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SWOT Analysis Report On Teletalk Bangladesh Limited (TBL)

Prepared by

Trishia Nashtaran Assistant Manager System Operations

Dated: 2nd April, 2014

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Introduction .................................................................................................................................... 3 Strength of TBL ................................................................................................................................ 3 Weakness of TBL .............................................................................................................................. 4 Opportunity for Teletalk .................................................................................................................. 5 Threat for Teletalk ........................................................................................................................... 5 Recommendations ........................................................................................................................... 6 Conclusion....................................................................................................................................... 6

1 Introduction
A SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Here we will go through strengths, weaknesses, opportunities, and threats of Teletalk Bangladesh Ltd to identify where we stand and where we can look forward to.

2 Strength of TBL
A loyal customer group: In Bangladesh, patriotism is the essence of our existence. As the only Bangladeshi mobile operator and the only operator with 100% state owned and engineering human resource base, Teletalk thrives to become the true peoples phone Amader Phone. The slogan "Desher Taka Deshey Rakhun" makes a great sense for the people to see their country more economically solvent and powerful. Notwithstanding a highly competitive telecommunication market, a loyal customer group is always engaged with Teletalk. Management Profile: Being a state owned company, Teletalks Board of Directors consists of senior government officials. Therefore, TBL has the opportunity to express their demand to the highest authority of Government through the Board members. Along with veteran BoD members, Teletalk has highly experienced and technically expert management. As the main part of the management comes from telecommunication ministry, the first telecom industry of Bangladesh (Bangladesh Telecommunication Company Limited), they have got utmost knowledge at this sector in Bangladesh. Teletalk has also hired skilled professionals in the management from private sector, which is crucial in order to keep up with the competition. Besides, A number of employees are sent abroad by Teletalk for professional training. Business and financial benefits as a Government owned company: Teletalk got the first 3G license (as test basis) and has been running 3G services since 14th October, 2012, under the project named Introduction of 3G Technology and Expansion of 2.5G Network. Though usually the commercial loan interest rate is very high, the DPA part (major amount) of 3G Project is aided by the loan of China Exim Bank with a low interest rate and flexible time period for loan payment, under a Government to Government agreement. Implementing Governments vision of digital Bangladesh: Teletalk remains clearly ahead of in e-governance, e-education and other digitization procedure. Teletalk is the pioneer of providing public exam result, processing university admission form fee collection, medical exam fee collection, BCS exam fee collection through SMS and Web. It not only enables students to apply for all major universities, medical and BCS exam from their home but also manages their sit plan, digital admit card and make available them online. Teletalk has also introduced REB (Rural Electrification Board) Bill Payment service, a unique, innovative and 3

in-house development service, which enables rural people to pay their bill from nearer retailer shop. Getting Advantage in Tender Procedure: According to public procurement policy Government entities cant award any project, service etc. to private organization without floating tender. The tender procedure is lengthy and sometimes impractical for certain services. Being a government company Teletalk takes advantage of signing of MoU with other government entities (all public universities, PSC, NTRCA, REB etc) without taking part in any tender. Pioneer of 3G Service in Bangladesh: Teletalk is the first operator to launch 3G services in Bangladesh. As Governments priority project, it has got long enough time as the only player in the market to provide 3G services. By this time it got attention from a significant subscribers base to prove their service quality. As the very first 3G operator, Teletalk has successfully utilized its opportunity to earn the highest brand value in the market.

3 Weakness of TBL
Promptness and efficiency of service: By nature, Teletalk has to go through many administrative and bureaucratic steps to launch a new service, to change an existing service and to invest for a new a service, which hinders quick decision, quick implementation and all out marketing. Customer Care Service: There are huge complains regarding call centre service. Subscribers have to wait for a long in a queue to get connected. Call centre support levels are also not divided into different levels according to complicacy level. Marketing: It is tough for Government organization to spend huge money for marketing with maintaining all administrative procedures in a tight schedule, while all the companies are trying to make space more with their all out marketing efforts. We report that Teletalk is sluggish to conduct 360 degree marketing approach and establish its brand value. Internal IT implementation: Teletalk still does not implement ERP with full phases. Most of works (leave application, meeting arrangements, interdepartmental letter exchange etc.), which can be permitted easily through modern ERP system, require manual permissions, which slows down its daily activities. Recruiting Policy: Unlike other multinational companies, Teletalk recruits and promotes employees by a general recruiting policy (Written & VIVA) after a certain time interval fulfilling all the administrative procedures. A common exam is tough to find right persons for specified positions.

