2.2.1 - INTERNAL ENVIRONMENT ANALYSIS: TANGIBLE RESOURCES FINANCIAL RESOURCE Table 2.

2: Financial Resources (Annual Report 2011) Banglalink (in million BDT) Current Asset Fixed Asset Total Equity
6,275 66,128 16,850

Equity of Banglalink is funded by the parent Orascom Telecom Securities and Exchange Commission (SEC) of Bangladesh has given their consent to raise OTBLs paid-up capital by issuing 465,254,796 ordinary shares of BDT 10 each to Orascom Telecom Ventures Ltd (OTV), the existing shareholder of OTBL. The shares will be issued to OTV against the share money deposited by the respective shareholder. After issuing these shares, OTBLs paid up capital will reach BDT 47,603,779,960 from BDT 42,951,232,000. Being the only investor, Orascom has to face more pressure and capital risk in terms of raising fund for Banglalink. Noticing the issue, Banglalink is approaching for other sources of funding. B. PHYSICAL RESOURCE Head office - 'Tiger's Den' is located in Dhaka. 1300 Customer Care Touch Points that include Care Center, Banglalink Service Point 3 Green Field MSC along with office

C. TECHNOLOGICAL RESOURCE Network infrastructure supports around 90% of country's population. EDGE/GPRS network through 250 operators across 95 countries. 700 kilometers of optical fiber network Table 2.4: Technological Resources 2.2.2 - INTERNAL ENVIRONMENT ANALYSIS: INTANGIBLE RESOURCES A. ORGANIZATIONAL RESOURCE Parent company: Orascom Telecom Holding S.A.E. Orascom is serving 105 million customer in 11 markets across Middle-East, Africa & Asia. (Orascom official website)

Orascom Telecom maintains relation with Non-GSM subsidiaries like - Arpu+ (specialized on Value Added Service), Ring (specialized on retail & distribution for GSM products), and MENA (Middle-East North America) Submarine Communication Cable System. (Orascom - official website)

All of the above are the indicators of the ability and experience for company in terms of technology-handling and business-operation. B. HUMAN RESOURCE Here is the Human resource highlights of Banglalink (Annual Report 2011), which shows more than 3500 employees are serving there.

Human Rsources Capacity

C. BRAND IMAGE Fastest growth in customer generation Official sponsor of different 'Preservation and Celebration' - based and 'National and Cultural Heritage' - focused initiatives like - Jagoroner Gaan, New7Wonders, Modhu Mela, Boshonto Uthshab and many more. Won the Asia Mobile Awards under the category of Best Mobile Enterprise Application Product or Service for Banglalink Jigyasha. 2.2.3 - FUNCTIONAL CAPABILITIES A. DISTRIBUTION CAPACITY Both company maintains effective distribution channel. Mainly SIM & Balance Reload/Transfer is the core product in distribution. 103 distributors 50 thousand retail outlets. Table 2.8: Distribution Capacity B. HUMAN RESOURCE CAPACITY Table 2.9: Human Resource Capacity Grameenphone Banglalink

The company has many employee development The company conducted 2 international, 28 schemes some of which include - Telenor local, 21 functional & 9 leadership training Development conduction, Indian Process, scholarships of annual and survey employee and throughout the year 2009.

training in collaboration with British Council, Institute Management Stockholm School of Economics. (Welle-Strand & Molden, 2007)

C. RESEARCH & DEVELOPMENT CAPACITY Table 2.10: Research & Development Capacity Grameenphone Banglalink

The company introduced a subsidiary named Orascom maintains subsidiary affiliation with

'Grameenphone IT' that allows the company Arpu+ that is specialized in Value Added for improved R&D performance at cheaper Services cost. Arpu+ maintains strong chain of strategic (GPIT - official website) partners that includes application, technology (Microsoft, Logica CMG) & content providers (Orascom - official website) Both parent companies - Telenor & Orascom have the ability to apply innovative ideas or practices experienced from their other markets.

D. MARKETING CAPACITY Both Grameenphone & Banglalink marketing efforts involve selling & social marketing. Both company communicates with the customers through newspapers and other print medians as well as radio, television, internet, banner, festoons, posters and sponsoring various TV & Radio shows. All of these are part of both companies' Integrated Marketing Communication strategies to promote their respective products & services offerings. Moreover, both companies are involved in various CSR (Corporate Social Responsibilities) activities considering the customers' & society's long-run interests. All of the efforts allow both company to achieve greater reach to the customers. The notable efforts that both company took place in recent days are Table 2.11: Marketing Capacity Grameenphone Various affiliated cell with phone brands like and Nokia, Official sold Samsung, Sagem, Benq and many more are Grameenphone Grameenphone Centers. Banglalink sponsor of country's popular tourist spot Cox's Bazar in 'Sea Beach

in Cleaning' project Promotional activities in country's national Airport in Dhaka as the company is beautification and capacity aid increasing and passenger traffic

EDGE/GPRS modems and accessories such airport - Hazrat Shahjalal International chargers and headphones are also sold at GPCs. Maintains collaboration a Scholarship with Grameen Program Shikhkha in funding the airport (an airport initiatives. materials orphanages.

organization of Grameen Bank Family.) build education center-cum-cyclone shelters.

Financial assistance to SIDR affected areas, to Donating

 Village Project.

Phone

Program & Information Boat Providing transportation, drinking water, and phone counter facilities for pilgrims during Hajj time at the Hajji Camp in Dhaka.

2.2.4 - COMPETITIVE ENVIRONMENT ANALYSIS The competition within the industry is based on the following factors Competition over Price: Both companies are actively involved in a price war and trying to get the attention of the price sensitive customers of Bangladesh. (See Appendix: Table - 2 to 5) Competition over Service Features: Companies are trying to make the service packages attractive through including various Value Added Services that are highly beneficial to the customers daily life. Section 1.3.3 & section 1.4.3 shows the service features and product range for both Grameenphone & Banglalink respectively. Competition over Similar Target: The competition arises when both companies are targeting same customers with same service offerings. As for example - both company have targeted the 'Couple Segment' of the market. They know the emotional value of communication which is why the companies have taken the 12.00 am - 6 am time slot where they are offering cheaper call rate. Furthermore - Valentine's Day Special SMS, Bengali New Year Day Special Offers etc. have been seen to attract this segment. Promotional Competition: Companies are found to compete over the time slot of special television shows, radio shows or even physical places. It is noticed that promotional banners of both companies have been rarely seen in a similar physical location. The promotional intensity of both Grameenphone & Banglalink can easily be illustrated through the marketing practices & image development approaches that are shown in 2.2.2.C & 2.2.3.D sections of this study.