OOREDOOM I K A E L A C AG A M PA N

S A M U E L K U O

S M R I T H I S U D I P

N AT A L I A V I L L A M I L

Our Job

Recommend whether Ooredoo should continue in the telecommunications industry or expand to the financial

services market.

INTRODUCTION

3E Strategy to Expand Financial Services

Expandagent network

INTRODUCTION

3E Strategy to Expand Financial Services

Expandagent network

agentsEducate

INTRODUCTION

3E Strategy to Expand Financial Services

Expandagent network

agents

Establish financial services

Educate

INTRODUCTION

AgendaAnalysis◦ 2013 Market & Company Analysis ◦ 2019 Market & Company Analysis ◦ SWOT Analysis

Solution◦ Decisions Considered◦ Proposed Strategy

Recommendations◦ Proposed Strategy Logistics◦ Timeline◦ Financial Analysis◦ Risks & Mitigations

Q&A

INTRODUCTION

Market & Company Analysis2013

ANALYSIS

2% of Myanmar Population had Cell Phone Access

ANALYSIS

Mobile Financing Strategy ViabilityOTC Mobile Wallet OTC Transition To Wallet

Accessibility for Consumers

Reasonable Cost to Company

Reasonable Cost to Consumer

Feasible Infrastructure

Market Size

Potential Growth of Market Share

ANALYSIS

Mobile Financing Strategy ViabilityOTC Mobile Wallet OTC Transition To Wallet

Accessibility for Consumers

Reasonable Cost to Company

Reasonable Cost to Consumer

Feasible Infrastructure

Market Size

Potential Growth of Market Share

ANALYSIS

Mobile Financing Strategy ViabilityOTC Mobile Wallet OTC Transition To Wallet

Accessibility for Consumers

Reasonable Cost to Company

Reasonable Cost to Consumer

Feasible Infrastructure

Market Size

Potential Growth of Market Share

ANALYSIS

Stakeholder Impacts of M-PITESAN LAUNCH

CB Bank Competitors

Consumers OOREDOO

Agents

Government

ANALYSIS

Stakeholder Impacts of M-PITESAN LAUNCH

CB Bank Competitors

Consumers OOREDOO

Agents

Government

ANALYSIS

Stakeholder Impacts of M-PITESAN LAUNCH

CB Bank Competitors

Consumers OOREDOO

Agents

Government

ANALYSIS

Stakeholder Impacts of M-PITESAN LAUNCH

CB Bank Competitors

Consumers OOREDOO

Agents

Government

ANALYSIS

Stakeholder Impacts of M-PITESAN LAUNCH

CB Bank Competitors

Consumers OOREDOO

Agents

Government

ANALYSIS

Stakeholder Impacts of M-PITESAN LAUNCH

CB Bank Competitors

Consumers OOREDOO

Agents

Government

ANALYSIS

Stakeholder Impacts of M-PITESAN LAUNCH

CB Bank Competitors

Consumers OOREDOO

Agents

Government

ANALYSIS

Market & Company Analysis2019

ANALYSIS

2019 Myanmar Market

As of 2019, in Myanmar cell phone usage is increasing, GDP is growing causing increased demand for financial

services yet the distrust in banks remains.

