Trust Bank Satisfaction Level of ROBI Subscriber(2006)
Introduction of the Report: This report based on “Assessment of satisfaction level of ROBI subscriber”. Objectives of the study To determine whether subscribers are satisfied or not with ROBI service. To examine the customers’ consciousness regarding ROBI’s future offerings. Customer’s expectation from ROBI in addition to their current service and based on that what they want to suggest the company. Significance of the Study: The outcome of the research has provided a clear concept whether ROBI needs to include any extra service; in other words, whether ROBI needs to change its services according to the need of the customer. The study has also made the following significant contribution to ROBI. (a) Identified the factors that influence customer to purchase ROBI connection. (b) Explored the service related problems that the company has which has been directly generated from the customers’ opinion and views. Thereby making the company aware of those so that they might take more steps rather than their planned ones, to improve efficiency and successfully implement the decision they would make. Methodology: Data Collection methodology For the purpose of the study data and information have been collected from both primary and secondary sources. Primary Data Collection Direct personal interview with the subscribers through a structured questionnaire consisting of both open and closed ended questions have
been used to gather information. Subscribers have been chosen randomly from various clusters. Secondary Data Collection Secondary data has been collected from company booklets, brochures, annual reports, major publications, newsletters, journals of ROBI and other existing documents relevant with the study, marketing books, and the Internet. Variables
Dependent Variable The dependent variable was “Subscriber satisfaction of ROBI”. Independent Variables The independent variables are those whose effects are measured and compared upon the dependent variable. In light of my research, the independent variables were:
Application procedure
Activation time Kind of connection Facility Churn out ratio Quality of network Cheaper call rate Superior customer care service Flexible billing system Easy availability of card Scratch card duration Frequency of usage of ROBI’s Value Added service.
Conceptual Frame Work
Application procedure Activation time Facility Churn out ratio Network Call Rate Brand Image Customer Care Service
Subscriber satisfaction
Billing System Availability of Card Scratch card duration Usage of Value Added service
Sampling Simple random sampling technique has been followed to determine the sample population. Sample Profile A survey of 50 people was done to assess the satisfaction level of ROBI’s subscribers. The total sample size was determined based on the following equations. Confidence Interval Chi Square Homogenous Response Possibility Variable Response Possibility = ROBI’s subscriber of Dhaka = Accordingly, Sample Size
= 95% = 3.841 = 90% 10% Million = 50 (Randomly Selected)
These 50 people consisted of students, academicians and the employees of different companies. The composition, which is given below were based on convenience.
Figure: Composition of sample
Sample Profile
Others, 8.33% Student, 25.00%
Business, 18.33%
Job holder, 48.33%
Business
Job holder
Student
Others
Data Analysis Technique The collected information has been presented through tables, graphs, and charts for numerical and graphical presentations. Gathered data has been analyzed and interpreted using different statistical tools such as regression, percentage, and frequency analysis. Limitation of the study The findings of the survey will be based on customer’s response within the Dhaka City only. The results may not reflect the same for other division of ROBI outside Dhaka. Since this internship project has started later due to some inconveniences, the sample size has to be restricted to 50 only. I tried my level best to maintain accuracy and un-biasness in every phase of the survey research, yet some errors may exist because of my limited knowledge in wide spectrum of consumer research. Limitation of time was one of the most important factors. Due to time constraint many aspect could not be discussed in the present study.
Overview of Robi TM is Malaysia’s Number One information communication technologies provider. TM International Sdn Bhd (TM International) is the vehicle overseeing and managing the overseas ventures of Telekom Malaysia Berhad (TM), Malaysia’s largest and leading telecommunications group. Operating
as
an
investment
holding
company,
TM
International was activated in 2001 as a wholly owned subsidiary of TM. Having had its origins in the international ventures division, TM International has today made the successful transition from an operating division to wholly owned subsidiary. It has operations and financial interests in nine countries, namely Sri Lanka, Bangladesh, Pakistan, India, Indonesia, Singapore, Cambodia, Thailand, Malawi and Guinea. Since the commencement of its operation, ROBI has been a force to be reckoned with in the telecommunication industry of Bangladesh, being one of the fastest growing mobile communication companies offering comprehensive GSM mobile solutions to more than two million subscribers. Today, ROBI boast the widest International Roaming service in the market connecting 315 operators across 170 countries. In addition, ROBI is the first mobile operator to connect Tetulia and Teknaf, the northern and southern most points of Bangladesh. ROBI was also the first to provide seamless coverage along the DhakaChittagong highway. With a network covering all 61 (allowable) districts of Bangladesh, coupled with the first Intelligent Network (IN) Prepaid Platform in the country, ROBI is geared to provide a wide range of products and services to customers all over Bangladesh. At the heart of all of ROBI’s success today, is a young dynamic workforce comprising of over 600 highly motivated and skilled professionals. Today, ROBI is recognized as a leading brand in Bangladesh and this is driven by our persistent pursuit of quality and technology, putting it clearly ahead of the rest. The future with ROBI is promised to be exciting as we strive to employ the best resources and latest technology in offering many more innovative and exciting products and services. 1996 ROBI received the license 1997 Official launch in Dhaka 1999 First to launch Mobile plus BTTB incoming
2000 2001 2002 2003 2004 2004 2004 2004 2005 2005 2005 2005 2005 2005 2005 2005 2005 2006
Dhaka Chittagong Backbone connectivity Launch of One Prepaid Launch of SMS service First to launch Prepaid Mobile Standard All 61 Districts covered Established 1 million customer base Established inter-operator SMS Launched International Roaming Established 2 million customer base Independent unit for Corporate Care First to launch e-fill First to launch GPRS First to launch 1-second pulse on Postpaid First to launch 10-second pulse on Prepaid International SMS with 500 operators Established customer base of 3 million Only telecom operator to receive ISO 9001:2000 certificate. Recognized and Awarded the “Teelink Telecommunication Award 2006� for the "Better Mobile Service Provider in Bangladesh", which is organized by Bangladesh Mobile Phone Business Association (BMBA)
Introduction In this era of communication, cell phone undoubtedly has positioned itself in hearts of the consumers. That is why, consumers are the prime focus of all cell phone companies and thus the satisfaction level of consumers regarding the services offered by cell phone companies is the key success factor for them. Accordingly, this is vividly important to know and assess the satisfaction level of the cell phone consumers. This is because, upon this the sales figure of each and every company counts on and a sale is the ultimate factoring which drives one company towards profit. Considering all these, this is very clear that the study of satisfaction level of cell phone subscribers carry a significant meaning. The Organization in Brief (ROBI At a Glance): In this age of speedy communication, Bangladesh is not staying behind in terms of keeping pace with the rhythmic movement of this age of information. Among the key players who are having a significant role to fasten the growth of telecommunication in Bangladesh, ROBI is the second market leader in the telecommunication sector in Bangladesh. With the beginning of 2007 the company completed its ninth year of business. The company achieved remarkable success during this period. It is now able to say that it has the second biggest subscriber base and more value added services than any other mobile phone operators in Bangladesh. ROBI has a very strong competitive position in the telephone industry in the country. Name and Organizational History of ROBI:
ROBI is the dynamic and leading end-to-end countrywide GSM mobile communication solutions of TM International (Bangladesh) Limited. The Ministry of post and Telecommunication of the Government of Bangladesh offered TM International (Bangladesh) Limited a nationwide digital cellular license in 1996. TM International (Bangladesh) Limited launched its services in Bangladesh on November 15, 1997 under the brand name ROBI. Since the commencement of its operation, ROBI has been a force to be reckoned with in the telecommunication industry of Bangladesh, being one of the fastest growing mobile communication companies offering comprehensive GSM mobile solutions to more than two million subscribers. Today, ROBI boast the widest International Roaming service in the market connecting 315 operators across 170 countries. With a network covering all 61 (allowable) districts of Bangladesh, coupled with the first Intelligent Network (IN) Prepaid Platform in the country, ROBI is geared to provide a wide range of products and services to customers all over Bangladesh. At the heart of all of ROBI’s success today, is a young dynamic workforce comprising of over 1000 highly motivated and skilled professionals. Today, ROBI is recognized as a leading brand in Bangladesh and this is driven by its persistent pursuit of quality and technology, putting it clearly ahead of the rest. The future with ROBI is promised to be exciting as it strive to employ the best resources and latest technology in offering many more innovative and exciting products and services. Through aggressive investment to extend network coverage and improving call quality, ROBI has been in constant motion to maintain its commitment to provide subscribers the best possible cellular service. This momentum enveloped all (allowed) upazilas by the end of 2005. ROBI is looking forward to massive investment to target 7 million subscribers by 2007, facilitated by more than doubling the number of the base stations. That is, the objective for ROBI’s communication seems to generate sales and to approach toward building a strong and consistent brand image in the mind of the consumers to provide them a reason to select ROBI over others. Location of ROBI: The head office of the company is situated in the BRAC CENTER, Mohakhali. CEO’s office, IT, Finance, Marketing, Technical, Human Resource divisions are located in the SILVER TOWER, Gulshan-1. All together, there are eleven customer service centers. Among them five are in Dhaka (Gulshan-1, Gulshan-2, Motijheel, Dhanmondi, and Uttara), two are in Chittagong and one each in Cox’s Bazar, Comilla, Sylhet, and Khulna consecutively. Founders of ROBI: ROBI is a joint venture company between Telecom Malaysia Berhad from Malaysia and A.K. Khan & Co. Limited of Dhaka, Bangladesh. Vision of ROBI: The vision of ROBI is “To be a leader as a Telecommunication Service Provider in Bangladesh.”
