Assignment – 01

1. A group of young entrepreneurs in Dhaka launched a logistics startup to streamline delivery

services for small businesses. However, they struggled to secure investment due to limited

access to venture capital and high interest rates from banks.

a) What are the key financial challenges startups face in Bangladesh, and how can they

overcome them?

b) Should the government or private sector take a more active role in funding early-stage

startups? Why or why not?

c) How can alternatively financing methods, such as crowdfunding or angel investing, be

promoted in Bangladesh?

Answer

a) Key Financial Challenges Startups Face in Bangladesh:

1. Limited Access to Venture Capital: Bangladesh has a nascent venture capital ecosystem,
making it difficult for startups to secure large-scale investments.

2. High Interest Rates: Banks often charge high interest rates on loans, which can be prohibitive
for early-stage startups with limited revenue.

3. Lack of Collateral: Startups often lack the assets required to secure traditional bank loans.

4. Regulatory Hurdles: Complex regulations and bureaucratic processes can deter investors and
delay funding.

5. Limited Investor Awareness: Many potential investors are unfamiliar with the startup
ecosystem and its potential returns.

6. Currency and Inflation Risks: Economic instability can deter foreign investors and increase
operational costs.

How to Overcome These Challenges:

1. Government Support: The government can create favorable policies, such as tax incentives
for investors, simplified regulatory processes, and low-interest loan programs for startups.
2. Private Sector Involvement: Encouraging private equity firms and corporate venture capital
to invest in startups can bridge the funding gap.

3. Alternative Financing: Promoting crowd funding, angel investing, and peer-to-peer lending
can provide startups with access to smaller, more flexible funding sources.

4. Incubators and Accelerators: Establishing more startup incubators and accelerators can
provide mentorship, networking opportunities, and access to investors.

5. Financial Literacy Programs: Educating entrepreneurs about financial management and

investment readiness can make them more attractive to investors.

6. Regional and International Partnerships: Collaborating with international investors and

venture capital firms can bring in foreign capital and expertise.

b) Should the Government or Private Sector Take a More Active Role in Funding Early-
Stage Startups?

Yes, the government should take a more active role:

- Why?

- Market Failure: Early-stage startups are often considered high-risk, and private investors may
be reluctant to fund them without government incentives.

- Economic Growth: Startups drive innovation, create jobs, and contribute to GDP growth,
making them a priority for national development.

- Infrastructure Development: The government can build the necessary infrastructure, such as
tech parks and innovation hubs, to support startups.

- Risk Mitigation: Government grants, subsidies, and low-interest loans can reduce the financial
burden on startups.

Yes, the private sector should also take a more active role:

- Why?

- Profit Motive: Private investors can benefit from high returns if startups succeed.

- Industry Expertise: Private sector players, such as corporate venture capital, can provide not
only funding but also industry-specific mentorship and market access.

- Scalability: Private funding can scale more quickly than government programs, especially in a
growing economy like Bangladesh.
Balanced Approach:

Both the government and private sector should collaborate to create a robust startup ecosystem.
The government can provide initial support and create a favorable environment, while the private
sector can drive growth through investments and expertise.

c) Promoting Alternative Financing Methods in Bangladesh:

1. Crowdfunding:

- Awareness Campaigns: Educate entrepreneurs and the public about crowdfunding platforms
and their benefits.

- Regulatory Framework: Develop clear regulations to protect both investors and startups using
crowdfunding.

- Local Platforms: Encourage the creation of local crowdfunding platforms tailored to the
Bangladeshi market.

2. Angel Investing:

- Networking Events: Organize startup pitch events and investor meetups to connect
entrepreneurs with potential angel investors.

- Tax Incentives: Offer tax breaks to angel investors to encourage them to invest in early-stage
startups.

- Angel Networks: Establish formal angel investor networks to pool resources and share risks.

3. Peer-to-Peer Lending:

- Regulatory Support: Create a legal framework to facilitate peer-to-peer lending while ensuring
transparency and security.

- Technology Infrastructure: Invest in digital platforms that enable secure and efficient peer-to-
peer lending.
4. Corporate Venture Capital:

- Partnerships: Encourage large corporations to set up venture capital arms to invest in startups
aligned with their business interests.

- Mentorship Programs: Pair startups with corporate mentors to provide guidance and industry
insights.

5. International Funding:

- Partnerships with Global Investors: Attract foreign investors by showcasing the potential of
Bangladeshi startups.

- Export-Oriented Startups: Focus on startups with global appeal to attract international funding.

By addressing these challenges and leveraging alternative financing methods, Bangladesh can
create a thriving startup ecosystem that drives innovation and economic growth.

2. A group of university students in Sylhet developed a digital freelancing platform that connects

Bangladeshi youth with global clients. Within a year, their platform helped 5,000 young people

earn an income through remote jobs.

a) How can tech-based entrepreneurship help in reducing unemployment in Bangladesh?

b) What measures should be taken to improve digital literacy so that more young people can

benefit from freelancing opportunities?

c) What role does government policy play in supporting startups in the IT sector to generate

more employment?

a) How Can Tech-Based Entrepreneurship Help in Reducing Unemployment in Bangladesh?

1. Job Creation: Tech-based startups create direct employment opportunities in fields like
software development, digital marketing, and data analysis.

2. Remote Work Opportunities: Platforms like the one developed by the Sylhet students
enable young people to access global job markets, reducing reliance on local employment
opportunities.
 3. Skill Development: Tech entrepreneurship encourages the development of high-demand
skills such as coding, graphic design, and digital communication, making individuals more
employable.

4. Entrepreneurial Mindset: Tech startups inspire others to innovate and start their own
ventures, leading to a multiplier effect in job creation.

5. Economic Diversification: By focusing on the IT sector, Bangladesh can reduce its

dependence on traditional industries like garments and agriculture, creating a more
balanced economy.

6. Youth Empowerment: Tech-based entrepreneurship provides opportunities for young

people, who make up a significant portion of Bangladesh's population, to contribute to the
economy.

b) Measures to Improve Digital Literacy for Freelancing Opportunities

1. Digital Literacy Programs:

o Government Initiatives: Launch nationwide campaigns to teach basic digital

skills, such as using computers, the internet, and common software tools.

o Partnerships with NGOs: Collaborate with non-profits to provide free or low-cost

digital literacy training in rural and underserved areas.

2. Educational Reforms:

o Curriculum Integration: Introduce digital literacy and IT skills into school and
university curricula.

o Vocational Training: Establish vocational training centers focused on freelancing

skills like graphic design, content writing, and web development.

3. Online Learning Platforms:

o Localized Content: Develop online courses in Bengali to make learning more

accessible.

o Affordable Access: Partner with telecom companies to provide affordable internet

packages for students and freelancers.

4. Community Centers:
 o Digital Hubs: Set up community centers with computers and internet access where
young people can learn and practice digital skills.

o Mentorship Programs: Connect experienced freelancers with beginners to

provide guidance and support.

5. Awareness Campaigns:

o Success Stories: Highlight successful freelancers to inspire others and demonstrate

the potential of freelancing.

o Workshops and Seminars: Organize events to educate young people about

freelancing opportunities and how to get started.

c) Role of Government Policy in Supporting IT Startups to Generate Employment

1. Funding and Grants:

o Startup Funds: Establish government-backed funds to provide seed capital for IT

startups.

o Low-Interest Loans: Offer loans with favorable terms to tech-based entrepreneurs.

2. Tax Incentives:

o Tax Breaks: Provide tax holidays or reduced tax rates for IT startups to encourage
growth.

o Investor Incentives: Offer tax benefits to individuals and companies investing in

IT startups.

3. Infrastructure Development:

o Tech Parks and Hubs: Build technology parks and innovation hubs with high-
speed internet and modern facilities.

o Rural Connectivity: Expand internet access to rural areas to enable more people
to participate in the digital economy.

4. Policy and Regulation:

o Simplified Regulations: Reduce bureaucratic hurdles for registering and operating

IT startups.
 o Data Protection Laws: Implement policies to protect user data and build trust in
digital platforms.

5. Skill Development Initiatives:

o Public-Private Partnerships: Collaborate with tech companies to provide training

programs for young people.

o Certification Programs: Offer government-recognized certifications for IT skills

to enhance employability.

6. International Collaboration:

o Global Partnerships: Partner with international organizations and governments to

bring in expertise and funding.

o Export Promotion: Support IT startups in accessing global markets through trade

fairs and export incentives.

7. Research and Development (R&D):

o Innovation Grants: Provide grants for R&D in emerging technologies like

artificial intelligence, blockchain, and cybersecurity.

o University Collaboration: Encourage universities to conduct research that can be

commercialized by startups.

3. Salma, a university graduate from SUST, launched a home-based organic food business. She

started with only three employees, focusing on providing jobs to unemployed women in her

community. Over time, her business grew, and she hired 20 women.

a) How can women entrepreneurs like Salma contribute to reducing female unemployment in

Bangladesh?

b) What kind of training and financial support can help scale up businesses like Salma’s?

c) What are some social or cultural barriers that might prevent more women from becoming

entrepreneurs, and how can they be overcome?

a) How Can Women Entrepreneurs Like Salma Contribute to Reducing Female

Unemployment in Bangladesh?
 1. Job Creation: Women entrepreneurs can create employment opportunities specifically for
other women, addressing gender disparities in the workforce.

2. Role Models: Successful women entrepreneurs inspire others to pursue entrepreneurship,

breaking stereotypes and encouraging economic participation.

3. Skill Development: Businesses like Salma’s provide training and skill-building

opportunities for women, making them more employable in other sectors as well.

4. Community Empowerment: By focusing on local communities, women entrepreneurs

can uplift entire neighborhoods, reducing poverty and unemployment.

5. Flexible Work Arrangements: Home-based businesses offer flexible working conditions,

which are particularly beneficial for women balancing household responsibilities.

6. Economic Growth: Women-led businesses contribute to GDP growth and diversify the
economy, creating a ripple effect of job creation.

b) Training and Financial Support to Scale Up Businesses Like Salma’s

Training Programs:

1. Entrepreneurial Skills: Provide training in business planning, financial management,

marketing, and operations.

2. Technical Skills: Offer courses in food safety, organic farming, packaging, and quality
control to improve product standards.

3. Digital Literacy: Train women in using digital tools for e-commerce, social media
marketing, and online sales platforms.

4. Leadership Development: Equip women with leadership and management skills to help
them grow their businesses and teams.

