Grameenphone has so far invested more than BDT 29,900 crore to build the network infrastructure

Grameenphone is one of the largest taxpayers in the country, having contributed more than BDT 52,340 crore in direct and indirect taxes to the Government Exchequer over the years

There are now more than 1600 GP Service Desks across the country covering nearly all Upazilas of all districts and 94 Grameenphone Centers in all the divisional cities

Grameenphone has about 3000 full and temporary employees

700,000 people are directly dependent on Grameenphone for their livelihood, working for the Grameenphone dealers, retailers, scratch card outlets, suppliers, vendors, contractors, and others.

1.3Competitor’s analysis:

Every company has some competitors. Like others the grameenphone have come competitors. They are the main competitors of Grameen phone.

1. Banglalink.

2. Robi.

3. Airtel.

1.4 Vision:

We provide the power of digital communication, enabling everyone to improve their lives, build societies and secure a better future for all.

1.5 Mission:

We exist to help our customers get the full benefit of being connected. Our success is measured by how passionately they promote us.

2.External Environmental Analysis of GrameenPhone:

External environment means the component of outside of the business which component is affect the business most. The analysis entails assessing the level of threat or opportunity the factors might present. This external analysis helps a business the decision-making process. The analysis helps align strategies with the firm’s environment. There are several components of external analysis which is

The macro- environment

Industry structure

Strategic group mapping

Competitor’s analysis

Critical analysis

2.1 The macro-environment:

A macro environment involves influences which affect the entire economy of business. The macro environment affects every business. If a company wants to enter any country to expand their business they must consider or analysis the macro environment components .There are many component of macro environment which is global, technological, economical, demographic, political and socio cultural factor.

Components of the Macro environment.

Economic Segments:

The economic segment consists of inflation rate, interest rate, GDP, currency exchange rate, unemployment level. Every components help to take decision making process. In this components the inflation rates and the GDP are play a vital role of decision making process of Grameenphone .

1. Inflation rates: Inflation rates are direct related to any business. If the inflation rate is high the business faces some problem. In high inflation rates the company charges high in their product prices. There are the current inflation rates of Bangladesh.

Here we see that the inflation rate is almost same over the last years. So that the Grameen phone do not charge extra to their customers.

2. GDP: Gross domestic product is the best way to measure a country's economy. GDP is the total value of everything produced by all the people and companies in the country. Bangladesh's real gross domestic product grew by around 7.2 percent compared to the previous year. If the GDP growth rate is high, it is a good sign of business and country. Though the rate is good so that the grameen phone can sell more products to their customers.

Political:

Political factors influence organizations in many ways. Political factors can create advantages and opportunities for organizations. Conversely they can place obligations and duties on organizations. The components of the political are Taxation law, government policy, labor law, trends in government role etc.

In Bangladesh the taxation law, government policy in the telecommunication business is supportive. Grameenphone follow all the rules and regulations of Bangladesh government and doing their business.

Socio-cultural segment:

1. Changing Life –Style: Lifestyle of mid income people have been since couple of years. Income level has been increase that’s why people now want to purchase the new product. Example: Now the people of Bangladesh use 4G internet. So that the grameenphone launches their 4G internet project and people use it.

2. Technological Factors: The technological advances have greatly changed the manner in which businesses operate. The grameenphone is a telecommunication company. It is a fully technological corporation. So that it needs always up to date according to the worlds technologies. The R&D of grameenphone is very strong. They invest huge in R&D sector. So that they use always first technology in their business system and products. Example: Recently Grameenphone launch the 5G networks in Bangladesh.

Demographic Segment:

Demographic segmentation is according to age, race, religion, gender, family size, ethnicity, income, and education. Now Bangladesh is an economic growth country. The life style of people has increased day by day. Those are greatly help to the business. Grameenphone use this benefits to their business.

2.2 Porter’s five forces analysis:

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. Frequently used to identify an industry's structure to determine corporate strategy, Porter's model can be applied to any segment of the economy to search for profitability and attractiveness. Here we discuss the five sectors like Buyer position, Supplier’s position, Potential new entrants, Rivalry among the competitors, Substitutes of product. We analysis their position of an organization and their power in the particular side. Now we analyze the porter’s five factors of Grameen phone.

1. Buyer`s position:

The buyer’s position in telecommunication sector in Bangladesh is very high now a day. There are many telecommunication companies in Bangladesh like Banglaling, Robi, Airtel, Teletalk etc. Any change in price or service the customer can change their brand very easily.

1. Buyers costs to switching the others product is very low.

2. Buyers are well known about the quality, services, price of the sellers, so that any change in services can be a hampered well reputations.

3. Because of the product type buyer don’t have the ability to force down the price .they can’t down the price but they have so many choices.