Mission of ROBI: ROBI aims to be achieve it’s vision through being number “one” not only in term of market share, but also by being an employer of choice with up-to-date knowledge and through developing products, and services of the highest quality and meeting the needs of its customers, employees, shareholders and the nation. Theme of ROBI: ROBI always strives to uphold the dictum “Customer First” The Business Slogan of ROBI “Joley uthun apoon shoktitey” The whole is the sum of parts and when the best come together; the results can be truly spectacular. TMIB brings ROBI Mobile phone service, a digital cellular phone service, which will prepare better for life in the fast lane. ROBI GSM always keeps so near, even when so far. Strategy of ROBI: Product & Services: Attractive product packages for segmented customers Implementation of enhanced messaging and VASs like SMS, FAX & Data, Internet &WAP to increase for airtime usage.
Market Promotion & Communication: Brand Management Events Management Advertisement & Promotion Press Advertisement, Outdoor Advertisement in Strategic points, Point of Purchase (POP) Sales & Distribution: Focus on corporate sales through TMIB sales executive Strengthen & build up the relationship with dealers & outlet holders Increase sales outlets in strategic points
Re-alignment of distribution structure Uniform profiling of sales outlets Customer Service Management: Uniform for Customers Relation Executives Implementation of One-stop Customer Services through improvised billing system Strengthen fraud management through customized report from billing system Increase 24 Hour Customer Assistance: Call 123 for Automated & Direct Assistance through Customer Care Executive* *Tk. 2.30 per minute, including VAT, for ALL customers (10 sec. pulse for Postpaid customers and 30 sec. pulse for Prepaid customers)
SMS 8123 For queries and complains* (Standard SMS charge & VAT applicable)
*From all ROBI Numbers Call +880 18 1940 0400 From any number
Fax: +88 0181 9 234329 - 333 (all users) People of ROBI:
The most important key resource factor in TMIB is its efficient human resource. Moreover, its decisions are based on facts from market research and coverage survey. Moreover, the entire above can only be achieved through the right people. ROBI has put its keen eyes in developing its employees through proper training, as they believe that the most important asset for TMIB is its staff members. As of June, 2007, TMIB has approximately 1,500 staffs composed of locals and expatriates to serve its more than 20,00,000 subscribers. And, ROBI is ensuring the quality services by quality people. Technology of ROBI: ROBI’s Global System for Mobile or GSM technology is the most widely accepted digital system in the world, currently used by over 300 million people in 150 countries ROBI in Bangladesh use the 900 GSM technology because ROBI are committed to give the customer the very best. Presently TMIB offers GSM digital cellular services in all divisional Headquarters and all major big districts. Major Milestone of the ROBI Business: ROBI is a mobile operator in Bangladesh, which concentrates on offering GSM communication services for private and corporate customers. The company’s intention is to promote the wireless lifestyle - the complete mobile society. ROBI is renowned for bringing new service offers in Bangladesh. Below, some of the first time offers are mentioned: "First time in Bangladesh" service will allow all outbound roamers to make calls to Bangladesh from Abroad, at as low as 60% reduced rate First time introduced the 'mobile Plus (PSTN Incoming Connectivity only) Product Services' in Bangladesh First time introduced the Tele-ramadan (Timing of Iftar and Sehri during Ramadan) under Tele-info Services in Bangladesh. First time introduced the Seamless Coverage throughout the DhakaChittagong Highway and named it as 'Chittagong Dhaka Corridor (CDC)'. First time introduced cellular services in the most northern part of Bangladesh by launching ROBI Service in Rangpur and Dinajpur in 2002. First time introduced electronic recharge facility called E-fill in Bangladesh First time introduced message-greeting system with FunDose in Bangladesh Introduced GPRS (General Packet of Radio Service) for the first time in Bangladesh. First time introduced club membership offer for the exclusive users of ROBI. The club is known as Club Magnate, which offers extra services with its Platinum, Gold and Silver cards.
Products and Services of ROBI: Telephone sector is a service-oriented sector. ROBI offered various types of new and innovative telephone services to customer of Bangladesh during the last eight years. The Mobile Plus, Mobile Link, Standard are among its largest innovations. Besides these largest ones ROBI also introduced a number of value added services like the Short Message Service, international roaming facility, Voice Mail Service, SMS based content services, night bird talk plan, General packet Radio service (GPRS), etc. The company is the pioneer in most of its services. Handsets or the phone-set and the SIM Cards are the only physical products provided by the company. ROBI is able to reach telephones in many far-flung areas of the country and also connects those areas with the far foreign countries. The prime services provided by ROBI are broadly categorized in the two types: the Post-paid service, and the Pre-paid service. Post Paid Service: Under the Post paid service ROBI has three products. Standard ROBI Standard Connection allows both-way BTTB Outgoing and Incoming facilities along with the mobile connection facility. This is a zonal subscription with National Roaming Facility. NWD and IDD call facilities are available under this subscription. Mobile-Plus: Mobile-Plus is another addition of post-paid products of ROBI. This product has been first introduced by ROBI in Bangladesh and has enjoyed great popularity since inception. MobilePlus Connection allows BTTB Incoming facility along with the regular nationwide Mobile-toMobile connection facility. Mobile-Link: This is the most basic product of ROBI featuring both Outgoing and Incoming Mobile to Mobile Connection facility and a host of Value Added Services. Post Paid Tariffs:
For all ROBI Post-Paid -
1 Second Pulse from first minute for all ROBI calls Up to '0' (zero) line rent based on your airtime usage Reduced flat tariff; no roaming and inter-zonal charge Convenient bill payment through Pre-Paid scratch card or e-fill 5FnF numbers that allow you to talk at a reduced rate with any operator and for the 1st time, to 1 BTTB number. 0.80* Tk/min for ROBI Friends 'n' Family numbers and reduced tariff for other operators
Taka per min (excluding Peak VAT) Particulars
7am-12am
Outgoing (Tk/min) To any other 1.00 ROBI
Off Peak 12am-7am 1.00
To other 1.20 Operator
1.20
To BTTB
1.20+BTTB
1.20+BTTB
FnF (To ROBI 0.80 number)
0.80*
FnF (To other 1.15 operator number)
1.00
FnF (BTTB)
1.15+BTTB
Incoming (Tk/min) From Mobile
1.00+BTTB FREE
FREE
From BTTB
FREE
FREE
Table 1.1: Tariff For all Robi Post-Paid
Line Rent: ROBI has reduced its monthly line rent for all ROBI Postpaid services. Table 1.2 : Line Rent For all ROBI Post-Paid Services
Used Airtime*
Discount on Line Applicable Line Rent (in Taka) Rent Standard Mobile Plus Mobile Link
> Tk.2000
100%
0
0
0
Tk.1500 - Tk.2000
50%
150
125
75
< Tk.1500
0%
300
250
150
* Airtime - Excluding line rent, BTTB charges, and VAT
Pre-Paid Service: ROBI One Pre-Paid Service gives the best solution to subscriber’s communication needs through the latest innovative IN (Intelligent Network) technology. Introduction of ROBI One Pre-Paid Service is another development of mobile telephony in Bangladesh. ROBI One PrePaid Service has National Roaming facility and a flat airtime charge of Tk. 4.90 per minute and no incoming charge. It frees the subscriber from the hassles of paying bills, security deposits and line rents. But it contains nearly all services available in other ROBI products. ROBI One Pre-Paid features: One Pre-Paid service allows subscribers to enjoy a world of facilities like:
Instant access No deposit required No hassle of bill payment No monthly line rent Nationwide roaming facilities with coverage in 61 districts from Teknaf to Tetulia
10 second Pulse from the first minute Super economy with Night Bird Talk Plan(12:00 am- 8:00 am) Two user-friendly language (Bangla and English) ROBI One Standard: ROBI One Standard Connection allows both-way BTTB Outgoing and Incoming facilities along with the mobile connection facility. This is a zonal subscription with National Roaming Facility. NWD and IDD call facilities are available under this subscription. ROBI OneMobile-Link: ROBI One Mobile-link (EVD) allows send & receive calls to and from any mobile number in Bangladesh. Pre Paid Tariffs: Three time bands Peak : 8am-4pm Off Peak : 4pm-12am Night Bird :12am-6am Reduced Tariff for ROBI-ROBI outgoing call charges 10 sec pulse from 1st minute Up to 5 numbers under Friends and Family
Table 1.3 : Pre-paid Tariff
ROBI POWER TARIFF PLAN Call Type
08am-04pm
04pm-12am
12am-06am
Tk/min
Tk/min
Tk/min
To ROBI
1.00(From2nd min)
1.99
0.50
To ROBI FnF
0.90
0.90
0.50
To Other Operator FnF
1.00
1.50
1.50
To Other Operator mobile
1.00(From 2nd min)
1.99
1.99
OUTGOING
To BTTB (Local/NWD/IDD/ 1.99 + BTTB EIDD) INCOMING (Tk. per min) From Mobile and Private FREE PSTN
From BTTB
Full free BTTB incoming
PULSE Outgoing & Incoming
30sec from 1st min. * Excluding VAT
The ROBI Post-Paid and Pre-Paid service holders enjoy a number of GSM Features and Value Added Services:
The GSM Features: ROBI subscribers enjoy the following GSM features without bearing any additional costs: i) Calling Line Identification Presentation (CLIP) Display of the phone number of an incoming call in subscriberâ&#x20AC;&#x2122;s handset before the call is answered.
