SWOT Analysis of Grameenphone Ltd.
Grameenphone widely known as GP, is the leading telecommunications service provider inBangladesh. With more than 32 million subscribers (as of June 2011), Grameenphone is the largestcellular operator in the country. It is a joint venture enterprise between Telenor and Grameen TelecomCorporation, a non-profit sister concern of the internationally acclaimed microfinance organization andcommunity development bank Grameen Bank. Grameenphone was the first company to introduceGSM technology in Bangladesh. It also established the first 24-hour Call Center to support itssubscribers. With the slogan Stay Close
, stated goal of Grameenphone is to provide affordabletelephony to the entire population of Bangladesh. From the SWOT analysis we are trying to know thecompany’s strategic position as well as Strengths, Weaknesses, Opportunities, and Threats. 1.STRENGTHS
Good Ownership Structure:
Grameenphone has the best ownership structure in thetelecommunication industry in Bangladesh. Telenor is one of the largest companies,which is operating in different countries around the world. Again, in Bangladesh,Grameen Bank is one of the largest NGO, which has the sound communication allover the country. It is a joint venture enterprise between Telenor (55.8%), the largesttelecommunications service provider in Norway with mobile phone operations in 12other countries, and Grameen Telecom Corporation (34.2% ), a non-profit sisterconcern of the internationally acclaimed micro-credit pioneer Grameen Bank. Theother 10% shares belong to general retail and institutional investors. Figure-1:
Grameenphone is the first organization in Bangladesh, which hasreached to the general people. Though Citycell had started their operation beforehand,but they were unable to reach the general people. So, the people are being used towith Grameenphone. This is a huge advantage of Grameenphone. Network Availability:
Grameenphone has the widest network coverage and a largenumber of BTS station (Tower) all over Bangladesh. That’s why the company canprovide better connectivity in most of the area of the country. Brand
Name of Grameen Image:
Grameen Bank is well known all over the countrybecause of its appreciable activities in financial sector for poor people in Bangladesh.So, when the name Grameen
has been added with this telephone company, theorganization gets a huge exposure due to this Grameen image. Financial Soundness:
Because of effective strategic planning, Grameenphone is ableto earn a healthy amount of revenue, which gives them financial soundness.
Skilled Human Resources:
All the stuff, which are related to Grameenphone areskilled and effective in their own job responsibility. The reason behind this is theHuman Resource Department of Grameenphone follows ethical strategy to recruitnew employees. Effective Support Organization:
Grameenphone has shared the idea from theemployees of Bangladesh Railway and Grameen Bank, who are experienced and ableto provide precious guidelines for the operation of Grameenphone. Easy Access to the Widest Rural Network:
Through the help of Grameen Bank, thiswas easier to Grameenphone to reach the rural area of Bangladesh. High Ethical Standard:
To ensure quality of service, Grameenphone is strict tofollow its ethical standard. 2.WEAKNESSES
In Grameenphone management, employees from different countriesare existed. Suppose, CEO is a Noregian, Chief Technical Officer is Indian and manymore employees come from different countries. That’s why sometimes there may belack of understanding due to cultural gap. Many Men Many Minds:
Sometimes different ideas may create problem. InGrameenphone, this is highly encouraged to apply new strategy for betterperformance. Sometimes, it may create problem because employees are used to withprevious strategy. Complicated Pricing Structure:
Grameenphone has lots of...
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