PART I

Internship Report:

Grameenphone Ltd. An Organizational Overview

Prepared for: Prof. G. M. Chowdhury Chairperson, Internship & Placement Program Institute of Business Administration University of Dhaka

Prepared by: Md. Ahsanul Abid Roll # 44 MBA Program

January 11, 2007

Institute of Business Administration University of Dhaka Dhaka - 1000

Letter of transmittal:

January 11, 2007

Prof. G. M. Chowdhury Chairperson, Internship & Placement Program Institute of Business Administration University of Dhaka Subject: Letter of Transmittal Dear Sir: Please find attached with this letter my internship report on Grameenphone Ltd. This report is the culmination of my 12-weeks of internship at Grameenphone Ltd. My special gratitude to Prof. Nurur Rahman, Prof. G. M. Chowdhury and Mr. Ferdous Ahmed (my supervisor at Grameenphone), whose guidance helped me to complete this final chapter of MBA degree. For any further clarification, I will be more than glad to comply. With Regards & Sincerity,

Md. Ahsanul Abid Roll # 44

MBA 38th (Evening)

Acknowledgement:
In preparing this report, support from a number of individuals were invaluable. Following few names, I must quote individually for special citationProf. Nurur Rahman My academic supervisor, whose guidance and care inspired me. Prof. GM Chowdhury Chairperson of Internship & Placement Program, who guided me about the pitfalls and key points of Internship well before the start of the Internship program. Mr. Ferdous Ahmed, Additional General Manager, CMD, Grameenphone Ltd. My organizational supervisor, who despite his over-demanded schedule, always found some time to advice & guide me in the right direction. A group of 20 young members of Grameenphone who helped me tremendously in completing my survey within a reasonable time. My sincere gratitude toward all of them. Besides, I must express my thanks to numerous academics and publishers whose papers I used to prepare the secondary analysis.

Index

Dhaka - 1000..............................................................................................................1 Letter of transmittal:................................................................................................2 MBA 38th (Evening) ................................................................................................2 Acknowledgement:....................................................................................................3 2. Executive Summary:.............................................................................................6 Grameenphone should identify customer service as a core competence area (in addition to network quality and value-based services) and continue build on that..............................................................................................................................7 1. Company Background..........................................................................................8
Historical background of the company.........................................................................................................................8

2. Mission, Objectives and Strategy......................................................................10

Vision..........................................................................................................................................................................10 Value Statements:.......................................................................................................................................................10 Objectives of the company .........................................................................................................................................11 The Strategies.........................................................................................................................................................11 The People .............................................................................................................................................................11 The Technology......................................................................................................................................................11 The Service ............................................................................................................................................................12 The Result...................................................................................................................................................................12 Strategic objectives.....................................................................................................................................................13 Financial objectives................................................................................................................................................13

3. Company Structure............................................................................................13
The Shareholders.........................................................................................................................................................13 Telenor AS .............................................................................................................................................................13 Grameen Telecom...................................................................................................................................................14 Organizational Structure.............................................................................................................................................15

4. Market size and Coverage..................................................................................16

Analyses of Strategies.................................................................................................................................................17 a. Business Level Strategy:.....................................................................................................................................17 b. Human resource strategy: ..................................................................................................................................17 c. Marketing strategy (4Ps):....................................................................................................................................18

5. Some Products and Services Offered by Grameenphone...............................19

Grameenphones major products................................................................................................................................19 Value Added Service(VAS)........................................................................................................................................19 International Roaming (IR) ..................................................................................................................................19 SMS chat.................................................................................................................................................................20 SMS (Short Message Service)................................................................................................................................20 SMS Push-Pull Services.........................................................................................................................................20 Voice Mail Service (VMS).....................................................................................................................................20 Fax and Data...........................................................................................................................................................20 EDGE / GPRS service............................................................................................................................................20

Cell E-mail..............................................................................................................................................................20 Hotline Service 121................................................................................................................................................21

6. SWOT Analysis...................................................................................................21 7. Corporate Social Responsibility........................................................................27

Orphanage Project.......................................................................................................................................................27 Dhaka Shishu Hospital Project...................................................................................................................................28 Preventive & Protective measures against some deadly diseases...............................................................................28 Other Socially Responsible Activities........................................................................................................................29

2. Executive Summary:
Grameenphone is largest provider of mobile telecom services in Bangladesh. A joint venture between Norway basedTelenor AS and Grameen Telecom Bangladesh (a non- Govt organization) Grameenphone Ltd. was established in year 1996. Recently, Grameenphone has crossed the magical mark of 10- million subscriptions ushering in a new era of mobile communication in Bangladesh. Since its inception, this organization has been a technological leader, and with 10-years experience, it is bringing in a new focus on customer oriented services and satisfaction.