Financial Support:

1. Microfinance: Provide access to small loans with low interest rates to help women start or
expand their businesses.

2. Grants and Subsidies: Offer government or NGO-funded grants specifically for women
entrepreneurs in the organic food or agribusiness sector.

3. Crowdfunding: Promote alternative financing methods like crowdfunding to help women

raise capital without collateral.
 4. Partnerships with Banks: Encourage banks to create tailored loan products for women
entrepreneurs with flexible repayment terms.

5. Investor Networks: Connect women entrepreneurs with angel investors or venture

capitalists interested in social impact businesses.

Infrastructure and Resources:

1. Incubators and Accelerators: Establish programs that provide mentorship, networking,

and resources to women-led startups.

2. Market Access: Help women entrepreneurs access local and international markets through
trade fairs, exhibitions, and online platforms.

3. Technology Support: Provide access to affordable technology and equipment to improve

production efficiency.

c) Social or Cultural Barriers Preventing Women from Becoming Entrepreneurs and How
to Overcome Them

Barriers:

1. Gender Stereotypes: Societal expectations often limit women to traditional roles,

discouraging them from pursuing entrepreneurship.

2. Lack of Education: Limited access to education and training restricts women’s ability to
acquire the skills needed for entrepreneurship.

3. Limited Mobility: Cultural norms may restrict women’s freedom to travel for business
purposes or attend networking events.

4. Access to Finance: Women often face difficulties in securing loans due to lack of collateral
or discriminatory lending practices.

5. Household Responsibilities: Balancing business with family duties can be challenging,

especially in patriarchal societies.

6. Social Stigma: Women entrepreneurs may face criticism or lack of support from their
families or communities.

Solutions:

1. Awareness Campaigns: Launch campaigns to challenge gender stereotypes and highlight

the success stories of women entrepreneurs.
 2. Education and Training: Provide accessible and affordable education and vocational
training programs for women.

3. Community Support: Engage local leaders and communities to advocate for women’s
economic participation.

4. Flexible Financing: Develop financial products tailored to women’s needs, such as group
lending or collateral-free loans.

5. Mentorship Programs: Connect aspiring women entrepreneurs with successful

businesswomen for guidance and support.

6. Childcare Support: Establish affordable childcare facilities to help women balance work
and family responsibilities.

7. Policy Reforms: Advocate for policies that promote gender equality, such as equal pay,
maternity leave, and anti-discrimination laws.

8. Safe Spaces: Create safe and supportive environments where women can network, learn,
and collaborate without fear of judgment or harassment.

4.Chaldal is Bangladesh’s leading online grocery delivery service. Unlike traditional e-commerce,

grocery delivery requires fast fulfillment and fresh products. Managing inventory, delivery

logistics, and perishable goods are major challenges.

a) What innovative supply chain solutions did Chaldal implement to ensure efficient delivery?

b) How has Chaldal benefited from the rise of digital payments in Bangladesh?

c) What strategies should Chaldal use to expand to smaller cities and rural areas?

a) Innovative Supply Chain Solutions Implemented by Chaldal

1. Micro-Warehousing:

o Decentralized Hubs: Chaldal uses small, localized warehouses (dark stores)

spread across cities to reduce delivery times and ensure fresh products.

o Proximity to Customers: These micro-warehouses are strategically located near

high-demand areas, enabling faster order fulfillment.
 2. Real-Time Inventory Management:

o Technology Integration: Chaldal uses advanced software to track inventory levels

in real time, ensuring optimal stock levels and reducing waste.

o Demand Forecasting: Data analytics help predict customer demand, allowing

Chaldal to stock products accordingly.

3. Efficient Delivery Logistics:

o Route Optimization: Algorithms are used to plan the most efficient delivery
routes, reducing delivery times and fuel costs.

o Fleet Management: A mix of in-house and third-party delivery personnel ensures

flexibility and scalability.

4. Cold Chain Management:

o Temperature-Controlled Storage: Perishable goods are stored in temperature-

controlled environments to maintain freshness.

o Refrigerated Delivery: Specialized vehicles and packaging are used to keep

perishables fresh during transit.

5. Automation and AI:

o Automated Sorting: Automated systems in warehouses speed up order processing.

o AI-Powered Recommendations: AI algorithms suggest products to customers

based on their purchase history, increasing sales and reducing inventory stagnation.

6. Customer-Centric Approach:

o Same-Day Delivery: Chaldal offers same-day delivery to meet customer

expectations for speed and convenience.

o Easy Returns: A hassle-free return policy builds customer trust and loyalty.

b) How Chaldal Benefited from the Rise of Digital Payments in Bangladesh

1. Convenience for Customers:

o Cashless Transactions: Digital payments provide a seamless and contactless

shopping experience, which is especially important during the COVID-19
pandemic.
 o Faster Checkout: Customers can complete transactions quickly, improving the
overall user experience.

2. Increased Sales:

o Impulse Buying: Easy payment options encourage customers to make more

purchases.

o Access to Unbanked Populations: Mobile financial services like bKash and

Nagad allow customers without bank accounts to shop online.

3. Operational Efficiency:

o Reduced Cash Handling: Digital payments minimize the risks and costs
associated with handling cash.

o Automated Reconciliation: Payments are automatically recorded, reducing

administrative workload.

4. Data-Driven Insights:

o Customer Behavior Analysis: Digital payment data helps Chaldal understand

purchasing patterns and tailor marketing strategies.

o Targeted Promotions: Personalized offers can be sent to customers based on their

payment history.

5. Trust and Security:

o Secure Transactions: Digital payment platforms offer secure and encrypted

transactions, building customer trust.

o Transparency: Customers can easily track their spending, enhancing their

confidence in the platform.

c) Strategies for Chaldal to Expand to Smaller Cities and Rural Areas

1. Localized Supply Chain:

o Micro-Warehouses: Establish small warehouses in smaller cities to ensure fast

delivery and fresh products.

o Partnerships with Local Suppliers: Collaborate with local farmers and producers
to source fresh products and reduce costs.
2. Affordable Delivery Options:

o Subscription Models: Introduce subscription plans for regular customers to reduce

delivery costs.

o Group Deliveries: Offer discounts for group orders from the same neighborhood
to optimize delivery routes.

3. Digital Literacy Campaigns:

o Training Programs: Educate rural customers on how to use the Chaldal app and
digital payment methods.

o Local Language Support: Provide the app and customer service in regional
languages to improve accessibility.

4. Tailored Product Offerings:

o Regional Preferences: Stock products that cater to local tastes and preferences.

o Affordable Pricing: Offer budget-friendly options to attract price-sensitive

customers.

5. Leveraging Mobile Financial Services:

o Partnerships with bKash/Nagad: Promote the use of mobile financial services for
payments in areas with limited banking infrastructure.

o Cashback Offers: Provide incentives for using digital payments to encourage

adoption.

6. Community Engagement:

o Local Ambassadors: Hire local representatives to promote Chaldal and assist

customers in placing orders.

o Awareness Campaigns: Use local media and community events to raise awareness
about Chaldal’s services.

7. Infrastructure Development:

o Internet Connectivity: Partner with telecom companies to improve internet access

in rural areas.

o Last-Mile Delivery Solutions: Use motorcycles, bicycles, or even boats (in flood-
prone areas) to ensure timely deliveries.
 8. Sustainability Initiatives:

o Eco-Friendly Packaging: Use biodegradable packaging to appeal to

environmentally conscious customers.

o Support for Local Farmers: Highlight partnerships with local farmers to build
community trust and support.

5. bKash, launched in 2011, revolutionized mobile financial services (MFS) in Bangladesh.

Initially, many people were hesitant to use digital payments. Over time, bKash gained trust by

ensuring ease of use, security, and widespread agent networks.

a) What are the key success factors behind bKash’s rapid adoption in Bangladesh?

b) How has bKash impacted small businesses and rural entrepreneurs?

c) What challenges might bKash face from new competitors like Nagad and traditional banks?

a) Key Success Factors Behind bKash’s Rapid Adoption

1. Ease of Use:

o Simple Interface: bKash’s user-friendly platform made it accessible to people with

limited technical knowledge.

o USSD Technology: Even users with basic mobile phones could access bKash
services without needing smartphones or internet.

2. Widespread Agent Network:

o Accessibility: bKash built an extensive network of agents across urban and rural
areas, ensuring services were available even in remote locations.

o Cash-In/Cash-Out Points: Agents allowed users to easily convert cash to digital

money and vice versa, building trust in the system.

3. Security and Trust:

o Robust Security Measures: bKash implemented strong encryption and

authentication protocols to protect user transactions.

o Regulatory Compliance: Collaboration with Bangladesh Bank ensured

compliance with financial regulations, enhancing credibility.
 4. Affordability:

o Low Transaction Fees: bKash kept fees minimal, making it an attractive option
for low-income users.

o No Hidden Costs: Transparent pricing helped build trust among users.

5. Strategic Partnerships:

o Telco Collaboration: Partnership with BRAC Bank and later with Money in
Motion LLC provided the necessary financial infrastructure.

o Corporate Tie-Ups: Collaborations with businesses, NGOs, and government

agencies expanded bKash’s reach and utility.

6. Marketing and Awareness:

o Massive Campaigns: bKash invested heavily in advertising to educate the public

about its services.

o Localized Outreach: Tailored campaigns addressed the specific needs and

concerns of rural and urban populations.

7. Innovative Services:

o Bill Payments: Allowing users to pay utility bills and school fees through bKash
increased its utility.

o Salary Disbursements: Partnering with companies to disburse salaries via bKash

expanded its user base.

b) Impact of bKash on Small Businesses and Rural Entrepreneurs

1. Financial Inclusion:

o Access to Banking: bKash provided unbanked populations, especially in rural

areas, with access to financial services.

o Savings and Credit: Small businesses and entrepreneurs could save money
digitally and access microloans.

2. Convenience and Efficiency:

o Cashless Transactions: Reduced the risks and hassles of handling cash, especially
for small businesses.
 o Faster Payments: Enabled quick and secure transactions, improving cash flow for
businesses.

3. Cost Savings:

o Lower Transaction Costs: Reduced the need for physical bank visits, saving time
and money.

o Affordable Services: Low fees made digital transactions accessible to small

businesses with tight budgets.

4. Business Expansion:

o Access to New Markets: Rural entrepreneurs could reach urban customers and
vice versa through digital payments.

o E-Commerce Integration: Small businesses could sell products online and receive
payments via bKash.

