Launch of Mobile in bangladesh- IB by paramesh


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IB,lauch of mobile plan,international business.

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  • Target uneducated poor with cheap affordable easy to use phones.
  • Bangladesh’s topography and geographic location make it prone to a wide array of natural disasters, including cyclones, floods, erosion, tornadoes, droughts, and earthquakes. roughly 80% flat land, 12% hilly areas, and 8% terrace land
  • e.g. 3g
  • 1 million new subscriberseach monthVery mature supportingindustryPresence of Nokia andEricsson
  • Going safe, using established brand
  • stp
  • Grameen Phone is the market leader with 4.2 million customers. Number two in the market is Aktell (Telekom Malaysia) with just over 2 million customers. Sheba Telecom has just over 600,000 customers while Pacific Bangladesh Telecom has just over 300,000 customers and Teletalk Bangladesh picks up the tail with 120,000 customers.
  • Come back to tell its advantage. It will give access to rural & other areas through its centres there.
  • Outlets & training centres for rural people.
  • Turning women From booth service to mobile selling service.
  • No of village Phones = potential sales agents. Can tie-up with grameen bank to sell phones thru micro finance model
  • Thru proper tie-up & agreement these channels will exclusively belong to need to setup our own new outlets and no other can do business in rural areas like us.
  • Launch of Mobile in bangladesh- IB by paramesh

    1. 1. Launch of Mobile Handsets in Asia 1
    2. 2. Guess?Where to launch 2
    3. 3. Recent NewsChinese Cellphone Handset Manufacturer Eyes Bangladesh MarketHandset maker Micromax last week announced its foray into Bangladeshand said it will launch 12 cellular phone models priced between 2,000and 16,000Axiata (Bangladesh) Ltd has rebranded itself with a new look byintroducing Robi, the new brand name for the company, to take itsproducts to the mostly untapped rural market. 3
    4. 4. 4
    5. 5. • Demographics – Legal System Based on English Common Law – Population Density (2007E) 952 per sq. km – Area 147,570 sq. km• Literacy Rate of ages 15 and above – Male: 53.9% – Female: 31.8% 5
    6. 6. Economic Indicators• GDP per capita average annual growth rate (%), 1990-2009 = 3.4 • Population – - 2011 estimate -142.3 million (8th) • Density – 1,099.3/km2 (9th)• Average annual rate of inflation (%), – 2,917.6/sq mi 1990-2009 =4 GDP (PPP) 2010 estimate - Total $258.608 billion - Per capita $1,572 6
    7. 7. Existing conditions• serious overpopulation,• widespread poverty• Tropical zone 7
    8. 8. Telecom conditions• Telephone density is • There are 376 Internet less than 1 per 100 hosts with 10 ISP’s and persons. 450,000 internet users• Mobile cellular density as of the year 2006. is 13 per 100 per person. 8
    9. 9. Why bangla• According to BIS Shrapnel research, – Bangladesh’s mobile handset market is dominated by first- time users (nearly 85%), as the country is still in its immaturity in terms of mobile phone usage. – Further, 80% of the handset market is dominated by ultra- low to low-end handsets, available for less than US$68, due to the country’s low per capita income levels. 9
    10. 10. • Bangladesh is a country which is densely populated and also is a flat and easily extends able coverage.• The infrastructure and Tele-density is low which on the other hand made the market a perfect place for telecom business.• The demand is very high and the consumer base is very large but the investment is low because of the topographic layout.• The government has a receptive foreign investment policy with no restrictions on repatriation of profit. 10
    11. 11. Favourable conditions• Despite Bangladesh is a big market, liberal government policies to encourage the foreign investor to invest in the country are very attractive. Some of them are given below. – Tax exemption – 5 to 7 years depending on the area of investment. – Duty – for export oriented industry, the import duty is 0% and for other industry it is 5%. – Tax law – In case of bilateral agreement, double taxation could be avoided. – Exemption of income tax up to 3 years for expatriate person. – Remittance – The investor can transfer the whole profit and dividend to his native land. – Ownership – 100% self owning is allowed and also joint venture is encouraged.• Cheap skilled labor is the significant competency of Bangladesh ICT industry. The labor force is easily trainable and has the capability to learn quickly 11
    12. 12. Why telecom• Bangladesh has become a significant hub for telecoms. – It has been forecasted that the average revenue from telecoms sector will be Tk1500crore2 a year. – Even though the current infrastructure is not much developed but it is suitable for foreign investment. – expecting 194.990mn subscribers by 2015, 12
    13. 13. What existing players are working at• According to Mr Shah ,a researcher – foreign operators, in collaboration with local partners, have been working with the infrastructure to remove entry barriers and make mobile telephony more affordable and widen the base of mobile subscribers. 13
