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.