5. Empowerment of Women:

o Financial Independence: Women entrepreneurs gained control over their finances,

leading to greater economic participation.

o Safety and Security: Digital transactions reduced the need for women to carry
cash, enhancing their safety.

c) Challenges bKash Might Face from New Competitors like Nagad and Traditional Banks

1. Increased Competition:

o Nagad’s Aggressive Growth: Nagad, backed by the government, offers lower fees
and innovative services, attracting bKash users.

o Bank-Led MFS: Traditional banks are launching their own mobile financial
services, leveraging their existing customer base and trust.

2. Regulatory Changes:

o Stricter Regulations: New policies from Bangladesh Bank could increase

compliance costs and operational challenges.

o Level Playing Field: Regulatory support for competitors like Nagad could
disadvantage bKash.
 3. Technological Advancements:

o Innovation Pressure: Competitors may introduce advanced features like AI-driven

services or blockchain-based solutions, forcing bKash to innovate continuously.

o User Experience: Competitors with more intuitive interfaces or better customer

service could attract bKash users.

4. Customer Retention:

o Price Wars: Competitors offering lower fees or better incentives could lure away
bKash customers.

o Brand Loyalty: Maintaining customer trust and loyalty in a competitive market

will be challenging.

5. Infrastructure and Reach:

o Rural Penetration: Competitors may focus on expanding their agent networks in

rural areas, challenging bKash’s dominance.

o Network Reliability: Ensuring consistent service quality across all regions will be
critical.

6. Security Concerns:

o Fraud and Scams: As the MFS sector grows, the risk of fraud increases, requiring
bKash to invest more in security measures.

o Data Privacy: Ensuring user data privacy will be essential to maintain trust.

Strategies for bKash to Stay Competitive:

1. Continuous Innovation:

o Introduce new features like microloans, insurance, or investment options to

enhance user value.

o Leverage AI and data analytics to offer personalized services.

2. Enhanced Customer Experience:

o Improve app usability and customer support to retain users.

o Offer loyalty programs and rewards to incentivize continued use.

 3. Strategic Partnerships:

o Collaborate with e-commerce platforms, utility providers, and government

agencies to expand service offerings.

o Partner with fintech companies to integrate advanced technologies.

4. Focus on Rural Markets:

o Strengthen the agent network in underserved areas.

o Launch targeted campaigns to educate rural populations about bKash’s benefits.

5. Security and Trust:

o Invest in advanced cybersecurity measures to protect user data.

o Transparent communication about security practices to build trust.

6. You started a local coffee shop, but a well-known coffee chain opens nearby, attracting your

customers.

a) How would you differentiate your business from the big brand competitor?

b) Would you compete on price, quality, or customer experience? Explain why.

c) Suggest a marketing strategy to regain customer loyalty.

a) How to Differentiate Your Business from the Big Brand Competitor

1. Unique Selling Proposition (USP):

o Local Flavor: Offer locally sourced ingredients or unique menu items that reflect
the culture and tastes of your community.

o Specialty Coffee: Focus on high-quality, artisanal coffee that stands out from the
mass-produced options of the big chain.

2. Personalized Experience:

o Customer Relationships: Build strong relationships with your customers by

remembering their names, preferences, and orders.

o Customization: Allow customers to customize their drinks and food items to their
liking.

3. Ambiance and Atmosphere:

 o Cozy and Inviting: Create a warm, welcoming environment that feels like a "home
away from home."

o Local Art and Music: Showcase local artists and musicians to create a unique and
community-focused vibe.

4. Community Engagement:

o Events and Workshops: Host events like open mic nights, coffee tasting sessions,
or barista workshops to engage the community.

o Support Local Causes: Partner with local charities or schools to show your
commitment to the community.

5. Sustainability:

o Eco-Friendly Practices: Use biodegradable packaging, recycle, and source

ethically produced coffee beans.

o Transparency: Communicate your sustainability efforts to customers to build trust

and loyalty.

b) Competing on Price, Quality, or Customer Experience

Competing on Quality and Customer Experience:

• Why?

o Quality: High-quality products can justify higher prices and attract customers who
appreciate premium offerings.

o Customer Experience: A personalized and memorable experience can create loyal

customers who are less likely to switch to the big chain.

o Brand Loyalty: Competing on quality and experience helps build a strong brand
identity that resonates with customers.

Avoid Competing Solely on Price:

• Why?

o Price Wars: Big chains can afford to lower prices due to economies of scale,
making it difficult for small businesses to compete.
 o Perceived Value: Competing on price alone can devalue your brand and make it
harder to maintain profitability.

o Sustainability: Focusing on quality and experience ensures long-term

sustainability and customer loyalty.

c) Marketing Strategy to Regain Customer Loyalty

1. Loyalty Programs:

o Rewards System: Implement a loyalty card or app where customers earn points for
every purchase, redeemable for free drinks or discounts.

o Exclusive Offers: Provide special deals or early access to new menu items for loyal
customers.

2. Social Media Engagement:

o Interactive Content: Share behind-the-scenes content, customer stories, and

interactive posts to engage your audience.

o User-Generated Content: Encourage customers to share their experiences on

social media and feature their posts on your channels.

3. Local Partnerships:

o Collaborations: Partner with local businesses, schools, or organizations for cross-

promotions and events.

o Community Events: Sponsor or host local events to increase visibility and show
your commitment to the community.

4. Personalized Marketing:

o Email Campaigns: Send personalized emails with special offers, birthday

discounts, or updates on new menu items.

o Customer Feedback: Actively seek and respond to customer feedback to show that
you value their opinions.

5. Unique Promotions:

o Themed Days: Offer special promotions on specific days, such as "Bring a Friend
Monday" or "Happy Hour Fridays."
 o Seasonal Menus: Introduce limited-time seasonal drinks and food items to create
excitement and encourage repeat visits.

6. In-Store Experience:

o Interactive Elements: Add interactive elements like a coffee bean tasting station
or a wall where customers can leave notes or artwork.

o Comfortable Spaces: Ensure your seating is comfortable and conducive to long

stays, encouraging customers to spend more time (and money) in your shop.

7. Referral Programs:

o Word-of-Mouth Incentives: Offer discounts or free items to customers who refer

friends and family to your coffee shop.

o Customer Testimonials: Showcase positive reviews and testimonials prominently

in your shop and online.

8. Quality Assurance:

o Consistency: Ensure that every cup of coffee and every food item meets high-
quality standards to build trust and reliability.

o Training: Invest in staff training to maintain excellent service and product quality.

By focusing on quality, customer experience, and community engagement, your coffee shop can
differentiate itself from the big chain and build a loyal customer base. Implementing a targeted
marketing strategy will help you regain and retain customers, ensuring long-term success.

7. Rahim, who lives in a rural area of Bangladesh, notices that farmers in his village struggle to
get

fair prices for their crops due to middlemen. He wants to create a business that connects farmers

directly with buyers through an online platform. However, many farmers have limited internet

access and are not tech-savvy.

a) What steps can Rahim take to educate farmers about his platform?

b) How can he ensure that farmers trust his platform and see its benefits?
c) What business model should he use to make the platform profitable?

d) What challenges might he face, and how can he address them?

e) How can technology and mobile banking (e.g., bKash, Nagad) help make his business

successful?

a) Steps to Educate Farmers About the Platform

1. Awareness Campaigns:

o Workshops and Seminars: Organize local workshops to demonstrate how the

platform works and its benefits.

o Field Visits: Send representatives to farms to explain the platform and provide
hands-on training.

2. Local Language Support:

o Vernacular Content: Create educational materials, videos, and tutorials in the

local language to make them accessible.

o Simple Interface: Design the platform with an intuitive, easy-to-navigate interface.

3. Partnerships with Local Leaders:

o Community Leaders: Engage respected local figures to advocate for the platform
and help spread the word.

o Farmers’ Cooperatives: Collaborate with existing cooperatives to reach a larger

audience.

4. Demonstration Projects:

o Pilot Programs: Start with a small group of farmers to demonstrate the platform’s
effectiveness and share success stories.

o Case Studies: Highlight real-life examples of farmers who have benefited from the
platform.

5. Mobile Outreach:

o SMS Campaigns: Use SMS to send tips, updates, and reminders about the
platform.
 o Voice Messages: For farmers with limited literacy, use voice messages to explain
the platform’s features.

b) Ensuring Farmers Trust the Platform and See Its Benefits

1. Transparency:

o Clear Pricing: Show transparent pricing and how much farmers can save or earn
by cutting out middlemen.

o Real-Time Updates: Provide real-time updates on market prices and demand.

2. Security and Reliability:

o Data Protection: Ensure that farmers’ data is secure and their transactions are
protected.

o Reliable Support: Offer robust customer support to address any issues or concerns.

3. Success Stories:

o Testimonials: Share testimonials and case studies from farmers who have
successfully used the platform.

o Community Proof: Use local influencers and respected farmers to vouch for the
platform.

4. Incentives:

o Initial Discounts: Offer discounts or bonuses for the first few transactions to
encourage farmers to try the platform.

o Loyalty Programs: Implement a rewards system for frequent users.

5. Training and Support:

o Ongoing Training: Provide continuous training and support to help farmers get the
most out of the platform.

o Help Desks: Set up local help desks or hotlines for farmers to get assistance.

c) Business Model for Profitability

1. Transaction Fees:
 o Commission: Charge a small commission on each transaction made through the
platform.

o Subscription Plans: Offer premium features or services for a subscription fee.

2. Value-Added Services:

o Logistics: Provide logistics and delivery services for a fee.

o Market Insights: Sell market analysis and insights to farmers and buyers.

3. Advertising:

o Sponsored Listings: Allow buyers to pay for featured listings or advertisements on

the platform.

o Partnerships: Partner with agricultural input suppliers to advertise their products.

4. Data Monetization:

o Market Data: Aggregate and sell anonymized market data to researchers,

policymakers, or businesses.

o Analytics Services: Offer analytics services to buyers and farmers.

5. Government and NGO Funding:

o Grants and Subsidies: Seek grants or subsidies from government or NGOs

supporting agricultural development.

o CSR Partnerships: Partner with corporations for corporate social responsibility

(CSR) initiatives.

d) Challenges and Solutions

1. Limited Internet Access:

o Offline Features: Develop offline capabilities that allow farmers to use the
platform without constant internet access.

o Community Hubs: Set up internet-enabled community centers where farmers can

access the platform.