ANALYSIS

OOREDOO VS TELENOR POSITIONING

Mar

ket S

hare

High %

Low Risk

High Risk

Low %

Growth Strategy

KeyTelenor OoredooOngoAMdocs

ANALYSIS

S W O T- Preexisting mobile and financial infrastructure

- Five-year experience in Myanmar market

- Low market share in market for current services

- Small network of agents inappropriately distributed

- Emerging small markets for mobile financial services

- Growing technology usage and accessibility in Myanmar

- Direct competition with Telenor

- Potential for fraud

ANALYSIS

S W O T- Preexisting mobile and financial infrastructure

- Five-year experience in Myanmar market

- Low market share in market for current services

- Small network of agents inappropriately distributed

- Emerging small markets for mobile financial services

- Growing technology usage and accessibility in Myanmar

- Direct competition with Telenor

- Potential for fraud

ANALYSIS

S W O T- Preexisting mobile and financial infrastructure

- Five-year experience in Myanmar market

- Low market share in market for current services

- Small network of agents inappropriately distributed

- Emerging small markets for mobile financial services

- Growing technology usage and accessibility in Myanmar

- Direct competition with Telenor

- Potential for fraud

ANALYSIS

S W O T- Preexisting mobile and financial infrastructure

- Five-year experience in Myanmar market

- Low market share in market for current services

- Small network of agents inappropriately distributed

- Emerging small markets for mobile financial services

- Growing technology usage and accessibility in Myanmar

- Direct competition with Telenor

- Potential for fraud

ANALYSIS

S W O T- Preexisting mobile and financial infrastructure

- Five-year experience in Myanmar market

- Low market share in market for current services

- Small network of agents inappropriately distributed

- Emerging small markets for mobile financial services

- Growing technology usage and accessibility in Myanmar

- Direct competition with Telenor

- Potential for fraud

ANALYSIS

Future Strategy Viability Leaving Myanmar Developing

telecommunications services

Furthering current mobile financial services

Expanding to new mobile financial services

Accessibility for Consumers

Reasonable Cost to Company

Reasonable Cost to Consumer

Feasible Infrastructure

Market Size

Profitability

SOLUTION

Future Strategy Viability Leaving Myanmar Developing

telecommunications services

Furthering current mobile financial services

Expanding to new mobile financial services

Accessibility for Consumers

Reasonable Cost to Company

Reasonable Cost to Consumer

Feasible Infrastructure

Market Size

Profitability

SOLUTION

Our Job

Recommend whether Ooredoo should continue in the telecommunications industry or expand to the financial

services market.

