement of the year with 4 other international television commercials at the GSMA Award 2007. GSMA Award is considered to be the Oscar of mobile industry. In line with this, 'making a difference' has been formally launched in 2007 as the tagline for banglalink - enhancing the corporate platform for the mother brand. This year, the corporate brand strategy is to establish 'making a difference' as the platform for the brand. The communication strategy is to produce television commercials based on true stories of Bangladeshi people who started with nothing, have achieved success and glory in their respective fields and have made a difference in life. To support this, events, sponsorships and activations under the corporate brand have also been chosen with ones that have the essence of 'making a difference'.

Strategies adopted in different period by Banglalink


As we learn that Sheba the Bangladeshi company is owned by Orascom and enters into Bangladesh with the name Banglalink. To enter into Bangladesh market and to grab the market they had to face several problems as there was already a giant competitor. Though the problem exists but the proper and accurate strategy adoption helps them to compete. Here we divided the strategies into two stages which they adopt sooner or later. We build these strategies on the activities and performance of Banglalink as there were no specific or particular strategies in written format on their website and related area we have searched. Stages are Entry Strategy Current Strategy

Beside these two strategies from the concept of global expansion strategy as a foreign company Banglalink had adopted the transnational strategy. From the following figure we get a clear view.

Cost Reduction Pressure

Global Standardization Strategy

High

Transnational Strategy (Banglalink)

Internationalization Strategy

Localization Strategy

Low Low Localization Pressure Figure: Global Expansion Strategy From here we have seen that as localization pressure and cost reduction pressure of that telecommunication company both are high so automatically the company plotted in transnational strategy quadrant.

High

Entry Strategy From empirical knowledge we had seen that Sheba was acquired by Orascom with 100% share. After entering into market they attracted customer from the low level to high level by distributing their products with a few of cost sometimes it seems nothing and created an image on the mind of all level people that mobile phone for all. They also offered free talk time of tk.1200 on card instant with their product package and they were the pioneer of this concept of free talk time. This was the short story of Banglalink at the entry period. Base on this story we have measured the strategies they had followed 1. 2. 3. 4. 5. Reason behind the strategy: Acquisition strategy Offensive strategy Market-Niche Strategy Differentiation Strategy Low cost leadership strategy

Strategy
Acquisition strategy

Reasons
Orascom bought 100% of Sheba and take new name for operating in Bangladesh that is Banglalink, the name that touch native people.

Orascom

Sheba

Banglalink

Offensive strategy

Market-Niche Strategy

Action directed against the market leader to secure competitive advantage which difficult for leader to thwart Dramatic reduction of price Highly creative and imaginative advertising campaign Unique package offerings which attract customer easily. Focus on women subscriber with new package Ladies First

Differentiation Strategy

PCO connection for doing business First Package handset with connection at tk. 2700/= Free talk time with every package Provide standardize product with very low cost compare with market leader

Low cost leadership strategy

Current Strategy After getting the acceptability of people and achieving the top position along with Leader Company now come to the question of sustainability in that position of market as well as people. To maintain the position they have taken several strategies base on market phenomenon 1. 2. 3. 4. 5. Strategic Alliance First Mover strategy Late Mover strategy Low Cost Strategy Differentiation Strategy

Reason behind the strategies:

Strategies
Strategic Alliance

Reasons
To gain the network coverage all over the country all the telecommunication companies hold the strategic alliance. Aktel (Robi) Banglalink

GrameenPhone First Mover strategy Late Mover strategy

Teletalk

Low Cost Strategy

Differentiation Strategy

Capture the competitive advantage first, likeAdvance balance To Avoid Risk They Have Offer Some Services Later Than Their Competitors, LikeInternet Service Call block Service i-top up service Call alert service Till now they provide the low rate for call to maintain existing customer and grab new customer by different package comparing others. Call-outgoing free base on incoming call Advance balance facility

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Financial Situation: From the adopting strategies of Banglalink we have seen that they use several strategies to create a frightening position in the market. Form the following graph we get knowledge about their investment and revenue over the period 2005 to 2008

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SWOT Analysis

Strength
1. Low cost provider regarding its competitor. 2. Banglalinks all connections are ISD & EISD. 3. Banglalink is the only indigenous company using GSM service. 4. From the very beginning it is providing free TNT incoming & Outgoing. 5. It has also provided incoming facility up lifetime. 6. Moreover its contribution to our economy can be notable.

Weakness
1. The progress of development of network is far below from the subscriber expectation. 2. Lower number of human resource. 3. Failed to identify difference between developed market and developing market. 4. Banglalink does follow aggressive marketing but it should follow smooth strategy. 5. Banglalink faces coordination problem of Management system.

Opportunities
1. Banglalink can use the image of multinational organization. 2. Introduction of new technology and services. 3. Expand the market in the rural area. 4. Banglalink can use the experience strong network facilities. 5. Banglalink can use soft switch network, Analysis of Strengths

Threats
1. An upcoming mobile service provider named WARID TELECOM a concern of Dhabi group and present market rivals. 2. The invention of technology which is new modern and consumer oriented. 3. Another invisible threat is land phone operator.