Findings from the study:

There was not reasonable ground to disprove the null hypothesis that quality of customer service directly related to the retention rate of a customer (time with an operator). In other words, Quality of customer service has reasonable relationship with the retention of customers. Besides, other key findings of the study are: Perception of customer service is strongly dependent on eight independent parameters - Ease of use and customer friendly, Cost effectiveness of customer service, Easy & cheap information about products & services, Behavior of customer service people, Lead time variability, Availability & reach of customer service points, Readiness to go the extra mile, Ease of access to customer service people Quality of customer service can help build positive impression about the operator in the perception of the customer Quality of customer service can help build loyalty and attachment within the customer. However, this relationship does not hold true if we try to incorporate time-length of subscription in the equation. As the correlation # 3 shows, people who have been longer with a particular operator have shown less favorable attitude about the respective operator The principal component analysis identifies the following 06 components to be consistent with the factor analysis (in order the importance): a) c) e) f) Ease of access to customer service people, Cost effectiveness of customer service, Readiness to go the extra mile, Behavior of customer service people. b) Easy & cheap information about products & services, d) Availability & reach of customer service points,

Recommendations:
Grameenphone should continue in its path to emphasizing customer service as a key differentiator while positioning itself apart from other operators.

The key components while defining customer service are- a) Ease of access to customer service people, b) Easy & cheap information about products & services, c) Cost effectiveness of customer service, d) Availability & reach of customer service points, e) Readiness to go the extra mile, f) Behavior of customer service people.

Appeal of a particular service might wear off with the length of time a customer sticks with a particular operator. So, Grameenphone should continue to redefine the 6-factors customer service with new features and facilities.

On a more general note, the operator instead of concentrating on price based-competition should focus on a qualitative positioning. Otherwise they might soon find their profit base eroding rapidly.

Grameenphone should identify customer service as a core competence area (in addition to network quality and valuebased services) and continue build on that.

1. Company Background
GrameenPhone Ltd. has stepped into its 10th year of operation, having completed its ninth yearon March 26, 2006. It is the leading telecommunications service provider in the country with more than 10 million subscribers as of December 2006. GrameenPhone has been recognized for building a quality network with the widest coverage across the country while offering innovative products and services and committed after-sales service.

Historical background of the company

Grameen Phone (GP) is the largest cell-phone operator in Bangladesh. GP was given the cellular license in 28th November 1996 by the ministry of Posts and Telecommunications. Later in March 26th 1997, they offered their service in Dhaka city and gradually covered the entire country. GP, in collaboration with Grameen Bank, is aiming to place one phone in each village to contribute significantly to the economic uplift of those villages. GPs basic strategy is coverage of both urban and rural areas. In contrast to the island strategy followed by some companies, which involves connecting isolated islands of urban coverage through transmission links, GP builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout GPs network. GP employs a large number of employees who are young, dedicated and energetic. GP knows that the talents and energy of its employees are critical to its operation and treats them accordingly. The technology used by GP can only be described as state of the art. GPs Global System for Mobile or GSM technology is the most widely accepted digital system in the world, currently used by over 300 million people in 150 countries. GSM brings the most advanced developments in cellular technology at a reasonable cost by spurring severe competition among manufacturers and driving down the cost of equipment. Thus consumers get the best for the least. GP is best known for its service rather than its low tariff and value added services. GP believes in service, a service that leads to good business and good development. Telephony helps people work together, raising their productivity. This gain in productivity is development, which in turn

enables them to afford a telephone service, generating a good business. Thus development and business go together. As a result GP is delivering the digital revolution to the doorsteps of the poor and unconnected. By being able to connect to urban areas or even to foreign countries, a whole new world of opportunity is opening up for the villagers in Bangladesh. Grameen Bank borrowers who provide the services are uplifting themselves economically through a new means of income generation while at the same time providing valuable phone service to their fellow villagers. The telephone is

GP Milestones and critical events . . . Nov 96 Mar 97 July 99 Aug99Feb 00 Mar 00Jun 00 Jun 00 Mar 03Aug 03Aug 04Apr 05Aug 05Dec 05Jan 06May 06Jun 06Aug 06Nov 06 Received license. Launched services in Dhaka. Signed loan agreements with IFC/CDC/ADB of USD 50M. Launched first Prepaid Service. Received GSM Community Award from GSM World Congress, France. US President Bill Clinton visited Bangladesh and GP Village Pay Phone program was highlighted to him. Covered all 6 divisional towns. Crossed 100,000 subscribers. Received Bangladesh Business Awards 2002 as best Joint Venture Enterprise of the year jointly organized by The Daily Star and DHL. Reached 1,000,000 Subscriber base. Reached 2,000,000 Subscriber base. Reached 3,000,000 Subscriber base. Reached 4,000,000 Subscriber base. Reached 5,000,000 Subscriber base. Reached 6,000,00 Subscriber base. Reached 7,000,000 Subscriber base. Reached 8,000,000 Subscriber base. Reached 9,000,000 Subscriber base. Reached 10,000,000 Subscriber base.

