Introduction of the Company

Grameenphone widely known as GP is the leading telecommunication service provider in Bangladesh with more than 20 million subscribers (as of June 2008). Grameen Phone is a joint venture company between Norwegian Telecom giant ‘Telenor’ and ‘Grameen Telecom, a non-profit sister concern of the internationally acclaimed microfinance organization and community development bank Grameen Bank. Telenor owns 62% and Grameen Telecom owns 38% share of GrameenPhone. The address of its Head Office is: Celebration Point, Plot No. 3 & 5, Road No. 113/A, Gulshan-2, Dhaka 1212, Bangladesh Grameenphone was the first company to introduce GSM technology in Bangladesh. It also established the first 24-hour Call Center to support its subscribers. With the slogan Stay Close, stated goal of Grameenphone is to provide affordable telephony to the entire population of Bangladesh. Due to the heavy competition in the market and low acquisition rate, currently the company is focusing more to satisfy the existing customers and retain them in their clientele. Grameenphone, the market leader in the industry, is trying to establish a benchmark in terms of customer service in the mobile phone industry. They have established a customer care hotline which operates 24/7 round the year currently 18/7. There are more than 500 customer care touch points naming GPC, GPCF and STP to serve their clientele all over the country. Along with their core service, Airtime, Grameen Phone also offers high speed Internet, Health line, Bill Pay and many other value added services.

Business Definition VISION OF GrameenPhone We 're here to help We exist to help our customers get the full benefit of communications services in their daily lives. We want to make it easy for customers to get what they want, when they want. Values Of GrameenPhone Make it Easy We are practical. Everything we produce should be easy to understand and use. Because we never forget we are trying to make our customers’ lives easier. Keep Promises Everything we set out to do should work. If it doesn’t, we are there to put things right. We are about delivery, not over promising—actions not words. Be Inspiring We are creative. We bring energy and imagination to our work We want to be a partner in the

Supplier’s bargaining power 5. and helps improve the position of the organization. Threat of new and potential entrants 3. customers and our country. We are open. Business Objective: “Good Business. Threat of substitute products 4. The forces are1. At the same time. and the rest 2% to Teletalk.development of our community. 45% share of the market belongs to GP. which involves connecting isolated islands of urban coverage through transmission links. the researcher has tried to define the five key factors for analyzing competitiveness and attractiveness of the overall Telecommunication industry. 4% CityCell. Teletalk and Warid) in the market out of which. While the intensity of coverage may vary from area to area depending on market conditions. In addition. 24% to Banglalink. GrameenPhone builds continuous coverage. We are respectful and professional in regard to all our interactions. helpful and friendly. 19% to AkTel . Banglalink. It has used five forces to reveal the state of competition. Be Respectful We acknowledge and respect the local culture. Serving the mass market is one of GP's primary goals. it pursues a dual strategy of good business and good development. The Company has devised its strategies so that it earns healthy returns for its shareholders and at the same time. Good Development” GrameenPhone's basic strategy is coverage of both urban and rural areas. In short. there are 6 competitive companies (GrameenPhone. In contrast to the "island" strategy followed by some companies. making its goal to serve the general public realistic. service to the general public means connectivity to a wider population and general economic development of the country. the Company plans to achieve economies of scale and healthy profits. Buyer’s bargaining power Through Porter’s model. By serving the general public as opposed to niche markets. We are passionate about our business. Citycell. the basic strategy of cell-to-cell coverage is applied throughout GrameenPhone's network. both internally and externally. It allows the strategic thinkers to formulate appropriate strategy for a particular entity through systematic and structured analysis of market structure and competitive situation. INDUSTRY ANALYSIS WITH PORTERS FIVE FORCES MODEL Porter’s five forces Model is a key Analytical Tool for Diagnosing the Competitive Environment.6% to Warid. 25% to AkTel. 1. It has become an important tool for analyzing an organizations industry structure in strategic processes. The model is presented through five competing forces which are given below. contributes to genuine development of the country. The degree of rivalry within the industry Currently. cell after cell. The degree of rivalry within the industry 2. GP has positioned itself to capitalize on the declining prices of handsets. AkTel. GP holding the major share maintains a ‘market leader’ strategy and always focus on market revenue share rather .