4. Customers are always price sensitive.

2. Supplier’s position:

The supplier’s position is very important in the five forces analysis. Because it help to buy raw materials in low cost. In the telecommunication sectors in Bangladesh every company buy their raw materials from china or India. So that supplier’s position is low. And they can easily bargain with their suppliers.

3. Potential new entrants:

New entrants into an industry threaten the position of rival firms since they usually compete fiercely for market share and add to the production capacity and number of rivals in the process. But even the threat of new entry increases the competitive pressure in an industry. The new entrants in telecommunication sector in Bangladesh are very low. Because it requires huge capitals, resources and requires high R&D.

4. Substitutes of product:

1. The substitute product in the telecommunication product is very low.

2. There is no substitute product in this sector.

5. Rivalry among the competitors:

Rivalry among the competitors is very important, because in this steps show the competitive position of the company. It helps to take necessary steps to the company. In this sector the rivalry position of this company among their competitors is very high. Their competitors are Banglalink, Robi, airtel .

2.3 Competitor’s analysis:

A competitive analysis is a critical part of any company. With this evaluation, company can establish what makes their product or service unique and therefore what attributes they play up in order to attract their target market.

The competitor’s analysis of grameenphone is below.

The competitors of Grameenphone

Airtel has been one of Grameenphone's top competitors. Airtel was founded in 1995, and its headquarters is in New Delhi, Delhi. Airtel competes in the Fixed-line Telecommunications Services field. Airtel has 25,390 more employees than Grameenphone.

2.4 Summary of external environments:

In the external environment I discuss the most important factors of external environment. This political, technological, social, economical sector greatly affect in to the company. I also discuss the poters five factors in this company. So that it helps to find current position of the company. I also discuss the competitor’s analysis of the company. The company must focus more in the competitor’s analysis. Overall the external environment is very good for Grameenphone Company and it helps to running the company with success.

3.Internal Environment analysis of Grameenphone :

An internal analysis is an exploration of your organization’s competency, cost position and competitive viability in the marketplace. Conducting an internal analysis often incorporates measures that provide useful information about your organization’s strengths, weakness, opportunities and threats -- a SWOT analysis. The data generated by an internal analysis is important because it helps to develop strategic planning objectives to sustain and grow your business. Understanding a business in depth is the goal of internal analysis. This analysis is based on resources and capabilities of the firm. Internal analysis determines how competitive this company is in the industry.

3.1 Resources:

A good starting point to identify company resources is to look at tangible, intangible resources. Tangible resources are the easiest to identify and evaluate: financial resources and physical assets (land, buildings, equipment, inventory, & money) are identified and valued in the firm’s financial statements. Intangible resources are largely invisible, but over time become more important to the firm than tangible assets because they can be a main source for a competitive advantage. Such intangible resources include reputational assets (brands, image, etc.) and technological assets (proprietary technology and know-how).

A) Tangible resources:

The tangible resources of Grameenphone are all the office of GP including Head office, their network tower all over the country, their inventory, their network provider equipment etc.

B) Intangible resources:

The intangible resources of Grameenphone are below.

1. Brand names. The company has a strong brand name which is “GrameenPhone”.

2. The Grameenphone has a good reputation in the country.

3. Their employee’s knowledge.

3.2 Core Competencies:

Core competencies are the resources and/or strategic advantages of a business, including the combination of pooled knowledge and technical capacities that allow it to be competitive in the marketplace. They are what the company does best and consist of the combined activities, operations, and resources that distinguish the company from competitors. The core competencies of the Grameenphone are discussed in the below:

1. The main core competencies of the grameen phone are their strong mobile network. Anywhere in the country their network is available.

2. Their product distribution channel is another core competency.

3. Their customer service center is one of the greatest core competencies. Anywhere in the country their customer services are available.

4. The low call rate, low rate internet package, and the superior performance.

5. They invested huge amount of money on R and D which help them to innovate new services.

3.3 SWOT analysis:

SWOT analysis is a framework used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis is a foundational assessment model that measures what an organization can and cannot do, and its potential opportunities and threats.

Strengths: positive characteristics that give an advantage in it’s being;

Weaknesses: critical characteristics that give an disadvantage in it’s being;

Opportunities: a set of circumstances that makes it possible to do something in advantage;

Threats: a set of circumstances that could have a negative influence on the desired goal.

The SWOT analysis of Grameenphone is discussed in below.

SWOT analysis of Grameenphone.

Weaknesses:

Mixture of different cultures is used as an excuse not to solve problems

Too much inside out thinking in the company.

Different departments not working together.

Poor interconnection with BTTB.

Complicated price structure

Billing System can’t handle sophisticated billing.

No long-term Distribution/Channel strategy.

