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: 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, 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 years
The 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.

A case study on GrameenPhone Business level Strategy

  • 1.
    A CASE STUDYON 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: 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
  • 2.
    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
  • 3.
    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.
  • 4.
    GP Vision Grameenphone existto 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.
  • 5.
    Ownership Structure The shareholdersof 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 years The 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.
  • 6.
    Reason for Beingwith GrameenPhone GrameenPhone-Largest Network coverage
  • 7.
    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.
  • 8.
    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.
  • 9.
    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.
  • 10.
    Findings & OverallImpact 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.
  • 11.
    RECOMMENDATION Based on thefindings & 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.