Investing in Bangladesh as a Telecommunication Company

The entirety of this paper will give invaluable insights concerning investing in Bangladesh as a telecommunications company in Bangladesh. An analysis has to be done so that investors of Brummer & Partners become aware of whether they are supposed to support a possible impact investing strategy. A thorough analysis of Bangladesh’s economy concerning the telecommunication’s sector and internet service provision will be carried out and possible impacts examined. At the very end, a decision will be made to find out if investing in this highly populous eastern country is feasible.

Background to the Problem

Swiss-based company bracket is a telecommunications company that is parented by Brummer & Partners and is lately looking to invest in Bangladesh and tap the prospective market’s potential. The problem that is before the investors today is that in as much as Bangladesh has a lot of potential about serving a population of 153 million, it also presents challenges such as a population with a low Purchasing Power Parity. Another challenge is that of competition: a considerable proportion of the population in the country is hardwired to make use of local telephone service providers and internet service providers.

Possible Advantages of Investing in Bangladesh

There are many benefits that can emanate from an endeavor to invest in Bangladesh. First is the fact that the company would have made a profound stride in broadening its international scope as a multinational corporation. Another advantage that the company will realize is the capability to get a large market share and gain a competitive advantage against other world competitors such as those in Bangladesh, and some in Switzerland, i.e., Erickson. What is more, cheap labor will be at the disposition of the company, because Bangladesh is a developing country with a high proportion of skilled labor that is yet to be fully employed.

Possible Disadvantages of Investing in Bangladesh

The possible disadvantages of investing in Bangladesh revolve around having to deal with stringent regulations for conducting business and licensing rules. The authorities may subject the new brick and mortar branch of the company to high taxation in a bid to protect its domestic telecommunication and ICT companies. If this is the case, then the management and operatives of bracNet should be concerned that their investment in the Bangladesh market will not amount to much. It is also worth mentioning that the company may find it challenging to secure a niche with the mobile and internet service subscribers that make up Bangladeshi’s market share. More specifically, some of the reasons why bracket may find it difficult to get as many customers as they want from the region is because of price leadership battles; this point is especially important if the existing telecommunications companies charge very low prices, which, when embraced by bracket, would mean negative profits for this Swiss firm.

Strategic Growth and Initiatives

There are some strategic approaches that bracNet and Brummer & Partners at large are looking to take up to survive whatever hardships the Bangladeshi market would throw at them. The strategies in question are to be adopted after the inaugural opening of bracNet in this area and are in resonance with the 4Ps of production. The 4Ps of production represent product, place, price, and promotion and comprise a specific formula of striking a balance between the resources of a business and its opportunities. As a result, a significant competitive advantage is realized to get ahead of rivals and to grow.

Product

Given that Bangladesh already has several internet and telecommunication service providing companies, bracNet will have to present a product offering that is unique and appealing to prospective consumers. For example, Bangladesh is yet to have a service provider that offers 5G connectivity, and this should be the high time Bangladesh gets an opportunity to receive the fastest internet speed packages. Through offering all the customers, 5G bracNet will have offered more quality than its immediate rivals in Bangladesh and get the appeal of customers. The advantage of a high-quality product is that it will give management more bargaining power with customers and higher margins eventually (Ebrahim, Pirson and Mangas 309).

Place

Upon the launch of the company’s first brick and mortar branch in Bangladesh, there will be a need to open up more after a year relatively. The reason why the P of a place has to be pursued very aggressively by the company is that being in as many places as possible will be part of a plan to “go out there” and be seen by all prospective consumers. Moreover, the company will have to set up a lot of network boosters that will not fail the residents in the hinterland when it comes to matters of fast speed internet communication and clear networks. After conducting market research that would later act as an important precursor to product development, the operatives of brakNet realized that Bangladeshi ICT and telecommunication companies centered a majority of its choicest operations in the city. That point was a sign they forgot people in the rural areas needed reliable internet speeds.

Price

When it comes to matters of pricing, it is worth to mention that the company has to be very careful so as not to price their products very highly; that would chase customers away. Therefore, bracNet should do everything it can to adopt a second mover pricing strategy to be fair and considerate to the purchasing power of customers. Good pricing paired with high-quality products is bound to win the hearts of customers and make them appreciate all that bracNet has to offer. The very essence of pricing the company’s services to suit customer wants and preferences make them realize value for their money and make repeat buys (Ebrahim, Pirson and Mangas 309).

Promotion

Promotion is all about advertising the product in as many possible ways as the company’s resources can allow it. Performing this part effectively will significantly facilitate bracNet to become a household brand in Bangladesh. Methods of promotion that will be embraced include promotional marketing, contests, promotion strategies, free samples, advertising, pamphlets/coupons and personal selling.

Recommendations on Possibilities

There are a multitude of opportunities that bracNet can pursue in Bangladesh so that all its ventures in the country are successful. However there is a need for the company to figure out how it can spread risk and initially invest as little as possible. The approaches that can be considered include consideration of the benefits of fractional ownership; renting out the location of the company; make purchase of a place that has already been visited by company officials; evaluate the political situation of the country; and eventually find out the existent terms of buying property for foreigners (Mannan et al. 23).

The main aim of aligning to all of the recommendations above is to make sure that the initial capital outlay that Brummer & Partners spend in their new venture in Bangladesh is as little as possible. Later, after doing business for about four quarters, the investors can put in more money after making sure the country is the right spot for them. The appropriateness of Bangladesh as another of bracNet’s business hubs should be determined by the number of customers they realize in the first year, the fairness of regulations imposed on them by the Bangladeshi government, availability of reasonably cheap labor, and overall profit margins per unit of service provided.

Conclusion

Even though it is a tough call for the company to get involved in a business venture, where it is not sure it will reap the most from gains, it is always a good thing to try. Perhaps to be safe, the company should not eat into its current profits but depend on company reserve capital. That way there will be no risk of jeopardizing the Swiss branch of the company.

Works Cited

Ebrahim, Alnoor, Michael Pirson, and Patricia Mangas. ”Brummer and the BracNet Investment.” Harvard Business School Case 309-065, April 2009.

Mannan, Mahafuz, et al. ”Customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness in Bangladesh mobile telecommunications market.” South Asian Journal of Business Studies 6.2 (2017): 142-160.