ii) Call Waiting and Holding While talking to the first caller, subscribers will hear a special tone informing subscribers about the second call on the line. At that moment subscribers can put the first caller on hold and talk to the second caller. iii) Call Conference Receiving calls from multiple callers can be supplemented by joining these multiple callers so as to enable them to talk to each other. Subscribers will be able to communicate with a group consisting of maximum five callers. This feature depends on handsets. iv) Call forwarding Call Divert lets subscribers redirect or re-route their call to another ROBI mobile or any other fixed (if they have BTTB connectivity) or mobile phone. v) Call Barring It enables subscribers to restrict certain types of calls to be made from subscribers mobile. This feature is especially important for security purposes.
vi) Itemized Billing If customers are not satisfied with his phone bill then he can collect the Itemized Bill, which describes elaborate Incoming and Outgoing call with phone number and duration.
The Value Added Services: The following additional services are available upon request: Voice Mail Service (VMS) Voice Mail Service (VMS) is an easy to use personal answering service. It answers subscriber calls when subscribers are not available to take them. Subscriber’s unanswered calls are forwarded to voicemail. Caller will hear a recorded voice or personalize greetings requesting them to leave a message. Subscribers may retrieve these messages later. Voice Mail Service (VMS) can respond When the subscriber’s line is busy or Unanswered or And unreachable Short Message Service (SMS) SMS in subscriber mobile acts like an advanced pager. Subscribers can send and receive text messages of up to 160 characters, directly, from one ROBI mobile to another ROBI mobile or Gameen Phone or CityCell or BanglaLink. E-fill ROBI has launched the first ever ELECTRONIC REFILL system in Bangladesh whereby Pre-Paid customers will be able to recharge their accounts via SMS, available at dealers/outlets/designated agents around the country. E-Fill is a great new recharge option for Pre-Paid subscribers, as it does not rely on the availability of scratch cards for topping up any ROBI Pre-Paid account. The customer benefits from this system through extensive availability, convenience to recharge Pre-Paid accounts anywhere, anytime, without the hassle of buying and scratching cards. This service is great because it ensures that the credit the subscribers require for their ROBI connection is always available on demand. This service allows customers to recharge their accounts in multiple denominations: Tk.600, Tk.300, Tk.250, Tk.200, Tk.150, Tk.100, and Tk.50, which provide all ROBI Pre-Paid customers a freedom of choice. Friends & family The Friends & Family (FnF) feature allows all customers to add at least 3 ROBI numbers and 2 other operators as their FnF number. The customers can talk to these 5 FnF numbers at a reduced rate (Post-Paid: Tk.1.5 and Pre-Paid: Tk.2.00 excluding VAT) at anytime of the day.
GPRS This service is only available for Post-Paid connection Send and receive multimedia messages such as color pictures Send picture to any Email address Download colorful logos, animations, wallpapers, screensavers, real music (MP3), polyphonic tones, video clips, and much more Browse WAP enabled websites on customer’s handset Browse the internet using PDA handset, or on customer’s computer using customer’s handset as a modem
Night Bird Talk Plan (NBTP) Night Bird Talk Plan or NBTP is a feature that allows subscribers to talk during the night time from 12AM (00:00Hrs) to 06:00AM the next morning at a discounted tariff or airtime rate. This facility was before only offered to all the ROBI Post-Paid customers but now is also offered to all the ROBI Pre-Paid customers. FunDose FunDose is an enhanced IVR (Interactive Voice Response) voice greetings platform through which subscribers can send a voice greeting to their desired number. Subscribers can choose from Several Categories available in Bangla and English. Each category will have different greetings. ROBI International SMS ROBI launched International SMS service with more than 500 operators globally. Communicate internationally without the high expenses of voice calls. All ROBI customers can now send or receive SMS to and from other mobile networks across the world. ROBI International SMS allows subscribers to exchange messages with family, friends, and associates staying far away, at regular SMS tariff. Club Magnate: Club Magnate is an experience never before available in the mobile industry in Bangladesh, and will reward and pamper ROBIs individual Post-Paid customers. Its objective is to serve those customers who have been loyal to ROBI and who have been the pillar of ROBIs success. The members- only Club will have Platinum, Gold and Silver Cardholders. Membership is based on loyalty to ROBI and to qualify, one has to be an ROBI customer for a minimum six months. Membership is also based on the payment of bills on time and in full. Club Magnate entitles members to a range of privileges not limited to ROBI services only, but with other partner organizations as well, such as Dhaka Sheraton Hotel, Hotel Seagull, Medinova Medical Services, Hertz, Malaysian Airlines, and many more.
Memberships are valid for one year.As a telecommunications service provider, ROBI is working on continuously improving every aspect of its service in delighting stakeholders. With the launch of Club Magnate, ROBI expresses its special appreciation to longstanding valuable customers, and reiterates its pledge to be the most preferred telecom operator in the country. For further details, please look Appendix II.
Network:
ROBI network covers all 61 allowable districts of Bangladesh, and with the first intelligent network (IN) pre-paid platform. Figure 1.1 : ROBI Coverag
Shareholders of ROBI: The Company ROBI, with a full title being: TM International (BD) Ltd. (TMIB), was founded as a joint company of the Telekom Malaysia Berhad from Malaysia and the A. K. Khan & Co. of Dhaka, Bangladesh. Shareholders of AKTEL Figure 1.2 : The shareholders of ROBI
A K Khan & co 30%
Telecom Malaysia 70%
It operates as a Limited Liability Company, where a founder and a majority shareholder, the TMIB- member of the Telecom Malaysia, owns 70% shares, while the minority shares of 30 % are being controlled by the A. K. Khan & Co. Bangladesh. ROBI is proud to be associated as
part of the Telekom Malaysia Group (TM), which is strong financially, and internationally renowned for its successful ventures like MTN, the market leader the telecommunication industry in Sri Lanka. It has a global presence in 11 countries with staff strength of 30,000 Groupwide. TM has recently made a couple of major acquisitions in India and Indonesia in the effort to stamp its presence internationally. In Indonesia, TM has acquired 27.3 per cent interest of PT Excelcomindo Pratama, the third largest mobile operator and in India, 47.7 per cent stake in Idea Cellular. TM hopes to extends its regional and global presence with these new acquisitions. Organization Structure of ROBI:
ROBI places a high value on human resource development and the contributions made by its employees. They persevere to maintain a productive and harmonious working environment in the whole organization. ROBI always continues with its efforts to improve the efficiency of its employees and align them to the right positions with well-defined responsibilities. Because of the rapid expansions of ROBI’s networks and enormous growth of its subscriber base, the company has increased its workforce. ROBI has successfully hired some key senior managers who were recruited on the basis of their professional expertise and experience. In order to cope up with the dynamic nature of the company’s business, initiatives are always taken to restructure and reorganize the company’s existing set up. It always evolves standardized management systems and procedures across functional divisions, focusing in particular, on the effective integration and assimilation of all the organizational units. The organ gram of ROBI has been provided on the next page.
