ASSIGNMENT

Name: Jarka Mollick Chithe

ID: 2112199630

Subject: MGT489

Section: 04

Faculty: Quazi Tafsirul Islam

Analysis of the Strategic Management Process in Grameenphone

Introduction
Grameenphone has more than 80 million customers, making it Bangladesh's largest telecom

operator. Being a Telenor Group's subsidiary, it is one of the levers that has facilitated the

digitalization of the nation. The strategic management includes formulation, implementation,

and further evaluation of the strategies for the success to be achieved by the organization. The

present study aims to assess the profile of Grameenphone and its strategic management as a

means of market dominance. The process of strategic management within Grameenphone

starts with external and internal environment analysis.

External analysis

Grameenphone's PESTEL analysis has its external environment such as government policies

to tax telecom companies, policies pertaining to distribution of communication spectra and

other aspects. This includes amongst others government policies such as laws that control

distribution of spectrum and taxes applicable to the telecommunication industry (Hossain &

Kabir, 2020). To assess industry attractiveness and the competitive environment of the

telecom industry in Bangladesh, Grameenphone employs Porters five forces framework that

assesses the threat from suppliers and buyers, the competition from existing players such as

Robi and Banglalink and entry of new players (Rahman, 2021).

PESTEL analysis

Political Factors: Grameenphone is subject to various laws imposed by the government and

these laws influence the company’s business activities and include but are not limited to

taxation on telecommunication and the distribution of spectrum.

Any changes in taxes as well as trade laws or laws governing the implementation of 4G or 5G

will affect the company instantly. It is equally important to maintain peace and stability to

allow the expansion of the network and the acquisition of new customers.

Economic Factors: The performance of Grameenphone’s profitability is subject to the

economy of Bangladesh which encompasses, among other things, consumer purchasing

power,

inflationary trends and the volatility of exchange rates. Variations in currency rates

affect the price equation of several inputs including imported technology,

that is often quoted in foreign currencies.

Social Factors: Growth in the demand for telecom services has been fueled by a

rise in the population’s usage of mobile phones across all age groups whether at the

urban or rural set-up. Structural shifts in customer behavior that call for modifying

Grameenphone’s product centered on services include the growing desire for

data services, use of social platforms and mobile amusement.

Technological Factors: Grameenphone has gaps to raise its service delivery due to the

improvements on mobile networks such as 5G, the Internet of Things, and

artificial intelligence. Other things include the necessity to invest in advanced technologies,

the increase of network size, and improved speed of the internet in order to stay in the race.

Environmental Factors: Grameenphone has to follow the policies governing the energy

consumption especially the e-waste component. Green technology and green practices are

being pushed by the global telecommunication carriers more and more.

Legal Factors: Grameenphone has to note various telecom regulations which include

however not limited to laws on network protection, service tariffs, service quality and service

rates. The company also has to take care of non-deceptive advertising rules and data

protection laws.

Porter’s Five Forces Analysis (Market Dynamics)

New Entrants Threat: Government policies, unrealistic costs associated with infrastructure

development and spectrum acquisitions are major factors that increase the entry barriers. On

the other hand, interestingly; the concept of intelligent digital services lowers these barriers.

Suppliers Bargaining Power: Grameenphone is such a big corporation that its negotiating

power is very high but also the current changes in the global supply chain can help existing

suppliers.

Customer Bargaining Power: Moderate because problematic provider transfers are common

for customers. However, this threat is less because of high switching costs and extensive

network coverage.

Threat of Substitutes: Although messaging apps like WhatsApp provide free options, they

still rely on telecom networks.

Competitive Rivalry : fierce rivalry in terms of costs, services, and coverage with Robi and

Banglalink. Innovation and brand loyalty are essential for maintaining competitiveness.
Internal Analysis
Grameenphone use the SWOT analysis method internally to assess business opportunities,

threats, weaknesses, and strengths. Its excellent network infrastructure is one of its main

advantages since it offers wide coverage even in isolated locations (Rahman & Hossain,

2019). Because of its customer-focused innovations, the company also enjoys brand loyalty.

However, it has drawbacks such heightened regulatory scrutiny and dangers associated with

currency fluctuations (Grameenphone, 2022).

SWOT

Strengths: Financial stability, a large network, and great brand loyalty.

Weaknesses: Dependency on mobile data, regulatory restrictions, and currency issues.