a weapon against poverty. GrameenPhone Limited, the number one and leading mobile phone company in the area of telecommunications in Bangladesh. Of four mobile operators, GP managed to grab 69% of the market share only by providing cost-effective & best service available in the market of mobile telecommunication. GP has made its expansion not only in the urban areas, but also it stretched its network in the rural areas for the economic empowerment of the rural people. GrameenPhone has

made a special arrangement with Grameen Telecom, an affiliate of Grameen Bank in providing the cellular services in the rural country. GP believes Excellency in its service towards its subscribers. It is growing and at the same time being competitive. To keep up this upward trend and leading position absolute dedication to understanding and fulfilling their customer needs with the appropriate mix of standard service, reliability, improved technology and skilled as well as dedicated manpower is necessary.

2. Mission, Objectives and Strategy

Vision Grameenphone's vision is simple: We're here to help. Grameenphone's renewed Vision recognizes that we exist to help our customers get the full benefit of communications services in their daily lives. The key to achieving this is that we work together and draw on our renewed Values and build them into guiding light behaviors in our workplace, wherever that may be... Make it easy. Keep promises. Be inspiring. Be respectful. Four simple statements, but when embraced by Grameenphone people around the world, they will help transform Grameenphone into the global driving force for modern communications and customer satisfaction we need to become. Value Statements: Make it EasyWe're practical. We don't over complicate things. Everything we produce should be easy to understand and use. No waste. No jargon. Because we never forget we're trying to make customers' lives easier. Keep PromisesEverything we set out to do should work, or if you don't get it, we're here to help. We're about delivery, not over promising - actions not words. Be inspiring-

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We are creative. We strive to bring energy into the things we do. Everything we produce should look good, modern and fresh. We are passionate about our business and customers. Be respectfulWe acknowledge and respect local cultures. We do not impose one formula worldwide. We want to be a part of local communities wherever we operate. We believe loyalty has to be earned. Objectives of the company GrameenPhone has a dual purpose to receive an economic return on its investments and to contribute to the economic development of Bangladesh where telecommunications can play a critical role. This is why GrameenPhone, in collaboration with Grameen Bank and Grameen Telecom, is aiming to place one phone in each village to contribute significantly to the economic benefit of the poor. The Strategies Grameenphones strategy is coverage of both urban and rural areas. In contract to the island strategy followed by some companies, which involves connecting isolated islands of urban coverage through transmission links, GrameenPhone builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout Grameenphones network. The People The people who are making it happen- the employees are young, dedicated and energetic. All of them are well educated at home or abroad, with both sexes (gender) and minority groups in Bangladesh being well represented. They know win their in hearts that GrameenPhone is more than phones. This sense of purpose gives them the dedication and the drive, production-in about eight years- the biggest coverage and subscriber-base in the country. GrameenPhone knows that the talents and energy of its employees are critical to its operation and treats them accordingly. The Technology Grameenphones Global System for Mobile or GSM technology is the most widely accepted digital system in the world, currently used by over 900 million people in 150 countries. GSM brings the most advanced development in cellular technology at a reasonable cost by spurring

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severe competition among manufactures and driving down the cost of equipment. Thus consumers get the best for the least. The Service Grameenphones believes in service, a service that leads to good business and good development. Telephony helps people work together, raising their productivity. This gain in productivity is development, which in turn enables them to afford a telephone service, generating a good business. Thus development and business go together. The Result By bringing electronic connectivity to rural Bangladesh GrameenPhone is bringing the digital revolution to the doorsteps of the poor and unconnected. By being able to connect to urban areas or even to foreign countries, a completely New World of opportunities are opening up for the villagers in Bangladesh. Grameen Bank borrowers who provide the services are uplifting themselves economically through a new means of income generation while at the same time providing valuable phone service to their fellow villagers. The telephone is a weapon against poverty. GrameenPhone Ltd. completed its eighth year of operation and crossed the three millionsubscribers mark in early 2005. It is a remarkable achievement indeed. The GP service was only launched on March 26, 1997. In July 2001, GrameenPhone was identified by EMC, the London-based mobile phone market research firm, as the fastest growing and single- largest mobile phone company in the South Asian region. The mobile phone sector of the country has also matured during this period. In fact, mobile phone users now outnumber the fixed-line telephone subscribers in the country. The Village Phone Program is another innovative GP initiative launched in collaboration with Grameen Telecom, a shareholder of the company. Introduced in 1997, this unique service provides telecommunication services in remote rural areas where no such facilities existed before. Moreover, it also provides an income generating opportunity for the Phone operators, mostly rural poor women. The village Phone Program won the GSM in the Community Award given at the GSM World Congress held in Cannes, France in February 2000.