Board of directors Treasury Committee
Operational Committee Managing Director
MDâ&#x20AC;&#x2122;s Secretariat
President
Executive VicePresidents
Director Sales & Distribution
GM Information Acting Head of Marketing
Director Project
Director HRM
GM Internal Audit
Acting Director Finance
Director Information Technology
Director Regulatory & Corporate Affairs
Acting Chief Technical Officer Deputy Managing Director
Head of CMD
Director Fibre Optic
Head of RA & FM
Head of Supply Chain Management
Head of Admin
Head of Legal &Compliance
The organogram indicates that the top-level management consists of the MD, the COO and the CFO. The chief operating officer (COO) monitors the direct operations of the company, whereas the chief financial officer (CFO) monitors the financial matters of the direct operations. At the same time, they co-operate each other and report to the managing director (MD). The managing director is the direct supervisor of all the divisions and departments. Currently, there are four divisions and four departments. The chief of the
divisions are called the general manager (GM). Conversely, the chief of the departments are called the head of department. Every general manager has an assistant general manager (AGM) and the heads of the departments are on the equivalent rank of the AGMs. Divisions deal with the core activities of the company, whereas the departments deal with the supporting activities. Every division has precise units and there is a head for every unit. Below, a concise description of every unit is specified:
Marketing Division Marketing division constitutes seven units. A brief description of each unit is given below: Brand and A&P Brand and A&P denotes to brand and advertising & promotion. This unit deals with the overall brand management and promotion activities of the company. The unit covers both outdoor (billboards, road-overhead etc) media and indoor (print & electronic) media. This unit is also responsible for communicating with the advertising agencies, since ROBI does not have any in-house agency. Each unit has a head who reports to the AGM of Marketing. Product Development Product development unit is like the R&D unit of a company, which is responsible for developing new products and services. This unit is closely related to the marketing research unit and together the units come up with new service concepts and ideas. Product development unit is also responsible for monitoring the core services (Pre-Paid and PostPaid). Like other units, this unit also has a head reporting to the AGM. Marketing Research and MIS ROBI has one unit covering both marketing research and marketing information system (MIS). This unit conducts quarterly research through research firms and in-house interns. The unit is also responsible to keep track on the latest innovations and new offers of other operators. In TMIB, this unit is not a full-fledged unit yet. International Roaming International roaming (IR) unit is basically responsible for ISD, international SMS etc services. The core task of this unit is to negotiate with foreign telecommunication companies and to expand the international coverage by making deals with them. There is a head of IR who reports to the AGM. Corporate Sales Corporate sales unit deals with the sales of products and services to other companies. The unit makes agreements with different companies to be ROBIâ&#x20AC;&#x2122;s corporate clients and only handle the corporate level sales.
Direct Sales Direct sales unit is responsible for the sales of products and services to the mass customers through the customer service centers. ROBI has eleven customer service centers around the country and these centers sell the services to the customers directly. Dealer Management Dealer management unit oversees the dealers of the company around the country. ROBI has four dealers and one agent and they need to be monitored and supervised constantly. The head of this unit reports to the AGM of Marketing. Information Technology (IT) Division IT division constitutes seven units and they closely work together. Value Added Services (VAS) Value added service is a unit that implements the developed concepts and ideas of the marketing division. The unit is responsible for the development of the software, which will be used for the application of the new services developed by the product development unit. Simultaneously, this unit handles the VAS content providers who are the third party to the company. Billing The billing unit is responsible for processing and monitoring the billing systems for the PostPaid users. The unit has a manager who reports to the AGM of IT. Rating (Post-Paid) This unit is responsible for charging the rates of Post-Paid service. The unit fixes per-minute and pulse rates and also fix the pulse durations. It also changes the rates on demand basis. Pre-Paid This unit only deals with the Pre-Paid service. It administers the e-fill and scratch card systems. At the same time, it fixes per-minute and pulse rates and fix the pulse durations. Product Configuration This unit is responsible for designing and developing products and services. It develops the blueprint of the product-design.
Billing Operation Team Billing operation team is responsible for administering the entire billing process and developing required software for collecting bills from Post-Paid users. Customer Relations Management (CRM)
This unit supplies required software to the customer care centers and work with these centers side by side. The centers usually inform CRM concerning their necessaries and the unit prepares suitable software for them. Finance Division Financial division has eight units dealing with financial matters of the company. Corporate Finance Corporate finance unit consists of treasury management and L/C. Treasury management deals with the inflow and outflow of the company, whereas L/C (Letter of credits) deals with the L/C opening banks and other foreign banks. Account Payable This unit keeps track on the accounts payable of the company. Accounts Receivable This unit keeps track on the accounts receivables of the company while preparing the balance sheet. As TMIB is a large company with thousands of financial transactions every day, a unit to keep track on the accounts is necessary. Core Account Core account is an important unit of the finance division dealing with the budget and fixed assets. The annual budget of various departments is prepared under the close observation of this unit. Revenue Assurance Revenue assurance unit consists of revenue assurance and fraud management. Revenue assurance monitors the transactions and assures full protection of the finances. On the other hand, fraud management protects the fraudulences take place in the daily transactions.
Taxation Taxation unit takes care of the tax, VAT and tariffs of the company. Reporting The reporting unit reports the entire financial transactions of TMIB to the parent company in Malaysia.
Costing This unit forecasts the costing of different departments and reports them regarding the expected expenditure of any alteration. Technical Division The technical division consists of three major units â&#x20AC;&#x201C; planning, infrastructure and property management. Planning The planning unit makes plans regarding the technical matters such as the RF, SWITCH etc. They assure the proper placement of technical devices and equipments. Infrastructure The infrastructure unit selects the locations and builds the base transceiver station (BTS) towers. They are also responsible for the maintenance of the towers. Property Management The property management unit manages the technical equipments and assets. Human Resource Department Human resource department is responsible for the recruitment and training of the employees of the company. They also monitor the performance and handle the promotion and salary related matters. Along with the HR department, there is an Administration. The administration is responsible for supplying furnishings and equipments to all the divisions and departments. They also administer the regulations of the company. Corporate Strategy Department The corporate strategy department determines the long-term strategies and the short-term plans. All the corporate level policies come from them and they are also responsible for the implementation.
Corporate Affairs Department The corporate affairs department is responsible for maintaining a liaison with other major companies. Through this department, TMIB makes business deals with other corporations and assist each other. Coordination Department
The coordination department is responsible for the internal and external synchronization. At one hand, they coordinate with outside companies. Along with that, they harmonize among the divisions and departments inside the company. Relationship among Different Divisions and Departments: An organization is like complex machinery consisting of different parts. Different functional divisions and departments are the different parts of this organizational machinery. Therefore, to make an organization a success, the divisions and departments must work accordingly. In ROBI all the divisions and departments are closely tied with one another. Sales unit makes sales forecast, identifies marketâ&#x20AC;&#x2122;s potential opportunity and sends it to the technical division for doing the plan for new coverage area. These two divisions jointly plan for increasing the coverage area. If there is any complaint regarding the networks Customer Relation Management unit informs it to technical division for solving it. Again Customer Relation Management Unit informs marketing division about the problems and suggestions regarding the products and their selling procedure. Finance division is related with al the divisions for fund allocation and fund management of all shorts and giving salary to all the ROBI employees. Human Resource Department meets the employee need of other divisions by conducting total recruitment process. Future Targets of ROBI: ROBI is a company with increasing growth trend from the very inception phase. At present, in the 9th year of its operations ROBI has achieved a subscriber base of more than two million. The company has a number of plans for the forthcoming future years. Within 2008, ROBI has the target to reach a subscriber base of 75,00000. Within that year the company is intended to cover all the districts of the country. Taking all the probable threats in the industry under consideration, including the introduction of BTTB mobile phone connection, ROBI is intended to keep its market share at least 30% by 2008.
