Download Marketing Management(Porter Model, SWOT and PEST Analysis of Grameenphone Limited) PDF

TitleMarketing Management(Porter Model, SWOT and PEST Analysis of Grameenphone Limited)
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Page 7

Intensity of rivalry:
♦ The structure of competition: Absolutely GP is a market leading

company of our country. GP provides highest value rather than other
operators. GP has the highest number of customers’ and they have a
strong network and market system rather than other competitors.

♦ The structure of industry costs: GP takes some stapes or
strategies, when the competitors give any advertisement. When
needed, they can easily cut the price.

♦ Switching cost: Buyers need not to switch. If anyone wants to switch
then, buyers have to carry a high value.

♦ Exit barriers: Now a day, Teletalk, Citycell and Robi can any time out
of market. Because their market system too much poor rather than GP.
They can’t compete with GP.

SWOT Analysis
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

 Low start up cost: A low start up cost required to reach out to the

 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

 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

7 “Porter model, SWOT and PEST Analysis of Grameenphone Limited”

Page 14


GrameenPhone started its journey 10 years back with a believer of “Good
development is good business”. Since its inception, GrameenPhone has
been driven to be inspiring and leading by example, when it comes to
being involved in the community. GrameenPhone believe that,
sustainable development can only be achieved through long term
economic growth. Therefore, as a leading corporate house in Bangladesh
GP intend to deliver the best to their customers, business partners,
stakeholders, employees and society at large by being a partner in

GrameenPhone defines Corporate Social Responsibility as a
complimentary combination of ethical and responsible corporate behavior
as well as a commitment towards generating greater good in society as a
whole by addressing the development needs of the country.

To interact effectively and responsibly with the society and to contribute
to the socio-economic development of Bangladesh, GrameenPhone has
adopted a holistic approach to Corporate Social Responsibility, i.e.
Strategic & Tactical. Through this approach GP aims to, on the one
hand involve itself with the larger section of the society and to address
diverse segments of the stakeholder demography, and on the other
remain focused in its social investment to generate greater impact for the

GrameenPhone focuses its Corporate Social Responsibility involvement in
three main areas - Health, Education and Empowerment. They aim to
combine all their CSR initiatives under these three core areas to enhance
the economic and social growth of Bangladesh.

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.

14 “Porter model, SWOT and PEST Analysis of Grameenphone Limited”

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