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Strategic objectives GrameenPhone wants to maintain the lead and to overtake the competitors in the country is what GrameenPhone has been dedicated to seeking. It wants to provide all its employees with challenging and rewarding work, satisfying working conditions, and opportunities for personal development, advancement, and competitive compensation. It wants to capture bigger market share. It wants to achieve low operating costs. It wants to offer broader and more attractive research for its products. It wants to enhance the satisfaction of its consumers. Financial objectives GrameenPhone Ltd wants to earn growth in revenues and earnings. It wants to earn wider profit margin. It wants to realize higher return on invested capital.

3. Company Structure
The Shareholders Telenor AS Telenor AS (62%) is the state-owned Telecommunications Company in Norway, a country with one of the highest mobile phone densities in the world. Telenor has played a pioneering role in development of cellular communications, particularly, but not exclusively, GSM technology. In addition to Norway and Bangladesh, Telenor owns GSM companies in Portugal, Denmark, Greece, Austria, Hungary, Russia, Ukraine, and Montenegro, Thailand and in Malaysia. Telenor is using the expertise it has gained in its home and international markets and putting it to use in an emerging market such as Bangladesh. Telenor has many alliances in other countries, bringing experience and competence, both technological and business, to ventures such as GrameenPhone. Telenor has opened a regional Asia office in Singapore, an expansion that emphasizes its No Barriers motto.

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Grameen Telecom Grameen Telecom (38%) is a not-for-profit organization and a sister concern of Grameen Bank,

Share Holding structure

38%

62%

Telenor

Grameen Telecom

the internationally recognized bank for the poor with an expansive rural network and extensive understanding of the economic needs of the rural population. Grameen Telecom, with the help of Grameen Bank, administers the Village Phone services to the villagers and trains the operators as well as handles all service-related issues. Grameen Bank covers 40,486 villages, or 60 percent of rural Bangladesh through its 1175 bank branches. Grameen Telecoms objectives are to provide easy access to telephones in rural Bangladesh, introduce a new income-generating source for villagers, bring the Information Revolution to villages and prove that telecommunications can serve as a weapon against poverty.

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Organizational Structure

Board of Directors Treasury Committee Erik Aas Managing Director Syed Yamin Bakht Operational Committee

MDs Secretariat

General Manager, Information

Ahmed Raihan Shamsi
Head of

Stein Nvdal-Larsen

CMO
Director Head of Head of Head of CRM

GrameenPhone has aCompany board of directors headed by a Chairman. There are five directors on be half Deputy Director, Secretary.
Sales and Marketing CMD Village Phone of the shareholders. Board of directors primarily looks after the activities of the managing director N K A Mobin Distribution Director, Projects and this is the appointing authority of managing director. Board of directors mainly conserve the

interests of the Farhad shareholders. GP of Supply F Ahmad The managing director directly reports to the Board of directors.Head Md. Arif Al Islam General Manager, Internal Audit Director, Finance have 5 divisions and 3 departments each having a director. All the directors report directly to the
Lutfor Rahman managing director. The GP organogram has gone through many changes over the years due to Khalid Hasan Acting Head of IT Director, Regulatory & Corporate Affairs company re-structuring. Md. Shafiqul Islam

Chief Technical Officer Grameenphone Management Team

Kafil H. S. Muyeed

Emad Ul Ameen

Director, Human Resources

Frank Fodstad

Director, New Business Deputy Managing Director

Director Fiber Optic Head of RA & FM Head of Admin Head of Legal & Project Director

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Efficiency Projects

Name Erik Aas Frank Fodstad Stein Naevdal Emad Ul Ameen Ingvald Lyche Kafil H. S. Muyeed Khalid Hasan Md. Arif Al Islam Md. Shafiqul Islam Rubaba Dowla Matin

Designation Managing Director Deputy Managing Director Chief Marketing Officer Director Director Director Director Director Chief Technical Officer Head of Marketing

Division

Commercial Division Human Resources Sales & Distribution New Businesses Corporate Affairs Finance Technical Marketing

