A case study on GrameenPhone Business level Strategy

A CASE STUDY ON

GRAMEENPHONE LTD. & THEIR BUSINESS LEVEL STRATEGIES

Submitted to:

Mrs. Farhana Islam

Assistant Professor of Management

Department of Business Administration

Bangladesh University of Business & Technology

May 13, 2012

Submitted By:

1. Mohammad Imam Hossain, EMBA, 11th Intake ID: 101123010052. Md. Nazmul Haque , EMBA, 11th Intake ID: 101123010063. Kazi Tariqul Haque, EMBA, 11th Intake ID: 101123010074. A.Z.Md . Rashedul Basher, EMBA, 11th Intake ID: 101123010105. Md. Sazzad Hossain, EMBA, 11th Intake ID: 10112301012

Bangladesh University of Business & Technology

Dated: May 13, 2012

Mrs. Farhana Islam

Assistant Professor of Management

Department of Business Administration

Bangladesh University of Business & Technology

Subject: Submission of a Case Study regarding Business Level strategy of Grameen Phone

Dear Madam.

With due regards and respect GP state that GP are very thankful to you as you assigned us this Case Study on „„Business Level Strategies that applying by National or Multinational organizations”. It is a great opportunity for us to acquire theoretical and practical knowledge about Strategies that makes a Company Successful. GP have tried our best to gather what GP believe to be the most complete information available. Your kind acceptance and any type of appreciation would surely inspire us. GP would always be available and ready to explain further any of the context of the whenever asked.

Sincerely yours,

On behalf of the Group

Mohammad Imam Hossain

ID: EMBA10112301005, 11th Intake

INTRODUCTION

Evolution and History

November 28th 1996

GrameenPhone was offered a cellular license in Bangladesh by the Ministry of Posts and Telecommunications, Government of the People‟s Republic of Bangladesh.

March 26th1997

GrameenPhone launched its service on the Independence Day of Bangladesh.

November 5th2006

After almost 10 years of operation, GrameenPhone has over 10 million subscribers.

September 20th2007

GrameenPhone announces 15 million subscribers.

November 30th 2009

After almost 10 years of operation, Grameenphone has over 10 million subscribers

Now…Grameenphone is now the leading telecommunications service provider in the country with 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 one million are fixed-phone users and the rest mobile phone subscribers. Starting its operations on March 26, 1997, the Independence Day of Bangladesh, Grameenphone has come a long way. It is a joint venture enterprise between Telenor (55.8%), the largest telecommunications service provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank. The other 10% shares belong to 10% to general retail and institutional investors. Over the years, Grameenphone has always been a pioneer in introducing new products and services in the local market. GP was the first company to introduce GSM technology in Bangladesh when it launched its services in March 1997.The technological know-how and managerial expertise of Telenor has been instrumental in setting up such an internationalstandard mobile phone operation in Bangladesh. Being one of the pioneers in developing the GSM service in Europe, Telenor has also helped to transfer this knowledge to the local employees over the years.

GP Vision

Grameenphone exist to help their customers get the full benefit of communications services in their daily lives. The one and only vision of them is “We Are Here to Help”

GP Mission

Grameenphone is the only reliable means of communication that brings the people of Bangladesh close to their loved ones and important things in their lives through unparalleled network, 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 doesn’t, they’re there to put things right. They‟re about delivery, not over-promising. They’re 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.

Ownership Structure

The shareholders of Grameenphone contribute their unique, in-depth experience in both telecommunications and development.It is a joint venture enterprise between Telenor (55.8%), the largest telecommunications service provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank. The other 10% shares belong to general retail and institutional investors. The technological know-how and managerial expertise of Telenor has been instrumental in setting up such an international standard mobile phone operation in Bangladesh. Being one of the pioneers in developing the GSM service in Europe, Telenor has also helped to transfer this knowledge to the local employees over the yearsThe international shareholder brings technological and business management expertise while the local shareholder provides a presence throughout Bangladesh and a deep understanding of its economy. Both are dedicated to Bangladesh and its struggle for economic progress and have a deep commitment to Grameenphone and its mission to provide affordable telephony to the entire population of Bangladesh.

Business Level Strategies

Using product features or services GP is distinguishing the firm’s 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.

Reason for Being with GrameenPhone

GrameenPhone-Largest Network coverage

Applied by Grameenphone

Functional Level Strategies:

Grameenphone’s focus is on efficiency, quality, innovation, and customer responsiveness. Their main focus on After Sales Service that’s why for the first time they introduce 24 Hours Helpline and many GPC with the motto, “We are Here to Help” GP‟s 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.

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. It‟s 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”, that‟s 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 introduce internet 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.

SWOT ANALYSIS

STRENGTHS:

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 Fiber-Optic 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

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.

Findings & Overall Impact

From the above empirical description, GrameenPhone has contributed to development in 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 company's own specific goals. A particularly interesting observation is the "intellectual domestication" process going on, most likely implying increasing management independence.

RECOMMENDATION

Based on the findings & analysis, some realistic recommendations are mentioned in the following:

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.

CONCLUSION

Grameenphone Company is still a growing company in spite of all the success it has achieved so far. It holds a kind of a monopoly position in the mobile telecommunications market. Completion is always on the lookout for new ideas and schemes. In order to maintain no: 1 position GP use to follow many strategies like business level strategies, functional level strategies, global level strategies & corporate level strategies.