Grameenphone and strategies Document Transcript

1. A CASE STUDY ONGRAMEENPHONE LTD. & THEIR STRATEGIES Submitted to: 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 that applying 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 most completeinformation 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 5th2006After almost 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 service provider 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 phone subscribers.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 mobile phone 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 institutional investors.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 their customers 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 loved ones and important things in their lives through unparallelednetwork, relevant

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 customers lives 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. BE RESPECTFUL 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 needs in a way that suits way of their life best. 5. REASONS FOR BEING WITH GRAMEENPHONE Grameenphone Largest Network 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: 10 Coverage Upa: 6 6 Barisal Dist: 6 Upa: 4 1 Chittagong Dist: 8 Upa: 8 2 6. STRATEGIES Applied by Grameenphone Business Level Strategies: Using product features 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 the network, The Company was successfully listed in November 2009 which 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 using multidomestic strategies because it expanded its telecom business under different countries 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 for different 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 establish some plans for grab more rural customers by producing Handset Badhon Grameenphone 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 now concentrated on other field also. They are opening Grameenphone IT Ltd. as well as Grameenphone Communication Ltd. Management Team of Grameenphone 8. SWOT ANALYSISSTRENGTHS: Largest Geographical Coverage Largest International roaming Service Strong Distribution Channels Pre-Paid service that are so Flexible Low price handsets with quality and variability for rural people Lease of FiberOptic cable from Bangladesh Railway Market Leadership & financial soundness Good Owner Structure Competitive Price Dynamic Management Team 24 Hours Customer

Services Skilled Human Resource Access to the Widest Rural Distribution network through Grameen Bank More Attractive VAS (Value Added Services)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-up from 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 regulatory body. 10. Findings & Overall ImpactFrom the above empirical description, GrameenPhone has contributed to developmentin Bangladesh in several ways: Building technical infrastructure 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 through continuous investments in competition and product differentiation. This results in a larger consumer Surplus. Wages and payments paid out to close 100,000 people, with considerable 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 for behavior 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 realistic recommendations are mentioned in thefollowing: QA department is strongly working but the department should give more concentration on contractual employees in making them permanent 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. Should give 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 lookout for 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.

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

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. A balance 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.