Presentation on

Possibilities of Foreign Direct Investment In

Bangladesh Mobile Telecom industry:
An Analysis
Presented by

Mir Hossain Ekram

ID# 0030152
 Introduction

This paper is to understand the international

expansion of successful multinational telecom
company in an Asian country. Work would provide
the handy idea about telecom market in
Bangladesh. It is worth mentionable that my
project is about Foreign telecom companies which
is mature enough to expand their business in
country with developing economy.
 Problem Statement

“Bangladesh is potential for mobile

operator market for any
internationalized Telecom Company,
and which strategy should they
follow to entry in this industry”
 Purpose of the Research
The purpose of this paper is to investigate
Bangladesh telecom market in order to find
out the potentiality of the market which could
be considered by the company to think about
starting a business there and also to
determine a suitable entry strategy from the
company depending on the factors have been
investigated.
 Methodology

• Ghauri et al (2006) grouped marketing research method

into two basic types; quantitative and qualitative
research.

• Ghauri and Gronhaug (2005) has divided the type of data

into two different types; primary sources and secondary
sources, depending on the source they can be collected.
 Theoretical Framework
The conceptual framework is a perfect mix of
the following theories which by means of as a
trident to nail down the research and to the
answer the problem statement.

• Porter Five forces

• Porter’s National Diamond
 Findings
Five forces Strength
Entry Barriers Low

Bargaining power of High

Customer
Bargaining power of Low

suppliers
Availability of High
substitute
Porter's 5 forces in action Existing competitive Moderate

pressure
 Findings
Porter's National Diamond

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 Presence of Nokia, Ericsson and others

industry
Government Policies Very liberal Easy licensing, less interference
 Recommendations
• Foreign company should look at Bangladesh telecom market.
Factors are showing great potentiality of the market. And to
eliminate possible threats, the company should go for a joint
venture with a company who has ICT (Information and
communication technologies) background but may not be in the
Telecom business now or may be thinking of coming in to this
business but not yet have the courage to start.
• Foreign Company can think of acquiring Citycell, the mobile
company that has the lowest market share even though they were
the first to come in this business. Even though Teletalk is
government owned company and the government may not be
interested to sell it, but Foreign Company could go for a negotiation.
 Recommendations
One of the limitations of this project is that the investigation
has been done not really going and exploring the market
physically. I prefer the company should do a further in depth
research on Telecom Market of Bangladesh. Research can be
done in the following directions:
• Thorough investigation of the distribution channel.
• Investigation of Market infrastructure.
• A study of the price planning of the rivals.
• A research on which company is suitable to have a Joint
Venture with.
• Return on Investment long term perspective study for
Bangladesh market in Telecom Industry.
Thanks