IB,lauch of mobile plan,international business.

1. Launch of Mobile Handsets in Asia
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2. Guess?
Where to launch
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3. Recent News
Chinese Cellphone Handset Manufacturer Eyes Bangladesh Market
Handset maker Micromax last week announced its foray into Bangladesh
and said it will launch 12 cellular phone models priced between 2,000
and 16,000
Axiata (Bangladesh) Ltd has rebranded itself with a new look by
introducing Robi, the new brand name for the company, to take its
products to the mostly untapped rural market.
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5. • Demographics
– Legal System Based on
English Common Law
– Population Density (2007E)
952 per sq. km
– Area 147,570 sq. km
• Literacy Rate of ages 15 and
above
– Male: 53.9%
– Female: 31.8%
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6. Economic Indicators
• GDP per capita average annual
growth rate (%), 1990-2009 = 3.4
• Population
– - 2011 estimate -142.3 million (8th)
• Density
– 1,099.3/km2 (9th)
• Average annual rate of inflation (%), – 2,917.6/sq mi
1990-2009 =4
GDP (PPP) 2010 estimate
- Total $258.608 billion
- Per capita $1,572
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7. Existing conditions
• serious overpopulation,
• widespread poverty
• Tropical zone
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8. Telecom conditions
• Telephone density is • There are 376 Internet
less than 1 per 100 hosts with 10 ISP’s and
persons. 450,000 internet users
• Mobile cellular density as of the year 2006.
is 13 per 100 per
person.
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9. Why bangla
• According to BIS Shrapnel research,
– Bangladesh’s mobile handset market is dominated by first-
time users (nearly 85%), as the country is still in its
immaturity in terms of mobile phone usage.
– Further, 80% of the handset market is dominated by ultra-
low to low-end handsets, available for less than US$68,
due to the country’s low per capita income levels.
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10. • Bangladesh is a country which is densely populated and
also is a flat and easily extends able coverage.
• The infrastructure and Tele-density is low which on the
other hand made the market a perfect place for telecom
business.
• The demand is very high and the consumer base is very
large but the investment is low because of the topographic
layout.
• The government has a receptive foreign investment policy
with no restrictions on repatriation of profit.
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11. Favourable conditions
• Despite Bangladesh is a big market, liberal government policies to encourage the
foreign investor to invest in the country are very attractive. Some of them are
given below.
– Tax exemption – 5 to 7 years depending on the area of investment.
– Duty – for export oriented industry, the import duty is 0% and for other industry it is 5%.
– Tax law – In case of bilateral agreement, double taxation could be avoided.
– Exemption of income tax up to 3 years for expatriate person.
– Remittance – The investor can transfer the whole profit and dividend to his
native land.
– Ownership – 100% self owning is allowed and also joint venture is encouraged.
• Cheap skilled labor is the significant competency of Bangladesh ICT industry. The
labor force is easily trainable and has the capability to learn quickly
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12. Why telecom
• Bangladesh has become a significant hub for
telecoms.
– It has been forecasted that the average revenue from
telecoms sector will be Tk1500crore2 a year.
– Even though the current infrastructure is not much
developed but it is suitable for foreign investment.
– expecting 194.990mn subscribers by 2015,
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13. What existing players are working at
• According to Mr Shah ,a researcher
– foreign operators, in collaboration with local
partners, have been working with the
infrastructure to remove entry barriers and make
mobile telephony more affordable and widen the
base of mobile subscribers.
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14. Political Factors
• Political environment in Bangladesh is always unstable.
• Frequent changes of government and policymakers'
reluctance or incapability to implement or design progress
oriented policies is a major drawback for the telecom industry,
an industry that is constantly changing in terms of technology.
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15. Economic Factors
• In context of customers' buying power, in many ways
Bangladesh is a poor country.
• With a low GDP per capita and a majority of the
population under poverty level, to much of the
population, a mobile phone and a network subscription
is a luxury.
– However, the emergence and rapid spread of pay phone
stalls utilizing mobile phones, has eased usage somewhat
for these customers.
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16. Social factors
(Social factors include health consciousness, population growth rate, age
distribution, career attitudes, and emphasis on safety.)
• The telecom industry has definitely made an impact on
the job market of the country, taking in thousands of
employees and creating new career opportunities
everyday.
