TELENOR Swot

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TABLE OF CONTENTS

1.

Executive Summary

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2.

SWOT Analysis

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3.

History of SWOT Analysis

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4.

Seven Keys

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5.

Application of SWOT Analysis

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6.

SWOT Analysis Framework

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a.

Strengths

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b.

Weaknesses

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c.

Opportunities

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d.

Th Threats

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7.

SWOT Matrix

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8.

Reason

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9.

History of telenor

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10.

Introduction to Telenor

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a.

Products

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b.

Rivals

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c.

Ma Market

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d.

Vision and Goal

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11.

Telenor Management Philosophy

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12.

Organization Map

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13.

Strategic Plan

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14.

SWOT Analysis of Telenor

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a.

Strengths

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b.

Weaknesses

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c.

Opportunities

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d.

Threats

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15.

Conclusion

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16.

References

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EXECUTIVE SUMMARY This project is about the SWOT analysis of 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 wide marke market. t. We Weakn aknes esses ses are weak weak servic services es in Asian Asian countr countries ies,, lack lack of  dive divers rsif ific icat atio ion. n. It avai availe led d the the oppo opport rtun unit ity y of easy easy load load and and cred credit it shar sharin ing, g, 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.

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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 the anal analys ysis is of thes thesee four four fact factor orss is abbr abbrev evia iate ted, d, call called ed ANALYSIS.

 SWOT 

HISTORY OF SWOT ANALYSIS  

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SWOT analysis came from the research conducted at Stanford Research Institute from 1960-1970. The backg backgrou round nd to SWOT was was the the need need to find find out out why why corp corpor orat atee  planning failed? The research was funded by the fortune 500 companies to find out what could be done about this failure. The Research Team included o Marion o Dosher, o Dr Otis Benepe, o Albert Humphrey, o Robert Stewart, o Birger Lie.

Starting in 1960, Robert F Stewart at SRI in Menlo Park California lead a research team to discover what was going wrong with corporate planning, and then to find some sort of solution, or to create a system for enabling management team teamss agre agreed ed and and comm commit itte ted d to deve develo lopm pmen entt work work,, whic which h toda today y we call call 'managing change'. The The rese resear arch ch carr carrie ied d on from from 1960 through 1969. 1100 compan companies ies and organizations were interviewed and a 250-item questionnaire was designed and completed by over  5,000 executives. Seven key findings lead to the conclusion that in corporations chief executive should be the chief planner and that his immediate functional directors should be the planning team. Dr Otis Benepe defined the 'Chain of Logic' which became the core of system designed to fix the link for obtaining agreement and commitment.

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SEVEN KEYS 1. 2. 3. 4. 5. 6. 7. 8.

Values Appraise Motiv otivat atio ion n Search Select Program Act Monito Monitorr and and re repea peatt steps steps 1 2 and 3

The analysis was given in the following wordings "What hat is goo good in the pres presen entt 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 ".

When this was presented to Urick and Orr in 1964 at the Seminar in Long Range Planning at the Dolder Grand in Zurich Switzerland they changed the F to a W and called it SWOT Analysis. SWOT was then promoted in Britain by Urick  and Orr as an exercise in and of  itself. As such it has no benefit. What was necessary was the sorting of the issues into the programmed planning categories of: 1. 2. 3. 4. 5. 6.

Product (what are we selling?) Process (how are we selling it?) Customer (to whom are we selling it?) Distribution (how does it reach them?) Finance (what are the prices, costs and investments?) Administration (and how do we manage all this?)

The process has been used successfully ever since. By 2004, now, this system has  been fully developed, and proven to cope with today's problems of setting and agreeing realistic annual objectives without depending on outside consultants or  expensive staff resources. By the study given above we came to know that

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The SWOT anal nalysis sis is an extr xtreme emely usef useful ul tool ool 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. 

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APPLICATION OF SWOT ANALYSIS:   

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It is applicable to either corporate level or business unit level. Frequently appears in market plans. It's useful when very limited amount of time is available to address a complex strategic situation. It helps you carve a leading and sustainable position in market. It helps you develop yourself in a way that takes best advantage of  TALENTS, ABILITIES and OPPORTUNITIES. OPPORTUNITIES.

 Now we come to the types of analysis. 

INTERNAL ANALYSIS

In this we study the capabilities of organization. This can be done   by by exam examin inin ing g and and anal analyz yzin ing g orga organi niza zati tion on's 's strengths and weaknesses. 

EXTERNAL ANALYSIS It is actually the study of external environment of organization. In it we iden identi tify fy thos thosee key keys whic which h brin bring g oppo opport rtun unit itie iess for for your  your  organization and those points which create threats or obstacles to our performance.

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] and Weaknesses [W]. External factors are classified as Opportunities [O] and Threats [T]. 

So the the anal analysi ysiss of thes thesee four four fact factor orss is abbr abbrev evia iate ted, d, call called ed  SWOT  ANALYSIS.

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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: 7

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 capaci capacity ty preven prevents ts the firm firm from from reacti reacting ng quickl quickly y to change changess in the strat strategi egicc environment.

OPPORTUNITIES: The external external environmen environmental tal analysis analysis may reveal reveal certain certain new opportuniti opportunities es 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: 8

Cons Consum umer er tast tastes es chan change gess or shif shifts ts away away from from the the firm firm's '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

strategie giess W-O strate strategie giess Opportunities S-O strate

Threats

S-T S-T stra strate tegi gies es WW-T T stra strate tegi gies es

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. •

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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. 