4 Opportunity for Teletalk


Corporate subscribers: Though it is tough for Teletalk to compete with private operators, it can still bring all government employees under its umbrella as its corporate subscribers using its advantage of being a Government owned company. Being a state owned company, Teletalk doesnt require high revenue like private operators. It can offer cheapest rate of the market to attract not only Government entities but also private organizations. 3G technology: As 3G technology is the mainstay for Teletalk now, Teletalk needs to take the full advantage of it to build a great impression on telecom sector. Unlike second-generation, or 2G networking, 3G allows for the simultaneous transmission of voice and data due to its increased bandwidth. As per BTRC website, Teletalk is in the fifth position in respect of subscribers base. However, after launching 3G it has been creating space in market at a greater acquisition rate. Teletalk market share was 1.70% on December, 2012 and reached to 2.49% on December, 2013 increased by 0.79%. During this time TBL acquired 1.172 million subscribers with 71.03% increase rate. The new 1.172 million subscribers are not all 3G users. That means 3G brands also help Teletalk to attract 2G users. People are more confident ever before on Teletalk services and it is the time for Teletalk to secure its position and retain customer confidence. VAS services: Teletalk is prominent for its unique and innovative VAS services including PSC/JSC/SSC/HSC result publications, University admission fee collection, Medical admission fee collection, BCS, NTRCA exam fee collection etc. All these services require a Teletalk prepaid SIM to process request. A student from PSC exam to his professional exam is well acquainted with Teletalk services. Attracting the youth: The younger generation is more patriotic, they are more honest to see their countrys product on the top and they value their culture. With proper marketing, Teletalk has good market space to attract them.

5 Threat for Teletalk


There are some external threats not only for Teletalk but also for whole telecommunication industry. Teletalk needs to compete with other giant multinational companies. A decreasing call rate, increasing competition and increased government regulations against the telecommunications industry are just a few external threats that can limit a telecommunications company's future success. High SIM tax is also a hindrance for growth of this industry. Though not scientifically proven, some believe telecom frequency is hazardous to health. If not properly looked after, this issue may affect the sector growth. 5

All the operators of Bangladesh have already launched 3G services. Using 3G network subscribers can smoothly make packet switch voice & video call over Skype, Viber etc instead of traditional circuit switch voice call. Over 80% revenue still comes from traditional voice call. So it is a little concern if subscribers start using more packet switch voice call than earlier. Frequent change of leadership delays ongoing projects.

6 Recommendations
Considering all the facts my recommendations toward Teletalk are as follows: 1. Teletalk has increased its network capacity notably in the last two years but still remains far behind than GP, Robi and Banglalink specially in rural areas. The company network capacity should be expanded more to compete with the major players of the industry. 2. As the very first 3G service provider in the country, the sub base is rapidly growing and this trend must be kept constant. 3. Teletalk should concentrate more to increase its brand value. As Teletalks current 3G brand values is impressive, it should use this opportunity to attract more 2G subscribers. It can arrange seminar to promote its services, be present on the media with its recent success and reach more people. 4. Teletalk can focus on achieving the customized service provider for the Corporate Customers. 5. As TBL is providing most coverage in Hill Tracks area, providing unique packages to those districts can attract more users. 6. It is the time for Teletalk to go for all out promotions. Apart from TV medium and newspaper it should go for street promotion, campus promotion and mostly on the internet particularly on Facebook and Twitter in order to attract young generation. 7. As different Educational service is provided by Teletalk SIM only, separate promotion can be made to utilize those SIMs as a primary SIM to the students. 8. Teletalk should immediately enlist itself in the stock exchange by issuing shares or bond. This will provide Teletalk the required fund for expansion and quality service, and will bring more transparency and efficiency in all stage of the company. 9. Teletalk customer care and call centre support should be improved. Most of the operators are planning to outsource its customer care services. Teletalk can also follow the strategy. 10. Taking advantage of the goodwill, TBL can introduce Mobile Payment System nationwide through which the country can enter into Digital Payment Platform.

7 Conclusion
As the only state owned company, Teletalk has peoples love and Governments support. Like any other organization, Teletalk has some advantages over its competitors as a state owned company and at the same time it has some disadvantages. Its our responsibility to utilize the advantages, identify the disadvantages and work on those in order to fulfill public expectations. I believe our skilled and experienced management will lead this company to become a profitable, healthy, professional and true peoples company.