• The overuse of mobile phones has often triggered
arguments regarding safety, but the Bangladesh market
does not regard it as a threat.
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17. Technological Factors
• Sadly Bangladesh does not have an infrastructure that
allows for research and development of large scale.
– While Bangladesh's policies and government processes
hamper fast technological change, the telecom industry
has in many ways influenced the both the public and
private sector to invest and bring in new technology such
as WiMax and submarine cable, although limitations have
not allowed these technologies to flourish.
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18. Environmental factor
• Due to the environmental facts(tropical zone),
the foreign entrants should adjust their
equipments according to demand of the
environment
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20. Operators handset co.
• Nokia
• Airtel Bangla • Siemens
• Samsung
• Banglalink • motorola
• China phones
• Citycell • All other popular brands
• Grameenphone
• Robi
• TeleTalk
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21. Porters national diamond.
Factors Conditions Notes
Factor conditions Goood Cheap and skilled labor,
Good communication
infrastructure, low
Teledensity
Demand condition High unsaturated ruralmarket.
Mobile cellular density is
13 per 100 persons
Supporting industries low Grameenphone,
Ericcson??
Government Policies Very liberal Easy licensing, Tax free
time, less interference
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23. BCG matrix
• (relating mobile phone industry to the matrix).
• As market growth potential for mobile phone industry has
become low because of possible market saturation, so
firm's of the industry are in either cash cow or dog
quadrants.
• companies like GP, Banglalink, Citycell are in cash cow
quadrant.
– They have done their initial investment, infrastructure
development is completed, and now their target is revenue
generation.
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24. So Our way of doing business here.
• JV with grameenphone
• Manufacture mobile handsets in bangladesh
itself and sell through a established telecom
operator company which facilitates us to
target rural market.
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25. “Grameenphone”
a largest cellular operator in the Bangladesh
To act as selling company for our products.
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26. Our products & STP
Product 1 Product2
Models “Villaphone” “NetFone”
Segmentation
Rural, urbanmarket,tech-educated ,illiterate,
Target Rural ,village Educated youth
people,illiterates, (age 18 to 34) and
Netizens,
Positioning easily operated phone for Specially designed for Net
people with zero education browsing
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27. 4P’s
Product 1- “Villaphone” Product 2 “NetFone”
Product •Ease of use for uneducated •Qwerty keypad
•Interactive Voice guided colour key •GPRS/EDGE/Wi-fi/3G enabled,
pad,local language •Designed for easy use of net in phone.
•FM •Design for easy connect to pc.
•No high end features to confuse villagers. •With free grameenphone sim bundled
•With free grameenphone sim with VAS.
Price Below 1000 On par with competitor prices
Place Rural – thru “Community information Urban – thru “Grameen phone centres”
centres” (Grameen rural centres)
Promotion Village phone agents, Combined Media advertisement with
grameenphone
strategy Cost leadership and focus in rural areas Differentiation and focus in urban areas
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28. About Our partner company-
Grameenphone –a market leader
• (GP)
– is the leading telecommunications service
provider in Bangladesh.
– With more than 32 million subscribers (as of June
2011)
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29. • The goal of Grameenphone is to provide affordable telephony to
the entire population of Bangladesh.
• Grameenphone has built the largest cellular network in the country
with over 10,000 base stations in more than 5700 locations.
• The entire Grameenphone network is also EDGE/GPRS enabled,
allowing access to dial-up quality speed Internet and data services
from anywhere within the coverage area.
– There are currently nearly 3 million EDGE/GPRS users in the
Grameenphone network.
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30. • Presently, nearly 98% of the country's
population is within the coverage area of the
Grameenphone network.
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31. of GP
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32. Its way of formation and how it is advantage to us.???
• Inspired by the Grameen Bank microcredit model Mr. Iqbal Quadir
formed a consortium with Telenor and Grameen Bank to establish
Grameenphone.
• GP is a joint venture enterprise between Telenor and
Grameen Telecom Corporation,
– GTC is a non-profit sister concern of the internationally
acclaimed microfinance organization and community
development bank Grameen Bank.