Availability of Backbone Network (Optical fiber).

Financial Soundness.

Market Leader.

Brand Name / Grameen Image

Skilled Human Resource.

Largest Geographical Coverage.

Good Human Resource and Infrastructure, installation all over the country through Bangladesh Railway and Grameen Bank.

Access to the widest rural distribution network through Grameen Bank.

Opportunities:

Economic growth of Bangladesh.

New and better interconnection agreement

Huge need for telecom services

Increased intentional activities in Bangladesh

Declining prices for handsets

Future privatization of the fixed network

New international gateway

Demand for inter-city communication

Growth in other operator will give more connection.

Threats:

More rigid government regulations.

More influence of competitors on the fixed network

Change of government might lead to competitors having more clout

Devaluation of Taka

Non-co-operation of government and fixed PSTN (Public Service Telephone Network).

Non-availability of funds.

BTTB has limited capacity for interconnections.

3.4 Summary of the Internal Environment:

In the internal environment I try to show the internal components of the grameenphone . I showed the resources, core competencies and the SWOT analysis. After analysis of these components, there is a summary that is the internal environment of the Grameenphone is very strong. Basically their core competencies are very strong. It helps them to compete with their competitors and performance growth.

4.Corporate strategies:

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. It encompasses a firm’s corporate actions with the aim to achieve company objectives while achieving a competitive advantage.

Corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to create corporate value and motivate the workforce to implement the proper actions to achieve customer satisfaction. In addition, corporate strategy is a continuous process that requires a constant effort to engage investors in trusting the company with their money, thereby increasing the company’s equity. Organizations that manage to deliver customer value unfailingly are those that revisit their corporate strategy regularly to improve areas that may not deliver the aimed results.

It takes a portfolio approach to strategic decision making by looking across all of a firm’s businesses to determine how to create the most value. In order to develop a corporate strategy, firms must look at how the various business they own fit together, how they impact each other, and how the parent company is structured in order to optimize human capital, processes, and governance. Corporate Strategy builds on top of business strategy, which is concerned with the strategic decision making for an individual business.

The Grameenphone follow the cost leadership and Product Differentiation strategy.

Cost leadership strategy:

Cost leadership is a strategy companies use to increase efficiencies and reduce production costs below the industry average or their closest competitor. They follow this strategy because:

1. It covers Economies of scale.

2. It covers Low cost distribution.

3. It covers tight cost control system.

4. It is very simpler product design.

5. It has efficient production/Services.

Product Differentiation:

Product differentiation is a marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. Successful product differentiation creates a competitive advantage for the product's seller, as customers view these products as being unique or superior.

They follow this strategy because:

1. They give Superior product quality.

2. They give Superior product variety.

3. They provide Superior customer service.

4. Much expend in R&D.

4.1 Implementation strategy:

Strategic implementation is a process that puts plans and strategies into action to reach desired goals. The strategic plan itself is a written document that details the steps and processes needed to reach plan goals, and includes feedback and progress reports to ensure that the plan is on track.

Strategic implementation is critical to a company’s success, addressing the who, where, when, and how of reaching the desired goals and objectives. It focuses on the entire organization. Implementation occurs after environmental scans, SWOT analyses, and identifying strategic issues and goals. Implementation involves assigning individuals to tasks and timelines that will help an organization reach its goals.

A successful implementation plan will have a very visible leader, such as the CEO, as he communicates the vision, excitement and behaviors necessary for achievement. Everyone in the organization should be engaged in the plan. Performance measurement tools are helpful to provide motivation and allow for follow-up. Implementation often includes a strategic map, which identifies and maps the key ingredients that will direct performance. Such ingredients include finances, market, work environment, operations, people and partners.

Corporate governance:

Corporate Governance represents the relationship among stakeholders that is used to determine & control the strategic direction & performance of organizations.

There is the corporate governance structure of Grameenphone.

4.2 Corporate social responsibility of Grameenphone:

Corporate Responsibility is manifested through the implementation of our vision and values in all spheres of the company and its value chain. At Grameenphone, they live by the saying “Development is a journey, not a destination.” their work is not just about ensuring connectivity; it is about connecting with people and building a relationship based on trust with their subscribers, business partners, employees, shareholders as well as the wider community. They have always believed that good development is good business. While they maintain their business focus, taking the nation forward remains their top priority. Thus their relationship with Bangladesh is built on a partnership which strives to achieve common economic and social goals.

At Grameenphone Corporate Responsibility (CR) is a complementary combination of responsible business practices and corporate behavior and externally focused initiatives to create shared value for the society and the company. In other words, GP’s “responsibility” includes both compliance with international and national standards and obligations and stakeholder’s expectations on GP’s role in the community. As such, corporate responsibility can be said to span the whole of an organization’s business activities.