2. Tech-Savviness:
 o Simplified Design: Ensure the platform is user-friendly and requires minimal
technical knowledge.

o Training Programs: Provide ongoing training and support to help farmers become
comfortable with the technology.

3. Trust Issues:

o Transparency: Maintain transparency in all transactions and communications.

o Local Partnerships: Collaborate with trusted local organizations to build

credibility.

4. Logistics and Delivery:

o Partnerships: Partner with reliable logistics companies to ensure timely delivery

of products.

o Local Warehouses: Establish local warehouses to store and manage inventory.

5. Market Fluctuations:

o Price Stabilization: Implement mechanisms to stabilize prices and protect farmers

from market volatility.

o Diversification: Encourage farmers to diversify their crops to reduce risk.

e) Role of Technology and Mobile Banking

1. Digital Payments:

o Mobile Banking: Integrate mobile banking services like bKash and Nagad for
seamless and secure transactions.

o Cashless Transactions: Reduce the risks associated with cash handling and make
transactions more efficient.

2. Real-Time Updates:

o SMS Alerts: Use SMS to send real-time updates on prices, demand, and
transactions.

o Mobile Apps: Develop a mobile app for easy access to the platform and real-time
information.
 3. Data Collection and Analysis:

o Market Insights: Use technology to collect and analyze market data, providing
valuable insights to farmers and buyers.

o Predictive Analytics: Implement predictive analytics to forecast market trends and

help farmers make informed decisions.

4. Communication Tools:

o Chat and Support: Use mobile technology to offer chat and support services to
farmers.

o Community Forums: Create online forums where farmers can share experiences
and advice.

5. Logistics Management:

o Tracking Systems: Use GPS and tracking systems to manage and optimize
logistics and delivery.

o Inventory Management: Implement digital inventory management systems to

ensure efficient operations.

8. As mobile financial services (MFS) became more popular, competitors like Nagad and Rocket

emerged, offering similar or lower transaction fees. bKash still dominates the market, but

competition is growing.

a) What competitive advantages does bKash have over its rivals in the MFS industry?

b) How can bKash maintain its market leadership while ensuring affordability for users?

c) Should bKash diversify its services beyond MFS to sustain growth? If yes, what new

Could it introduce services?

a) Competitive Advantages of bKash Over Rivals

1. First-Mover Advantage:

o Brand Recognition: bKash was the first major player in Bangladesh’s MFS
market, giving it strong brand recognition and trust.
 o Established Network: Its extensive agent network and user base are hard for new
competitors to replicate quickly.

2. Widespread Agent Network:

o Accessibility: bKash has the largest network of agents, ensuring services are
available even in remote areas.

o Cash-In/Cash-Out Points: The ability to easily convert cash to digital money and
vice versa remains a key strength.

3. Strong Partnerships:

o Telco Collaboration: Partnerships with BRAC Bank and Money in Motion LLC
provide a robust financial infrastructure.

o Corporate Tie-Ups: Collaborations with businesses, NGOs, and government

agencies enhance its utility and reach.

4. User Trust and Security:

o Proven Track Record: Years of reliable service have built trust among users.

o Robust Security Measures: Advanced encryption and authentication protocols

protect user transactions.

5. Innovative Services:

o Diverse Offerings: Services like bill payments, salary disbursements, and

microloans make bKash a one-stop solution for financial needs.

o Continuous Innovation: Regular updates and new features keep the platform
relevant and user-friendly.

6. Customer Support:

o Reliable Assistance: Strong customer support systems help users resolve issues
quickly, enhancing satisfaction and loyalty.

b) Maintaining Market Leadership While Ensuring Affordability

1. Cost Optimization:

o Operational Efficiency: Streamline operations to reduce costs and maintain low

transaction fees.
 o Economies of Scale: Leverage its large user base to negotiate better rates with
partners and service providers.

2. Value-Added Services:

o Premium Features: Offer premium services (e.g., faster transactions, higher

limits) for a small fee, while keeping basic services affordable.

o Bundled Packages: Provide bundled services at discounted rates to add value

without increasing costs.

3. Loyalty Programs:

o Rewards and Discounts: Implement loyalty programs that reward frequent users
with discounts or cashback.

o Exclusive Offers: Provide special deals or early access to new features for loyal
customers.

4. Strategic Partnerships:

o Corporate Collaborations: Partner with businesses to offer exclusive benefits to

their employees or customers.

o Government Programs: Collaborate with government initiatives to provide

affordable financial services to underserved populations.

5. Customer Education:

o Financial Literacy: Educate users on the benefits of digital payments and how to
use bKash effectively.

o Transparent Pricing: Clearly communicate fees and charges to build trust and
avoid hidden costs.

6. Technological Investments:

o AI and Data Analytics: Use AI to personalize services and predict user needs,
enhancing user experience without increasing costs.

o Automation: Automate routine tasks to reduce operational expenses and pass

savings on to users.

c) Diversifying Services Beyond MFS

Yes, bKash should diversify its services to sustain growth.

New Services to Introduce:

1. Microloans and Credit Services:

o Small Loans: Offer microloans to individuals and small businesses, leveraging

transaction data to assess creditworthiness.

o Buy Now, Pay Later: Introduce installment payment options for purchases made
through bKash.

2. Insurance Products:

o Microinsurance: Provide affordable insurance products for health, agriculture, and

accidents.

o Partnerships: Collaborate with insurance companies to offer bundled services.

3. Investment Opportunities:

o Savings Plans: Introduce savings accounts with competitive interest rates.

o Investment Platforms: Allow users to invest in mutual funds, stocks, or

government bonds through the bKash app.

4. E-Commerce Integration:

o Marketplace: Create an integrated marketplace where users can shop and pay
using bKash.

o Merchant Services: Offer tools for small businesses to accept payments and
manage finances.

5. Utility and Bill Payments:

o Expanded Services: Add more utility services (e.g., internet, TV subscriptions)

and automate recurring payments.

o Cross-Border Payments: Enable international remittances and payments for users

with family abroad.

6. Educational and Health Services:

o E-Learning: Partner with educational platforms to offer courses and certifications.

 o Telemedicine: Provide access to telemedicine services, allowing users to consult
doctors and pay via bKash.

7. Gaming and Entertainment:

o In-App Purchases: Allow users to make in-app purchases for games and
entertainment services.

o Subscription Models: Offer subscription plans for streaming services.

8. Blockchain and Cryptocurrency:

o Digital Wallets: Explore blockchain technology for secure transactions and

introduce cryptocurrency wallets.

o Smart Contracts: Use smart contracts for automated and transparent agreements.

Challenges and Solutions for Diversification

1. Regulatory Compliance:

o Solution: Work closely with regulators to ensure new services comply with local
laws and regulations.

2. User Adoption:

o Solution: Invest in user education and marketing to promote new services and
demonstrate their benefits.

3. Technological Integration:

o Solution: Partner with tech companies to integrate advanced technologies

seamlessly into the bKash platform.

4. Security Risks:

o Solution: Implement robust cybersecurity measures and continuously monitor for

threats.

9. Rafat is an entrepreneur in Dhaka who notices that there are very few healthy food delivery

services available in the city. He sees an opportunity to start a business that provides nutritious,

low-calorie meals for busy professionals. However, he is unsure if the market is big enough and

whether people will pay for such a service.

a) How can Rafat determine if there is enough demand for a healthy food delivery service in

Dhaka?

b) What factors should he consider before launching his business?

c) What strategies can he use to differentiate his business from existing food delivery services?

d) What potential risks might he face, and how can he mitigate them?

e) If you were in Rafat’s position, what would be your first step?

a) Determining Demand for a Healthy Food Delivery Service in Dhaka

1. Market Research:

o Surveys and Questionnaires: Conduct surveys targeting busy professionals to

gauge their interest in healthy meal delivery.

o Focus Groups: Organize focus groups to understand preferences, dietary needs,

and willingness to pay.

2. Competitor Analysis:

o Existing Services: Analyze competitors offering similar services to identify gaps

and opportunities.

o Customer Reviews: Study reviews of existing food delivery services to understand

customer pain points and unmet needs.

3. Trend Analysis:

o Health Trends: Research local and global trends in health and wellness to assess
the growing demand for nutritious meals.

o Lifestyle Changes: Consider the increasing awareness of healthy eating and the
rise of fitness culture in Dhaka.

4. Pilot Testing:

o Small-Scale Launch: Start with a small-scale pilot to test the concept and gather
feedback from early users.

o Trial Offers: Offer trial meals at a discounted rate to attract initial customers and
assess demand.
 5. Data Analytics:

o Social Media Insights: Use social media analytics to identify discussions and
interest in healthy eating and meal delivery.

o Search Trends: Analyze search engine data to see how often people in Dhaka
search for healthy meal options.

b) Factors to Consider Before Launching the Business

1. Target Market:

o Demographics: Identify the specific demographic (e.g., age, income level,

profession) most likely to use the service.

o Psychographics: Understand the lifestyle, values, and preferences of your target

audience.

2. Menu Development:

o Nutritional Value: Ensure meals are nutritious, balanced, and cater to various
dietary needs (e.g., vegan, gluten-free).

o Taste and Variety: Offer a diverse menu to cater to different tastes and prevent
menu fatigue.

3. Pricing Strategy:

o Cost Analysis: Calculate the cost of ingredients, preparation, and delivery to set
competitive prices.

o Value Proposition: Ensure the pricing reflects the quality and convenience of the
service.

4. Supply Chain and Logistics:

o Reliable Suppliers: Partner with reliable suppliers for fresh, high-quality

ingredients.

o Efficient Delivery: Develop a robust delivery system to ensure meals are delivered
fresh and on time.

5. Regulatory Compliance:
 o Food Safety Standards: Ensure compliance with local food safety regulations and
obtain necessary licenses.

o Health Certifications: Consider obtaining health and nutrition certifications to

build credibility.

6. Marketing and Branding:

o Brand Identity: Develop a strong brand identity that emphasizes health, quality,
and convenience.

o Marketing Channels: Identify the most effective channels (e.g., social media,
influencers, corporate partnerships) to reach your target audience.

c) Strategies to Differentiate the Business

1. Unique Selling Proposition (USP):

o Customization: Offer personalized meal plans based on individual dietary needs

and preferences.

o Nutritional Expertise: Employ nutritionists to design meals and provide expert

advice.