Again. Rankstel. Vodafone (UK based Telecom Giant). customer pulling is also high. Hence. buyers bargaining power is very high in the market. Hence. This country is like a golden opportunity for telecom operators to penetrate the market of huge customer base with such a low area coverage needed.Supplier’s bargaining power GrameenPhone has been maintaining good relation with its suppliers. Warid could not do well in the market. GSM technology give the advantage to the company and its subscribers to change mobile set any time they want. the industry has lots of suppliers. The competition in the market makes the customer more powerful and the companies more competitive among each other’s. That’s why the degree of rivalry within the industry is very high. But again. we can say the threat of new and potential new entrants is moderate. in other sense I can say that mobile phone service gives the freedom of mobility which its substitute cannot give. Recently several news have been published in various newspapers regarding the entrance of DOCOMO (Japanese Operator).than market share. Furthermore. Since many subscribers have more than 1 SIM under possession. Buyer’s bargaining power There are many players in the market. 5. Threat of substitute products BTTB has already reduced the NWD and ISD call charge. Competition among these rivals is very high. If Government gives license to any new operator the rivalry will increase. Recently Grameen Phone has launched its own branded handset which reduces the supplier’s bargaining power. Their failure story gives a negative signal to any new entrants. So. Threat of new and potential entrants As GrameenPhone is having the highest number of subscriber and there is a high demand for their service. 4. Dhaka Phone. That’s why buyer concentration is high. But the present market is almost saturated.570 square K/M with a vast population of 150 million. Competitor’s market analysis . have already started their. in the local telecom market. hence its suppliers bargaining power is moderately low. which gives the customers alternative and power to choose different brand according to their preference. Each and every operator always thrives to grab the market share of others by giving attractive offer. they have switched their nework operator from Ericson to Huwai. 2. many private companies get the license to provide wireless phone and land phone service. Moreover. That increased subscriber buying power and also influence them to possess more than 1 SIM. The company has strategic coordination with its suppliers. 3. Peoples tel etc. Airtel etc. as a result GrameenPhone has possible alternative to change suitable supplier. BTRC expressed their interest to give license to a new operator with 3G technology. The growing number of substitute products indicates that the existing players have to face threat from these products. they can easily switch to other operator. the threat of substitute is moderately is low. Few years ago companies were able to offer SIM at a very low purchasing cost. Bangladesh is a land of 147.

They are challenging the competitors by lower prices. On average profitability rises with increasing market share. The market leader often bears the huge expense of developing new products and other innovative things. improved services and innovative features. Robi (Market Follower) AKTEL is the market follower in the mobile sector. they have some competitive advantage over the leader. They are challenging the leader and other competitors in an aggressive bid for more market share. City-cell (Market Nicher ) City-cell is the market niche. Because they have sought expanded market shares to improve profitability and it increases as a business gains share relative to competitors in its served market. They have also given 1. They are trying to bring distinct advantage to its target market. services. They are also challenging the market leader on its weakness that is call price.GP also grow by increasing their market shares further. They are trying to take more care to their subscribers than any other firm. AKTEL can gain advantage as a market follower. Banglalink (Market Challenger Strategies) Banglalink is the runner up company in telecommunication section. They are . they are targeting sub segments. within one year they cover 61 districts of Bangladesh. They have the lower shares of the local market and are highly profitable through smart niching.500 TK package for the subscriber. As a result they are charging a substantial mark-up over caste because of the added value whereas other company achieves high volume. They are trying to provide the service at lower price. Instead of pursuing the whole market or even large market segments. the niche achieves high margins. Before entering the market.location.000 sims free for their clients. They first define the market leader and their strategies and then attack the market leader. the price of sim was too high. Even though they are market niche. Banglalink launches a full frontal attack on advertising. They are trying to hold the current customers and win a fare share of new ones. City cell are trying to find one or more market that are safe and profitable. AKTEL is just following the leaders’ experience. financing etc. they are profitable because they end up target customer group so well that it meets there needs better than other firms that casually sell to the city cell. It attacks the market leader strength that is wide area network coverage. To succeed with such an attack. They offer less call price than any other firm. This is a high risk but potentially high gain strategy that makes good sense if the leader is not serving the market well. They choose their opponents carefully and have a clearly defined and attainable objective. Firstly. This is providing the service in a less rate than market leader. they have offered 1. By contrast.

City cell. They are focuses on one or a few specific customer.big enough to be profitable and have growth potential. They are building the skills and customer goodwill to defend itself against major competitors as they grow and become more attractive. The most important thing is that they have little interest over major competitors. Sometimes the major competitors come to the specialized area of city cell. mainly focuses on business people. . which is the major threat of their business. Ex-Operating as a market niche also carries some major risk.

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