Banglalinks all connections are ISD & EISD: Its a big strength of Banglalink. Its the only SIM which has such a versatility of connections having ISD, Economy ISD service along with both incoming and outgoing connectivity with any of the land phones. This is not seen to other providers. It gives a tremendous competitive advantage to the Banglalink Bangladesh ltd over its respective competitors. Banglalink is the only indigenous company using GSM service: Banglalink is the only local organization which is providing GSM technology in this country. The other local organization named pacific telecom is providing CDMA technology which is more expensive. So Banglalink can take this advantage over its competitors. It has also provided incoming facility up to lifetime: Banglalink have a strong strength over its competitors incase of incoming facility. Banglalink present incoming duration is up to lifetime.

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From the very beginning it is providing free TNT incoming: Banglalink is the only provider which is providing T&T incoming free from the very beginning. Whether other operators providers providing such kind of facility just now. Moreover its contribution to our economy can be notable: As a multinational company Banglalink have a strong contribution in our national economy. Its one of the high profit generating in Bangladesh. Low cost provider: The most remarkable success of Banglalink is the slump in tariff structure. It is the lowest cost provider in Bangladesh telecommunication market. As soon as Banglalink announced its tariff the long lasting oligopoly between other private mobile providers were shattered. Healthy competition came into the mobile market.

Analysis of Weaknesses Lower number of human resource: The number of employee of Banglalink is too much lower regarding its requirement. As a result the service quality and customer satisfaction go down. Failed to identify difference between developed market and developing market: Banglalink failed to identify the difference between developed market and developing market. There strategy making is not match with the current situation. Weak management system: poor coordination among different functional department of Banglalink as result service efficiency goes down. The progress of development of network is far below from the subscriber expectation: the expansion of network coverage is too much slow. People thought that Banglalink should use the GSM network facilities; as a result Banglalink can cover the most of the area of Bangladesh.

Analysis of Opportunities Banglalink can use the image of multinational organization: People want to better facility from service industry. So Banglalink can use such kind of soft corner of consumers and promote the service to them. Introduction of new technology and services: Banglalink can implement new and consumer oriented technology in this sector. Because people have inclination to new and modern technology. Now a days people are ready to accept the new thing. Expand the market in the rural area: Till now there is huge area is remain out of coverage where a huge number of target consumers are available. So Banglalink can bring that respective area under coverage and catch those potential consumers. Banglalink can use the experience of multinational one of the old and experience organization in Bangladesh telecommunication sector. They have special experience

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about the consumer behavior of Bangladesh. They know about the consumers need and want. Banglalink can use soft switch network: The soft switch network separates the bearer and control layers and a soft switch centric network can be built on different types of bearer networks such as TDM, IP and ATM unlike, legacy network that depend on a single specific switching technology. Based on strategic planning and the developmental phase, an operator can select suitable bearer mode technologies for different phases, from the perspective of long term sustainable development, the IP centered soft switch network defines the future. So Banglalink can use this technology and practice competitive advantage over rivals.

Analysis of Threats An upcoming mobile service provider named WARID TELECOM a concern of Dhabi group: At present Bangladeshi mobile sector is almost saturated , after that a new company named WARID is going to starts its operation in Bangladesh which going to become a big threats to Banglalink and other operators. The invention of technology which is new modern and consumer oriented: Technology is changing with day run. It changes the consumers demand pattern by offering different attractive features. As a result consumer shifts from one technology to other technology, which might create a big problem to Banglalink and others. Another invisible threat is land phone operator: In Bangladesh land phone operator is expand the market with day run. People are switch from mobile to land phone operators. As a result ultimately the number of mobile user is decreasing and create problem to the mobile operators as well as Banglalink.

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Recommendation

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Future Strategies Though banglalink achieve the top poison in the market with other market leader, to survive and to hold own position in the market Banglalink has to take some other strategies. As there are so tough competition so from our empirical view these will be appropriate4. Low-cost leadership strategy 5. Differentiate strategy 6. Harvest strategy Reason behind the strategy Low-cost leadership strategy: As the competition is high in the market & competitors are also intelligent and scope finder so banglalink should adopt the low cost leadership strategy. Differentiate strategy: As all competitors in the market running in the same way & about same standard services are serving, so banglalink has to adopt some differentiate strategy to maintain present customer and to attract new customer also. Harvest strategy: When future growth appears doubtful or not cost-effective, companies want to harvest as the can from the product. It limits additional investment and expenses and maximizes short-term profit and cash flow .When banglalink will adopt harvest strategy it deliberately sacrifices its market poison in return for near term cash flow or current profitability. The intention of the company in such a strategy is to earn immediate cash from the existing business& use the cash in other more profitable business activities.

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