Marketing Management (Porter Model, SWOT and PEST Analysis of Grameenphone Limited)
Marketing Management (Porter Model, SWOT and PEST Analysis of Grameenphone Limited)
Marketing Management (Porter Model, SWOT and PEST Analysis of Grameenphone Limited)
Submitted to
Farhana Noor
Lecturer,
Department of Business Administration
Faculty of Business & Economics.
Submitted by
Name ID
Md. Tanvir Hasnat Shuvo 071-11-1697
Alauddin Ahmed Jahan 072-11-1822
Md. Obaidul Arif Khan 071-11-1761
Md. Zobair Ali 072-11-1814
Md. Rashdur Rahman 072-11-1823
Airtime
Airtime is the core offering of GrameenPhone. So, quality of communication,
network availability etc. are the most important customer satisfaction
factors. Quality of airtime depends on the ratio of subscribers and
transmission base stations. If the numbers of subscribers are increased
without developing the network, quality of airtime goes down.
Hotline
The centralized Call Management Center in Dhaka is manned by trained
professionals and is opening round-the-clock, responding to subscribers’
queries from all over the country where GrameenPhone has its coverage.
GrameenPhone Ltd has recently introduced a single dedicated hotline
number 121 for all of its subscribers to provide instant service. At present
there are more than 450 dedicated and energetic employees are working to
provide instant over phone service to the subscribers. Call Management
Center is well equipped with state of the art software’s and other important
tools through which most of the problems of the subscribers can be solved
instantly. Call Management Center remains open 365 days a year and 24
hours a day.
Customer Communication
The centralized Customer Communication located in Dhaka, handles written
requests of subscribers, both verbally and in writing 7 (seven) days a week
from 8 AM to 8 PM. Customer Communication deals with all sorts of written
complain received through fax, letter by post and e-mail. It also builds
relationship with the valued subscribers on a regular basis. The major
responsibility of the unit is to maintain relationship with the high users and
ensure that the present subscribers are not going to switch to other
operator.
Travelers To Customer
“Travelers to Customer” is another recent addition of service in Customer
Service Department which is also the first time of its kind in the country. The
major responsibility of this unit is to provide service at the customer’s
doorstep with the slogan of “Let’s not expect the customers to travel to
get the service rather let service travel to the customers”. Currently
it’s providing service in the major cities of the country and to the high
volume users of GrameenPhone.
Entry of competitors
♦ Economic of Scale: it is very easy for GP to increase economic scale.
With 23 million subscribers, more than 40 percent market share, and
billions of dollars invested in Bangladesh, GrameenPhone is meeting
the scale and scope of the challenge—and unleashing widespread
social benefits in the process.
♦ Capital: GrameenPhone has a huge amount of capital mainly invested
by the shareholders. Capital size is $280 million. Moreover, global
institutions like IMF, World Bank etc. have sanctioned loan for GP. This
is a huge success for GP. GrameenPhone total capitalization was
US$120,000,000, including around US$50 million from IFC/CDC, and
the Asian Development Bank (ADB).
♦ Access Technology: GrameenPhone Ltd., Bangladesh’s largest
mobile phone operator recently opted for Oracle technologies to
streamline its business operations. The telecom major will be deploying
Oracle technology to standardize its IT infrastructure and reduce cost
of ownership, thereby enhancing customer service in Bangladesh.
♦ Customer switching costs: GP may design price-structure and
product-offerings in such a way that switching cost to any substitute
product becomes higher and buyers will stick to them.
♦ Customer loyal: Grameen Phone is losing its loyal customer to other
operators due to cheaper and attractive promotional packages from
other operators, though 98% of the population is covered by the
network of GP. For their loyal customers GP can launch promotional
packages, like loyal customer package, GP partner.
Threat of Substitutes:
♦ Quality: Grameenphone give the high standard quality through their
customers. They modified their packages for consumers’ wants and
demand. They provide various facilities, which don’t given by any other
competitors.
♦ Buyers’ willingness to substitute: The loyal GP customers don’t
move any other operator, because they have the highest number of
customers’ and a strong network protocol.
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
another 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 POS’s 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. Attractive profiling of POS which attracts the
customers.
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 GP’s rivals and by the time GP
follows suit, it would have lost the potential subscribers to its rivals.
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 GP’s image to some extent.
Lack of well-trained personnel: Because of this, the sales personnel
lack the convincing power to convince people to use GP’s connection.
Sub brands are not well established.
THREATS:
Economic
o Economic Growth: GP contribute their share in SEC. there
economic growth is rather than the other competitor.
o Unemployment policy: It is a large company and it has about
30000 employees around the country.
o Stage of business cycle: Now GP has stay in 3rd position in
maturity life cycle.
o Consumer confidence: Customer confidences of GP users are too
much high in every user sector. Business solutions for Business
persons, Djuice for young generation and other regular packages for
normal users.
o Taxation: As a SEC listed company GP’s corporate tax rate is 35%.
Another competitor’s tax rate is 45%. So they get extra benefit from
the market.
Social
o Income distribution: they are contributing their income throw
dividend to their share holders. Existing they are connect with
several social responsibilities.
o Lifestyle changes: Mobile user can change their lifecycle stricture.
Anyone can get everything through using mobile and internet.
o Education: GP contribute their existing income for the rural
education. They have a theme that, “Alo asba e”
Technological
o Govt. research spending: They are contributing with the Govt.
research spending every time.
o Industry focus on technological effort: Their technological
effort is higher than other competitors.
o Internet: EDGE system is first open by GP. They are the market
leader of mobile connection modem also.
Conclusion
As the research finding show the poor service awareness status of
Grameenphone subscribers, hence obviously GP has to increase
awareness of subscribers. Increased service awareness status will raise
the service value of GP, increase subscribers usages rate result increase
revenue for GP. If continuous development of new product and service
can’t simultaneously aware subscribers then it will neither worth much to
subscribers nor add value to the company. Hence, it is clearly observed
that there is a GAP between services provided and services awareness.
Now GP has to consider this GAP minimization and maintain alignment
with service offering and service awareness. Otherwise, in the long run
new services innovation will not give its ultimate success.