Opportunities: implementation of 5G, expansion of rural markets, and growth of digital

services.

Threats include technology disruptions, regulatory obstacles, and competition.

Strategy Formulation
With the goal of supporting Bangladesh's ambition of becoming a digital nation,

Grameenphone's objective is to empower society through digital communication

(Grameenphone, 2022). The company's strategic strategy is centred on growing its subscriber

base and introducing new digital offerings. To synchronise its goals across the financial,

customer, internal processes, and innovation domains, the organisation uses strategic tools

such as the Balanced Scorecard (Kaplan & Norton, 1996). In keeping with its plan,
Grameenphone keeps developing its mobile internet offerings to satisfy the rising demand for

data, especially in rural areas.

Strategy Implementation
In order to put its plans into action, Grameenphone has set up its organisation to encourage

cooperation between critical divisions including customer care, marketing, and technical.

Expanding its 4G network to achieve statewide coverage, especially underserved locations, is

one of its primary strategic priorities (Hossain & Kabir, 2020). Digital platforms like MyGP,

a self-service app that improves user experience by offering simple access to services, have

also been introduced by Grameenphone (Grameenphone, 2022). A key factor in guaranteeing

the effective execution of a company's strategy is its leadership. The CEO and upper

management are in charge of spearheading important projects and coordinating the

company's culture with its strategic objectives. According to Rahman and Hossain (2019),

Grameenphone's agile culture facilitates swift adaptation to market fluctuations, hence

enabling the company to achieve its strategic objectives.

Strategic Control and Evaluation

To monitor and assess the efficacy of its strategies, Grameenphone employs a range of

performance measures. The metrics used to monitor progress include customer happiness,

revenue growth, and network uptime, or key performance indicators (KPIs) (Grameenphone,

2022). Competitive Advantage and Market Position

Balanced Scorecard offers a performance tracking framework in four dimensions, namely

financial, customer, internal business processes, and learning and growth (Kaplan & Norton,

1996). Further, routine evaluations increase the corporation’s ability to adapt its strategies to
changes in the market or operational issues. Hossain and Kabir (2020) argue that

Grameenphone makes market surveys and consumer surveys so as to analyze people’s trends

in order to adjust its products effectively and timely.

As for Grameenphone’s strategic choices, these have been important in preserving the bulk of

the company’s telecommunications market shares in Bangladesh. The company has been able

to be on the leading edge of its competition due to the strong network infrastructure and

customer-focused approach. Grameenphone's dominance in the mobile internet sector has

also been driven by the investments made in mobile data networks, which the company has

used to gain a large market cut (Rahman, 2021). In addition, the Telenor Group’s strong

financial backing gives room to the company to continually invest in new technologies and

services, which secures its position in the market. Its commitment to social responsibility

through various initiatives including those focused on digital health and education,

contributes to customer retention and improves the brand (Grameenphone, 2022).

Challenges and Solutions

The strategic management of Grameenphone achieved many objectives; however, it has also

faced various issues in the process. In the opinion of Rahman and Hossain (2019), the

profitability of the entity has been affected by the imposition of fines and engagement in

financial conflicts as a result of the company being regulated by the Bangladesh

Telecommunication Regulatory Commission (BTRC). Grameenphone has tried to fix the

issue by addressing the regions and coordinating the relevant laws. There is additionally a

problem of increasing competition from other companies, the likes of which are Banglalink

and Robi. The latter launched aggressive pricing techniques, leading Grameenphone to focus

on enhancing customer care services and the quality of its network (Hossain & Kabir, 2020).
Technological advancement is also another issue, for instance, the speedy rise of 5g networks.

In order to keep pace with the ever-changing markets, Grameenphone is investing money into

research development (Grameenphone, 2022)

Conclusion
And over all these years, the all-important determinant of Grameenphone’s indefinite growth

has been its strategic management system of careful analysis, planning, implementation, and

advance control. Grameenphone has remained at the helm of the telecommunications market

in Bangladesh, exploiting its strengths in network and customer service provision. This also

explain why, despite the long term nature of their business, the firm finds it relatively easy to

cope with the expected changes in the external business environment.