    14. 14. Political Factors• Political environment in Bangladesh is always unstable.• Frequent changes of government and policymakers reluctance or incapability to implement or design progress oriented policies is a major drawback for the telecom industry, an industry that is constantly changing in terms of technology. 14
    15. 15. Economic Factors• In context of customers buying power, in many ways Bangladesh is a poor country.• With a low GDP per capita and a majority of the population under poverty level, to much of the population, a mobile phone and a network subscription is a luxury. – However, the emergence and rapid spread of pay phone stalls utilizing mobile phones, has eased usage somewhat for these customers. 15
    16. 16. Social factors(Social factors include health consciousness, population growth rate, age distribution, career attitudes, and emphasis on safety.)• The telecom industry has definitely made an impact on the job market of the country, taking in thousands of employees and creating new career opportunities everyday.• The overuse of mobile phones has often triggered arguments regarding safety, but the Bangladesh market does not regard it as a threat. 16
    17. 17. Technological Factors• Sadly Bangladesh does not have an infrastructure that allows for research and development of large scale. – While Bangladeshs policies and government processes hamper fast technological change, the telecom industry has in many ways influenced the both the public and private sector to invest and bring in new technology such as WiMax and submarine cable, although limitations have not allowed these technologies to flourish. 17
    18. 18. Environmental factor• Due to the environmental facts(tropical zone), the foreign entrants should adjust their equipments according to demand of the environment 18
    19. 19. 19
    20. 20. Operators handset co. • Nokia• Airtel Bangla • Siemens • Samsung• Banglalink • motorola • China phones• Citycell • All other popular brands• Grameenphone• Robi• TeleTalk 20
    21. 21. Porters national diamond.Factors Conditions NotesFactor conditions Goood Cheap and skilled labor, Good communication infrastructure, low TeledensityDemand condition High unsaturated ruralmarket. Mobile cellular density is 13 per 100 personsSupporting industries low Grameenphone, Ericcson??Government Policies Very liberal Easy licensing, Tax free time, less interference 21
    22. 22. 22
    23. 23. BCG matrix• (relating mobile phone industry to the matrix).• As market growth potential for mobile phone industry has become low because of possible market saturation, so firms of the industry are in either cash cow or dog quadrants.• companies like GP, Banglalink, Citycell are in cash cow quadrant. – They have done their initial investment, infrastructure development is completed, and now their target is revenue generation. 23
    24. 24. So Our way of doing business here. • JV with grameenphone• Manufacture mobile handsets in bangladesh itself and sell through a established telecom operator company which facilitates us to target rural market. 24
    25. 25. “Grameenphone” a largest cellular operator in the BangladeshTo act as selling company for our products. 25
    26. 26. Our products & STP Product 1 Product2Models “Villaphone” “NetFone”Segmentation Rural, urbanmarket,tech-educated ,illiterate,Target Rural ,village Educated youth people,illiterates, (age 18 to 34) and Netizens,Positioning easily operated phone for Specially designed for Net people with zero education browsing 26
    27. 27. 4P’s Product 1- “Villaphone” Product 2 “NetFone”Product •Ease of use for uneducated •Qwerty keypad •Interactive Voice guided colour key •GPRS/EDGE/Wi-fi/3G enabled, pad,local language •Designed for easy use of net in phone. •FM •Design for easy connect to pc. •No high end features to confuse villagers. •With free grameenphone sim bundled •With free grameenphone sim with VAS.Price Below 1000 On par with competitor pricesPlace Rural – thru “Community information Urban – thru “Grameen phone centres” centres” (Grameen rural centres)Promotion Village phone agents, Combined Media advertisement with grameenphonestrategy Cost leadership and focus in rural areas Differentiation and focus in urban areas 27
    28. 28. About Our partner company- Grameenphone –a market leader• (GP) – is the leading telecommunications service provider in Bangladesh. – With more than 32 million subscribers (as of June 2011) 28
    29. 29. • The goal of Grameenphone is to provide affordable telephony to the entire population of Bangladesh.• Grameenphone has built the largest cellular network in the country with over 10,000 base stations in more than 5700 locations.• The entire Grameenphone network is also EDGE/GPRS enabled, allowing access to dial-up quality speed Internet and data services from anywhere within the coverage area. – There are currently nearly 3 million EDGE/GPRS users in the Grameenphone network. 29
    30. 30. • Presently, nearly 98% of the countrys population is within the coverage area of the Grameenphone network. 30
    31. 31. of GP 31
