The Competitions and Industry Analysis Strategy of Banglalink™

INDIVIDUAL ASSINGMENT ON

To
Dr. Salma Akter (Assistant Professor)
Department of business Administration
MKT 430

By
SABBIR AHAMED
2016-3-10-075

1|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

Letter of Transmittal

Date: 01/12/2020
To
Dr. Salma Akter
Assistant Professor
Department of business Administration
East West University
Subject: Submission of Term paper on Banglalink

Dear ma’am,

With much respect I am submitting my term paper “The Competitions and Industry
Analysis Strategy of Banglalink™”. I have tried my best to follow your guideline and
fulfilling all the requirement you asked for. All my information’s are as authentic as possible.
I have thoroughly researched about Banglalink before making them a part of my term paper.
I am thankful to you for your guidance, suggestions they really help me to prepare this. I truly
hope that you will also enjoy knowing about the organization through my term paper.

Sincerely yours
Sabbir Ahamed
2016-3-10-075

2|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

Table of Contents
1.0 Introduction.....................................................................................................................................4
2.0 Company Profile Overview..............................................................................................................5
2.1 History of Banglalink........................................................................................................................5
2.2 Important details of “Banglalink™”..................................................................................................6
2.3 Value They Believe In.......................................................................................................................7
2.4 Banglalink™ Mission........................................................................................................................7
2.5 Banglalink™ Vision...........................................................................................................................7
2.6 Profile of the “Banglalink™” company.............................................................................................8
2.7 Products and services of Banglalink™..............................................................................................9
2.8 Prepaid packs...................................................................................................................................9
2.9 Postpaid packs.................................................................................................................................9
2.10 Value Added Services (VAS).........................................................................................................10
2.11 Banglalink Care lines....................................................................................................................11
3.0 Competitors and competitions......................................................................................................12
3.1 Banglalink competitions...............................................................................................................13
3.2Banglalink™ Industry Analysis Strategy..........................................................................................15
3.3 Competitive rivalry........................................................................................................................16
3.4 Threat of substitutes......................................................................................................................17
3.5 Bargaining power of customers.....................................................................................................18
3.6 Bargaining power of suppliers.......................................................................................................19
3.7 Threat of new Entrance.................................................................................................................19
Recommendation................................................................................................................................20
Conclusion...........................................................................................................................................21
REFERENCE..........................................................................................................................................22

3|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

1.0 Introduction
Banglalink is the second largest telecommunication company in Bangladesh right after
Grameenphone ltd. In 2004, Orascom telecom holdings purchased all of the shares of Sheba
Telecom (pvt) and after wards relaunched it as Banglalink on February 10, 2005.Today
Banglalink has the second largest market share in telecommunication business. They was also
the first company to offer free incoming calls even before Grameenphone the market leader
in Bangladesh right now.

4|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

2.0 Company Profile Overview

2.1 History of Banglalink

Banglalink was not the first name for the company, in 1989 Sheba Telecom (pvt) was
granted licenses of telecommunication. In their stage they operate in rural areas of 199
upozila of Bangladesh. Later on it obtained GSM license so they can start business in cellular
mobile and radio telephone services in 1996.
In July 2004 an Egypt based company Orascom Telecom purchased all the shares of Sheba in
the Malaysian market because of the failure Sheba had in Bangladesh mainly due to a chronic
feud between its both Malaysian and Bangladeshi partners. An agreement reached to the
Orascom company worth of $25 million in secret.
By the month September the Orascom Company bought the 100% shares of Sheba limited. It
was acquires for $60 million at that time. Sheba had 59000 user at the time the shares was
transferred to Orascom. After that they rebranded the company under “Banglalink™” name.
Banglalink have GSM license nationwide for 15 years.
Sheba Telecom changed its name to Orascom Telecom Bangladesh Limited in March 2008,
to match with its parent company Orascom Telecom.
Lastly in 10th February 2005 the Banglalink Telecom start its operation in Bangladesh
telecommunication market, when Banglalink telecom entered in Bangladesh the picture was
quite different from today. Within one year Banglalink became the most growing company in
Bangladesh with a 257% growth rate. This was possible because of the fantastic and
innovative marketing and attractive product offerings.
Today “Banglalink™” is the second largest company in Bangladesh telecoms industry with
its 1 core customers. And all these they achieved in one and half year of business in
Bangladesh.