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Bein Being g a stud studen entt of MBA MBA we shou should ld sele select ct a comp compan any y for  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 INTERNATIONAL DEVELOPMENT: DEVELOPMENT: Telenor has undergone momentous change as a group – from being a strong, nati nation onal al oper operat ator or with with sign signif ific ican antt inte intern rnat atio iona nall hold holdin ings gs to beco becomi ming ng an international, world-class provider of mobile communications services.

MANUAL TELEPHONY TO AUTOMATIC NMT: Manua Manuall mobile mobile teleph telephony ony servic services es were were introd introduce uced d in Norway Norway in 1966, 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 Telecommunication System (UMTS), was launched for commercial use in 2004. 10

INTRODUCTION 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 Mobile Operat Operation ions(C s(Conn onnect ection ions) s) 2. Fixed Li 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:

Mobilink Ufone Warid Paktel Instaphone zong

Aktel Banglalink Citycell Teletalk  

Maxis Celcom

AIS True move Thai Mobile

Norway:

Denmark:

Sweden:

NetCom Chess Tele2 Ventelo

TDC Mobil TeliaSonera Tele2 Hi3G

TeliaSonera Tele2 “3”

Hungary:

Montenegro:

Serbia:

Ulkrain:

Russia:

T-Mobile Vodafone

T-Mobile

MTS

UMC Life Beeline

MTS Megafon

MARKETS & OPERATORS: Telenor has merged into three business areas. 11

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MOBILE OPERATIONS:

Telenor’s mobile operations are covering 12 countries and 3 regions. Its company name name is differ different ent in differ different ent countr countries ies.. The market marketss of Teleno Telenorr in differ different ent countries in percentage with other rivals are as follows: Pakistan

Bangladesh

Norway

Hungary

Malaysia

Denmark

Montenegro

Thailand

Sweden

Serbia

Russia

 Note: Blue shaded area of circle represent Telenor market 12

Ukrain

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FIXED LINE:

Teleno Telenorr is the leadin leading g provid provider er of fixedfixed-lin linee teleco telecomm mmuni unicat cation ionss servic services es in   Norway, with a strong position in the growing broadband market throughout  Norway, Sweden and Denmark. ◊

BROADCAST:

Tele Teleno norr is the the lead leadin ing g prov provid ider er of tele televi visi sion on and and broa broadc dcas asti ting ng serv servic ices es to consumers and enterprises in the Nordic region, measured by subscribers and revenues.

VISION: Vision of telenor is to be the leading telecommunication 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 forc forcee in crea creati ting ng,, simp simpli lify fyin ing g and and intr introd oduc ucin ing g comm commun unic icat atio ion n and and cont conten entt 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. 13

ESPONSIBLE CORPORATE CULTURE TO SECURE VALUE CREATION: R ESPONSIBLE

Rules and procedures provide Telenor with a sound platform for good corporate governance and for the further development of a positive, responsible and healthy corp corpor orat atee cult cultur ure. e. The The Grou Group p Mana Manage geme ment nt is resp respon onsi sibl blee for for ensu ensuri ring ng the 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. ULES AND R EGULATIONS EGULATIONS: R ULES

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 :

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Telenor ASA Jon Fredrik Baksaas President & CEO

Chief Financial Officer

Legal

Trond Ø. Westlie Executive Vice President

Strategy

Nordic

Asia

Central/East Central/East Europe

Morten Karlsen Sørby

Arve Johansen

Jan Edvard Thygesen

Executive Vice President

Senior Executive Vice President

Executive Vice President

Global Coordination Ragnar Korsæth Executive Vice President

Group HR  Bjørn Magnus Kopperud Executive Vice President

Group Communications Hilde M. Tonne Executive Vice President

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Other Business

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. services.

This strategy implies the following focus areas:

To strengthen position as an international mobile operator: Tele Teleno norr inte intend nd to cont contin inue ue to stre streng ngth then en mobi mobile le indu indust stri rial aliz izat atio ion n mobi mobile le operat operation ionss by obtain obtaining ing contro controll over over select selected ed mobile mobile compan companies ies.. Contro Controll is essential to benefit from cross-borders synergies, such as scale in procurement, to develo develop p new servic services es and imple implemen mentt best best practi practice ces, s, to improv improvee operat operation ional al efficiency and to increase overall profitability. They intend to manage their nonstrategic 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 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 16

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: I NNOVATION:

Most Most of the the inno innova vati tion on in tele teleco comm mmun unic icat atio ions ns toda today y does doesn’ n’tt happ happen en 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.

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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. Teleno Telenor’s r’s renewa renewable ble energy energy effort effort is an invest investmen mentt that that will will ensure ensure networ network  k  stab stabil ilit ity y in a futu future re wher wheree the the supp supply ly of elec electr tric icit ity y may may be unre unreli liab able le and 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.

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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:

Introd Introduce ucess mobile mobile tv first. first. No networ network k other other than than teleno telenorr felt felt the need and importance of it. It was an innovation innovation and attracted people people a lot.

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"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 servic servicee provid providers ers”” says says,, direct director or of the Extern External al Servic Servicee Market 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

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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 espec especial ially ly weste western rn compan companie iess and also also don’t don’t accep acceptt their their ways 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 coun countr trie iess espe especi cial ally ly in cent centra rall Asia Asia real really ly effe effect ct the the grow growth th,, posi positi tion on,, investment and profit level and service quality and availability.

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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.

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 REFERENCES 

1.

2.

Internet a.

Telenor.com

b.

Wikipedia

c.

Ask.com

d.

google.com

Books a.

Management Gr Griffin

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