MIKAELA CAGAMPAN OOREDOO · -Direct competition with Telenor-Potential for fraud ANALYSIS. S W O...
Transcript of MIKAELA CAGAMPAN OOREDOO · -Direct competition with Telenor-Potential for fraud ANALYSIS. S W O...
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