5|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

2.2 Important details of “Banglalink™”

Date of inauguration February 2005
Date of operation February 2005
Total no of Regions 7
Total Customers 12.1 Million
Total no. of employee 5000
Manager 12%
Executives 11%
Engineers 8%
Senior Engineers 5%
Zonal Sales Manager 4%
Zonal Customer Care Manager 12%
Others 48%
Male 90%
Female 10%
Website Banglalink.net
Coverage area 64 District
Revenue US$288 million (2008), 49.2% from
2007
Head Office: Banglalink Tigers’ Den Plot 4, SW
(H) Gulshan Avenue Dhaka – 1212,
Bangladesh
LOGO

6|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

2.3 Value They Believe In

From the very first Banglalink always wanted to know the people more, they always focused
on what are the need of people. They have developed their communication technology after
and after to maintain a service that can really help people and their needs. The people in this
company always tries to work in a manner so the customers can have an easy and efficient
communication service. To make better service and make the peoples life easier they set
themselves some values:
 Straight Forward
 Innovative
 Reliable
 Passionate

2.4 Banglalink™ Mission

The mission of Banglalink always was to reduce the cost of owning a mobile phone. To get
the necessities of their client and to decrease the aggregate cost of utilizing portable
correspondence and improve the lives of individuals. We can say they want to make peoples
life easier with their low cost mobiles and communication service.
 Assuring main position in Bangladesh versatile market as far as consumer
loyalty and ROE.
 Increasing the investors esteem is another primary focus of the organization.

2.5 Banglalink™ Vision

The vision here is to make peoples life easier by knowing what they need in a communication
service. Its vision is to make the communication process more and more easy and lest costly
to the people of Bangladesh. They are always listening to their customers need so they can
keep maintaining the standards that suits best its customers.

7|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

2.6 Profile of the “Banglalink™” company

Name of the Organization Orascom Telecom Bangladesh Limited.

Type of Business Telecom Service Provider

Network Name BanglalinkTM

Technology GSM 900

Motto Making a Difference

Network Status Live from September, 1998

Web Site Banglalink.net

Phone No. +880 8 821 256

Fax +880 8 827 265

LOGO

8|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

2.7 Products and services of Banglalink™

The core product of Banglalink™ is to providing mobile telecommunication services to their
customer including Voice call, SMS, Mobile data connection. They have predesigned
packages with different validity volume and cost so that customers can chose the perfect pack
according to their needs. Mainly the packs are divided in two main category:
1.Prepaid Package
2.Postpaid Package

2.8 Prepaid packs

This is a system where customers have to pay for the services before consuming them trough
recharging their accounts .Banglalink started their journey in Bangladesh communication
market with a promise of making peoples life easy and providing a less costly way of
communication. Banglalink was the first company to offer flat rates on voice calls it also
came up with the idea of free incoming calls nationwide. They have varsity of packages in
this category:
 Desh
 Desh Rong
 Ek rate darun
 Desh ek rate
 Regular prepaid

2.9 Postpaid packs

In this system customer have to pay what they have consumed, it a billing system. In short
customers will get a bill after a certain amount of time about how much they have consumed
and what are the due amount. Currently there are three main packages for postpaid system.
All packages comes with T&T local, NWD, ISD and connectivity.
 Personal package 1
 Personal supplementary
 Personal call and control

9|Page
 The Competitions and Industry Analysis Strategy of Banglalink™

2.10 Value Added Services (VAS)

Banglalink also offers extensive range of value added services for its customers. The lists of
the Value Added Services are given below:

 Azan Alert (4646)