2. Quality and Freshness:

o Locally Sourced Ingredients: Use fresh, locally sourced ingredients to emphasize

quality and support local farmers.

o Daily Preparation: Prepare meals daily to ensure freshness and avoid

preservatives.

3. Technology Integration:

o User-Friendly App: Develop a mobile app for easy ordering, tracking, and
customization.

o Subscription Model: Offer subscription plans for regular deliveries, providing

convenience and cost savings.

4. Customer Experience:

o Exceptional Service: Ensure prompt and courteous customer service to build

loyalty.
 o Feedback Loop: Actively seek and respond to customer feedback to continuously
improve the service.

5. Community Engagement:

o Health Workshops: Organize workshops and seminars on nutrition and healthy

living.

o Corporate Partnerships: Partner with companies to offer healthy meal options for
their employees.

d) Potential Risks and Mitigation Strategies

1. Market Acceptance:

o Risk: Low demand for healthy meals.

o Mitigation: Conduct thorough market research and pilot testing before full-scale
launch.

2. Operational Challenges:

o Risk: Inefficient supply chain and delivery logistics.

o Mitigation: Invest in reliable suppliers and develop an efficient delivery system.

3. Competition:

o Risk: Competition of existing food delivery services.

o Mitigation: Differentiate through unique offerings, superior quality, and excellent

customer service.

4. Financial Constraints:

o Risk: High initial costs and low initial revenue.

o Mitigation: Secure adequate funding and manage cash flow carefully.

5. Regulatory Issues:

o Risk: Non-compliance with food safety regulations.

o Mitigation: Stay updated on regulations and obtain necessary certifications.

e) First Step in Rafat’s Position

Conduct Comprehensive Market Research:

• Surveys and Focus Groups: Start by conducting surveys and focus groups to understand
the demand, preferences, and willingness to pay for healthy meal delivery services.

• Competitor Analysis: Analyze existing competitors to identify gaps and opportunities in

the market.

• Pilot Testing: Launch a small-scale pilot to test the concept and gather feedback from early
users.

10. An e-commerce platform in Bangladesh, ShopBD, wants to increase the use of digital payments

instead of cash on delivery (COD). However, many customers still prefer COD due to trust

issues and limited awareness of digital payment benefits.

a) What are the main reasons Bangladeshi customers prefer COD over digital payments?

b) How can ShopBD encourage more customers to use digital payments?

c) What role do fintech companies (e.g., bKash, Nagad, Rocket) play in supporting digital

transactions for e-commerce?

d) What are the potential cybersecurity risks in digital payments, and how can they be

managed?

e) If you were the CEO of ShopBD, what incentives would you offer to customers for using

digital payments?

a) Reasons Bangladeshi Customers Prefer COD Over Digital Payments

1. Trust Issues:

o Fear of Fraud: Customers worry about online scams, fake websites, or not
receiving the product after payment.

o Lack of Confidence: Many are unfamiliar with digital payment systems and fear
making mistakes.

2. Limited Awareness:
 o Unaware of Benefits: Customers may not understand the convenience, speed, and
security of digital payments.

o Digital Literacy: Low digital literacy, especially among older or rural populations,
hinders adoption.

3. Habit and Convenience:

o Established Practice: COD has been the norm for years, making it a familiar and
comfortable option.

o No Upfront Payment: Customers prefer paying only after receiving and inspecting
the product.

4. Internet and Technology Barriers:

o Limited Access: Poor internet connectivity in rural areas makes digital payments
challenging.

o Device Limitations: Not all customers have smartphones or devices capable of

handling digital transactions.

5. Transaction Fees:

o Perceived Cost: Some customers believe digital payments incur hidden fees or
higher costs.

b) Encouraging Customers to Use Digital Payments

1. Education and Awareness:

o Campaigns: Launch campaigns to educate customers about the benefits of digital

payments (e.g., convenience, security, rewards).

o Tutorials: Provide step-by-step guides and video tutorials on how to use digital
payment methods.

2. Incentives and Rewards:

o Discounts: Offer discounts or cashback for using digital payments.

o Loyalty Points: Reward customers with loyalty points for every digital transaction.

3. Enhanced Security Measures:

 o Transparency: Clearly communicate security measures (e.g., encryption, fraud
protection) to build trust.

o Guarantees: Offer money-back guarantees or purchase protection for digital

payments.

4. Simplified Payment Process:

o User-Friendly Interface: Ensure the payment process is simple and intuitive.

o Multiple Options: Integrate popular payment methods like bKash, Nagad, and
Rocket to cater to different preferences.

5. Customer Support:

o 24/7 Assistance: Provide round-the-clock customer support to resolve payment

issues quickly.

o Live Chat: Offer live chat support for real-time assistance.

6. Partnerships with Fintech Companies:

o Collaborations: Partner with fintech companies to promote digital payments and

offer exclusive deals.

o Co-Branded Campaigns: Run joint campaigns to raise awareness and build trust.

c) Role of Fintech Companies in Supporting Digital Transactions

1. Payment Integration:

o Seamless Integration: Fintech companies provide APIs and plugins for easy
integration with e-commerce platforms.

o Multiple Options: Offer a variety of payment methods (e.g., mobile wallets, bank
transfers) to cater to different customer preferences.

2. Security and Trust:

o Fraud Prevention: Implement advanced security measures like encryption, two-

factor authentication, and fraud detection systems.

o Customer Assurance: Build trust through transparent policies and reliable

customer support.
 3. Financial Inclusion:

o Accessibility: Enable customers without bank accounts to make digital payments

through mobile financial services (MFS).

o Rural Reach: Extend services to rural areas, increasing the reach of digital
payments.

4. Promotions and Incentives:

o Cashback and Discounts: Collaborate with e-commerce platforms to offer

cashback and discounts for using their payment methods.

o Loyalty Programs: Develop loyalty programs that reward customers for digital
transactions.

5. Data and Analytics:

o Customer Insights: Provide e-commerce platforms with data and analytics to

understand customer behavior and preferences.

o Targeted Marketing: Enable personalized marketing campaigns based on

transaction data.

d) Potential Cybersecurity Risks and Management

1. Fraud and Scams:

o Risk: Cybercriminals may use phishing, fake websites, or malware to steal payment
information.

o Mitigation: Implement robust fraud detection systems, educate customers about

safe online practices, and use secure payment gateways.

2. Data Breaches:

o Risk: Hackers may breach systems to access sensitive customer data.

o Mitigation: Use encryption, regular security audits, and comply with data
protection regulations.

3. Transaction Errors:

o Risk: Technical glitches may cause failed or duplicate transactions.

 o Mitigation: Ensure reliable payment processing systems and provide quick
resolution for transaction issues.

4. Identity Theft:

o Risk: Cybercriminals may steal personal information to make unauthorized

transactions.

o Mitigation: Use multi-factor authentication and verify customer identities during

transactions.

5. System Downtime:

o Risk: Payment systems may go offline, disrupting transactions.

o Mitigation: Invest in reliable infrastructure and have backup systems in place.

e) Incentives to Offer for Using Digital Payments

1. Discounts and Cashback:

o Immediate Savings: Offer discounts (e.g., 5% off) or cashback for every digital
payment.

o Exclusive Deals: Provide access to exclusive deals or early sales for digital
payment users.

2. Loyalty Programs:

o Points System: Reward customers with points for every digital transaction,
redeemable for discounts or free products.

o Tiered Rewards: Offer higher rewards for frequent users (e.g., gold or platinum
tiers).

3. Free Shipping:

o Waived Fees: Provide free or discounted shipping for orders paid digitally.

4. Referral Bonuses:

o Referral Rewards: Give bonuses to customers who refer friends to use digital
payments on ShopBD.

5. Gifts and Giveaways:

 o Random Prizes: Conduct monthly draws for customers who use digital payments,
offering prizes like gift cards or free products.

6. Subscription Benefits:

o Premium Memberships: Offer premium memberships with benefits like faster

delivery or exclusive discounts for digital payment users.

11. Bangladesh has a competitive telecommunications industry, with major players like

Grameenphone, Robi, and Banglalink. However, market saturation and declining profit margins

are challenges.

a) How can telecom companies in Bangladesh differentiate themselves in a highly competitive

and saturated market?

b) What impact will 5G technology have on the future of the telecommunications industry in

Bangladesh?

c) Should telecom companies invest more in digital services (e.g., OTT platforms, cloud

services) to diversify revenue streams? Why or why not?

a) Differentiating in a Competitive and Saturated Market

1. Network Quality and Coverage:

o Superior Infrastructure: Invest in advanced infrastructure to provide faster, more

reliable connectivity, especially in rural areas.

o 5G Readiness: Be among the first to roll out 5G services to attract tech-savvy

customers.

2. Customer Experience:

o Personalized Services: Use data analytics to offer tailored plans and promotions
based on individual usage patterns.

o 24/7 Support: Provide exceptional customer service with round-the-clock support

and quick issue resolution.

3. Innovative Pricing Plans:

o Flexible Packages: Offer customizable plans that cater to different customer

segments (e.g., students, professionals, businesses).
 o Bundled Services: Combine mobile, internet, and digital services into attractive
bundles.

4. Value-Added Services:

o Digital Content: Partner with OTT platforms to offer exclusive content or

discounted subscriptions.

o Mobile Financial Services: Integrate mobile banking and payment solutions to add
convenience for users.

5. Sustainability Initiatives:

o Green Technology: Promote eco-friendly practices, such as using renewable

energy for towers and reducing e-waste.

o Community Programs: Engage in CSR activities that benefit local communities,

enhancing brand reputation.

6. Brand Loyalty Programs:

o Rewards and Discounts: Implement loyalty programs that reward long-term

customers with discounts, free data, or exclusive offers.

o Referral Bonuses: Encourage existing customers to refer friends by offering

bonuses or credits.

b) Impact of 5G Technology on the Telecom Industry

1. Enhanced Connectivity:

o Faster Speeds: 5G will enable significantly faster internet speeds, improving user
experience for streaming, gaming, and browsing.

o Lower Latency: Reduced latency will support real-time applications like online
gaming, video calls, and IoT devices.

2. New Revenue Streams:

o IoT and Smart Devices: 5G will drive the adoption of IoT devices, creating
opportunities for telecom companies to offer connected solutions.

o Enterprise Solutions: Businesses will benefit from 5G-enabled services like cloud
computing, remote work tools, and automation.
 3. Digital Transformation:

o Smart Cities: 5G will support the development of smart cities, with applications in
traffic management, public safety, and utilities.

o Healthcare and Education: Enhanced connectivity will enable telemedicine,

remote learning, and other digital services.