Strategic Recommendations for the Development of Bangladesh

Introduction
Over the past few decades, Bangladesh, a South Asian country with a rapidly

expanding economy, has significantly improved its standard of life and reduced

poverty. But in order to go from being a developing country to a developed one,

Bangladesh needs to make deliberate investments in infrastructure, technology,

healthcare, education, and agriculture.Over the past few decades, Bangladesh, a

South Asian country with a rapidly expanding economy, has significantly

improved its standard of life and reduced poverty. But in order to go from being

a developing country to a developed one, Bangladesh needs to make deliberate

investments in infrastructure, technology, healthcare, education, and

agriculture.Bangladesh is at a turning point for strategic development given the

changing socio-political environment brought about by the student-led

revolution and Dr. Yunus's nomination as the interim head of state.

SWOT Analysis of Bangladesh

Strengths
Growing Economy: Bangladesh's export industry, especially in textiles, has

consistently increased GDP growth, which is important because the sector is

still a major pillar of the country's economy.

Strong Remittance Flows: The nation's foreign exchange reserves are

considerably bolstered by the enormous remittances received from its diaspora.

Strategic Location: Bangladesh has the potential to develop into a regional

logistics hub due to its location close to important trade routes.

Young and Expanding Workforce: With more than 50% of the population under

30, there is a large pool of workers available for both home and foreign markets.

Strong Agricultural Foundation: The nation's economy mostly derives from

agriculture, with rice, jute, and fisheries being the main contributors.

Weakness

Political Uncertainty: Dr. Yunus's establishment of a new temporary

administration and Prime Minister Sheikh Hasina's unexpected departure have

both led to political unpredictability. Deep unhappiness with career chances and

government is seen in the latest student protests.

Corruption: Attempts to lessen it have not been successful, and it continues to

be a major problem that impacts public services, government, and the

investment climate.
Low Levels of Education and Skill Development: Despite the youth of the

workforce, there are serious problems facing the educational system, including a

high dropout rate and a skills gap in the job market.

Inadequate Healthcare System: Inadequate infrastructure for providing

healthcare, particularly in rural areas, has resulted in lower productivity and

worse health outcomes.

Underdeveloped Infrastructure: Inefficiencies result from roads, ports, and

energy supplies that are frequently insufficient to fulfill the economy's

expanding demands.

Opportunities

Population Dividend: Bangladesh's youthful and sizable population has the

potential to spur economic growth and innovation, especially in the technology

and service industries, if properly utilized.

Worldwide Assistance: Bangladesh can obtain foreign funding and assistance to

further its objectives for renewable energy and infrastructure development

thanks to the global emphasis on sustainable development and Dr.Yunus.

Digital Transformation: Bangladesh has the chance to use technology to further

its economy thanks to the quick rise in mobile and internet usage.

Agriculture Modernisation: The agriculture industry may greatly boost

sustainability and productivity by implementing cutting-edge farming methods.

Threats

Rising Unemployment: The pressing need for work solutions is highlighted by

the continuous protests, which are being spearheaded by students who are fed

up with the lack of jobs. Social stability is seriously threatened by youth

unemployment and a shortage of skilled jobs.

Climate Change: Due to its high frequency of natural catastrophes like cyclones

and floods, Bangladesh is one of the most vulnerable nations to climate change

as it can hamper agricultural productivity and displace communities.

Political instability: Despite recent political stability in the nation, political

volatility is always a possibility and could discourage investment.

Global economy fluctuation: Bangladesh is vulnerable to trade disruptions and

downturns in the world economy because of its heavy reliance on exports.

Strategic recommendations
1.Investment in Education and Skill Development

Investing in education and skill development is one of the strategic

recommendations. Bangladesh's demographic dividend must be turned into a

strength, and this requires education. The protests by students draw attention to

the gap that exists between the needs of the labor market and the current

educational system. Youth with the necessary skills for new industries like
technology and services will benefit from a stronger emphasis on technical and

vocational training (TVET) and digital literacy programming.

Implementation:

In order to provide TVET institutions with modern curricula that satisfy

industry demands, public-private partnerships should be established. In order to

equip students for the global labor market, introduce specialized degrees in data

science, AI, coding, and digital skills. Encourage the private sector to participate

in educational reform by establishing government incentives.

2.Infrastructure Construction

Infrastructure investment is essential to maintain long-term economic growth.

The government now has the chance to give infrastructure development a higher

priority, particularly in the areas of energy and transportation.

Implementation:

Enhance the road and rail networks as a top priority to facilitate trade and

commerce by linking industrial centers and rural areas. Increase the scope of

renewable energy projects to fight energy shortages and lessen reliance on

imports. Seek for financial and technical assistance for major infrastructure

projects from international development partners.

