Banglalink Case

BUS 101

SEC-21

An in-depth managerial analysis on

BANGLALINK

GROUP MEMEBERS:

ACKNOWLEDGEMENT

Preparing this Report has been a great challenge for all us as this is our first time doing such a thing. Since the starting of our research we have come across many confusions and dead-ends, but nevertheless, we managed at the end thanks to the immense support of our faculty, Noor-E-Hasnin. We are grateful to her for guiding us and helping us finish the term paper.

We would also like to thank the Banglalink management for giving us their precious time and helping us out especially by sharing the details of their products/services and their organogram. They also helped us gain first-hand knowledge and insight into their operations which was a great assist while we carried out the SWOT analysis.

Finally, we would like to thank each other for the tremendous cooperation we shared among ourselves as group members. Our dedication and strong teamwork has resulted in the successful completion of this project. We learned extensively in the field of strategic marketing from our work. This assignment has also helped us gain some practical exposure and has exposed some interesting information about Banglalink and the telecommunication industry of Bangladesh as a whole.

SCOPE AND LIMITATIONS

We tried hard to complete the analysis as best as we could; however I am afraid that there are still certain limitations. Most importantly we could not provide the articles and bylaws of the Banglalink Corporation as they are kept confidential by the company. Another limitation might be that this is the first time we have undertaken such a project and so it might not be as detailed or accurate as you would like it to be due to our lack of experience. We hope you will view these in a forgiving manner.

3. LITERATUTE REVIEW

3.1 COMPANY INFORMATION:

Orascom telecom Bangladesh limited ("Banglalink") is fully owned by orascom telecom holding s.a.e, Egypt, ("oth"); the ultimate parent company of the group is vimpelcom, the 6th largest mobile phone operator in the world. Banglalink was acquired by oth in 2004, and after a complete overhaul and the deployment of a new gsm network, its telecommunication services were re-launched under the brand name Banglalink. When Banglalink began operations in Bangladesh in February 2005, its impact was felt immediately: overnight mobile telephony became an affordable option for customers across a wide range of market segments.

Banglalink's success was based on a simple mission: "bringing mobile telephony to the masses" which was the cornerstone of its strategy. Banglalink changed the mobile phone status from luxury to a necessity and brought mobile telephone to the general people of Bangladesh and made a place in their hearts. The mobile phone has become the symbol for the positive change in Bangladesh.

This positive change that is quite correctly attributed to Banglalink, has become the corporate positioning of Banglalink and is translated in their slogan "making a difference" or "din bodol". "Making a difference" not only in the telecom industry, but also through its products and services, to the lives of its customers. This corporate stance of "making a difference" has been reflected in everything Banglalink does.

Banglalink attained 1 million subscribers by December 2005 and 3 million subscribers in October 2006. in less than two years which is by December 2007, Banglalink overtook aktel to become the second largest operator in Bangladesh with more than 7.1 million customers. Banglalink currently has 20.05million subscribers as of April 2011, representing a market share of 27.03%

Growth over the last years have been fuelled with innovative products and services targeting different market segments, aggressive improvement of network quality and dedicated customer care, creating an extensive distribution network across the country, and establishing a strong brand that emotionally connected customers with Banglalink.

3.2 COMPANY MISSION AND VISION:

Although Banglalink does not have a clear detailed vision and mission statement, it does claim to have a certain mission and core values. As given in their annual report, they are:

Our

mission

Banglalink understands customer needs best and will create and deliver appropriate communication services to improve people's lives and make them easier.

Our core values

All employees of Banglalink demonstrate the following values in their day-to-day activities to ensure "making a difference" in every area of operations:

Straightforward

We say what we do & we do what we say

Reliable

A promise made is a promise kept

Innovative

Whatever we do will be useful and useable

Passionate

We always deliver with honesty and passion

3.3 Organizational Structure:

4. FORMATION OF BANGLALINK BUSINESS:

4.1 ARTICLES AND BYLAWS OF BANGLALINK CORPORATION:

Banglalink keeps the articles and bylaws of its corporation confidential. However, we found details of its shareholders in their annual report. They are given below:

Orascom Telecom Bangladesh Limited is 99.999% owned by Orascom Telecom Ventures Limited (OTV), which is a fully owned subsidiary of Orascom Telecom Holding S.A.E. (OTH). Orascom Telecom is a leading international telecommunications company, operating GSM networks inhigh growth markets in the Middle East, Africa and Asia. It has a total population under license of approximately 510 million, with an average mobile penetration of approximately