4. Competitive Advantage:

o Early Adopters: Companies that roll out 5G early will gain a competitive edge by
attracting high-value customers and businesses.

o Innovation Leadership: Leading in 5G technology will position telecom

companies as innovators in the industry.

5. Challenges:

o High Investment: Deploying 5G infrastructure requires significant investment,

which may strain profit margins initially.

o Regulatory Hurdles: Navigating regulatory requirements and spectrum allocation

can be complex and time-consuming.

c) Investing in Digital Services for Revenue Diversification

Yes, telecom companies should invest more in digital services.

Why?

1. Declining Traditional Revenue:

o Voice and SMS Decline: Revenue from traditional voice and SMS services is
declining due to the rise of OTT communication apps.

o Data Commoditization: Data services alone are not enough to sustain growth, as
they become increasingly commoditized.

2. Growing Demand for Digital Services:

o OTT Platforms: There is a rising demand for video streaming, music, and other
digital content.

o Cloud Services: Businesses and individuals are increasingly adopting cloud

storage and computing solutions.
 3. Revenue Diversification:

o Multiple Streams: Digital services provide additional revenue streams, reducing

dependence on traditional telecom services.

o Higher Margins: Services like cloud computing and premium content

subscriptions often have higher profit margins.

4. Customer Retention:

o Enhanced Value: Offering bundled digital services makes customers less likely to
switch to competitors.

o Loyalty: Exclusive content or premium features can increase customer loyalty and
lifetime value.

5. Competitive Edge:

o Differentiation: Digital services help telecom companies stand out in a crowded

market.

o Innovation Leadership: Being a provider of cutting-edge digital services enhances

brand reputation.

Examples of Digital Services to Invest In:

• OTT Platforms: Partner with or develop streaming services for video, music, and gaming.

• Cloud Services: Offer cloud storage, computing, and SaaS solutions for businesses and
individuals.

• Mobile Financial Services: Expand into mobile banking, payments, and insurance.

• IoT Solutions: Provide connected devices and services for smart homes, healthcare, and
agriculture.

• E-Learning and Telemedicine: Develop platforms for online education and remote
healthcare services.

12. Daraz, backed by Alibaba, dominates the Bangladeshi e-commerce market. However, local

startups have tried to challenge it by offering unique services. Evaly initially attracted

customers with aggressive discounting but collapsed due to financial mismanagement.

a) How can Bangladeshi e-commerce startups compete with a well-funded giant like Daraz?
b) What lessons can be learned from Evaly’s failure, and how can new entrants avoid similar

mistakes?

c) Should the government introduce stricter regulations on e-commerce platforms to protect

consumers? Why or why not?

a) Competing with a Well-Funded Giant Like Daraz

1. Niche Markets:

o Specialization: Focus on specific niches (e.g., handmade products, organic goods,

or local crafts) that Daraz may not prioritize.

o Unique Value Proposition: Offer products or services that cater to underserved

segments, such as rural customers or specific demographics.

2. Customer Experience:

o Personalization: Use data analytics to provide personalized recommendations and

tailored shopping experiences.

o Customer Support: Offer exceptional customer service, including easy returns,

quick issue resolution, and 24/7 support.

3. Local Partnerships:

o Collaborations: Partner with local businesses, artisans, and suppliers to offer

unique products and support the local economy.

o Community Engagement: Engage with local communities through events,

sponsorships, and social initiatives to build brand loyalty.

4. Innovative Marketing:

o Social Media: Leverage social media platforms for targeted marketing and
influencer collaborations.

o Content Marketing: Create engaging content (e.g., blogs, videos, tutorials) to

attract and retain customers.

5. Technology and Innovation:

o User-Friendly Platforms: Develop intuitive and mobile-friendly websites and

apps to enhance user experience.
 o Advanced Features: Implement features like AI-driven search, virtual try-ons, and
augmented reality to differentiate from competitors.

6. Sustainable Practices:

o Eco-Friendly Initiatives: Promote sustainability through eco-friendly packaging,

carbon-neutral shipping, and support for green products.

o Ethical Sourcing: Highlight ethical sourcing and fair trade practices to attract
socially conscious consumers.

b) Lessons from Evaly’s Failure and Avoiding Similar Mistakes

1. Financial Management:

o Sustainable Discounting: Avoid unsustainable discounting practices that lead to

financial losses. Instead, offer realistic promotions and focus on long-term
profitability.

o Cash Flow Management: Ensure proper cash flow management to meet

operational expenses and avoid liquidity crises.

2. Transparency and Trust:

o Clear Policies: Maintain transparent pricing, return, and refund policies to build
customer trust.

o Honest Communication: Communicate openly with customers and stakeholders

about business practices and financial health.

3. Regulatory Compliance:

o Adherence to Laws: Ensure compliance with all relevant regulations and obtain
necessary licenses.

o Consumer Protection: Implement measures to protect consumer rights and data

privacy.

4. Operational Efficiency:

o Inventory Management: Use efficient inventory management systems to avoid

overstocking or stockouts.

o Logistics Optimization: Develop a reliable and cost-effective logistics network to

ensure timely deliveries.
 5. Customer-Centric Approach:

o Feedback Loop: Actively seek and respond to customer feedback to continuously

improve services.

o Quality Assurance: Ensure the quality of products and services to maintain

customer satisfaction and loyalty.

c) Government Regulations on E-Commerce Platforms

Yes, the government should introduce stricter regulations to protect consumers.

Why?

1. Consumer Protection:

o Prevent Fraud: Stricter regulations can help prevent fraudulent practices and
protect consumers from scams.

o Ensure Fair Practices: Regulations can ensure fair pricing, transparent policies,
and ethical business practices.

2. Market Stability:

o Avoid Collapses: Proper oversight can prevent the collapse of poorly managed
platforms, protecting consumers and maintaining market stability.

o Level Playing Field: Regulations can create a level playing field, ensuring fair
competition among e-commerce platforms.

3. Data Privacy and Security:

o Protect Personal Data: Regulations can mandate robust data protection measures
to safeguard consumer information.

o Prevent Misuse: Ensure that consumer data is not misused for unethical purposes.

4. Dispute Resolution:

o Effective Mechanisms: Establish clear mechanisms for resolving disputes between

consumers and e-commerce platforms.

o Consumer Rights: Ensure that consumers have access to redressal mechanisms for
grievances.
Potential Regulations:

• Licensing Requirements: Mandate licenses for e-commerce platforms to ensure they meet
certain standards.

• Transparency Mandates: Require platforms to disclose pricing, terms, and conditions

clearly.

• Consumer Protection Laws: Enforce laws that protect consumer rights, including refunds,
returns, and data privacy.

• Financial Oversight: Monitor the financial health of e-commerce platforms to prevent

collapses like Evaly’s.

13. Nadia is passionate about environmental sustainability and wants to start a business that sells

eco-friendly alternatives to plastic products, such as biodegradable bags and reusable straws.

However, she worries that customers might find these products expensive compared to regular

plastic alternatives.

a) How can Nadia convince customers to switch to eco-friendly products despite the higher

price?

b) What marketing strategies can she use to promote sustainability and attract customers?

c) What partnerships could help her grow her business?

d) What are the potential risks in starting an eco-friendly business, and how can she manage

them?

e) How can government policies and social awareness impact the success of her business?

a) Convincing Customers to Switch to Eco-Friendly Products

1. Educate on Benefits:

o Environmental Impact: Highlight the long-term environmental benefits of using

eco-friendly products, such as reducing plastic waste and protecting marine life.

o Health Benefits: Emphasize the health advantages of using non-toxic,

biodegradable materials.

2. Cost-Effectiveness Over Time:

 o Durability: Showcase the durability and reusability of eco-friendly products,
which can save money in the long run compared to disposable plastic items.

o Lifecycle Cost: Explain the total cost of ownership, including disposal costs and
environmental impact, to demonstrate value.

3. Emotional Appeal:

o Storytelling: Share compelling stories about the positive impact of switching to

eco-friendly products, including testimonials from satisfied customers.

o Community Impact: Illustrate how purchasing eco-friendly products supports

local communities and sustainable practices.

4. Incentives and Rewards:

o Discounts and Offers: Provide discounts for bulk purchases or loyalty programs
that reward repeat customers.

o Referral Programs: Encourage customers to refer friends by offering incentives

for both parties.

5. Transparency and Trust:

o Certifications: Obtain and display eco-certifications to build credibility and trust.

o Transparent Practices: Be open about sourcing, manufacturing processes, and the

environmental impact of your products.

b) Marketing Strategies to Promote Sustainability

1. Digital Marketing:

o Social Media Campaigns: Use platforms like Facebook, Instagram, and LinkedIn
to share educational content, customer testimonials, and promotional offers.

o Influencer Partnerships: Collaborate with eco-conscious influencers to reach a

broader audience.

2. Content Marketing:

o Blogs and Articles: Publish informative articles and blogs about the benefits of
eco-friendly products and sustainability tips.
 o Videos and Tutorials: Create engaging videos that demonstrate the use and
benefits of your products.

3. Community Engagement:

o Workshops and Events: Host workshops, webinars, and community events to

educate people about sustainability and showcase your products.

o Local Partnerships: Partner with local schools, businesses, and organizations to

promote eco-friendly practices.

4. Branding and Packaging:

o Eco-Friendly Branding: Ensure your branding reflects your commitment to

sustainability, using eco-friendly materials and messaging.

o Creative Packaging: Use innovative, biodegradable packaging that reinforces your

brand’s eco-friendly values.

5. Public Relations:

o Press Releases: Send press releases to local media outlets about your business
launch, milestones, and sustainability initiatives.

o Media Coverage: Seek coverage in eco-friendly and lifestyle magazines, blogs,

and news sites.

c) Partnerships to Grow the Business

1. Local Businesses:

o Retail Partnerships: Partner with local retailers, cafes, and restaurants to sell your
products.

o Collaborative Campaigns: Run joint marketing campaigns with businesses that

share your sustainability values.

2. Environmental Organizations:

o NGO Collaborations: Work with environmental NGOs to promote your products

and participate in sustainability initiatives.

o Certification Bodies: Partner with organizations that provide eco-certifications to

enhance your credibility.
 3. Educational Institutions:

o Schools and Universities: Collaborate with educational institutions to promote

eco-friendly practices and sell your products on campus.

o Workshops and Seminars: Conduct educational workshops and seminars on

sustainability.

