International Business and

Strategies of
Overview of telenor
Fastest growing providers of mobile
communications services
More than 150 million subscribers worldwide
Ranked as the worlds 7
th
largest mobile
operator
History of telenor
About Grameenphone
Invested more than BDT 10700 crore (USD 1.6 billion)
One of the largest tax payers in Bangladesh
Nearly 98 percent of the countrys population is
within the coverage area of the Grameenphone
network.
Goals & Vision
Main vision is for helping people to
communicate
Primary goal is to create greater value for
their shareholders, customers etc.
New logo is a symbol of movement and
change

Discussion of International Activities:
The basic entry decisions in regarding telenor can
be denoted into following considerations-

1. Market Selection
2. Timing of entry
3. Scale of entry

Porters National Diamond Analysis of telenor
Factors Conditions Notes
Factor conditions Good Cheap and skilled labor
Good communication
infrastructure, low
Teledensity.
Demand condition Very High 1 million new subscribers
each month
Supporting industries Very mature supporting
industry
Presence of Nokia and
Ericsson, ISPs.
Government Policies Moderate Easy licensing, less
interference

Market Selection considerations of telenor:
Analyzing the Industry profile, ICT
industry.
Potentiality of Labor force
Infrastructure support for the IT industry
Local market and Govt. Policies
Hardware and technical back-up
SWOT Analysis

SWOT ANALYSIS
Strength:

Telecom related labor
Telecom related product suppliers- Erricsson
Governmental policies
Weaknesses
HR policy
Lack of knowledge about local
market
Lack of communication link with
local people


Opportunities
Immediate opportunities
Long term opportunities
Opportunities---contd.
Immediate opportunities
Horizontal market expansion
New market entrance

Long term opportunities
Asian Market penetration
Market capturing



Threats:
Training requirements
Lack of methodical approach
Language barriers
Stepping Forward of an Emerging Company

4 P Analysis of telenor in Bangladesh:
Product Strategy:
Djuice
Village phone
Business Solutions
Pricing strategy:
Pioneer Cost
4 P Analysis Cont
Distribution Strategy:
6 divisions covering the Whole Bangladesh
Dhaka
Chittagong
Khulna
Sylhet
Rajshahi
Barisal
4 P Analysis Cont
Promotional Strategy:
Advertising
Sales Promotion
Public Relation


International Business of Telenor:

Expand business activities through
Foreign Direct Investment (FDI)
Horizontal FDI
Has mobile operations in 12 countries

Timing Of Entry
Entry is considered as an early entry
Started its operation in march26, 1997
Citycell was not able to spread their
activities.
Grameen Phone got some first mover
advantage
But, also have to bear some pioneer cost

Mode Of Entry
Joint venture with Grameen Phone Ltd
Telenor (62%), Grameen Telecom (38%)
Went for a joint venture; because:--
## It provide an easy access to the local
partners knowledge.
## Opportunity to share the development
cost and risk.
## politically it is widely acceptable

Barriers To Entry

## Cultural Barriers:
High power distance
Preferring collectivism rather than
individualism
Man dominated decision-making
High Family preference

Steps taken by Telenor
Polycentric attitude
Changing pattern of advertisement
---- focusing family and kinship
Not using their own name



Legal barriers
Didnt face that much legal barriers
Only barrier is tariff range with a highest
and lowest parameter imposed by
government
Findings on telenor
Currently in Bangladesh the easy entry policy
and auspicious govt. regulations can be a threat
for telenor.
Retaining the managerial, technological and HR
expertise within the organization.
Niche marketing (Package for women)




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