Sm Swot Analysis
EXECUTIVE SUMMARY TELENOR it is a multinational corporation of Norway. Norwegian telecommunication was Established in 1884. with the passage of time it introduces three more telecommunication corporations.
In 1995 it changed its name to telenor. It has its telecommunication network in about 12 countries. Has a very leading and strong position in its markets, which are multidimensional and international. Its strengths are its methods of innovation, its good will social responsibilities, and its wide market. Weaknesses are weak services in Asian countries, lack of diversification.
It availed the opportunity of easy load and credit sharing, introduces mobile tv for the first time, gives the service of location recognition. Threats are its local and international rivals. Its main threat in Asia countries lies in difference in culture. Swot Analysis The study of internal and external environment is an important part of the strategic planning process. Environment has two factors i. e. external and internal. environmental factors internal to the firm are Strengths [S] or weaknesses [W]. External factors are classified as Opportunities [O] Threats [T]. So the analysis of these four factors is abbreviated, called SWOT ANALYSIS. “What is good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat. This was called the SOFT analysis”. ? The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. ? SWOT Analysis is a simple but powerful framework for analyzing one’s company’s Strengths and Weaknesses, and the Opportunities and Threats one face. SWOT Analysis is a tool for auditing an organization and its environment. It is the first stage of planning and let marketers to focus on key issues . ? INTERNAL ANALYSIS In this we study the capabilities of organization. This can be done by examining and analyzing organization’s strengths and weaknesses. ? EXTERNAL ANALYSIS It is actually the study of external environment of organization. In it we identify those keys which bring opportunities for your organization and those points which create threats or obstacles to our performance. SWOT ANALYSIS FRAMEWORK: Environmental Analysis | | | | / | | | | | |Internal Analysis | | External Analysis | | | |/ | | / | | | |Strengths Weaknesses | | Opportunities Threats | | | || | | | |SWOT Matrix | | | Here a question arises that “What are strengths, weaknesses, opportunities and threats? STRENGTHS: A firm’s strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include: • A new innovative product or service. • Strong brand names. • Good reputation among customers. • Cost advantages from proprietary know-how. Exclusive access to high grade natural resources. • Favorable access to distribution networks. • Location of your business. • Quality processes and procedures. • Patents. • Special market expertise. • Any other aspect of business that adds value to product or services. Weaknesses: The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses: • Poor quality products or services. • A weak brand name. • Poor reputation among customers. • High cost structure. • Lack of access to the best natural resources. • Lack of access to key distribution channels. • Location of your business. Undifferentiated products or services. • Lack of patent protection. • Lack of marketing expertise. In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment. Opportunities: The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include: • A developing market. Moving into new markets for improved profits. • A market vacated by ineffective competitor. • An unfulfilled customer need. • Arrival of new technologies. • Loosening of regulations. • Removal of international trade barriers. Threats: Changes in the external environmental also may present threats to the firm. Some examples of such threats include: • Consumer tastes changes or shifts away from the firm’s products. • Substitute products. • New regulations. • increased trade barriers. • A new competitor in your home market. • Price wars with competitors. • Competitor’s superior access to channels of distribution. • Innovative products or services by competitor. THE SWOT MATRIX:
To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below: SWOT / TOWS MATRIX: | |Strengths |Weaknesses | | |S-O strategies |W-O strategies | |Opportunities | | | | |S-T strategies |W-T strategies | |Threats | | | • S-O strategies pursue opportunities that are a good fit to the company’s strengths. • W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. • W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats. REASON FOR CHOOSING TELENOR ? Telenor is a Multinational corporation having a great scope and a wide range to be discussed. ? Its growth rate in the telecommunication world is very impressive. ? We can study both of its markets i. e. National and International. ? Being a student of MBA we should select a company for discussion which completely satisfies the topics required by the project. So is there in it.
History of Telenor THE INTRODUCTION OF THE TELEPHONE: The years of 1855 to 1920 was a pioneering period in the history of Norwegian telecommunications. During two generations, the Norwegian society experienced the introduction of three new means of communications: the telegraph in the years of 1850, the telephone around 1880 and wireless telegraphy – radiotelegraphy – at the turn of the century. NORWEGIAN TELECOM TO TELENOR: In 1994, Norwegian Telecom was established as a public corporation. One year later, it changed its name to Telenor. In December 2000, Telenor was partly privatized and listed on the stock exchange. INTERNATIONAL DEVELOPMENT:
Telenor has undergone momentous change as a group – from being a strong, national operator with significant international holdings to becoming an international, world-class provider of mobile communications services. MANUAL TELEPHONY TO AUTOMATIC NMT: Manual mobile telephony services were introduced in Norway in 1966, as a forerunner to the automatic Nordic Automatic Mobile Telephone (NMT) system, which appeared in 1981. Its digital successor, Global System for Mobile (GSM), was introduced in 1993, and third generation mobile network, Universal Mobile Telecommunication System (UMTS), was launched for commercial use in 2004. Introduction to telenor Products: Telenor is Telecommunication Company of Norway.
