Competitive forces of

Telecommunication in
Bangladesh

 Porters five forces model has the ability

to determine the competitiveness of a
market.
It can help a company understand the
structure of its industry and stake out a
position that is more profitable and less
vulnerable to attack.

Porters Five Force

Bargaining power of buyers
Bargaining power of suppliers
Threat of substitutes
Threat of new entrants
Threat of rival

Bargaining power of buyers

Buyers have six mobile telecom operators in
Bangladesh.
Which are trying to offer cheaper rate
compared to other.
There is opportunity for buyers to select the
best company.
Bangladesh buyers get the most priority in
telecommunication industries.

Bargaining power of suppliers

The bargaining power of suppliers in the mobile industries
varies depending on the brand name and strategic
importance of the supplies as well as the size of the company.
Such as Ericsson Nokia Siemens in the mobile telecom
machinery industries that type of suppliers who enjoy strong
power in the industry.
Its
major
clients
included
Grameenphon,Banglalink
airtel,citycell,Robi,Teleitalk and BTCL.
Recently Huawey technology played an important role in.
modernizing network infrastructure on the new 3G platform
Therefore, the bargaining power of suppliers in the industry is
moderate to weak.

Threat of substitutes
o Mobile telecommunication is a high tech industry
o The substitutes that would replace the products or
services of today are strongly related to the factor of
innovation.
o Substitutes of Bangladesh mobile companies are PSTN
operators, VOIP service , skype,google talk,wimax and
etc.
o So the threat of substitutes is week in Bangladesh .

Threat of new entrants

Bangladesh have already six giant mobile companies.
They have created significant brand positioning and
economies if scale in network coverage .
Which also act as entry barrier.
Government and rules and regulations like imposition of huge
tax on Sim card, strong tariff control by the authority, can also
create difficulties to entrants .
But some companies are finding other ways to enter the
industry. Example airtel bharati acquired 70% stake of warid
telecom as airtel enter to Bangladesh market.
Hence it seems that the threats of new entrants in mobile
industry are moderate to week.

Threat of rival
Bangladesh have also six big mobile companies
Each company is trying to increase the market
share by lowering call rate, superior network
coverage and better value added services.
the competition has driven the industrys average
revenue per share to a very low level.
Grameenphone is leading the industry and
standing in an advantages position than others.
The rivalry among existing competitors is very high.