SOLUTION

3E Strategy to Expand Financial Services

Expandagent network

agents

Establish financial services

Educate

SOLUTION

Expanding Agent NetworkStrategy

RECOMMENDATION

Ooredoo Current Agent Network

Ooredoo

RECOMMENDATION

Telenor has 8x More Agents than Ooredoo

Aim to increase network to 35,332 agents

Ooredoo Telenor

RECOMMENDATION

Aim to increase network to 35,332 agents

Telenor has 8x More Agents than Ooredoo

Ooredoo TelenorMORE AGENTS à INCREASED SERVICE ACCESSIBILITYà LARGER MARKET REACH

RECOMMENDATION

Educating Agents and Developing ServicesStrategy

RECOMMENDATION

Transitioning Agents to Ambassadors

RECOMMENDATION

AGENT

Transitioning Agents to Ambassadors

RECOMMENDATION

AGENT AMBASSADOR

Transitioning Agents to Ambassadors

RECOMMENDATION

AGENT AMBASSADOR=

BANK TELLER

Transitioning Agents to Ambassadors

RECOMMENDATION

AGENT AMBASSADOR=

BANK TELLER

=MONEY MANAGER

Transitioning Agents to Ambassadors

RECOMMENDATION

AGENT AMBASSADOR=

BANK TELLER

=MONEY MANAGER

Transitioning Agents to Ambassadors

1 year of agent experience

RECOMMENDATION

AGENT AMBASSADOR=

BANK TELLER

=MONEY MANAGER

Transitioning Agents to Ambassadors

1 year of agent experience

Performance evaluation

RECOMMENDATION

AGENT AMBASSADOR=

BANK TELLER

=MONEY MANAGER

Transitioning Agents to Ambassadors

1 year of agent experience

Performance evaluation

Online training program

RECOMMENDATION

AGENT AMBASSADOR=

BANK TELLER

=MONEY MANAGER

Transitioning Agents to Ambassadors

1 year of agent experience

Performance evaluation

Online training program

RECOMMENDATION

AGENT AMBASSADOR=

BANK TELLER

=MONEY MANAGER

TRAINED AGENTS à REDUCE DISTRUST OF FINANCIAL SERVICES

Establishing New Financial ServicesStrategy

RECOMMENDATION

Loans

Loans

RECOMMENDATION

Cross-Border Transactions

Cross-Border TransactionsLoans

RECOMMENDATION

Savings

Cross-Border TransactionsLoans Savings

RECOMMENDATION

Savings

Cross-Border TransactionsLoans Savings

HARNESSING MOBILE TRENDS à FUTURE OF FINANCIAL SERVICES

RECOMMENDATION

TIMELINEYEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

EXPAND Agent Hiring

EDUCATE

Developing Training

Training

Hiring Ambassadors

ESTABLISH

Savings

Cross-Border

Loans

JUSTIFICATION

FINANCIAL ANALYSIS

JUSTIFICATION

FINANCIAL ANALYSIS

JUSTIFICATION

DECREASED COSTS OVER TIME

FINANCIAL ANALYSIS

JUSTIFICATION

DECREASED COSTS OVER TIME

REVENUES PROJECTED TO INCREASE

FINANCIAL ANALYSIS

JUSTIFICATION

DECREASED COSTS OVER TIME

REVENUES PROJECTED TO INCREASE

NPV PROJECTED TO BE POSITIVE

RISKS AND MITIGATIONS

RISKS

Qualification of Agents

Low Financial Literacy

MITIGATIONS

Monthly Evaluation

Person-to-Person Contact

JUSTIFICATION

RISKS AND MITIGATIONS

RISKS

Qualification of Agents

Low Financial Literacy

MITIGATIONS

Monthly Evaluation

Person-to-Person Contact

JUSTIFICATION

RISKS AND MITIGATIONS

RISKS

Qualification of Agents

Low Financial Literacy

MITIGATIONS

Monthly Evaluation

Person-to-Person Contact

JUSTIFICATION

CONCLUSION

Increased demand of services

Distrust in banks

Increased phone usage

JUSTIFICATION

CONCLUSION

Distrust in banks

Increased phone usage

Expandagent network

JUSTIFICATION

CONCLUSION

Increased phone usage

Expandagent network

agentsEducate

JUSTIFICATION

CONCLUSION

Expandagent network

agents

Establish financial services

Educate

JUSTIFICATION

APPENDIXANALYSISOoredoo company descriptionTelenor company description2013 business environment 2013 decision matrixStakeholder analysis 2019 cell phone usage2019 GDP increase2019 bank accounts2019 environment summaryPositioning mapPositioning extra informationSWOT

SOLUTION2019 decision matrixStrategy/solution

RECOMMENDATIONStrategy (expand)Strategy (expand) takeawayAgent/ambassador graphStrategy (educate)Strategy (educate) takeawayStrategy (establish)Strategy (establish) takeawayTimeline

JUSTIFICATIONRevenue/cost graph Income statement Risks and mitigationsRisks and mitigations detailsConclusion slide

Q&A

Agent Growth Projections

Projected Income Statement

95% of Myanmar Population has Cell Phone Access

ANALYSIS Q&A

There was a 7.3% Increase in GDP

ANALYSIS

Real GDP Increase Increased need of financial services

Q&A

5% of the Myanmar Population has a Bank Account

5%

95%

Bank Account Ownership in Myanmar

Percentage of Individuals with Bank Accounts Percentage of Individuals without Bank Accounts

Q&A

OOREDOO VS TELENOR

OOREDOO TELENOR

License Received February 2014 February 2014

Services Offered Mobile Wallet & OTC Mobile Wallet & OTC

Retained Transaction Fee 40% 40%

Service Compatibility 3G 2G and 3G

Growth Strategy Conservative Risky

Number of Locations 279 towns 330 towns

Number of Agents 5,000 agents 45,000 agents

Market Share 17.4% 31.6%

Q&A

OOREDOOMobile Wallet

Ooredoo, a Qatari telecommunications company, partnered with the local lender CB Bank to create

M-Pitesan, a mobile wallet service

Q&A

TELENOROver The Counter (OTC)

Telenor, a Norwegian telecommunications company, partnered with the local lender Yoma Bank to create, Wave Money, an OTC service

Q&A

FINANCIAL ANALYSIS

Q&A

RISKS AND MITIGATIONS

RISKS

Qualification of Agents

Low Financial Literacy

MITIGATIONS

Monthly Evaluation• Developed criteria for evaluation• Training prior to promotion

Person-to-Person Contact• Familiarity • Potential mentorship

JUSTIFICATION