– Telenor is the largest telecommunications company in Norway,
owns 55.8% shares of Grameenphone,
– Grameen Telecom owns 34.2% and the remaining 10% is
publicly held. 32

33. DISTRIBUTION through??
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34. 2. Their “Community Information Centers”
OUR would-be RURAL OUTLETS
Here we sell our handsets & train them how to use it 34

35. • Community Information Center (CIC) is aimed at providing
internet access and other communications services to rural
areas.
• Grameenphone provides GSM/EDGE/GPRS infrastructure and
technical support.
• other partners Grameen Telecom Corporation and Society for
Economic and Basic Advancement (SEBA), are involved in
selecting and training entrepreneurs to run the village
centers.
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37. Their Village Phone programme
- a source of potential sales agents for our company
• With the help of Grameenphone, Grameen Telecom operates the national
Village Phone programme, alongside its own parent Grameen Bank and
the International Finance Corporation (IFC), acting as the sole provider of
telecommunications services to a number of rural areas.
• Most Village Phone participants are women living in remote areas. (our
potential sales agents)
• Village Phone works as an owner-operated GSM payphone whereby a
borrower takes a BDT 12,000 (USD 200) loan from Grameen Bank to
subscribe to GP (Grameenphone) and is then trained on how to operate it
and how to charge others to use it at a profit.
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38. We are the only ONE provider of telecom to rural areas
• As in September 2006, there are more than
255,000 Village Phones in operation in 55,000
villages around Bangladesh.
• It is the sole provider of telecommunications
services to a number of rural areas.
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39. • By the end of 2006, there
were more than two
hundred seventy-eight
thousand village phone
ladies who have together
taken loans amounting to
Tk. 2,397.10 million.
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40. VRIO
• these unique Sales & distribution Network
especially in rural market are valuable, rare,
unimitable and organised which gives us
sustainable competitive advantage over
others.
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41. 2. GrameenPhone Centers –our would-be urban
outlets
A gpc at Gulshan, Dhaka. A franchised gpc at Tejgaon, Dhaka. 41

42. Grameenphone Centers
• A grameenphone center (GPC) serves as a "one stop solution" for
customers, with all telecommunications products and services, under a
single roof.
• A grameenphone center also sells phones from vendors like Nokia,
Samsung, Motorola, Sagem and Benq. EDGE/GPRS modems and
accessories such chargers and headphones are also sold at GPCs.
• As of September, 2007, there are 76 GPCs and they are strategically located
at all major locations of the country is operated by Grameenphone. As of
late most of the newly opened gpc's are franchised. Most of these
franchised outlets are in non-metropolitan areas.
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43. • The GPCs also provide the flexiload service without charging extra
for small denominations unlike many retailers in the country.
– Thus making the gpc's an ideal place for many for such a service.
• Every once a while, the GPCs tie up with handset
manufactures and start a nationwide marketing
scheme by selling the specific vendors products at a
price lower than the market's or in bundle with a
grameenphone connection loaded with free minutes.
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44. (GP VAS to offer with our Netfone)
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45. Porters 5 forces
Five forces Five forces Strength(roughly)
Entry Barriers Low
Bargaining power of low
customer
Bargaining power of moderate
suppliers
Availability of substitute moderate
Existing competitive high
pressure
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46. Competitors
• As with many other Asia-Pacific countries,
– the Bangladesh mobile handset market is predominantly captured by global
handset giant Nokia (approximately 52% market share) followed by Siemens.
– the success of these two vendors can be attributed to excellent handset
quality, ease of use, an efficient sales and distribution network, dedicated
after-sales service, and regular launches of low-priced handsets to meet
market demand.
So to compete them ,to take technological collaboration of Swedish company
Ericsson which is existing in bangla as telecom infrastructure provider to network
operators.
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47. Risk/threat - greymarket
• sales of mobile handsets has increased at a phenomenal pace.
• However,
– nearly 70% of mobile handsets available in the local
market have been entering through informal channels,
depriving the Government and importers of a huge
amount of revenue each year.
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48. Govt measures to greymarket effects
• In a serious bid to turn around this drastic situation, the
Bangladesh Government reduced the tax on mobile handset
imports from US$22.50 to only US$4.50 in mid 2005.
• this initiative has revived the situation to a certain extent, the
effect on the grey market has not been as significant as was
expected by distributors and importers.
• the grey market is currently holding around 40% market
share, but they are hopeful this will diminish over the coming
months.
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