4. Market size and Coverage

As the figure shows (green meaning network coverage), Grameenphone has almost continuous coverage throughout Bangladesh, apart from the hill districts of Chittagong and some patches of Sunderbans. Overall mobile phone penetration rate: 12% Fixed network penetration rate: 0.83% Coverage: Districts- 61 out of 64 Upazillas- 506

The total market size of the mobile industry is 13.26 million approximately, as of June 2006. Of this 63.9% of the market share is occupied by GP, 18.67% by Aktel, 12.1% by Banglalink, 3.92% by CityCell and 1.47% by TeleTalk (as of October 2006). Among the products offered by GP, the pre-paid mobile to mobile subscription, Smile, has the majority of subscribers amounting to more than 50% of GP subscriptions. The youth brand 'djuice' has climbed up to take the second position. Post paid subscriptions namely Explore 1 & 2, GPPP and Village Phone have around 500,000 subscribers among them.

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GP is the first in the industry to provide bundle products whereby subscribers can get a predefined number of minutes free for a monthly fee. Anytime 500, post paid mobile to mobile subscription has some 5, 811 subscribers while GPPP, post paid subscription with PSTN connectivity has around 9,000 subscribers as of June 2006. The popular Village Phone program has acquired more than 300,000 subscribers under its program as of 2006. Coverage This refers to the area throughout Bangladesh is covered by GP. At present 61 districts and 506 upazillas are covered by GP. Analyses of Strategies a. Business Level Strategy: The Company wants to penetrate the market by offering reasonable prices. But the real catch lies in the fact that GP offers quality, innovation and added features (services) rather than going for a price based competition. To achieve superior quality in its products, it follows total quality management (TQM) that helps it in the following ways: Improved quality means that costs decrease because of less rework, fewer mistakes, fewer delays and better use of time and materials As a result, productivity improves. Better quality leads to higher market share. This increases the companys profitability and allows it to stay in business. To achieve superior quality, it implements the following things: Build organizational commitment to quality. Focus on the consumers (their needs). Find ways to measure quality. Set quality goals and create incentives (performance bonus). Identify defects and trace them at source.

b. Human resource strategy: The number of total staff is more than 1500. The company wants to increase training for its support staff to increase the ability to fix a problem on the first service call and to reduce the period of time consumers have to wait for technical help. GrameenPhone Ltd wants to recruit top talents in every department of the company.

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c. Marketing strategy (4Ps): Products Strategy: Grameenphone products has and

EOY 2006 Over 8,900 Point of Sales Over 5,700 Base Stations 310 Roaming Partners (in 115 Countries)

worked to provide its subscribers with continuously services. innovative

We have redefined the mobile landscape of Bangladesh with our innovative pre-paid and postpaid products and valued added services in the market. We are continuously working to make our products easier to use and easier to understand. This is the Companys edge against the competitors providing better products and services and providing it FIRST! Price strategy: The Company follows penetration-pricing policy. It offers the quality product at the cheapest price. Promotional strategy: The company follows mass promotional strategy. Promotional media include TV, daily newspapers, billboard, transportation advertising etc. Distribution: The company has developed its own distribution network consisting of more than 700 points. It has its own distribution vehicle and number of employees to deliver products. As a result, it has more control over distribution.

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5.

Some

Products

and

Services

Offered

by

Grameenphone
Grameenphones major products Explore 1 Explore 2 - Post paid mobile with PSTN connectivity - Post paid with no line rent, 1 second pulse and bundle talk-time offer Smile Smile with PSTN Djuice GP Public Phone Business Solution - Prepaid mobile to mobile - Prepaid with PSTN connectivity - The first segment (youth) based mobile offering in Bangladesh market; its a prepaid product - This post paid product was designed for commercial heavy users - This unique segment-based products are targeted for corporate & SME users as part of overall communication solutions of a business house Village phone - Distributed by Grameen Telecom this product aims at income generation through communication & enterprise development for rural poor and destitute women. Value Added Service(VAS) GrameenPhone also introduced a number of value-added services during the last eight years. It may be noted that GrameenPhone was the first mobile phone operator in the country to introduce value-added services like Voice Mail Service, Text Mail Service and fax and data transmission services. GrameenPhone also launched the Wireless Application Protocol (WAP). International Roaming (IR) The International Roaming facility is another useful service provided by GrameenPhone. Subscribers of the GP Regular and Anytime 450 service can use their mobile phones in many foreign countries with this facility while subscribers of other networks can also use their mobile phones when they are in Bangladesh. Presently GrameenPhone has International Roaming agreements with more than 240 mobile phone operators in 80 countries.