It provides its services in field of communication in form of following three products: 1. Mobile Operations(Connections) 2. Fixed Line 3. Broadcast Rivals: Telenor is a multinational company. It is well spread all over the world. Rivals of telenor in different countries are: Pakistan: Bangladesh:Malaysia: Thailand: MobilinkAktelMaxis AIS UfoneBanglalinkCelcomTrue move WaridCitycellThai Mobile PaktelTeletalk Instaphone zong Norway:Denmark:Sweden: NetComTDC MobilTeliaSonera ChessTeliaSoneraTele2 Tele2Tele2“3” VenteloHi3G Hungary:Montenegro:Serbia:Ulkrain:Russia: T-MobileT-MobileMTSUMCMTS VodafoneLifeMegafon Beeline Markets & Operators:
Telenor has merged into three business areas. Telenor’s mobile operations are covering 12 countries and 3 regions. Its company name is different in different countries. The markets of Telenor in different countries in percentage with other rivals are as follows: Telenor is the leading provider of fixed-line telecommunications services in Norway, with a strong position in the growing broadband market throughout Norway, Sweden and Denmark. <> Telenor is the leading provider of television and broadcasting services to consumers and enterprises in the Nordic region, measured by subscribers and revenues. Vision: Vision of telenor is to be the leading telecommunication company of world.
Goal: Telenor’s primary goal is to create greater value for our shareholders, customers, employees and partners, and for society in general. Telenor strive to be a driving force in creating, simplifying and introducing communication and content solutions to the marketplace. Mission Statement: “Helping people to Communicate” Telenor Management Philosophy Telenor considers good corporate governance to be an essential tool for achieving their vision, value creation and strategic goals, complying with their values and for maintaining good corporate culture. Furthermore, good corporate governance is imperative for credibility and for access to capital.
Telenor corporate governance includes openness and transparency towards the company’s owners, the Corporate Assembly, the Board and Group Management, as well as other interested parties such as the Group’s employees, customers, suppliers, creditors, public authorities and society in general. Responsible Corporate Culture to Secure Value Creation: Rules and procedures provide Telenor with a sound platform for good corporate governance and for the further development of a positive, responsible and healthy corporate culture. The Group Management is responsible for ensuring the existence of internal rules, procedures and structures that can efficiently secure value creation for all stakeholders and where authority and responsibilities are clearly set out and mutually understood. Rules and Regulations: Telenor is subject to Norwegian rules and regulations in countries in which the Group conducts business.
Telenor’s shares are listed on the Oslo Stock Exchange. As an issuer of shares, the company must comply with the Norwegian rules and regulations. Being a multinational company it also follows the law of country, it is in. Corporate Assembly Members: Pursuant to Norwegian law, Telenor has a Corporate Assembly and a Board of Directors. Organization Map of Telenor: [pic] Strategic Plan Telenor’s main strategy is to focus on subscriber growth in mobile operations and to increase overall profitability by combining Group industrialization with local drive and responsiveness. Further, to develop leading position in the Nordic region with a broad range of communication services.
This strategy implies the following focus areas: To strengthen position as an international mobile operator: Telenor intend to continue to strengthen mobile industrialization mobile operations by obtaining control over selected mobile companies. Control is essential to benefit from cross-borders synergies, such as scale in procurement, to develop new services and implement best practices, to improve operational efficiency and to increase overall profitability. They intend to manage their non-strategic investments as financial investments and try to exit from international mobile operations where they cannot obtain control over time. To strengthen position in the Nordic region:
Telenor intend to continue to streamline their mobile and fixed line operations in the Nordic region by exploiting the benefits resulting from economies of scale and cross-border synergies. To be the leading provider of communications services in Norway: Being the leader in a broad range of services in both the residential and business markets in Norway, Telenor seek to improve profit performance in the mobile and fixed areas by introducing new services and through a wide range of cost-cutting initiatives. To continue to be the leading distributor of TV services to consumers in the Nordic region: Telenor will continue to develop new opportunities to strengthen their strategic position as a leading distributor of subscription-based television in the Nordic region.
They focus on attracting new subscribers and increasing revenue per user by providing attractive content and new interactive services . SWOT ANALYSIS OF TELENOR STRENGTHS OF TELENOR: Telenor is a multinational company. It has its branches in 12 different countries and mostly holds the market of many countries. Telenor’s strength lies in its management tacts and the fact that it is spreading it market all over the world. Some of the strengths of telenor are: METHOD OF INNOVATION: Most of the innovation in telecommunications today doesn’t happen in laboratories. It happens and evolves in a highly dynamic interplay between user demands and technological advances.
