North South University

MGT 489

Letter of Transmittal: September 8, 2021 Quazi Tafsirul Islam (QTI) Lecturer North South University Bashundhara R/A, Dhaka – 1229 Subject: Submission of MGT489 Report Dear Sir, Let me begin by thanking you for this opportunity to apply what we've learned in class to the real world, as well as expressing my heartfelt gratitude for your outstanding advice and mentorship over the semester. For all of us, this course has been a fantastic learning opportunity. Without a doubt, I can guarantee you that we have done all possible to make the most of the opportunity to work as a researcher under your supervision and to complete the assignment you have given us. Every criterion was met with maximum devotion; thus, we are now delivering the report of our group project to you in the hopes that we were able to produce as promised. We've done our best to include all of the information you've requested, and we hope you'll find this report to be completely error-free and helpful. We eagerly await your response and respectfully request that you accept our report. Thank you so much for taking the time to read this letter, and I hope you will find our project worthy of your praise. Sincerely yours, Nawshin Jahan - 1731258030 Nabila Mahbub Briste- 1811865030 Adnan Hatim Hossain - 1812635630 Aniqa Farzana- 1711331030 Tahmid Jahin- 1912286630 Naseef Akbar- 1511382030 Syed Rubayet Hossain- 1821513030 Md. Mahtab Uddin 1721451030 Page | 2 Acknowledgements We would like to forward our utmost gratitude to our course instructor, Mr. Quazi Tafsirul Islam, for his undeterred guidance and support throughout this course. Without his valid rule, the probe would most likely not be able to be completed in a timely manner. This course has been a great learning experience for all of us, and we truly hope to be able to properly implement our learning in the future. Page | 3 Executive Summary This report is entirely based on Robi Axiata, the second largest mobile network operator in Bangladesh, with 50.9 million subscribers as of December 2020. This report has been sectioned into three main parts, Part A, B, and C. Part-A consists of internal and external analysis of Robi, Part-B has a set of recommendation that we have put together to help Robi increase their profitability, and Part C has further technical aspects of the feasibility of our recommended plan. Upon interviewing a Robi employee, and doing our secondary research, we have realized that the company’s core competency lies in their 4G Data network coverage. They are soon to launch 5G in the country as well. In order to increase Robi’s profitability, we decided to play their strength and try to diversify into the electronic equipment industry. By 2024, we recommended Robi to launch their take on the electronic equipment industry because Robi can capture a large market and profit from being the first mover in this business in Bangladesh by putting in an integrated 5G operated series of equipment such as microwaves, televisions, air conditioners, washing machines, and even smart phones. Consumers will be able to control all of their appliances using their own 5G network with this technology. In order to give new experiences to its consumers, Robi has already made substantial progress in the futuristic fields of data analytics, artificial intelligence, Internet of Things (IoT), cloud solutions, and other digital future-ready technologies. Robi has a history of acquiring firms rather than starting from scratch in manufacturing or production. Similarly, we recommend that Robi choose a foreign brand (ideally Chinese) to transfer the equipment into Bangladesh under their label for this project. This diversification project does need certain technological advancements and government permissions, which are all included in PartC. Overall, this report consists of all external and internal factors of Robi, along with the various other strategic plans required to execute the recommendations. Page | 4 Table of Contents Letter of Transmittal:................................................................................................................................1 Acknowledgements...................................................................................................................................2 Executive Summary...................................................................................................................................3 PART- A..........................................................................................................................................................6 (Research & Analysis)....................................................................................................................................6 History...................................................................................................................................................7 Growth and Development ....................................................................................................................7 II. Internal Environment:...........................................................................................................................9 III. Industry Identification........................................................................................................................11 Competitive Forces Analysis...................................................................................................................13 PESTEL Analysis...................................................................................................................................15 IV. SWOT ANALYSIS.................................................................................................................................17 V. Defining ROBI’s Business ....................................................................................................................19 VI. Distinctive Competencies ..................................................................................................................20 VII. Financial Performance Analysis of Robi Axiata Limited:...................................................................22 VIII. Competitive Advantage ...................................................................................................................33 IX. Current Business Model:....................................................................................................................34 Business Model of Robi.......................................................................................................................36 PART – B......................................................................................................................................................41 (Recommendations)....................................................................................................................................41 I. Recommendations...............................................................................................................................42 II. A Corporate Strategic Plan for the next five years (2021-2026).........................................................43 III. Business Level Strategies for the next five years [2021-2026]: .........................................................45 IV. A Functional Level Strategy for the next five years [2021-2025]: .....................................................48 Human Resources: ..............................................................................................................................51 Research and Development:...............................................................................................................52 V. Technology Strategy for the next five years.......................................................................................53 VI. Revised Business Model.....................................................................................................................56 Revised Business Model of Robi Axiata limited......................................................................................59 PART – C......................................................................................................................................................62 (Feasibility)..................................................................................................................................................62 I. Governance Support............................................................................................................................63 Page | 5 II. Strategic Control .................................................................................................................................64 III. Culture and New Strategies.............................................................................................................66 IV Global Strategies.................................................................................................................................67 V. Ethical value proposition of Robi Axiata Limited................................................................................69 References ..............................................................................................................................................71 Appendix .................................................................................................................................................74 Questionnaire .....................................................................................................................................74 Work Distribution ...................................................................................................................................77 Page | 6 PART- A (Research & Analysis) Page | 7 I. Robi Company overview History Robi is the 2nd largest telecommunication operator in Bangladesh. In last year, December, Robi have reached 50.9 million subscribers. Growth and Development Timeline Key Events 1997 Robi started its journey as joint venture of A.K. Khan & Company Ltd. and Telecom Malaysia under the brand name “Aktel”. 2008 Japanese Telecommunication company NTT Docomo bought 30% share of AKK 2009 Telecom Malaysia rebranding the brand as “Axiata”. 2010 Rebranding as “Robi Axiata ltd.” Tagline: জ্বলে উঠুন আপন শক্তিলে। 2013 Established 3G network expansion in Dhaka and Chittagong, and gradually spread whole country. 2016 ❖ ‘Mahtab Uddin Ahmed’ had