 Banglalink Advance
 Banglalink Babsha Jigyasha 7677
 Banglalink Billpay service
 Banglalink Easy Divert
 Banglalink emergency Banglalink Golpo Chora Gaan (5432
 Banglalink Messenger Service (8989)
 Banglalink Mobile Remittance Service
 Banglalink Timer SMS
 BBC Janala
 BL Stock info service 6464
 Blood bank (8008)
 Call Block Service (8181)
 Call Me Back.
 CRBT “Amar Tunes”
 FnF
 Friend Finder (2424)
 GPRS
 Health Link (789)
 i'bubble
 i'Cook
 International SMS
 ISD Call Rate
 IVR Horoscope Service (Dial: 4466)
 Jiggasha 7676
 Junction 1313
 M Ticketing
 Mig33
 Missed Call Alert
 Namaz Alert
 News Service
 Power Menu *789#
 Soft launch: Amar Tunes Express Copy
 Songs Dedication (4226.
 Voice Adda
 Voice Mail Service (VMS)
 Yellow Page

10 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

11 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

2.11 Banglalink Care lines

Banglalink customer care became pioneer in customer service field, this is been really
successful in its field with a lot of satisfied customers and all this became possible due to this
7 things:
 Greet With A Smile
 Listen Attentively
 Exceed Expectations
 Take Responsibilities
 Apologize Sincerely
 Appreciate Opinions
 Make A Different In Service

12 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

3.0 Competitors and competitions

Banglalink came in Bangladesh in 2005, February from now till today Banglalink faced a lot
of Competitors and they have welcomed every challenge with courage. In Bangladesh
Banglalink came to create a change in telecommunication system and with their attractive
packages and low cost services they have changed they peoples life successfully. They came
a long way from the last to second position in only one and a half year.
The main competition of Banglalink are the top telecommunication companies of
Bangladesh, I have listed 4 main companies to be exact
1. Grameenphone
2. Citycell
3. Taletalk

Grameenphone
As per the recent reports the Grameenphone limited is the largest and the post profitable
telecommunication company in Bangladesh and also the leading brand Right now
Grameenphone has the largest share in telecommunication market they have 10 million
subscriber out of total 20 million subscribers (approximately).
The main focus of Grameenphone is to provide network coverage to all the districts of
Bangladesh and also the rural areas. Right before Grameenphone the network stability in
rural areas was poor. People still leans towards Grameenphone a little bit more than the other
companies because of their huge area coverage and the strong network.

City Cell
In Bangladesh city cell was the first mobile operator company, it was back in 1989 when
Bangladesh Telecom Limited first got licenses to operate voice call, paging and other
wireless communication networks.
Maybe today the share value of city cell is nothing but many features that we take for granted
was actually introduced by this company to our country. For example the company started the
15 sec pulse rate system way before of the war of pulse rate we notice to today.
According to a report conducted in 2016 city cell has 0.142 million subscriber in Bangladesh
that that makes them the 4rth largest tele communication in Bangladesh.

Teletalk
2004, December 28 this was the day Teletalk formally introduced itself in Bangladesh. At
their first phase they realized two and half lack SIM cards in market they had a target of
selling ten lack SIM in 3 years.

13 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

3.1 Banglalink competitions

Compactions can be divided in many levels, competitions can be with same type of products
or companies it can also be from the substitutes for the services we are providing. There are
four levels of completions:
 Products from competitors
 Product category competitions
 Generic competitions
 Budget competition

14 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

Product form competition

This indicates to the similar products that my competitors produce. As an example
Grameenphone Citycell are competitors here because they also produces sim that can be used
to fulfill the need of a customer.

Product category competitions

These are the products that are not exactly the same from the core product but they can also
fulfil the need. SMS, Paging can be a example for that because they can also take place of a
voice call service. It’s not exactly the same as voice call but SMS can also be deliver
message.

Generic competitions
These are the product that can take place in the same area, Facebook can be a good example
for this type of competition, People now a days uses Facebook for every kind of
communication one can easily send message talk to other and also can send photos and other
files so we can say Facebook is obviously giving a good amount of competition to GSM
services.

Budget competition
This is a competition that causes because of a budget we make for a certain section. As
example in I have to pay a great amount of broadband bill I may also try to use broadband
service for reducing some cost of my cellular consumption.