4. Government Agencies:

o Support Programs: Leverage government programs and grants that support eco-
friendly businesses.

o Public Initiatives: Partner with government agencies on public sustainability

initiatives and campaigns.

5. Online Marketplaces:

o E-Commerce Platforms: List your products on popular e-commerce platforms that

focus on eco-friendly and sustainable products.

o Subscription Services: Partner with subscription box services that cater to eco-
conscious consumers.

d) Potential Risks and Management Strategies

1. Market Acceptance:

o Risk: Customers may be reluctant to switch due to higher prices.

o Mitigation: Educate customers on the long-term benefits and value of eco-friendly

products through marketing and community engagement.

2. Supply Chain Issues:

o Risk: Sourcing sustainable materials can be challenging and costly.

o Mitigation: Build strong relationships with reliable suppliers and explore local
sourcing options to reduce costs.

3. Financial Constraints:

o Risk: Initial investment and operational costs can be high.

 o Mitigation: Seek funding through grants, investors, or crowdfunding, and manage
cash flow carefully.

4. Regulatory Compliance:

o Risk: Navigating environmental regulations and certifications can be complex.

o Mitigation: Stay informed about relevant regulations and work with legal experts
to ensure compliance.

5. Competition:

o Risk: Competing with established brands and cheaper plastic alternatives.

o Mitigation: Differentiate through unique value propositions, superior quality, and

strong branding.

e) Impact of Government Policies and Social Awareness

1. Government Policies:

o Supportive Regulations: Policies that promote sustainability, such as bans on

single-use plastics or incentives for eco-friendly businesses, can boost demand for
Nadia’s products.

o Funding and Grants: Government grants and subsidies for sustainable businesses
can provide financial support and reduce operational costs.

2. Social Awareness:

o Growing Consciousness: Increasing awareness about environmental issues can

drive consumer demand for eco-friendly products.

o Community Initiatives: Community-led sustainability initiatives can create a

supportive environment for Nadia’s business and encourage local adoption.

3. Educational Campaigns:

o Public Awareness: Government and NGO-led campaigns on the importance of

sustainability can educate consumers and increase market acceptance.

o School Programs: Integrating sustainability education into school curricula can

foster a culture of environmental responsibility from a young age.
14. Unilever dominates Bangladesh’s FMCG sector, but local brands like Square, PRAN, and ACI

are emerging as strong competitors, particularly in food and personal care products.

a) How can local FMCG brands differentiate themselves from global giants like Unilever?

b) Should Unilever focus on premium products or expand its low-cost offerings to compete

with local brands?

c) What role does branding play in the FMCG competition, and how can local companies build

strong brand loyalty?

a) Differentiating Local FMCG Brands from Global Giants

1. Localized Products:

o Cultural Relevance: Develop products that cater to local tastes, preferences, and
traditions.

o Regional Variants: Offer region-specific variants to address diverse consumer

needs across Bangladesh.

2. Affordable Pricing:

o Cost-Effective Solutions: Focus on providing high-quality products at competitive

prices to attract price-sensitive consumers.

o Economies of Scale: Leverage local production to reduce costs and offer better
pricing.

3. Strong Distribution Networks:

o Rural Penetration: Establish robust distribution channels to reach rural and

underserved areas where global giants may have limited presence.

o Local Partnerships: Collaborate with local distributors and retailers to enhance

market reach.

4. Community Engagement:

o CSR Initiatives: Engage in corporate social responsibility (CSR) activities that

benefit local communities, enhancing brand reputation.

o Local Sponsorships: Sponsor local events, sports teams, and cultural activities to
build brand affinity.
 5. Innovation and Agility:

o Quick Adaptation: Be agile in responding to market trends and consumer

feedback, allowing for faster product innovation and adaptation.

o Niche Markets: Focus on niche segments that global giants may overlook, such as
organic or health-focused products.

6. Brand Storytelling:

o Local Heritage: Emphasize the brand’s local roots and commitment to supporting
the local economy.

o Authenticity: Build a narrative around authenticity, quality, and trust to resonate

with local consumers.

b) Unilever’s Strategy: Premium vs. Low-Cost Offerings

Focus on Premium Products:

• Why?

o Brand Image: Unilever’s global reputation for quality can be leveraged to attract
affluent consumers seeking premium products.

o Higher Margins: Premium products typically offer higher profit margins,

contributing to better financial performance.

o Differentiation: Focusing on premium segments can help Unilever differentiate

itself from local competitors who primarily target the mass market.

Expand Low-Cost Offerings:

• Why?

o Market Penetration: Offering low-cost products can help Unilever capture a larger
share of the price-sensitive market.

o Competitive Edge: Competing directly with local brands on price can prevent
market erosion and maintain customer loyalty.

o Volume Sales: Low-cost products can drive higher sales volumes, compensating
for lower margins.
Balanced Approach:
Unilever should consider a dual strategy, offering both premium and low-cost products to cater to
different consumer segments. This approach allows the company to maintain its premium brand
image while also competing effectively in the mass market.

c) Role of Branding and Building Strong Brand Loyalty

Role of Branding:

1. Consumer Trust: Strong branding builds trust and credibility, making consumers more
likely to choose a familiar and reliable brand.

2. Emotional Connection: Effective branding creates an emotional connection with

consumers, fostering loyalty and repeat purchases.

3. Differentiation: Unique branding helps differentiate products in a crowded market,

making them stand out to consumers.

Strategies for Building Brand Loyalty:

1. Consistent Quality:

o Reliability: Ensure consistent product quality to meet and exceed consumer

expectations.

o Quality Assurance: Implement rigorous quality control measures to maintain high

standards.

2. Customer Engagement:

o Interactive Campaigns: Engage with customers through social media, contests,

and interactive campaigns.

o Feedback Loop: Actively seek and respond to customer feedback to show that their
opinions matter.

3. Loyalty Programs:

o Rewards and Discounts: Implement loyalty programs that reward repeat

purchases with discounts, points, or exclusive offers.

o Personalized Offers: Use data analytics to offer personalized promotions and

recommendations.

4. Community Involvement:
 o Local Initiatives: Participate in and sponsor local community events and initiatives
to build a positive brand image.

o CSR Activities: Engage in CSR activities that align with the brand’s values and
resonate with consumers.

5. Storytelling and Authenticity:

o Brand Narrative: Develop a compelling brand story that highlights the company’s
heritage, values, and commitment to quality.

o Authentic Messaging: Use authentic and relatable messaging in marketing

campaigns to connect with consumers on a personal level.

6. Innovative Marketing:

o Digital Presence: Leverage digital marketing channels, including social media,

influencer partnerships, and content marketing, to reach a wider audience.

o Experiential Marketing: Create memorable brand experiences through events,

pop-up stores, and interactive installations.

15. Traditional banks in Bangladesh (e.g., BRAC Bank, DBBL, City Bank) are facing competition

from digital banking services and fintech startups.

a) How can traditional banks compete with fintech startups that offer faster and more user

friendly digital services?

b) Should banks focus on partnering with fintech companies or developing their own digital

solutions? Why?

c) What are the risks and rewards of fully digitizing banking services in Bangladesh?

a) Competing with Fintech Startups

1. Enhancing Digital Services:

o User-Friendly Platforms: Invest in developing intuitive and mobile-friendly

digital banking platforms.
 o Advanced Features: Offer features like real-time notifications, AI-driven financial
insights, and seamless integration with other financial tools.

2. Customer Experience:

o Personalized Services: Use data analytics to provide personalized financial

products and services.

o 24/7 Support: Ensure round-the-clock customer support through chatbots, live

chat, and call centers.

3. Innovative Products:

o Digital-Only Products: Introduce digital-only banking products that cater to tech-

savvy customers.

o Microservices: Offer microloans, microsavings, and microinsurance tailored to the

needs of underserved segments.

4. Partnerships and Collaborations:

o Fintech Partnerships: Collaborate with fintech companies to leverage their

technology and innovation.

o Ecosystem Integration: Integrate with e-commerce platforms, utility providers,

and other digital services to offer a comprehensive ecosystem.

5. Security and Trust:

o Robust Security Measures: Implement advanced cybersecurity measures to

protect customer data and transactions.

o Transparency: Maintain transparent policies and communicate security measures

to build trust.

6. Financial Literacy:

o Educational Campaigns: Conduct campaigns to educate customers about digital

banking and its benefits.

o Training Programs: Offer training programs to help customers transition to digital

banking.

b) Partnering with Fintech Companies vs. Developing Own Digital Solutions

Partnering with Fintech Companies:

• Why?

o Speed and Innovation: Fintech companies are often more agile and innovative,
allowing banks to quickly adopt new technologies.

o Cost-Effective: Partnerships can be more cost-effective than developing in-house

solutions.

o Specialized Expertise: Fintechs bring specialized expertise and experience in

digital solutions.

Developing Own Digital Solutions:

• Why?

o Control and Customization: Developing in-house solutions allows banks to have

full control over the features and customization.

o Brand Consistency: Ensures that digital services align with the bank’s brand and
customer experience standards.

o Long-Term Investment: Building internal capabilities can be a long-term

investment in the bank’s digital transformation.

Balanced Approach:
Banks should consider a hybrid approach, partnering with fintech companies for innovative
solutions while also investing in developing core digital capabilities in-house. This allows banks
to leverage external expertise while maintaining control over critical aspects of their digital
strategy.

c) Risks and Rewards of Fully Digitizing Banking Services

Rewards:

1. Enhanced Customer Experience:

o Convenience: Digital banking offers 24/7 access to financial services, enhancing

customer convenience.

o Personalization: Advanced analytics enable personalized financial products and

services.

2. Operational Efficiency:
 o Cost Savings: Digitization reduces the need for physical branches and manual
processes, lowering operational costs.

o Automation: Automates routine tasks, improving efficiency and reducing errors.

3. Market Expansion:

o Reach: Digital banking allows banks to reach underserved and rural areas,
expanding their customer base.

o Innovation: Enables the introduction of innovative products and services that

attract new customers.

4. Data-Driven Insights:

o Customer Insights: Digital platforms provide valuable data on customer behavior,

enabling better decision-making and targeted marketing.

o Risk Management: Advanced analytics improve risk assessment and management.