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To avail International Roaming, a GP subscriber must contact GPs Sales Center in Dhaka, Chittagong, Sylhet, or Khulna; and payments should be made through International Credit cards from a dollar denominated account. SMS chat The user would be able to chat through SMS with many friends at once through the mobile phone. SMS (Short Message Service) With this service, you can receive and send Text Messages (a maximum of 160 characters per message) to any GP or other mobile and to foreign operators' (international) mobiles as well (conditions apply). SMS Push-Pull Services With Push-Pull service, you can enjoy more than 160 contents (Ex: Usage Info, Payment Status of last bill, Sports news, Emergency numbers, Restaurants, Airline and Railway timing, travel info etc.). Voice Mail Service (VMS) VMS works like an answering machine. When you are not available or outside the coverage area or simply busy, the caller can leave a message in your voice mail box, which you may listen or retrieve at your convenience. Fax and Data This service enables a GrameenPhone subscriber to send/receive fax and data through their handsets by connecting to a PC/Laptop. Currently, this service is offered to corporate clients only. EDGE / GPRS service This service allows the subscribers to browse the internet , send or receive e-mails and use all the advances of multi-media messaging in a 3rd generation mobile environment. Cell E-mail Cell E-mail is a state-of the art Technology which offers e-mail service through SMS. It possesses almost all the aspects of standard webmail and most importantly it is compatible with almost all GSM handset. Thus providing a way to use email to the subscribers who dont have access to

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Internet. Inforev Limited a local ICT solution Provider company is providing the solution on behalf of GrameenPhone Ltd. Hotline Service 121 24 Hour Customer Services regarding any problems

6. SWOT Analysis
STRENGTHS: Being the largest player in the market, GP has a considerable amount of hold in the market. The strengths of GrameenPhone are as follows: Established Brand: The branding activities have led GrameenPhone to build a strong brand. The mother brand is placed on the same platform as other renowned brands like British American Tobacco, Citicorp etc in Bangladesh. Low start up cost: A low start up cost required to reach out to the public.

Individualism: Although GrameenPhone has close affiliation with its multinational parent company, GrameenPhone has an independent brand identity in the market.

Experience in telecom market: Most of the Point of Sale (POS) i.e. the GP outlets has experience on selling telecom product. GP has the largest distribution channel in Bangladesh, which enables to offer their product in every corner of Bangladesh.

Well located Point of Sales (POS): All the POSs are situated in good location, which ensures easy access for all the consumers of the product.

Economies of scale: GP has now reached a stage where it enjoys economies of scale to the fullest extent. If any new punk, i.e. any new entrant tries to dig its way in by low tariff, then GP can easily counter that problem by following suit but without any losses as they are low cost producers already.

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Attractive profiling of POS which attracts the customers.

Wide Acceptability: The branding activities and the service of GrameenPhone have earned 69% of the market share.

Market Awareness: GP has wide distribution network and good knowledge of this and therefore serves the market demand accordingly.

Widest Coverage: GP has covered all over the country.

Extensive Market presence (availability): To make telecommunication accessible to the mass market, GP has set up its POS in the most convenient areas of the districts under the GP network.

Customers Trust: Wide connectivity, easy communication and affordable price have earned customer confidence and made people depended on GP on a day to day basis.

WEAKNESS: Every company has its weak points and GP is no exception to that rule. The weaknesses of GP are: No Copyright: The GP brands are not protected by copyrights, which has led to the misuse of the branding attributes and bears the risk of such misusage in future as well. Market follower: GP is not market leader as they follow others. GP is good at following suit rather than innovation. The proof of this can be seen now, as its rivals reduce tariffs and increase the increased validity of the prepaid service, GP immediately followed suit. In fact it came up with a whole new package called DJUICE, consisting of reduced call rates. This attitude of GP is a very big weakness as new subscribers are immediately attracted to the price cut of GPs rivals and by the time GP follows suit, it would have lost the potential subscribers to its rivals.
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Lack of innovation: GP still now does not have the latest mobile Internet technology, which by the way is quite old and did not start MMS, i.e. multimedia messaging. This is a major setback for GP as new funky stuff always attracts young and enthusiastic subscribers and thereby increasing the revenue for GP.

Lack of working capital for Outlet and Individual agents: This is a major setback for GP as most of the retailers cannot provide optimum service and thereby hurting GPs image to some extent.

Lack of well-trained personnel: Because of this, the sales personnel lack the convincing power to convince people to use GPs connection.

Sub brands are not well established.

Billing System: The abrupt barring of connection due to a complicated billing system confuses the customers. Such hassles lead to an unfavorable impression for the company.

Network Limitation: Call drop, congestion, and poor connectivity with BTTB result in bad image of the company.

