Banglalink as a Value Chain

7/27/2019 Banglalink as a Value Chain

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Banglalink as a Value Chain:

Every firm can increase their value with some primary and secondary activities. Banglalink tries

to do activity as much efficiently they can.

Primary activity:

1. Research and development:For a mobile company like Banglalink the main function of R & D should be design different

packages and determine the price of that package. The parent company of Banglalink which is

Orascom( Now Viplecom) has started their business in Pakistan as Mobilink in 2001. So, when

they entered into Bangladesh market in 2004 they used their knowledge of that market in BD

market. In Banglalink the Product Team mainly designs new products for the customers. In

order to design the product they follow a series of steps.

Identify the need:

Product team tries to figure put the need of a new product from three points of views.

Among them first one is the competitor point of view. Moreover, they see if the competitors havedecreased the price and if decreased then what will be the impact. In addition, they also see if

any new product of the competitors has been popular or not. After that product team tries to

design a product to meet the competition.

Identify the need

Economic Feasibility

Research

Technological Feasiblity


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Secondly, sometimes some new idea generated from the product team then they tries to design

the product.

Thirdly, the customer of Bangladesh is very demanding. Sometimes some urge of new product

design comes from the customers.

Economic Feasibility:

After that the product team tries to find out that whether this new product will be profitable

enough to launch in the market. For this step they work in collaboration with Marketing research

and Development team.

Research:

After Banglalink tries to find is the new product will be acceptable among the customers. For

this reason they mainly take the help of outside organization. But sometimes they also conduct

the research by themselves.

Technological Feasibility:

After conducting the research they mainly try to figure out the technological feasibility. This

means if a new product launches can customer easily switch into the new package or not.

Initially, Banglalink set call rate of the particular package by following penetration pricing

strategy. This was one of the major reasons which helped BL to catch the market share of BD

very quickly. Banglalink designs the price by determining three factors and they are-competitors

reaction, Demand and cost.

2. Production:Production for BL can be identified into three steps. Firstly, they install the number into the sim

card. Secondly, customer buys the sim card through the help of distribution channel. For this

they have to fill up the register form with 2 photos and other documents. Thirdly, customer insert

the sim into a mobile phone or modem and choses a package or start to use with the given

package.


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3. Marketing and sales:Marketing and sales is very important for BL to create a value in the customer mind. Banglalink

advertise intensively so that their customer can easily know about the product. Banglalink mainly

uses print media and television for advertising.

Print media: Banglalink mainly puts ads in the newspaper or magazines about their upcoming

products and at the same time they gave some ads about some special day. For example- in the

Independence Day they gave an ad just show respect to our martyrs.

Television: Banglalink set a very high standard for their competitors in terms of television

advertising. Moreover, they have given a new dimension for television advertising. Recently

they released the 7th

version of Banglalink Desh. In addition, TV commercial Din Bodol had

been nominated for best TV advertisement of the year Category in GSMA (Global System for

Mobile Communications Associations) Award, 2007

Now days, Banglalink are also using some new forms of advertising their product and services.

Banglalink is putting their advertisement in the billboards and at the same time they

areadvertising in different buses. In additiBanglalink has provided a new look to the Dhaka

International Airport. They provided trollies, charging point etc. In addition, they launched a

project to clean the sea beach of Coxs Bazar. This types of advertisement creates a higher value

in the mind of the customer because they think they are using a brand which socially responsible.

4. Customer Service:Banglalinkss customer care service proved to be its strength when it started with passion of

providing quality service under the theme ofKotha Dilam. In year 2011, customer care served

23.75 million Customers and answered 68 thousand calls with various problems. (Source:

Annual report, 2011). Banglalinks customer care also looks after their retailers with E-Voucher

IVR (Interactive Voice Reponses). Moreover, Banglalink continues to expand its customer care

by adding more touch points at some strategic locations. With 1300 customer care points

Baglalink is the largest customer care network in the country. Moreover, there are a group well

trained employees in order to deal with the high value customers which includes the corporate

customer. In addition, Banglalink has 94% customer satisfaction index and at the same time they


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has 10 minutes customer TAT (Turnaround Time) policy which helps them to provide great

service to their customer.

Secondary Activity:

1. Information System:Both the internal and external information system for Banglalink is very good. If the competitors

launch a new service they can easily response with it. Moreover, if there is a performance

insufficiency within the organization it is quickly identified and sorted out.

2. Companys Infrastructure:Banglalink has good infrastructure system and their head office is in Ghulsan which is wholly

owned by them. At the same time their top management is also well experienced so they can

motivate their employee very easily. Moreover, there are only few people in the top management

from outside Bangladesh and rests are from Bangladesh.

3. Logistics:For Banglalink the logistics would be the overall network system and distribution channel. The

distribution system of Banglalink is very much traditional. However, it goes from wholesalers to

retailers and after that to the customers.

Moreover, BL has one of the extensive network systems in Bangladesh. Banglalinks network

system covers 80% of the geographical area and reaching 97% of population.


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4. Human Resource:Banglalinks HR is one of the best in telecommunication sector. Mover, they provide essential

training, proper compensation package for their employees. HR ensures that every employee has

the proper knowledge, skills to do their job. In order to create leadership TGM (Transition to

General Management) program was taken in 2011. At the same time HR has taken a huge

amount of training programs to develop skills of their employees.

Number of training Programs

Functional Training 89

Core & Managerial Training 30

Training delivered Locally 71

Training delivered Internationally 48

Total number of participants 1046

Source: Annual Report, 2011

Every year BL organizes a family picnic where everybody along with their family can easily

communicate. Moreover, day care center in BL is also provided in order to motivate the female

employee.

Recommendation:

1. Banglalink Product team sees whether their competitor product is popular in the marketand after that they launch the product. For this reason they sometimes loose the market do

not grow as they expected. When warid reduced the price in 2009 BL did not respond at

the same time. So, they started loose the market share.

2. Banglalink shows less advertisement in BTV. They should use this media more.

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Banglalink as a Value Chain