Subscriber Base of Mobile Operators : At a Glance At present the telecom market in Bangladesh is comprised of approximately 20990000 phone connection of which about 7.14% i. e. 1500000 phone connections are provided by the fixed line network, Bangladesh telegraph and Telephone Board (BTTB), RanksTel, Bayphone, Bijoy Phone, and OneTel. The remaining 92.86% i.e. about 19490000 connections are provided by the five mobile operators. The market share of the mobile phone operators in Bangladesh up to March 2007 is as follows:
Table 1.3 : The number of subscribers and the market share of the mobile phone operators
Service Provider GrameenPhone Ltd. ROBI
No. of subscriber (approximately) 1,50,00,000 74,00;000
Market (approximately) 53.44% 12.87%
Banglalink
100,00,000
25.70%
TeleTalk Airtel CityCell Total
20,00,000 50,00,000 80,00,000 4,74,00,000
1.51% 2.13% 4.11% 100%
Share
Competitive Position of the Operator: Relative position of mobile phone operators
Service Provider
Target Customer Corporate/ Individual
Corporate/ SME/ Individual
Corporate/ SME/ Individual
Corporate/ SME/ Individual
Price Tariff
&
Quality
Technology
Strategy
CDMA
Network expansion attractive products
Low
Deterioratin g services
&
Competitive
High quality service and GSM wider coverage
Increase coverage and market share
Competitive
Good quality and wider GSM coverage
Increase coverage and Market share
Competitive
Good network GSM with wider coverage
To maintain the no. 1 position as a cell phone operator
Corporate/ SME/ Individual
Corporate/ SME/ Individual
Very Affordable
Low Quality and Limited GSM Coverage
Network expansion, Increase coverage and market share
Competitive
Good network GSM with wider coverage
Network expansion, Increase coverage and market share
Target customers are almost same for the five mobile operators. Regarding to price and tariff, ROBI and GrameenPhone are very much competitive. Banglalink’s, Airtel”s and TeleTalk’s price and tariff is very affordable and Citycell is able to give low price to its subscribers. In case of service quality and network coverage, GrameenPhone is leading the number one position among them and ROBI is holding the second. Only Citycell uses CDMA technology and other four use GSM technology. By this, Citycell differentiates its products from the others. Except GP, Other operators’ (including ROBI) recent strategy is to increase coverage and market share through attractive products.
Results for Both Prepaid and Postpaid about subscriber`s satisfaction: Satisfaction Vs Application Procedure: For both Pre-Paid and Post-Paid, responses regarding application procedure at ROBI were positive. Only a very negligible percentage of Pre-Paid subscribers in the sample have responded negative. Consequently, it shows that application procedure is one of the factors that have enhanced satisfaction level of ROBI subscribers. Satisfaction Vs Activation Time Like application procedure, both Pre-Paid and Post-Paid subscribers have stated their positive responses. This again signifies that activation time of ROBI connection, which is hours, is another factor, which has assisted ROBI to achieve greater customer satisfaction. Satisfaction Vs Network I have already added that for a significant portion of both Pre-Paid and Post-Paid subscribers, Network of ROBI has become one of the prime factors causing dissatisfaction. Now, I will present which factor in Network is basically responsible for this. This can be identified through the following three statements which I have asked people to put comment on them. The statements are given below.
• • •
ROBI can access easily to any part of Bangladesh ROBI can access easily to other competitors’ network I feel myself comfortable with the transmission quality.
The responses of both Pre-Paid and Post-Paid subscribers are given below. Responses of Pre-Paid Subscribers The responses of Pre-Paid Subscribers regarding the statement – ‘ROBI can access easily to any part of Bangladesh’ has been given below. The following graph shows that around 50% of the Pre-Paid subscribers is either dissatisfied or highly dissatisfied about this. Figure : Network Network6
40
30
t n rc e P
20
10
0 Strongly Disagree
Disagree
Network7 Neutral
Agree
Strongly Agree
Network6 40
30
tP n e rc
20
Network8 10
The responses of Pre-Paid Subscribers regarding the statement – ‘ROBI can access easily to 50 other competitors’ network’ has been given below. The following graph shows that around 45% of the Pre-Paid 0subscribers are either dissatisfied or highly dissatisfied about this. 40
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
t n rc e P
Network7 The responses of Pre-Paid Subscribers regarding the statement – ‘I feel myself comfortable with the transmission quality’ have been given below. The following graph shows that less 30 than 10% of the Pre-Paid subscribers are either dissatisfied or highly dissatisfied about this. 20
10
0 Strongly Disagree
Disagree
Neutral
Network8
Agree
Strongly Agree
From the above discussion, it can be identified dissatisfaction of ROBI subscribers regarding Network has been caused because of the following reasons. • •
A significant amount of ROBI Pre-Paid Subscribers states that ROBI cannot access any part of Bangladesh because of its limited coverage in 61 districts. A significant amount of ROBI Pre-Paid subscribers states that ROBI cannot access easily to other competitors’ network because of inefficient network sharing with other competitors.
Responses of Post-Paid Subscribers The responses of Post-Paid Subscribers regarding the statement – ‘ROBI can access easily to any part of Bangladesh’ has been given below. The following graph shows that around 50% of the Post-Paid subscribers is either dissatisfied or highly dissatisfied about this.
Network7
Network6 50 50
40 40
Figure : Network 30
t n rc e P
t n rc e P
30
20 20
10 10
0 0 Strongly Disagree
Disagree
Neutral
Network6
Agree
Strongly Disagree
Disagree
Neutral
Network7
Agree
Strongly Agree
The responses of Pre-Paid Subscribers regarding the statement – ‘ROBI can access easily to other competitors’ network’ has been given below. The following graph shows that around 30% of the Pre-Paid subscribers is either dissatisfied or highly dissatisfied about this. The responses of Post-Paid Subscribers regarding the statement – ‘I feel myself comfortable with the transmission quality’ have been given below. The following graph shows that none the Post-Paid subscribers is either dissatisfied or highly dissatisfied about this.
Network8
50
40
t n rc e P
30
20
10
0 Neutral
Agree
Strongly Agree
From the above discussion, it Network8 can be identified dissatisfaction of ROBI subscribers regarding Network has been caused because of the following reasons. •
A significant amount of ROBI Post-Paid Subscribers states that ROBI cannot access any part of Bangladesh because of its limited coverage in 61 districts.
•
A significant amount of ROBI Post-Paid subscribers states that ROBI cannot access easily to other competitors’ network because of inefficient network sharing with other competitors.
Satisfaction Vs Customer Care It has been found out from the findings part that for both Pre-Paid and Post-Paid around 45% of the respondents has either agreed or strongly agreed with the positivity of the customer care of ROBI. However, in both cases around 40% respondents have positioned themselves as neutral. This signifies that a big chunk of the respondents is unaware of the features of customer care as they never tried it out. Satisfaction Vs Facilities To find out the responses of the respondents I have asked them regarding the following four facilities provided by ROBI to its pre-paid and post-paid subscribers. • • • •
Pulse Off-peak hour Roaming facility Friends n Family Option
It has been found out that only an insignificant portion (7%) of the pre-paid respondents has either disagreed or strongly disagreed. In case of post-paid subscriber respondents, only 4% disagreed with the positively of the facilities offered by ROBI. Satisfaction Vs Churn Out Ratio Regarding switching to other competitors’ services, only around 15% of the post-paid respondents has either agreed or disagreed where the greater portion is in favor of not switching to anyone in future. Nevertheless, 30% of the pre-paid respondents has either agreed or disagreed in favor sticking to ROBI services. Consequently, ROBI should have a considerate look in this arena of its subscriber base. Satisfaction Vs Value Added Services To assess the satisfaction level regarding the value added services, I have asked the pre-paid subscribers about SMS and VMS. At the other extreme, I have asked the post-paid subscribers about SMS, VMS and GPRS services offered by ROBI. It has been further discussed on the next page. The statements based on which I tried to assess customer reaction has been given below. • • •
I am satisfied with the advanced SMS service provided by ROBI I am satisfied with the distinctive VMS service provided by ROBI I am satisfied with the distinctive GPRS service provided by ROBI
Responses from Pre-Paid Respondents
The graph (VAS 22) below shows that only 25% of the respondents are either dissatisfied or strongly satisfied with the SMS services provided by ROBI. However, more than 50% of the respondents are either satisfied or strongly satisfied with the SMS services provided by ROBI. Besides, a chunk of around 30% is neutral about this service as they never tried it out. Figure : value Added Services
The graph above (VAS 23) shows that unlike SMS, people have responded about VMS services of ROBI in a different way. It shows that only10% of the respondents has agreed with positivity of the VMS services. Conversely, 80% of the respondents have positioned themselves as neutral since they never tried the VMS services as this is too complicated to operate. Responses from Post-Paid Respondents The following graph shows us that post-paid subscribers are very much satisfied with the SMS services as more than 70% of the respondents has either showed their positive response or strong positive response. At the other extreme, around 10% respondents have showed their dissatisfaction. Besides, like pre-paid subscribers, post-paid subscribers have showed their huge neutral response regarding VMS which once again shows that they infrequently or never tries this service provided by ROBI. Regarding GPRS, the graph shows that around 35% respondents have strongly satisfied with this particular service of ROBI. However, the majority is neutral about it. This signifies that subscribers who have used GPRS are strongly satisfied about it, nevertheless most of the respondents have never tried this out and consequently have positioned themselves as neutral.