Risks:

1. Cybersecurity Threats:

o Data Breaches: Increased risk of cyberattacks and data breaches.

o Fraud: Digital platforms can be vulnerable to fraud and phishing attacks.

2. Customer Resistance:

o Digital Literacy: Some customers may resist digital banking due to lack of digital
literacy or trust issues.

o Transition Challenges: Transitioning from traditional to digital banking can be

challenging for both customers and employees.

3. Regulatory Compliance:

o Complex Regulations: Navigating the regulatory landscape for digital banking can
be complex and costly.

o Data Privacy: Ensuring compliance with data privacy laws and regulations.

4. Technical Issues:

o System Downtime: Technical glitches and system downtime can disrupt services
and damage customer trust.
 o Integration Challenges: Integrating digital solutions with existing systems can be
challenging and resource intensive.

Mitigation Strategies:

• Invest in Cybersecurity: Implement robust cybersecurity measures and conduct regular

audits.

• Customer Education: Provide training and support to help customers transition to digital
banking.

• Regulatory Expertise: Work with legal and regulatory experts to ensure compliance.

• Redundancy and Backup: Ensure redundancy and backup systems to minimize downtime
and technical issues.

16.

a) How difficult is it for a new telecom operator to enter the Bangladeshi market?

Entering the Bangladeshi telecom market as a new operator is highly challenging due to several
factors:

1. Market Saturation: The market is dominated by a few established players (e.g.,

Grameenphone, Robi, Banglalink, and Teletalk), making it difficult for new entrants to gain
market share.

2. Regulatory Hurdles: The government and regulatory bodies (e.g., Bangladesh

Telecommunication Regulatory Commission - BTRC) have stringent licensing and
compliance requirements.

3. High Capital Investment: Significant upfront investment is required for infrastructure,

spectrum licensing, and technology deployment.

4. Competition: Established operators have strong brand loyalty, extensive networks, and
economies of scale, making it hard for new players to compete.

b) What are the key barriers to entry for new telecom businesses in Bangladesh?

The key barriers to entry include:

1. Licensing Costs: High fees for spectrum allocation and telecom licenses.

2. Infrastructure Challenges: Limited availability of tower infrastructure and high costs of

building new networks, especially in rural areas.
 3. Regulatory Compliance: Complex and time-consuming regulatory processes, including
approvals from the BTRC and other government bodies.

4. Capital Requirements: Massive investments are needed for network deployment,

technology (e.g., 4G/5G), and marketing.

5. Competition: Dominance of established players with strong customer bases and

economies of scale.

6. Spectrum Availability: Limited availability of affordable and high-quality spectrum for

new entrants.

7. Political and Bureaucratic Challenges: Navigating bureaucratic red tape and potential
political interference.

c) How do government regulations and licensing requirements impact new entrants in the
telecom industry?

Government regulations and licensing requirements significantly impact new entrants in the
following ways:

1. High Costs: Licensing fees and spectrum auction costs are prohibitively expensive for
many new players.

2. Complex Processes: Lengthy and complex approval processes delay market entry and
increase operational costs.

3. Compliance Burden: Strict regulatory requirements, such as quality of service (QoS)

standards and local content rules, add to operational challenges.

4. Policy Uncertainty: Frequent changes in telecom policies and regulations create

uncertainty for investors.

5. Local Ownership Requirements: Regulations may mandate local partnerships or equity

stakes, which can complicate entry for foreign investors.

6. Taxation: High taxes and levies on telecom services reduce profitability for new entrants.

d) How might global players like Starlink or new 5G service providers impact the existing
telecom market in Bangladesh?

Global players like Starlink or new 5G service providers could disrupt the Bangladeshi telecom
market in several ways:

1. Increased Competition: They could challenge existing operators by offering advanced

technologies (e.g., satellite internet, high-speed 5G) and better services.
 2. Rural Connectivity: Starlink’s satellite-based internet could bridge the digital divide in
remote and underserved areas, where traditional telecom operators have limited reach.

3. Technology Leapfrogging: 5G providers could accelerate the adoption of next-generation

technologies, forcing existing operators to upgrade their networks.

4. Price Pressure: Global players might introduce competitive pricing, forcing local
operators to reduce tariffs and improve service quality.

5. Regulatory Challenges: The entry of global players could prompt the government to
revise regulations, such as spectrum allocation and licensing frameworks, to accommodate
new technologies.

6. Partnership Opportunities: Existing operators might collaborate with global players to

offer bundled services or share infrastructure.

e) How can new entrants overcome infrastructure and capital investment challenges in the
Bangladeshi telecom sector?

New entrants can adopt the following strategies to overcome infrastructure and capital investment
challenges:

1. Infrastructure Sharing: Partner with existing operators or tower companies to share

infrastructure (e.g., towers, fiber networks) and reduce costs.

2. Strategic Partnerships: Collaborate with local firms or international investors to share

risks and pool resources.

3. Phased Rollout: Focus on urban areas or high-demand regions initially to minimize

upfront costs and expand gradually.

4. Government Incentives: Lobby for government incentives, such as tax breaks or

subsidies, to reduce capital expenditure.

5. Innovative Financing: Explore alternative financing options, such as venture capital,

private equity, or public-private partnerships (PPPs).

6. Leverage New Technologies: Use cost-effective technologies like small cells, cloud-based
networks, or software-defined networking (SDN) to reduce infrastructure costs.

7. Focus on Niche Markets: Target underserved segments (e.g., rural areas, enterprise
customers) to differentiate from established players.

8. Regulatory Advocacy: Work with regulators to streamline licensing processes and reduce
barriers to entry.
By addressing these challenges strategically, new entrants can carve out a niche in the competitive
Bangladeshi telecom market.

17.

a) How do internet-based communication services like WhatsApp, Messenger, and Zoom

pose a threat to traditional telecom services in Bangladesh?

Internet-based communication services like WhatsApp, Messenger, and Zoom pose a significant
threat to traditional telecom services in Bangladesh in the following ways:

1. Decline in Voice and SMS Revenue: These platforms offer free or low-cost voice calls,
video calls, and messaging services, reducing the reliance on traditional voice calls and
SMS, which are major revenue streams for telecom operators.

2. Data Preference: Consumers are increasingly using mobile data for communication,
shifting demand away from traditional telecom services.

3. Cost-Effectiveness: Internet-based services are often cheaper or free, making them more
attractive to cost-conscious consumers.

4. Advanced Features: These platforms offer features like group calls, file sharing, and video
conferencing, which traditional telecom services cannot easily replicate.

5. Global Reach: Internet-based services allow users to communicate internationally at no

extra cost, unlike traditional telecom services that charge high rates for international calls.

b) What impact has mobile internet and broadband expansion had on traditional voice and
SMS services?

The expansion of mobile internet and broadband in Bangladesh has significantly impacted
traditional voice and SMS services:

1. Revenue Erosion: As more consumers adopt internet-based communication apps, the

demand for traditional voice calls and SMS has declined, leading to reduced revenue for
telecom operators.

2. Shift in Consumer Behavior: Consumers prefer using data-driven communication

platforms for their convenience, affordability, and additional features.

3. Reduced Usage: The volume of traditional voice calls and SMS has decreased, particularly
among younger, tech-savvy users who rely heavily on apps like WhatsApp and Messenger.
 4. Bundled Services: Telecom operators are increasingly offering bundled packages that
include data, voice, and SMS, reflecting the shift toward data-centric services.

c) How are telecom operators responding to the growing use of alternative communication
platforms?

Telecom operators in Bangladesh are adopting several strategies to respond to the growing use of
alternative communication platforms:

1. Focus on Data Services: Operators are investing heavily in 4G and 5G networks to

capitalize on the growing demand for mobile data.

2. Partnerships with OTT Players: Some operators are partnering with Over-The-Top
(OTT) service providers to offer bundled packages that include data and access to popular
apps.

3. Value-Added Services: Telecom providers are introducing value-added services like

mobile banking, entertainment streaming, and cloud storage to retain customers.

4. Competitive Pricing: Operators are offering affordable data plans to encourage users to
stay within their networks for internet-based communication.

5. Improved Customer Experience: Enhancing network quality and customer service to

differentiate from OTT platforms.

6. Diversification: Expanding into adjacent markets like digital financial services, IoT, and
enterprise solutions to reduce reliance on traditional voice and SMS revenue.

d) How can telecom providers diversify their services to reduce the risk of losing customers
to substitutes?

Telecom providers can diversify their services in the following ways to mitigate the risk of losing
customers to substitutes:

1. Digital Financial Services: Offer mobile banking, payment solutions, and microfinance
services to tap into the growing digital economy.

2. Entertainment and Content: Partner with streaming platforms or develop their own
content services (e.g., video, music, gaming) to attract and retain users.

3. IoT and Smart Solutions: Expand into IoT services for smart homes, cities, and industries,
creating new revenue streams.

4. Enterprise Solutions: Provide tailored telecom and IT solutions for businesses, including
cloud services, cybersecurity, and unified communications.
 5. E-Health and E-Education: Leverage their networks to support telehealth and online
education platforms, especially in underserved areas.

6. Advertising and Data Analytics: Monetize user data through targeted advertising and
analytics services for businesses.

7. Bundled Packages: Offer bundled services that combine voice, data, SMS, and access to
popular OTT platforms at competitive prices.

e) What role does technological advancement play in increasing the threat of substitutes in
the telecom industry?

Technological advancements play a critical role in increasing the threat of substitutes in the
telecom industry:

1. Internet-Based Communication: Advances in internet technology have enabled the rise

of OTT platforms like WhatsApp, Zoom, and Skype, which offer cheaper and more
versatile alternatives to traditional telecom services.

2. 5G and High-Speed Broadband: The rollout of 5G and high-speed broadband enhances

the quality and reliability of internet-based communication, making it more attractive to
users.

3. Cloud Computing: Cloud-based communication tools reduce the need for traditional
telecom infrastructure, enabling businesses and individuals to communicate more
efficiently.

4. AI and Automation: AI-driven communication tools (e.g., chatbots, virtual assistants) are
becoming more sophisticated, reducing the need for human interaction via traditional
telecom channels.

5. Open-Source Technologies: Open-source communication platforms and protocols lower

the barrier to entry for new competitors, increasing the threat of substitutes.

6. Device Proliferation: The widespread availability of affordable smartphones and devices

with internet capabilities has accelerated the adoption of OTT services.

Prepared by- AHSAN AHMED