3.Agriculture's Technological Advancements

Though it faces obstacles from antiquated methods and climate change,

agriculture is nevertheless essential to Bangladesh's economy. Productivity and

sustainability could be significantly increased by incorporating technology into

farming techniques.

Implementation:

Encourage resource-saving, yield-maximizing farming practices like precision

agriculture. Fund crop research and development to make crops resistant to

climate change. Increase the availability of agricultural extension services that

instruct farmers in new techniques and technology while emphasizing

sustainability

4.Infrastructure Development for Healthcare

Bangladesh's healthcare system is still unable to provide for the needs of the

whole population, particularly in rural areas, despite improvements. Healthcare

access disparities between urban and rural areas could be lessened by

concentrating on telemedicine and building out healthcare infrastructure.

Implementation:
Increase telemedicine networks, particularly in underserved areas, and promote

private investment in digital health solutions to make the most of technology.

Assist metropolitan hospitals by creating regional healthcare hubs with skilled

personnel and state-of-the-art equipment. Deploy national health insurance

programs to guarantee access to high-quality care for even the most

marginalized communities.

How to get these strategies in action?

Collaboration between the public and commercial sectors is crucial to putting

these initiatives into action. Under Dr. Yunus, the interim administration has

demonstrated a desire to change governance through the advancement of

openness and anti-corruption initiatives, which may stimulate private sector

involvement.

The government’s responsibility entails creating regulatory frameworks that

allow for entrepreneurship, investment promotion in balance of payments,

making private and foreign direct investments easy, and setting up vital sectors

such as infrastructure. Encourage infrastructure and technology-enhanced

solutions by working with the

private sector.
The role of private sectors: Invest in and build capacity of universities and IT

companies to help nurture talent and create employment. Engage in public-

private partnerships (PPP) to better the transport, health and renewable energy

sectors.

What are the challenges and barriers?

1.Political Risks: Investors may be discouraged by the present precarious

political situation due to the transitional government in place.

Solution: The transitional government should work towards fair and successful

elections in order to restore the confidence of the investors.

2.Corruption: Regrettably, it hampers the effective administration and

economic progress.

Solution: Digitalise governance systems to enhance transparency and strengthen

the anti-corruption agencies.

3.Bureaucratic obstacles: Factors like lengthy bureaucracies, excessive

paperwork, and long waiting periods for approvals lead to project completions

beyond deadlines and the decline of investor confidence. This therefore causes
economic development in the country to be stagnated and investors’ appetite for

risk dampened.

Solution: To address the above mentioned challenges, it is recommended the use

of e-governance systems in administrative processes so that approvals can be

processed faster; there is less documentation while improving monitoring and

accountability levels.

4.Resource constraints: Funding limitations faced by the government of

Bangladesh compel the government to prioritize its spending on areas such as

infrastructure and technology with the highest expected returns in the long run.

Solution: In order to ease the financial burden on oneself, it is recommended to

use public-private partnerships (PPPs) throughout the transitions while aiming

at the strategic development of the key sectors only. Increase resource

mobilization by stopping systemic corruption, increasing taxation efforts, and

securing external aid.

Conclusion
Bangladesh social political and economic developments bring both

opportunities and challenges. Short term socioeconomic challenges like political

unrest, and unemployment can be remediated by making bold strategic

investments in infrastructure, agriculture, health, and education so that the

country positions itself for long term achievement.The attainment of

development objectives and the management of the intricate political

environment will require cooperation between the public and private sectors.

References
1.Grameenphone.(2022).*AnnualReport2022*.

https://www.grameenphone.com/about/investor-relations

2.Hossain, M., & Kabir, M. (2020). Strategic analysis of Grameenphone Ltd:

Key factors influencing its success in Bangladesh. *International Journal of

Business Management, 12*(3), 34-45.

3.Kaplan, R. S., & Norton, D. P. (1996). *The Balanced Scorecard: Translating

strategy into action*. Harvard Business School Press.

4.Rahman, S. (2021). Grameenphone’s market leadership: A case study in

Bangladesh's telecom industry. *Journal of Telecommunications Studies, 8*(2),

45-60.

5.Rahman, S., & Hossain, T. (2019). Regulatory challenges and competitive

strategies in the telecom industry of Bangladesh: A study of Grameenphone.

*Bangladesh Journal of Business Strategy, 14*(4), 28-39.