A case study on GrameenPhone Business level Strategy
A CASE STUDY ONGRAMEENPHONE 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: 10112301005 2. Md. Nazmul Haque , EMBA, 11th Intake ID: 10112301006 3. Kazi Tariqul Haque, EMBA, 11th Intake ID: 10112301007 4. A.Z.Md. Rashedul Basher, EMBA, 11th Intake ID: 10112301010 5. Md. Sazzad Hossain, EMBA, 11th Intake ID: 10112301012 Bangladesh University of Business & Technology
Dated: May 13, 2012Mrs. Farhana IslamAssistant Professor of ManagementDepartment of Business AdministrationBangladesh University of Business & TechnologySubject: Submission of a Case Study regarding Business Level strategy of Grameen PhoneDear Madam.With due regards and respect GP state that GP are very thankful to you as you assigned us this CaseStudy on „„Business Level Strategies that applying by National or Multinational organizations”. It is agreat opportunity for us to acquire theoretical and practical knowledge about Strategies thatmakes a Company Successful. GP have tried our best to gather what GP believe to be the mostcomplete information available. Your kind acceptance and any type of appreciation would surely inspireus. GP would always be available and ready to explain further any of the context of the whenever asked.Sincerely yours,On behalf of the GroupMohammad Imam HossainID: EMBA10112301005, 11th Intake
INTRODUCTION Evolution and HistoryNovember 28th 1996GrameenPhone was offered a cellular license in Bangladesh by the Ministry of Posts andTelecommunications, Government of the People‟s 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 subscribersNow…Grameenphone is now the leading telecommunications service provider in the country withmore than 27 million subscribers as of October 2010.Presently, there are about 60 million telephoneusers in the country, of which, a little over one million are fixed-phone users and the rest mobile phonesubscribers. 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%), thelargest telecommunications 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 to 10% togeneral retail and institutional investors. Over the years, Grameenphone has always been a pioneerin introducing new products and services in the local market. GP was the first company tointroduce GSM technology in Bangladesh when it launched its services in March 1997.Thetechnological know-how and managerial expertise of Telenor has been instrumental in setting upsuch an internationalstandard mobile phone operation in Bangladesh. Being one of the pioneers indeveloping the GSM service in Europe, Telenor has also helped to transfer this knowledge to thelocal employees over the years.
GP VisionGrameenphone exist to help their customers get the full benefit of communications services in theirdaily lives. The one and only vision of them is “We Are Here to Help”GP MissionGrameenphone is the only reliable means of communication that brings the people of Bangladeshclose to their loved ones and important things in their lives through unparalleled network, relevantinnovations & services.GP Managerial ValuesMAKE IT EASYEverything GP produce should be easy to understand and use. GP should always remember that GP tryto make customers‟ lives easier. KEEP PROMISES Everything GP do should work perfectly. If it doesn’t, they’re there to put thingsright. They‟re about delivery, not over-promising. They’re about actions, not words.BE INSPIRINGThey are creative. GP bring energy and imagination to our work. Everything GP produce should lookfresh and modern.BE RESPECTFULGP acknowledge and respect local cultures. GP want to be a part of local communities wherever GPoperate. GP want to help customers with their specific needs in a way that suits way of their life best.
Ownership StructureThe shareholders of Grameenphonecontribute their unique, in-depthexperience in both telecommunicationsand development.It is a joint venture enterprise betweenTelenor (55.8%), the largesttelecommunications service provider inNorway with mobile phone operations in12 other countries, and GrameenTelecom Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank. Theother 10% shares belong to general retail and institutional investors.The technological know-how and managerial expertise of Telenor has been instrumental insetting up such an international standard mobile phone operation in Bangladesh. Being one ofthe pioneers in developing the GSM service in Europe, Telenor has also helped to transfer thisknowledge to the local employees over the yearsThe international shareholder brings technological and business management expertise whilethe local shareholder provides a presence throughout Bangladesh and a deep understanding ofits economy. Both are dedicated to Bangladesh and its struggle for economic progress and havea deep commitment to Grameenphone and its mission to provide affordable telephony to theentire 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 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 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 servicesWEAKNESS: 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 ImpactFrom the above empirical description, GrameenPhone has contributed to development inBangladesh 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.
RECOMMENDATIONBased 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.CONCLUSIONGrameenphone Company is still a growing company in spite of all the success it has achieved so far. Itholds a kind of a monopoly position in the mobile telecommunications market. Completion is always onthe lookout for new ideas and schemes. In order to maintain no: 1 position GP use to follow manystrategies like business level strategies, functional level strategies, global level strategies & corporatelevel strategies.