Figure : Value Added Services
The above discussion shows that customer satisfaction of ROBI is significantly dependant on SMS services however, probably because of lower promotional campaign regarding VMS, ROBI subscribers are almost unaware of this service and consequently are not used to it. Besides, though GPRS has become able to create a strong position among the post-paid subscribers due to the easy access and intensive promotional campaign enhanced by ROBI. Satisfaction Vs Scratch Card Availability (Pre-Paid) It has been found out that the Pre-Paid respondents are satisfied with the availability of scratch cards except a very negligible portion (5%) of the sample. The graph of this result has been added in the ‘Findings Section’. This signifies that Scratch Card availability is another arena where ROBI has succeeded to gain positive reaction. Satisfaction Vs Scratch Card Duration (Pre-Paid) Like Scratch Card Availability, scratch card duration is another sector where ROBI has made the customers happy. The graph is showed in the findings section. Consequently, Scratch Card Duration is also factor behind the customer satisfaction of ROBI. Satisfaction Vs Billing (Post-Paid) To assess the satisfaction level of post-paid subscribers of ROBI, I asked put forward their responses regarding the following two statements. • •
The bill notification procedure is well timed. The billing procedure is comfortable for me.
The greater portion of the respondents has responded positively about the statements above. However, around 15% of the respondents has either disagreed or strongly disagreed with the bill notification procedure. The following graph shows us that. According to them, it is not well-timed. Consequently, it might be said this is a minor arena where ROBI is losing satisfaction of its post-paid subscribers. Figure: Billing
Biiling12
40
30
t n rc e P
20
10
0 Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Biiling12
Satisfaction Vs Call Charge I have already discussed in the ‘Findings Section’ that for pre-paid and post-paid subscribers of ROBI, call charge is the most important factor, which is creating dissatisfaction. To assess the satisfaction level, I asked for responses regarding the following statements. • The call charge from mobile to mobile (outgoing) is low. • The call charge from mobile to Fixed Phone (outgoing) is low. • The call charge from fixed phone to Mobile (Incoming) is low. Let us have a look on the responses regarding the statements above.
Call Charge-PrePaid 35% 30% 25% 20% 15% 10% 5% 0%
30%
27%
22% 11%
Strongly Disagree
Disagree
Neutral
Agree
Level of Acceptance
10%
Strongly Agree
Responses from the Pre-Paid Subscribers The following graph (Call Charge 9) shows the responses regarding the statement – ‘The call charge from mobile to mobile (outgoing) is low’. The graph signifies that more than 50% of the respondents are either dissatisfied or strongly dissatisfied with the call charge from mobile to fixed phone. Figure : Call Charge
CallCharge9
CallCharge10
40
50
40
30
30
P t n rc e
t n rc e P
20
20 10
10
0 Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
0 Strongly Disagree
CallCharge9
Disagree
Neutral
CallCharge10
CallCharge11
40
30
t n rc e P
20
10
The ‘Call Charge 10’ graph 0 above shows the responses regarding the statement – “The call Strongly Disagree Neutral Agree Strongly Agree charge from mobile to Fixed Phone (outgoing) is low”. It is certain from the graph that more Disagree CallCharge11 than 80% of the respondents has either disagreed or strongly disagreed with that given statement. As a result, it can be said this is prime arena where satisfaction level of pre-paid subscribers has gone down.
Agree
At the other extreme, the right graph above (call charge 11) shows that around 35% of the respondents has either agreed or strongly agreed with the statement- The call charge from Fixed phone to Mobile (Incoming) is low, however 25% has either disagreed or strongly disagreed. Responses from the Post-Paid Subscribers For Post-Paid subscribers all the three statements I have given got mostly either disagreement or strong disagreement. The following graph shows us these facts. • • •
Call charge from mobile to mobile (outgoing) is low - graph call charge 9 Call charge from mobile to Fixed Phone (outgoing) is low - graph call charge 10 Call charge from Fixed phone to Mobile (Incoming) is low - graph call charge 11 Figure : Call Charge CallCharge9
CallCharge10
50
70
60 40 50 30
t n rc e P
t n rc e P
40
20
30
20 10 10 0 Disagree
Neutral
Agree
Strongly Agree
0 Strongly Disagree
CallCharge9
CallCharge11
50
40
30
20
10
0 Strongly Disagree
Disagree
CallCharge10
t n rc e P
Strongly Disagree
Disagree
Neutral
CallCharge11
Agree
Strongly Agree
Neutral
Frequency of Usage of ROBIâ&#x20AC;&#x2122;s Value Added service The next question was developed in order to know the popularity about various Value Added Services provided by ROBI. The four value added services (SMS, VMS, Fax and Data, and GPRS) were in the list and respondents were asked to tick each of them according to their usage frequency. Frequency of Using VAS 120% 100% 80% 60% 40% 20% 0% SMS
Daily
15 days
VMS
30 days
Fax
Occasionally
GPRS
Never Use
Short Message service (SMS) From the above figure, it is apparent that SMS is the most popular and frequently used value added service among all the VAS. Only 2% of the respondents were found who does not use this service. 67% of the respondents use this service everyday, which is most frequent than any other value added services. People of almost all age group use this service. Cheap cost also makes it popular among users of all type.
Voice Mail Service (VMS) Surprisingly this service has got a very low respond though no extra charge is required to activate this service. This service can be easily activated by making a simple phone call at ROBIâ&#x20AC;&#x2122;s customer care service and request for activation. But people who do not use that
have a misperception that this service is available only to handsets with special features or they have to pay a monthly fixed rent to enjoy it. This service did not become that popular as expected and probably the problem lies with ROBI for not promoting and communicating its features to the customers properly. Fax and Data There was no user found for this specific service from the given sample set as this service is used by companies. Special permission is required which is issued, if any individual wants to use Fax and Data Service. GPRS In the case of GPRS, 88% of the respondents do not use this service. Only 5%, 3% and 3% of the respondents used this service daily, 15 days, and occasionally respectively as this service is only available for Post-Paid connection and it is very expensive to browse the Internet through mobile phone. Reasons for Not Using Value Added Services Asking the people regarding the reasons for not using ROBI value added services, the followings came out upon which people have submitted their opinions. o o o o o
My handset or connection is not compatible. It is too complicated to use/not user friendly. It is too expensive. I am not aware of the service. It is only for the young people.
SWOT Analysis: Strengths and weaknesses are the micro environmental factors influencing a business which are within the organization. Opportunities and threats are the micro environmental factors that influence all the firms in the industry. This is a very important tool for a company in order to determine the present standpoint of the company. Strengths Joint Venture ROBI is a brand of TM International (Bangladesh) Ltd. (TMIB), which is a joint venture of A. K. Khan & Co. Limited of Bangladesh and Telekom Malaysia Berhad of Malaysia. A. K. Khan & Co. Ltd. and Telekom Malaysia Berhad comprise 30% and 70% equity capitals respectively in this joint venture. TMIB started its operation in 1997 after receiving the license in 1996 to operate GSM cellular phone services in Bangladesh. This venture has contributed both the companies the advantage of risk diversification. At the same time,
Telekom Malaysia Berhad has gained strong local network through A. K. Khan & Co. Ltd., which is a well-established company based in Chittagong. Foreign Knowledge Resources The top-level management of TM International (Bangladesh) Ltd., by and large, consists of foreign personalities. Most of the departmental heads are from Malaysia, India, Australia, and Sri-Lanka. Because of this mix and match of local and foreign expertise in the company, there is a blend of knowledge. Moreover, the generation of foreign knowledge in the company has enabled the company to compete internationally. Highly Competitive Market Currently, there are four major players operating in Bangladeshi market: GrameenPhone, ROBI, CityCell and Banglalink. All of these companies have foreign alliance and they are highly competitive. To keep pace in this extremely aggressive rivalry, ROBI has adopted an offensive marketing strategy. Operating in such a market and adopting such strategies have given the company an internal competitiveness, which in turn has allowed TMIB to operate in foreign market with giant foreign competitors. Strong Brand Image TM International (Bangladesh) Ltd. commenced its journey with the brand â&#x20AC;&#x153;ROBIâ&#x20AC;? in 1997 as the 2nd GSM operator in Bangladesh. Since its inception, ROBI has established itself into a popular name among the community. Being one of the pioneers, ROBI has a strong brand image in Bangladesh and people recognize the name instantaneously. This recognition has given the company an added advantage, as TMIB is operating in a very competitive market. Skilled Human Resource Because of its attractive incentive packages and strong brand image in the job-market, skilled workforces have grown an interest towards TMIB. This has given the company an extra benefit, as the company can recruit the finest from the pool of employees. Furthermore, TMIB frequently recruits young, enthusiastic, and resourceful employees from reputed academic institutions. It also provide motivation among its employees by offering extra inducements such as: awarding gold medals to best employees of the year, organizing entertainment programs, providing transportation facility etc. These extra services have enhanced employeesâ&#x20AC;&#x2122; motivation-level and loyalty.