    32. 32. Its way of formation and how it is advantage to us.???• Inspired by the Grameen Bank microcredit model Mr. Iqbal Quadir formed a consortium with Telenor and Grameen Bank to establish Grameenphone.• GP is a joint venture enterprise between Telenor and Grameen Telecom Corporation, – GTC is a non-profit sister concern of the internationally acclaimed microfinance organization and community development bank Grameen Bank. – Telenor is the largest telecommunications company in Norway, owns 55.8% shares of Grameenphone, – Grameen Telecom owns 34.2% and the remaining 10% is publicly held. 32
    33. 33. DISTRIBUTION through?? 33
    34. 34. 2. Their “Community Information Centers” OUR would-be RURAL OUTLETS Here we sell our handsets & train them how to use it 34
    35. 35. • Community Information Center (CIC) is aimed at providing internet access and other communications services to rural areas.• Grameenphone provides GSM/EDGE/GPRS infrastructure and technical support.• other partners Grameen Telecom Corporation and Society for Economic and Basic Advancement (SEBA), are involved in selecting and training entrepreneurs to run the village centers. 35
    36. 36. 36
    37. 37. Their Village Phone programme - a source of potential sales agents for our company• With the help of Grameenphone, Grameen Telecom operates the national Village Phone programme, alongside its own parent Grameen Bank and the International Finance Corporation (IFC), acting as the sole provider of telecommunications services to a number of rural areas.• Most Village Phone participants are women living in remote areas. (our potential sales agents)• Village Phone works as an owner-operated GSM payphone whereby a borrower takes a BDT 12,000 (USD 200) loan from Grameen Bank to subscribe to GP (Grameenphone) and is then trained on how to operate it and how to charge others to use it at a profit. 37
    38. 38. We are the only ONE provider of telecom to rural areas• As in September 2006, there are more than 255,000 Village Phones in operation in 55,000 villages around Bangladesh.• It is the sole provider of telecommunications services to a number of rural areas. 38
    39. 39. • By the end of 2006, there were more than two hundred seventy-eight thousand village phone ladies who have together taken loans amounting to Tk. 2,397.10 million. 39
    40. 40. VRIO• these unique Sales & distribution Network especially in rural market are valuable, rare, unimitable and organised which gives us sustainable competitive advantage over others. 40
    41. 41. 2. GrameenPhone Centers –our would-be urban outlets A gpc at Gulshan, Dhaka. A franchised gpc at Tejgaon, Dhaka. 41
    42. 42. Grameenphone Centers• A grameenphone center (GPC) serves as a "one stop solution" for customers, with all telecommunications products and services, under a single roof.• A grameenphone center also sells phones from vendors like Nokia, Samsung, Motorola, Sagem and Benq. EDGE/GPRS modems and accessories such chargers and headphones are also sold at GPCs.• As of September, 2007, there are 76 GPCs and they are strategically located at all major locations of the country is operated by Grameenphone. As of late most of the newly opened gpcs are franchised. Most of these franchised outlets are in non-metropolitan areas. 42
    43. 43. • The GPCs also provide the flexiload service without charging extra for small denominations unlike many retailers in the country. – Thus making the gpcs an ideal place for many for such a service.• Every once a while, the GPCs tie up with handset manufactures and start a nationwide marketing scheme by selling the specific vendors products at a price lower than the markets or in bundle with a grameenphone connection loaded with free minutes. 43
    44. 44. (GP VAS to offer with our Netfone) 44
    45. 45. Porters 5 forcesFive forces Five forces Strength(roughly)Entry Barriers LowBargaining power of lowcustomerBargaining power of moderatesuppliersAvailability of substitute moderateExisting competitive highpressure 45
    46. 46. Competitors• As with many other Asia-Pacific countries, – the Bangladesh mobile handset market is predominantly captured by global handset giant Nokia (approximately 52% market share) followed by Siemens. – the success of these two vendors can be attributed to excellent handset quality, ease of use, an efficient sales and distribution network, dedicated after-sales service, and regular launches of low-priced handsets to meet market demand. So to compete them ,to take technological collaboration of Swedish company Ericsson which is existing in bangla as telecom infrastructure provider to network operators. 46
    47. 47. Risk/threat - greymarket• sales of mobile handsets has increased at a phenomenal pace.• However, – nearly 70% of mobile handsets available in the local market have been entering through informal channels, depriving the Government and importers of a huge amount of revenue each year. 47
    48. 48. Govt measures to greymarket effects• In a serious bid to turn around this drastic situation, the Bangladesh Government reduced the tax on mobile handset imports from US$22.50 to only US$4.50 in mid 2005.• this initiative has revived the situation to a certain extent, the effect on the grey market has not been as significant as was expected by distributors and importers.• the grey market is currently holding around 40% market share, but they are hopeful this will diminish over the coming months. 48
    49. 49. 49