four stage model based on gp

Topics: Mobile phone, Management, Muhammad Yunus Pages: 21 (5230 words) Published: May 26, 2014
 Executive Summary This assignment the result of the study of the four stages model of change based on Banglalink which is a popular mobile operator in Bangladesh. The ‘four stage model’ of change in changing economics for well established companies can be better understood and appreciated. Here I try to explain these terms on the basis of business specially the background of Banglalink. The objective of my study is to analyze as their dealing with customers, non-profit activities, revenues and revenue down history, marketing strategy and their advertising system. Banglalink now delivering of the digital revolution to the doorsteps of the poor and remote part of the country. Banglalink’s global system for mobile on GSM technology which is so widespread. Banglalink have sufficient resources to engage in product development and advertising by maintain the increased foreign competition limit pricing and technological advance. Introduction

November 28, 1996. Grameenphone was offered a cellular license in Bangladesh by the ministry of posts and telecommunications. November 26, 1997. Grameenphone launched its services on the independent day of Bangladesh. November 16, 2014. After almost of 18 years of operation, Grameenphone has now over the 37.2 million subscribers Grameenphone is the leading telecommunication service provider in the country. Starting its operations on March 26, 1997, the independence day of Bangladesh, Grameenphone has come a long way. It is a joint venture enterprise between telenor (62%), the largest telecommunications service provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom corporation (38%), a non-profit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank.

Overview of ‘ the four stages model of change’
The four-stage model shows how changing economic conditions affect well-established firms Stage I: Cost Plus “The good old days”. This refers to the ability of a well-established firm to dominate the market and control the price (kind of monopoly). It marks up its costs to achieve high profit margins (cost-pricing). Stage II: Cost Management. Stage II occurs when changes in technology, competition and customers put downward pressure on a company's profit margins and market share. The company seeks refusing cost management through cost cutting management through cost cutting, downsizing, restructuring, and Reengineering in response to these changes. Markets now are highly competitive. In this stage the firm most likely to contemplate the nature of its production methods and cost behavior and assess the current level of competition. But continual focus on cost had its limits in the ability of increasing profits. Firm must go to stage III. Stage III: Revenue Management. Because of the limits to the growth in profits, company tries to shift its focus from cost management to revenue management. Firms in stage III focus on narrowing product lines to those offering the greatest revenue potential revenue potential The focus is on "topline growth" (which means the increase in gross sales or revenues).

Cost plus
In the cost-plus pricing model, the purchaser agrees to pay the production price of the good plus a fixed percentage to the seller for profit. This is often referred to as adding a markup, which is a percentage of the production costs, with the degree of markup determined by the level of anticipated sales.

‘the good old days’
The stage I can be called ‘the good old days’ for companies such as IBM, KODAK, Sears and any number of other solid, blue-chip companies whose dominance of the market allowed them to achieve high profit margins by simply marking up their costs to provide them with a suitable level of profit, just companies need the sale price without any competition. There are many government...
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