Grameenphone is the largest mobile communication provider in Bangladesh. It is an extension of Telenor Mobile Communication in Bangladesh, which Telenor itself operates in many different countries. Grameenphone is available to consumers in both rural as well as urban areas.
Conducting a PESTEL analysis, we will find out how these different external forces can affect Grameenphone in Bangladesh.
Political Factors
The position of the Bangladesh’s government highly affects the business of Grameenphone, for instance the political crisis in 2015 affected the business of almost all the industries operating in Bangladesh. Grameenphone observed a drop in sales in that year due to this political turmoil. Other than that, Grameenphone also has to follow tax policies and safety regulations in order to survive in the current government. That also usually affects Grameenphone’s business negatively.
Economic Factors
The unstable political conditions in the country also have a huge impact on the economic conditions of Bangladesh. Unstable economy affects the sales and revenues for Grameenphone as their demand decreases when people do not have the buying power. Following the tax rate and employment policies of Bangladesh also becomes important for Grameenphone. Since, currently Bangladesh does not have a stable government, it also faces a lot of economic issues and as a consequence of that, Grameenphone’s business is affected negatively.
Socio-cultural Factors
The target market of Grameenphone is very diverse as it serves to both urban and rural population. Also, they have diverse range of services as well that serve the right target market. For instance, in the rural areas, they are unable to provide good services in terms of internet. One of the reasons for it is that the people are not that educated to accept or use such services. So in those areas, Grameenphone has fewer revenues in terms of their internet services. Similarly, in urban areas, people have high expectations and Grameenphone has higher sales in internet services.
Technological Factors
Mobile phone communication works on the concept of technology so it is very important for Grameenphone to accept and implement latest technology in their services. As the people are also getting aware of the technological trends throughout the world because of social media and other platforms, investing in technology increases the revenues for Grameenphone and also gives them a competitive edge over other competitors in Bangladesh.
Environmental Factors
Every industry operating in Bangladesh has to keep in mind that they do not harm their environment in any way. Similarly, it is important for Grameenphone to follow environmental rules and not harm the environment in any way, for instance to take their services in a particular area, they make sure they do not cut any trees or use anything that can damage the environment. This helps them build up a good company image as well as build up good customer base who value such businesses.
Legal Factors
Bangladesh has its own set of rules and regulations for any business to operate in their country. Grameenphone has to comply with all these rules including copyright policies, trade policies, employment policies, monetary policies, and other territory rules even when entering a different area. Complying with these rules helps Grameenphone conduct their business smoothly without any government intervention or law suits which can affect their business negatively.
References
Company Profile. Retrieved October 17, 2017, from https://www.grameenphone.com/about/investor-relations/corporate-factsheet/company-profile
Bangladesh. Retrieved October 17, 2017, from http://www.heritage.org/index/country/bangladesh
Political stability is the key to growth in Bangladesh. (2015, December 28). Retrieved October 17, 2017, from http://www.eastasiaforum.org/2015/12/29/political-stability-is-the-key-to-growth-in-bangladesh/