OPPORTUNITIES: Opportunities for GP are endless. They have the money and experience to diversify. The main opportunities for GrameenPhone would be:

Brand Value of GP: GP products are well known for its services and quality. Because of this goodwill many potential subscribers might be attracted to GP

To have continuous presence of GP all over Bangladesh.

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Helpful attitude from GP personnel. People want pampering.

Marketing support provided by GP. The sales and distribution channel is supported by GP, which gives the channel a wider opportunity.

New licenses complementing GSM telephony.

Strategic alliances with airtime vendors (service providers) would bring opportunities for further development.

More international roaming partners.

Good pre paid service would bring more revenue.

Ownership of distribution partners.

Stock return facility. Many retailers are attracted to sell GP products as GP has a policy to take back unsold stock.

Stock receiving facility on credit. Retailers also appreciate this facility to getting stock on credit and pay later.

Hand set and Kit lifting from the same point. GP sells all cellular related products at the same place. So it is convenient for the consumer to get every thing under one roof.

Better utilization of IT resources which would give GP the opportunity for faster growth.

Sophisticated and flexible billing system.

Introducing rental phones.

Increased sale of village phone through Grameen Banks infrastructure.

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Automation of routines and procedures.

Availability of concern contact point of GP. No matter what the time is, there is always someone at GP to answer all the subscribers queries.

THREATS: No matter how big or small, companies will always have threats that question their very existence. However some threats remains within the company itself rather than from its rivals or the anticipated newcomers. These threats could arise from the strategies adopted by the company, in this case GP, which prohibit GP to function smoothly. The threats for GrameenPhone would be:

Public demand for discount on price. Everyday consumers are demanding lower tariffs and better quality. This might pose a threat to GP.

GP is anticipating a possible threat from the new entrant BTTB. The state owned fixed-line monopoly BTTB has entered the market with extremely low tariffs. It is thought that the competitive environment that prevails today might be destabilized as BTTB starts operating at full potential. Currently BTTB poses very little threat to GP as they have just started their operation.

Fluctuations in the foreign exchange market as another area of concern while possible changes in fiscal policies like the tax regime may also have a negative growth of the mobile phone sector. The import duty on Handsets has been re-fixed at BDT 3000 for a handset costing over BDT 10000 and BDT 4000 for a handset costing over BDT 10000. This would replace the existing BDT 2500 flat rate of import duty on handsets.

According to recent study, even the existing cost of doing cellular telecom business in Bangladesh is relatively much higher than that of the neighboring countries because of the

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higher cost of leasing infrastructure, regulatory hindrances, high import duty on handsets, and high cost of interconnection. For example, the infrastructure leasing cost from BTTB per E-1 PCM in Bangladesh is about 10 times higher compared to that in other countries of the south Asian Region. Split sale. Day by day consumers are spread out to many other competitors in the market.

Higher commission provided by the competitor cellular phone providers. This discourages the various sales agent selling GP products

Lack of interconnection with fixed network

Inadequate information flow regarding future planning of GP. If the consumer knows the future packages or the coverage expansion of GP in the future, then many subscribers can make decision in buying GP before they even think about other cellular companies.

Change in regulations having negative effect on its business

Tremendous sales pressure from GP. The sales and distribution system of GP is under severe pressure all the time to increase the sales figure. We all know that pressure doesnt always achieve the desired level of sales, but it might disrupt it.

Political favoritism to other operators.

Imposing sudden decision. The sales and distribution network has to cope with sudden decisions at times. This hampers the smooth functioning of the entire system.

Decision making without prior consultation. Some decisions are made without consulting the sales personnel.

In addition, Voice over IP, launch of new operators and other operators prepaid service would be some of the threats for GP.

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7. Corporate Social Responsibility

As a socially responsible company, GrameenPhone actively participated for the development of cricket in the country, especially for the youth development program of cricket. GrameenPhone recently entered into an agreement to sponsor the Bangladesh National Cricket Team. GP was also the only company from Bangladesh, which worked for the development of primary education under the auspices of UNICEF. When called upon, GrameenPhone also rendered cooperation to a number of cultural activities, with emphasis on childrens development. Efforts of the GP Family and the continued support of valued subscribers is also very important and which they are committed to have. It is their valued subscribers-for whom they exist. GrameenPhone looks forward to working hand-in-hand for the development of the country. Orphanage Project The orphanage is situated at Vatara Bazar, Baridhara, Dhaka. At present 75 children are residing there. Twenty five staff are employed for overall look after of the children. The children are aged between 4 and 15 years. Management committee: The orphanage is a project of CDP(Children development program) and is funded by Telenor, the major(51%) share holder of GP. Telenor is the State owned telecommunication company in Norway operating since 1885. On behalf of Telenor, GrameenPhone provides various services to the dwellers of the orphanage. General services: The orphanage provides basic need like Food, Clothings, Lodging, Education and Medical services to the dwellers. Activities of Grameen Phone: Grameen Phone provides basic health service and entertainment facilities to the orphanage round the year. a) Regular Check Up: A medical team including Dr. Mohammad Shahnewaz, Manager, Health Safety & Environment of Human Resource Department of GP provided regular general Medical Check Up to the Children & Staff of the orphanage. Yearly twice