15 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

3.2Banglalink™ Industry Analysis Strategy

While we are discusing about industry analysis we have to use the “Poter’s five forces”
model because with out that we can not focuses on every point of industry analysis for
Banglalink. Acording to poter there are 5 facts that we have to focus on
1. Competitive Rivalry
2. Threat of substitues
3. Bargaining power of customers
4. Bargaining power of suppliers
5. Threat of new Entrance

16 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

3.3 Competitive rivalry

This indicates to the existing competitors of the industry for Banglalink the ravels are
Grameenphone Airtel Citycell etc. The competition here is too tough for Banglalink, right
now Banglalink is the second largest company in telecommunication business in Bangladesh
but the power of revelry is too high. Green phone became and stayed in number one position
for so far it’s hard for Banglalink to beat them. Also the others like Taletalk and Airtel is also
trying to enlarge their business in this industry and they come up with new plans and offers to
beat the other leading companies.

17 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

3.4 Threat of substitutes

In telecommunication industry the substitutes are also very high, as Banglalink is a

communication services provider company its substitutes can be Messenger – by Facebook,
WhatsApp, and IMO etc. as they are also providing communication services. Very often
people uses other communication apps to make voice calls, messaging rather than using the
typical cellular phone calls. The cost of the other substitutes are also comparatively low so
people are tend to use the other applications more.

18 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

3.5 Bargaining power of customers

As there is more than one company that offers communication service in Bangladesh the
customers can compare each of them and then take buying decisions. Although 3-5
companies are not too much, buyers have to choose between a really low numbers of
companies. And almost all the companies offers the same packages so buys try to buy witch
has more network coverage. Inters on network coverage Banglalink has the 2n place here too
so it’s a profitable passion for Banglalink.

19 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

3.6 Bargaining power of suppliers

Suppliers have a large power upon any company, suppliers give us the raw material we need
to produce the actual product. If the bargaining power of a supplier is less its profitable for us
in that way we can get a perfect deal with them and that cuts the cost of our product. For
Banglalink the labor cost, raw material for SIM, technicians are the materials. In Bangladesh
the labor cost is comparatively lower than foreign countries so it’s a plus point for
Banglalink.

3.7 Threat of new Entrance

In telecommunication market the chances of new entrance is low. As it is a huge matter of

money and planning we don’t see new companies getting in to the market every now and
then. Right now in Bangladesh there are only few companies that provides
telecommunication services
 Grameenphone
 Banglalink
 Airtel
 City Cell
 Taletalk
So we can say Banglalink does not need to worry about large number of new entrance in this
market.

At glance:
Five Forces Strength
Competitive Rivalry HIGH

Threat of substitues LOW

Bargaining power of customers LOW
Bargaining power of suppliers MIDIUM
Threat of new Entrance LOW

20 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

Recommendation

Banglalink is already the second largest and successful telecommunication company in

Bangladesh. But to maintain the place and also for going up to being the No.1 they should
keep doing the hard work.
 They should keep working on to maintain the place they already are in. As there are
others in this business any loss knot can make them fall.
 They should focus on creating a larger network coverage, a huge area coverage
feature can be really a selling point in terms of Bangladesh telecommunication
industry.
 Try creating some better customer service system so the customers can see that they
really matters to Banglalink.
 Always being one step forward than the competitors, they should always know what
the other companies offering customers so they can also keep on moving towards
better offers.
 They should always keep upgrading the technology with time, cause people really
want to have something new and upgraded.
 They can also upgrade their user interface to make it easier to use.

21 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

Conclusion

After completing this term paper I can say Banglalink have a great future in Bangladesh
telecommunication market. As they are already the second best in this business they can
now think about moving forward. The threat of entering new competitors are also low so
they have a plus point here. With right amount of dedication and direction they can grow
more with every new morning. Banglalink should really focus on how they can beat the
market leader and with right service offering they can be the next market leader here.

22 | P a g e
 The Competitions and Industry Analysis Strategy of Banglalink™

REFERENCE

[ CITATION www20 \l 1033 ]

[ CITATION www201 \l 1033 ]

[ CITATION wik201 \l 1033 ]

[ CITATION cou20 \l 1033 ]

[ CITATION lig20 \l 1033 ]

[ CITATION gra20 \l 1033 ]

[ CITATION wik202 \l 1033 ]

[ CITATION sch20 \l 1033 ]

23 | P a g e