equipment provider for telecom sector

EQUIPMENT & SERVICE PROVIDER TO TELECOM OPERATORS

Prepared For:

Sheikh Morshed JahanAssociate Professor

Institute of Business Administration, Dhaka University

Prepared By:

Sourav Paul ZR-37

A defining Story

ChittagongHuawei: 100% deal with GP 2015.

Reason:Less costly. But products are not of best quality

Ericsson PROJECT CHATTALA

Free installation of High quality equipment.Return of all Huawei Equipment.

What’s in it for them? All future Modification and upgrade of network will be done by ERICSSON

Ericsson

Sweden based company operating in 180 countries

Started Operation in Bangladesh in 2003

Substantial growth: 84% till 2005

Huawei

China Based Company.Started in Bangladesh IN 2005.

Market Share : more than 50% during 2015

Key Players

Nokia

Alcatel-LucentSamsung

ZTE

Market Attractiveness

A large domestic market exists because of large population.Educated and technically equipped manpower.

GOVERNMENT’S VISION TO MAKE A DIGITAL BANGLADESH WITHIN 2020

Opportunity

Market Attractiveness

Changing Political Environment.Government Bureaucracy.

Threat

Triple Triangle Framework

• Firm Level Analysis:

InternalCapit

al

Capacity

Initial Investment is very large.Maintenance cost depends on services done.

Innovator firms:Large R&D budget.Follower companies:Comparatively lower cost.Must have economy of Scale capacity.

Culture

Dependent on Local engineers.Cost management is one of main concern.

• Industry level:

Triple Triangle Framework

MicroColla

bora

tor Com

petitor

Customer

Any disruptive Technology

Telecom. as they are servicing company.Also the equipment manufacturer.

Telecoms and Government projects

• Macro-level Analysis:

Triple Triangle Framework

MacroGlob

aliza

tion Technology

State & Security

Very welcoming and local demand is high

LTE: (Long Term Evolution) 10 times more speed of Data than 3G.• 422 operators in 143

countries(2015) • 1 billion by the end of

year 2016.

3.6 billion by 2020 estimated LTE user.

Business Canvas ModelKey Partners

Machinery and equipment supplier Logistic support provider Legal Consultants

Key Activities

InnovationsDelivering know-how Equipment leasing

Value Proposition

Infrastructure technical support

Sustainability

Customer Relationships

Post Sales service

Timely delivery

On demand service

Customer Segments

Telecoms operators

Government Key ResourcesTechnological knowledge Technological experience Capital Global Acceptability

Channels

B2B Marketing Direct Communication

Cost StructureProcurement of Materials is the most expensive.Business works on Credit so a large Working capital is requiredMore spending on innovation and developing new products.Shipment of machineries from country to country.Certain period maintenance cost.

Revenue Streams

Industry works on Tenders so timely quality delivery is important

Bulk Buying is the norm

Strategic Group Mapping

Revenue Generation

Largest Market Share2nd Largest

Fastest Growth

Similar Revenue range

Strategic Move

$10.2 billion$17.12 billion

Financial analysis

Top

Low/Average

Highest in Asia

Financial analysis

Upper middle

High

Highest USA & Europe

Strategic diversification

vice-president

New targeted areas like cloud, IP networks, TV and media.

core business of radio, transmission and telecom services

CDMA-2g/3G upgrade contract from Gp-telenor in Bangladesh, Myanmar

Strategic diversification

'programmable world’ ,nearly all the people carrying billions of devices can be connected with software.

Rajeeb Suri, CEO, NOKIA

Connecting Software

Strategic Diversification

Micheal Kombes

serve additional set of customers and areas beyond the traditional service provider market.

NOT

Beginning of new Technological Era