Telenor does innovations in the manner explained above and succeed most of time in as it is the best way one can move forward according to its environment. GOODWILL THROUGH SOCIAL RESPONSIBILITY: Telenor currently has a good understanding of how its activities, products and services can impact on the environment. Telenor are committed to preventing or minimizing those impacts. The following act of telenor create goodwill among the government and people in sense that they know their responsibility towards the environment and are try to make the environment free of pollution. MARKET: Telenor is providing services in 12 countries across the world in Europe and Asia. Telenor users in the world are more than 147 million people.
Telenor is increasing the local competitiveness of mobile operations by taking advantage of global joint competence and scale. RECYCLING OF MOBILE PHONES: Mobile phone recycling is a key area. Telenor recycles tens of thousands of mobile phones through its recycling programmes in Hungary, Serbia and Norway. Telenor are currently working on a permanent recycling programme that will encompass all of markets. POWERING BASE STATIONS BY RENEWABLE ENERGY: Telenor is currently testing hydrogen, wind and solar energy as power sources for base stations. A promising result is that these renewable energy sources produce more energy than is required to power the base stations.
This excess electricity can be used to benefit local communities in the future. To achieve this, Telenor will depend on strong partnerships with energy providers. Telenor’s renewable energy effort is an investment that will ensure network stability in a future where the supply of electricity may be unreliable and expensive. Weaknesses: SERVICES: In Pakistan service of Telenor is not up to the mark. Telenor does not provide coverage at all areas of Pakistan. Signals of Telenor in many areas are weak. Rates of Telenor are very high if packages are not activated. Packages like djuice makes sms very cheap but increases call rates. NO DIVERSIFICATION:
Telenor no doubt is developing day by day and progressing but it is dealing in just one type of business that is telecommunication. Its rivalry is increasing fast still Telenor is not diversifying toward other business. OPPORTUNITIES: EASY LOAD: Telenor introduced easy load as well as sharing of credit. This was first time introduced in Pakistan that a person can load credit of only Rs. 10 or more than that without buying a card of Rs. 100. As before this, there was only the system of pre paid cards. So it became easy and convenient for all to load credit of how much they want. MOBILE TV: Introduces mobile tv first. No network other than telenor felt the need and importance of it. It was an innovation and attracted people a lot. “The development has revealed that this was the right way to go. Norway is one of the world’s leading nations, when it comes to developing mobile services. This is not least due to the cooperation between mobile operators and service providers” says, director of the External Service Market Department . PAYMENT OF BILLS: In Bangladesh, people without a bank account can now pay their electricity bills safely and conveniently through a new solution based on mobile communication. They don’t even need their own mobile phone. In Draymen, Norway, homecare nurses can do their office work on a mobile PDA, allowing half an hour of extra time for their patients every day. THREATS: CENTRAL ASIA:
It was a tough task and a very challenging step for Telenor Corporation to start its network in Central ASIA because in these areas making the minds of people for buying a product is a tough task. Here people always refer the customized and local products In Asian countries the basic needs of the people are not fulfilled so they cannot afford a mobile. So it is a challenging task to motivate them to use mobile . CULTURE: The change between the cultures makes the greatest resistance. People do not trust the new especially western companies and also don’t accept their ways and strategies of businesses. COMPETITION WITH LOCAL MARKET: . Competition in a foreign country with local companies is a great threat as a single wrong step of not only the organization itself but the country can affect the whole business. ENVIRONMENT:
The fluctuating and unstable situations i. e. political, economical, social situations of countries especially in central Asia really effect the growth, position, investment and profit level and service quality and availability. CONCLUSION Telenor is a telecommunication company having fewer weaknesses because of its well organized managerial structure and a better study of local markets. Despite of having so many threats Telenor came with very attractive packages and captured the attention of youngsters, shift of young generation was due to affordable rates, relaxation in Short Message Service, Easy Load Facility and GPRS Facility all at a same time.
Telenor faced a lot of challenges during last years but survived due to strategic planning and better distribution of sales and services. REFERENCES 1. Internet a. Telenor. com b. Wikipedia c. Ask. com d. google. com 2. Books a. Management Griffin ———————– Telenor ASA Jon Fredrik Baksaas President & CEO Other Business Group Communications Hilde M. Tonne Executive Vice President Strategy Group HR Bjorn Magnus Kopperud Executive Vice President Nordic Morten Karlsen Sorby Executive Vice President Asia Arve Johansen Senior Executive Vice President Central/East Europe Jan Edvard Thygesen Executive Vice President Legal Global Coordination Ragnar Kors? th Executive Vice President Chief Financial Officer Trond O. Westlie Executive Vice President