strategic management project_group 9

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BUS 690Strategic Management ProjectGroup # 9


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Prepared For:

Dr. Mahmud Akhter Shareef Associate Professor

MBA ProgramNorth South University

18 th August 2013


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Contents

1.0 Introduction

2.0 Financial performance

3.0 Key challenges

4.0 Key strategies

5.0 Key success factors

6.0 Some campaigns of Robi

7.0 Outlook for 2014


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1.0 Introduction


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A joint venture between Axiata Group Berhad, Malaysia and NTT DOCOMOINC, Japan

Formerly known as Telekom Malaysia International (Bangladesh),commenced operations in Bangladesh in 1997

On 28th March 2010, the service name was rebranded as Robi and thecompany came to be known as Robi Axiata Limited

Active subscriber base is 24 million

3rd largest telecom player in Bangladesh

Number of BTS (2G): 8,684

Introduction


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Introduction (continued)

Principles:

Robi Axiata Limited employees hold themselves accountable to the followingguiding Principles for the organization:

Uncompromising Integrity

I can, I will

Customer at the center


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2.0 Financial performance


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Financial Performance

Notes:1. All financial numbers are based on audited financial figures & following GAAP2. Normalized result for OpCo

Data Source: Annual Report 2012


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From the graph it isvisible that the marketshare of Robi increasedduring Q4 of 2012.However, it declinedduring Q1 of 2013, butagain improvedsignificantly from Q2onwards

Market Share of Robi

Data Source: BTRC Website


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3.0 Key challenges


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Regulatory issues Restriction from Regulatory Board i.e regarding pricing/campaign

offer

Intense competition Currently 6 telecom operators in Bangladesh

Need to be very pro-active to survive

Increase of Multi-Sim Users High probability of churn-out

Key challenges


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Competitive pricing All operators having common price wars

Accelerated investments in data networks drove Capexhigher and impacted profitability

Ongoing efforts to increase data capacity utilization (3Gnetwork) to improve data margins

Rate of Capex and Opex spend for data network expansionin is under review

Key challenges


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4.0 Key strategies


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Key strategies

Enhance performance driven culture Employees can be engaged and deliver to the fullest of their

abilities, teams adding value & all work together in the samedirection

Introduce innovative product offers

Need to develop cutting edge technologies in order to sustainorganization, systemization, and efficiency

Expand distribution footprint

Want to ensure that Robi Sims are available in all retail stores


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Key strategies

Strong brand positioning

That would lead to high top of mind among the customers

Create market segmentation & micro analytical models

Shift business focus from larger geography to smaller sectors

Focusing more on developing/emerging market i.eMymenshing, Kustia, Barishal etc

Efficient uses of CAPEX & OPEX


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5.0 Key success factors


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Key success factors

Improved its market reach further in terms of distribution

Successfully completed a delayering exercise in distributionhierarchy

Robi s Point of Sales (POS) base increased by 16% in 2012

Introduced Thematic Umbrella communication

All campaigns i.e Brand, Thematic & Product, falls under onesingle Umbrella Theme

Boosted mindshare preference of customers

Innovative VAS (Value added services)

Developed Innovative VAS i.e Robi locator, SMS basedWikipedia, Matrimony Alert service, Voice Tube, Blast & Robi

Radio


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Key success factors

Digital Media Took clutter breaking activity in Digital Media in Bangladesh

Creating a platform for consumer s engagement

Usage Based Call rate Robi introduced Ghechang Offer

The more the airtime is used, the less the call rate

International Roaming Widest International Roaming coverage in Bangladesh

Connecting 600 operators across more than 200 countries


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Some Campaigns of Robi


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7.0 Outlook for 2014


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Outlook for 2014

Robi will continue to build a business on its strong valuepropositions held together by innovation, aggression micro focus,calculated investment and increased efficiency that would enablethe business to grow

Voice will continue to be the main driver alongside an increase innon-voice

With the looming 3G license, auction technological advancementsand investments in the market will be significant


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Thank You

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