1. Grameenphone Telemedicine Pilot Project:

Grameenphone launched Telemedicine Pilot Initiative is to provide healthcare services to the underprivileged community who does not have access to modern medical services. The prime objective of this project is to enhance the quality of life of vulnerable and underserved community of peri-urban/urban slum and rural Bangladesh. An innovative device has been developed, named DICOT (Digital Imaging & Communication on Telemedicine) which is supported by software, named TIMES (Telemedicine Information Management & Education System).

2. National Immunization DAY (NID) Campaign:

GP partnering with Bangladesh Government and WHO has been conducting polio vaccination awareness raising campaign since 2007 in order to eradicate the re-emergence of polio from Bangladesh. Campaign activities include: SMS reminder, RJ endorsement (FM radio), awareness through folk songs, mobile vaccination centres, press ads and so forth.

3. Safe Motherhood and Infant Care (SMIC):

Motherhood is celebrated as one of the most extraordinary times in a woman's life. But the reality in Bangladesh is striking. During the project period (2007-2010) a total of 1,703,767 maternal and child care services provided to economically disadvantaged mothers and infants. Patiya and Bhola clinics at the coastal belt were upgraded to emergency obstetric care centers.10 motorized vans were provided to facilitate better patients’ referral and home delivery (HD) services by skilled birth attendants (SBA).Four clinics-on-wheels are used to increase the accessibility of services in the hard-to-reach areas.

4. Scholarship:

This program inspires underprivileged students and gives them the opportunity to study hard and grow as real leaders so that on completion of their studies they may take the challenge to become future leaders of Bangladesh. Grameenphone, in collaboration with Grameen Shikkha, an organization of Grameen Bank Family, provides financial assistance to 100 bright but underprivileged students through a scholarship fund at different academic levels annually. The fund is being managed directly by Grameen Shikkha. Currently 100 scholarships are being managed through Grameenphone’s fund.

5. Click Green:

Climate change is widely recognized as the greatest global sustainability challenge. Its implications are far-reaching for the environment, for the people, and for the global economy. Bangladesh, though being the lowest contributor to environmental degradation, is considered to be among the worst-hit countries to the effects of climate change. In view of this, as a responsible corporate citizen Grameenphone launched its environmental and climate change campaign Stay Green, Stay Close. Click Green is an internal initiative of this particular campaign.

The purpose of Click Green is to create climate and environment awareness among the employees of Grameenphone and encourage them to become active agents of sustainable and equitable development. At the same time, the program has been developed to encourage employees to think, reflect and act towards the goal of being environment friendly - promote an understanding that communities are pivotal to changing attitudes towards environmental issues. Above all, this initiative has been initiated to display the beauty and diversity of our country and to create awareness about what we will be missing if we do not act now to protect the planet.

5.Recommendations & Future Challenges:

The grameenphone is one of the big telecommunication companies in Bangladesh. They take most of the markets in Bangladesh. In the future they take more challenges in this market. There are some competitors in the market. They are very strong. To cope up with them the Grameenphone needs to be stronger than others. They always need to follow the rules & regulation in the telecommunication act. Continue increasing market share at the same rate over the next 5years.

Some list of recommendations is given below:

1. Making sure the quality of product at competitive price.

2. Launch Customer Loyalty Program.

3. They should huge investments on R and D as it is doing business in Hi-tech industry.

4. They should maintain a good networking system all over the Bangladesh.

5. They should reduce their talk time and internet package price.

6. They should continue and more develop their customer service.

6.Conclusion:

Grameenphone widely abbreviated as GP, is the leading telecommunications service provider in Bangladesh. As per the analysis the whole report we found that grameenphone is one of the market leader in telecommunication sector in Bangladesh. They provide a quality full product. Besides they provide a superior customer service for their customers. It is a great advantage for them. They also consider the external and internal environment of their business. So that it helps them to carry a sustainable advantage and helps to compete with their competitors. They also have a good relation to their customer and their suppliers also. As a result the Business Development and Customer Retention Policies implementation consumers’ behavior towards Grameenphone have very positive and their satisfaction level is very high to carry on the leading place in market. Their market strategy helps them to compete with others in the market. All over the grameenphone company is a best company with a good fundamental indeed. Following some necessary steps they remain the market leader in the future in telecommunication sector in Bangladesh.

References:

Website of grameenphone:

External environment analysis: .

External environment component analysis: .

Internal environment analysis: .

Internal environment components analysis: .

Porters Five factors analysis:

Porter’s five factors analysis: .

Swot analysis of grameen phone: .

Competitor’s analysis: .

Corporate strategy of: .

Inflation rate of Bangladesh :

Website of Bangladesh bank: .

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