Non-Political Work Environment
The work-environment of TMIB is very friendly and co-operative. The practice of internal politics is completely absent and there is an orderly co-ordination among the departments. As most of the employees belong to the same age group, there is a harmonization in the organization. Collaboration with Diverse Companies TMIB has alliance with diverse companies to support its service offerings. For an example, recently, the company has launched a club-membership facility for its post-paid subscribers, named “Club Magnate”. To offer this clubmembership, TMIB has collaborated with different companies such as Agora, Malaysia Airlines, Hotel Seagull etc. In a similar manner, TMIB has partnerships with Cineplex, BDJobs, Deshimobile, Fantasy Kingdom etc. These collaborations have contributed the company in cost-efficiency and superior service-offerings. Collaboration with Financial Institutions Apart from having collaboration with diverse companies, TMIB also has collaboration with a number of financial institutions. For example, TMIB has affiliations with HSBC and Standard Chartered Bank for billing and salary purposes. It also has collaboration with EBL and other banks. Because of maintaining an excellent relationship with these financial institutions, TMIB will get the privilege while taking loans or any type of financial services from these institutions. Distinctive Service Offers TMIB has a well-known reputation of being “The First Ever” in the country. It has always tried to bring something new and exceptional in the market. There are countless services, which are brought by TMIB under ROBI brand. Some of the outstanding services are: E-Fill, Pulse offer, GPRS (Mobile Internet), Greeting Messages (FunDose), Buy 1 get 1 Free offers etc. By providing distinct services, TMIB has achieved the status of “Fast Mover”. Customer Care Base TMIB has established several customer care centers in major points of Dhaka city, such as Gulshan-1, Gulshan-2, Dhanmondi, Motijheel,Uttara etc. Moreover, it has set up customer care centers in major districts of the country such as Comilla, Chittagong, Sylhet, Barisal,Rajsahi and Khulna. There are 18 customer care centers in total and these centers have allowed the subscribers to get free services even staying in remote places of the country. Affable Corporate Culture The corporate culture of TMIB is famous for being friendly and positive. The company has a “Thursday dress-code” for the employees. It also assembles
money from every employee to have tea-break snacks. There is a pleasing synchronization among the staffs, which has built a positive corporate culture. Societal Marketing TMIB regularly takes part in charity functions and is renowned for donating money in different deprived institutions around the country. The company has already donated money, free-books, free-medicines, and free-SIM cards in various schools, madrasas, and hospitals. It is also involved in societal marketing advertising. Recently the slogan campaign of TMIB supporting the autistic children has attracted huge attention. Weaknesses Poor Work Delegation Structure The departmental structure of TMIB is not precise and well thought-out. Each department contains several units. However, the units are not separated by well-defined boundaries and it is very difficult to distinguish among them. The employees do not have any specific ID to track them separately department-wise. Employee Insufficiency The departments of TMIB do not have sufficient work force to carry on a thorough task. Most of the employees in each unit are loaded with several duties and sometimes it becomes a burden on their shoulders. Lack of employees in each department is an obvious problem of the company. High Fixed Cost Telecommunication industry has a high level of fixed cost. TMIB, operating in this industry, also faces such disadvantages. Office rent, network tower maintenance cost, operational cost etc are the fixed costs of the company. These fixed costs do not allow the company to gain the advantage of economies of scale, which is essential for the company to perform well financially. Because of high fixed cost and low economies of scale, the company also has a low re-investment rate. High Employee Turnover Rate As there are four major players operating in the market, it is apparent that each company will try to draw employees from other companies by offering better incentive-packages. This practice has created a high employee turnover rate in TMIB. Every year, lots of competent workers leave the company to join other companies. This has created a major crisis, as TMIB cannot implement any effective long-term strategy.
Inadequate Network Coverage in Rural Areas Presently, TMIB has network coverage in 61 districts. However, most of the upazilas of these districts do not have the coverage. Therefore, despite covering 61 main districts of the country, ROBI users in rural areas do not get the frequency. This has created a disappointment among the subscriber and hence it is a drawback of TMIB. Feeble Recruitment Policy Though TMIB attracts skilled workers from renowned academic institutions all over the country, because of its poor recruitment policy, many undesired employees are hired over desired ones. Sometimes people with objectionable background are hired and sometimes, right people are not hired in right positions. Thus it creates a risk of wasting talents in the company. Shortages of Logistics Supports Many departments in TMIB do not have sufficient equipment support such as: Fax machines, printers, scanners etc. Lack of proper equipments in departments has created work constraint. Dealer Insufficiency TMIB has only 4 authorized dealers and 1 distributor, which is very insufficient for a company covering network in 61 districts. As a result of inadequate number of dealers and distributors, there is high possibility of Gray Marketing. If the SIMs or cards of TMIB pass on the hands of unauthorized dealers, it would be very difficult for the company to maintain a consistency in price and quality. Network Limitation Call drop, congestion, and poor connectivity with BTTB result in bad image of the company. Some value-added services are not successful • • •
Voice Mail service due to language barrier, lack of promotions, lack of know how about interactive services and also because people are reluctant to speak to a machine. Usage of Short Message Service is still low due to lack of promotion, lack of knowledge of English, unawareness of handset configuration and un-ergonomic nature of keypad. Lack of co-ordination is used as an excuse not to solve problems
Commercial ads are not too creative
ROBIâ&#x20AC;&#x2122;s commercial ads are not that much appealing its prospective customers compare to its competitors. Valuable features are not focused in its ad. ROBI does not show its competitive advantages through its ads whereas its competitor such as Citycell has done it effectively. Opportunities Incompetent Public Sector The public sector in Bangladesh is not capable of meeting the market demand of prospective phone users. Plus the lengthy and bureaucratic process of public offices has discouraged people to use T&T and public mobile phone (TeleTalk). For these inconvenience systems, people in our country have adopted private mobile phone services as an alternative. This is a great opportunity for TMIB to grab this huge market of prospective phone users. Upward Moving Population Income According to World Bank source, the disposable income of people in Bangladesh is increasing every year. In addition, Bangladeshi market has high mobile phone acceptability. Both the factors are fostering the fact that, Bangladeshis is a potential market for mobile phone companies. Operating in such a market is a lucrative opportunity for TMIB. Business Diversification Opportunity Operating in telecommunication industry has given TMIB with the opportunity of business diversification in related sectors. Having the expertise in telecommunication field for a long time, TMIB can expand its business in mobile phone set business, mobile phone battery business etc. Easy Entrance to Foreign Market TMIB has joint venture with a prominent Malaysian telecom company, Telekom Malaysia Berhad. At the same time, operating in an aggressive market has enabled the company to become very competitive. These attributes have permitted the company to have an easy access to foreign market and compete with foreign rivals.
Easy Loan Access As discussed before, TMIB has collaboration with a number of financial institutions regarding billing and wage-payment purposes. This has allowed the company to have a good relationship with the institutions. TMIB can take advantage of these collaborations and can have easy access to loans and other financial matters.