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b) Nutrition Chart: To provide proper nutrition through daily diet for the children, GP expert team supplies nutrition charts to the orphanage and supervises the followup process. c) Need Basis Medical Services: When anybody gets sick in the orphanage GP provides the preliminary medical services. d) Preventive Measures: To prevent deadly diseases like Hepatitis B, GP provides Vaccination to the orphans. e) Training: Creating awareness about personal hygiene, safety and preventive steps against various common diseases is the main purpose for providing Health & Hygiene training by GP team to the orphanage Staff & Children. f) Other: Grameen Phone has donated modern toys and playing equipments to the orphanage play corner with a view to provide entertainment facilities to the children. Entertainment activities: PICNIC Outcome: The project is directed to establish the basic foundation of life of the orphans. Dhaka Shishu Hospital Project Grameen Phone has sponsored one of the wards of Dhaka Shishu Hospital (ward #4) with various utility facilities like: a) Pure Drinking Water: A water purifier has been supplied by Grameen Phone to this ward consisting of 54 beds to provide pure drinking water to the patients and their attendants b) Bed linen, utensils, mosquito net etc are also provided to this ward by GP c) The maintenance part of this ward is also taken care of by GP. Preventive & Protective measures against some deadly diseases a) Awareness buildup:

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i) To create awareness against deadly diseases like dengue GP has published articles dealing with the preventive and protective measure of this disease in their monthly newsletter and in form of booklets. ii) GP has also provided in field and in house training to create awareness among people of different classes of society. iii) GP uses its sources in its regional offices in Chittagong, Rajshahi, Khulna And Sylhet to create awareness against this disease in those cities. b) Spraying against Mosquito: With collaboration to Dhaka City Corporation GP has sprayed aerosol for destroying mosquito in areas like Fourth class employees colony of D.C.C in Gulshan1,Gp office premises and in locality of Gulshan circle 1 & 2. c) Cleanliness Program: GP has sponsored Cleanliness programs in its own locality and in slam areas of Gulshan to prevent the breeding of mosquitoes and for healthy environment. Other Socially Responsible Activities Awareness about EPI diseases: Grameen Phone has extended its hand of cooperation in generating awareness about EPI diseases by helping UNICEF in arranging various programs in this regard. GP sponsored several programs involving children and parents with UNICEF like seminars, art competitions etc. Awareness about Asthma: Collaborated with Asthma Association of Bangladesh Grameen Phone has arranged rallies and seminars to create awareness about prevention & treatment of Asthma. Awareness about Health & Hygiene: Grameen Phone HSE team has worked extensively to create awareness about personal & community health & hygiene. GP has conducted seminars, rallies, in field and in house training in this regard in its Head office, regional offices and other organizations like EC & Nordic Club. First aid, safety in working place, clean environment etc topics is generally discussed in these awareness programs. Blood Donation Program: One of prominent social contribution of GP is in the field of Voluntary blood donation. Grameen Phone has sponsored and directly participated in various voluntary
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Blood Donation Programs around the country with voluntary blood donation organizations like Shandhani and Red Cresent Society. Each year GP arranges a yearly HSE (Health, Safety & Environment) week. One of the regular programs of HSE week is blood donation camp in GP Head office & regional offices. Moreover round the year GP helps in arranging voluntary Blood Donation camps and works through seminars and camps to produce awareness between mass people about blood donation. Grameen Phone maintains a database containing the information about blood groups of all the employees. When any employee or his family or friend needs blood, he can contact HSE personnel and get contacted with the persons having the required blood group. Plantation Program: Grameen Phone has under taken plantation program in its office premises in Dhaka, Chittagong, Rajshahi & Khulna City as a part of their social awareness & responsibility. GP has also planted plants in the road side in areas like Gulshan, Baridhara etc. Archeological Excavation: Grameenphone has funded the archeological excavation at Waribateshwere (Narshingdi). Archeological findings there have already established presence of civilization of 3000 years old. Maintenance of Chittagong Railway station (old): Grameenphone has financed the renovation and continued preservation of old railway station of Chittagong, a national heritage site.

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