Full-fledged GPRS Package TMIB has already brought GPRS (General Package of Radio Service) in Bangladesh. However, the service is in its initial stage. Since no other company has brought a complete GPRS package, TMIB can take this advantage and bring a full-fledged GPRS package. GPRS is a completely new technology in our country and it is obvious that the package will be a hot cake in the market. New Strategic Alliances Strategic alliance in telecommunication industry is not a new phenomenon. All the four operators in Bangladesh have strategic alliances with several foreign companies. TMIB can form new alliances with eminent companies of different countries to achieve higher competitiveness and bring more expertise inside the company. Network Coverage Expansion TMIB has already network coverage in 61 districts. However, most of the upazilas and rural areas of these districts are not under the coverage. In this circumstance, to increase the coverage in remote areas, TMIB can utilize its already established towers. Otherwise, they can set up new towers. Establishing new towers will not be a barrier for TMIB, as the company can form collaborations with Grameen Phone or other operators who already have towers in those areas. Huge need for telecom services Current market growth rate of the telecommunication is significant which arises a great opportunity for the cellular phone companies to grow rapidly. The demand of the cell phone is still increasing. Variety services with most lucrative features made this sector more and more attractive day by day. Recent yearâ&#x20AC;&#x2122;s growth reflects the enormous potential for the development to telecommunications and information technology in the country. Declining prices for handsets The prices of the mobile sets are declining in Bangladesh that makes an easy gateway for the customers to use cell phones. It will create an opportunity for the telecommunication industry by getting large number of customers. There are some others opportunities, which can be important factors for ROBI, are: Economic growth of Bangladesh, new and better interconnection agreement and future privatization of the fixed network. Threats Widest Coverage of GrameenPhone
Grameen phone (GP) has network coverage in 61 districts as TMIB. Yet GP’s coverage is better than TMIB’s coverage, as GP covers all upazilas and rural areas. On the other hand, TMIB provides network only in the city areas. Because of the availability of network in distant places and good frequency, GP has a superior brand image to people. This is of course a threat to TMIB. Political Instability and Natural Calamity Bangladesh is called “red-zone” in terms of political risks. The instability of administration has resulted in unstable regulations. With the change of governments, regulations also change from season to season. This volatility has hindered TMIB from making a long-term effective strategy. At the same time, the country also has a high natural calamity tendency. Natural catastrophes damage the network towers situated in different districts of the country. Recession in the Economy Mobile phone is still considered as a “luxury” in Bangladesh rather than a necessity. Being one of the poorest nations in the world, the risk of recession in Bangladesh is very high and frequent. During the recessions, people are reluctant to invest behind luxury items such as mobile phones. This is a huge obstacle for TMIB to reach all population sectors in the country. Non-cooperative Telecommunication Regulatory Body The regulatory bodies in the telecommunication ministry are unfair and biased. Plus, the system itself is bureaucratic and lengthy in Bangladesh. Because of their non-cooperative attitude and injustice, the usual work-pace of TMIB is slowing down. This is of course a risk to the company. Customer Resistance against Tariff Any new tariff or VAT is always a controversial issue to the people of our country. People in Bangladesh are reluctant to accept new tariffs and it takes a long time for them to approve it. In the recent budget, the government has imposed a tax of TK.900 on every SIM card, which has created a huge debate and protest among customers. Many of the customers have stopped buying SIM cards. This tax has also hindered the mobile operators to maintain a constant price level and to offer attractive packages. Existing Competitors in the Market At present, there are four private and one public mobile phone operators operating in the Bangladeshi market. All of the private operators are aligned with foreign companies. These companies are following aggressive marketing strategy and the level of rivalry in the industry is very high. The companies are trying to bring new and attractive offers every week at a striking price
level. This high intensity of competition in the industry is a major threat to TMIB, as TMIB has to survive this fast paced competition. Threats of potential new entrants Besides the existing competitors, new and large competitors are also trying to enter the Bangladeshi market. Some of these companies are Reliance, Tata etc. These new companies will increase the rivalry level in the industry. Potential new entrants can get into the telecommunication market with cost effective approach and take off market shares. New domestic and foreign cellular phone companies can start telecommunication network business. As Bangladeshi people are very much price sensitive, it might cause serious problem for ROBI. Private T&T Phone Companies Apart from the new and existing mobile phone operators, competition is also expected from private T&T phone companies. Because of the inadequacy of the public T&T Company, many private companies are coming in the market. These companies are also a threat to TMIB, as they offer similar services at a lower price to customers. Possible Health Risk from Mobile Phone Recently, a scientific study has shown that there is high risk of health hazard including brain tumor and cancer from the usage of mobile phone. The study concluded that long time use of mobile phone might cause such diseases and so people should reduce their use of mobile phone. Though there is no solid evidence of this fact, it has created an argument and panic among mobile phone users. This is naturally a threat to TMIB. T&T Mobile T&T is now entering the mobile telecommunication industry. It is now becoming the great threat business for all other mobile phone operators by providing unfair advantages and cause sever problems.
BTTB has reduced NWD and ISD call charge Recently BTTB has reduced its NWD and ISD call charges to promote LAN phone usages. This has affected the mobile phone industry and significantly reflected in the revenue earning of BTTB. Price war
All the five companies are fighting to get the market share by cutting price of the mobile phone connection. All competitors are lowering the unit price and also providing pulse facility like Robi provides pulse at the ten seconds of the first minute for prepaid and one second plus of the first minute. So the market is fighting with each other with their pricing strategy. From the above-mentioned SWOT and The Porter’s Five Forces Model analyses, it is apparent that TMIB (ROBI) is enjoying a strong position in the telecommunication industry of Bangladesh. Along with its numerous internal strengths and opportunities to utilize those strengths, the company is also getting the advantage of operating in a market that has high entry barrier. Due to the moderately low bargaining power of the buyers, the risk of buyer dominance is low, which has given the company an extra benefit. However, the company holds a number of internal weaknesses and facing immense competition in the industry. In conjunction with those weaknesses and competition, it is also facing the threat of strong substitute products. Government has increased its restriction by offering new VAT and Taxes on the telecommunication industry and the bargaining power of the suppliers is also high. Nonetheless, even after confronting such risks and having internal weaknesses, TMIB has maintained its dominance in the industry. The company has achieved many competencies through its operation since 1997 and is trying to recover from its weak points. Though other operators are trying their best to beat “ROBI”, TMIB is still ruling the industry with the promise of being Clearly Ahead.
Recommendation From the analysis I have come to the following conclusive recommendations, which might assist ROBI to improve the customer satisfaction regarding its products and services. Here, a close look on the recommendation is important because, 30% of the pre-paid respondents and 25% of the post-paid respondents have either agreed or disagreed in favor of sticking to ROBI services. Consequently, ROBI should have a considerate look in this arena of its subscriber base. As it has been found out that a significant amount of ROBI Pre-Paid and Post-Paid Subscribers cannot access any part of Bangladesh through ROBI, it is necessary for ROBI to increase its coverage and network stability to enhance the satisfaction level of its customer base. Besides, a considerable amount of ROBI Post-Paid and Pre-Paid Subscribers cannot access easily to other competitors’ network because of inefficient network sharing of ROBI with other competitors. Consequently, ROBI should have a depth look in this arena as well for the enrichment of the satisfaction level of its customer base. To solve that I recommend the following actions• Develop network
Must pay attention to develop their network further that will ensure smoother accessibility to other company mobile. • Strategic collaboration with the other companies ROBI should try to create a strategic collaboration and good relationship with other mobile companies so that ROBI can ensure smooth access of its mobile connection with other company mobiles. As around 40% of the respondents of both pre-paid and post-paid subscribers have positioned themselves as neutral regarding the customer care services provided by ROBI. Therefore ROBI should promote its customer care facilities more intensively so that people become informed about it. As a huge portion of the respondents has positioned themselves neutral regarding the GPRS and VMS services of ROBI due to their ignorance regarding their usage, application and operations, ROBI should promote the ‘know how’ of these service to make these services much more user friendly to the customers. Certainly, this will have a positive effect on the satisfaction level of the customer base. The prime arena where ROBI is losing its customer satisfaction is the call charge from mobile to mobile (outgoing), call charge from mobile to Fixed Phone (outgoing) and call charge from Fixed phone to Mobile (Incoming). This is certain that if ROBI does not go for slashing down the call charge furthermore (though ROBI has reduced the call charge recently), the intensity of the higher customer dissatisfaction will continue to rise and which might in turn lead lower market share of ROBI in the long run. Thus, ROBI should have a careful look on its call rate. Besides, I recommend them to further increase their subscriber number especially in the rural areas. As they had already established towers in all over the Bangladesh so no further capital investment is required to provide service in rural areas. If they can increase their subscriber number then it will reduce their fixed cost per customer (by achieving economies of scale) and will help them to charge low to the customers. Besides the factors added above, the other factors directly or indirectly are the reasons for ROBI for gaining positive customer satisfaction, which are required by ROBI to keep them up at the current level.
Conclusion As ROBI is the second market leader in the cell phone industry of Bangladesh, seeking out the weaknesses of its services and resolving them through swift and corrective measures are vividly important for ROBI. This is because, by doing so ROBI will be able either enhance or stabilize the satisfaction level of current customer base. Consequently, at the same time ROBI will be able to expand its customer base and ultimately it might lead ROBI to the zenith of the cell phone industry in the long run.
From the analysis of the whole project I have come up with some clear differences between the services provided by ROBI and customer satisfaction regarding those. Consequently, a significant amount of â&#x20AC;&#x2DC;customer gapâ&#x20AC;&#x2122; has been found. Therefore, for the betterment of ROBI considering its services, ROBI is supposed to step on fast with a constructive flair towards enhancement. Thus, with responsive attitude, exclusive empathy towards customers and developing more efficient and effective work force will be able to take ROBI to the ultimate position in the industry.
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