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TABLE OF CONTENTS

1. Executive Summary 1
2. SWOT Analysis 2
3. History of SWOT Analysis 2
4. Seven Keys 3
5. Application of SWOT Analysis 4
6. SWOT Analysis Framework 5
a. Strengths 5
b. Weaknesses 6
c. Opportunities 6
d. Threats 7
7. SWOT Matrix 7
8. Reason 8
9. History of telenor 8
10. Introduction to Telenor 9
a. Products 9
b. Rivals 9
c. Market 10
d. Vision and Goal 11
11. Telenor Management Philosophy 12
12. Organization Map 13
13. Strategic Plan 14
14. SWOT Analysis of Telenor 15
a. Strengths 15
b. Weaknesses 16
c. Opportunities 17
d. Threats 17
15. Conclusion 19
16. References 20
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 EXECUTIVE SUMMARY

This project is about the SWOT analysis of TELENOR. It is a multinational

corporation of Norway. Norwegian telecommunication was Established in 1884.
with the passage of time it introduces three more telecommunication corporations.
In 1995 it changed its name to telenor. It has its telecommunication network in
about 12 countries. Has a very leading and strong position in its markets, which
are multidimensional and international.

Its strengths are its methods of innovation, its good will social responsibilities, and
its wide market. Weaknesses are weak services in Asian countries, lack of
diversification. It availed the opportunity of easy load and credit sharing,
introduces mobile tv for the first time, gives the service of location recognition.
Threats are its local and international rivals. Its main threat in Asia countries lies
in difference in culture.

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 SWOT ANALYSIS
The study of internal and external environment is an important part of the strategic
planning process. Environment has two factors i.e. external and internal.
Environmental factors internal to the firm are Strengths [S] or Weaknesses [W].
External factors are classified as Opportunities [O] Threats [T].

 So the analysis of these four factors is abbreviated, called SWOT

ANALYSIS.

HISTORY OF SWOT ANALYSIS

 SWOT analysis came from the research conducted at Stanford Research

Institute from 1960-1970.
 The background to SWOT was the need to find out why corporate
planning failed?
 The research was funded by the fortune 500 companies to find out what
could be done about this failure.
 The Research Team included
oMarion
oDosher,
oDr Otis Benepe,
oAlbert Humphrey,
oRobert Stewart,
oBirger Lie.

Starting in 1960, Robert F Stewart at SRI in Menlo Park California lead a

research team to discover what was going wrong with corporate planning, and
then to find some sort of solution, or to create a system for enabling management
teams agreed and committed to development work, which today we call
'managing change'.

The research carried on from 1960 through 1969. 1100 companies and
organizations were interviewed and a 250-item questionnaire was designed and
completed by over 5,000 executives. Seven key findings lead to the conclusion
that in corporations chief executive should be the chief planner and that his
immediate functional directors should be the planning team.

Dr Otis Benepe defined the 'Chain of Logic' which became the core of system
designed to fix the link for obtaining agreement and commitment.

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SEVEN KEYS

1. Values
2. Appraise
3. Motivation
4. Search
5. Select
6. Program
7. Act
8. Monitor and repeat steps 1 2 and 3

The analysis was given in the following wordings

"What is good in the present is Satisfactory, good in the future is an

Opportunity; bad in the present is a Fault and bad in the future is a Threat. This
was called the SOFT analysis".

When this was presented to Urick and Orr in 1964 at the Seminar in Long Range
Planning at the Dolder Grand in Zurich Switzerland they changed the F to a W and
called it SWOT Analysis.

SWOT was then promoted in Britain by Urick and Orr as an exercise in and of
itself. As such it has no benefit. What was necessary was the sorting of the issues
into the programmed planning categories of:

1. Product (what are we selling?)

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

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

By the study given above we came to know that

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  The SWOT analysis is an extremely useful tool for
understanding and decision-making for all sorts of situations in
business and organizations.
 SWOT Analysis is a simple but powerful framework for analyzing one's
company's Strengths and Weaknesses, and the Opportunities and
Threats one face.
 SWOT Analysis is a tool for auditing an organization and its environment.
It is the first stage of planning and let marketers to focus on key issues.

APPLICATION OF SWOT ANALYSIS:

 It is applicable to either corporate level or business unit level.

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

Now we come to the types of analysis.

 INTERNAL ANALYSIS

In this we study the capabilities of organization. This can be done

by examining and analyzing organization's strengths and
weaknesses.

 EXTERNAL ANALYSIS

It is actually the study of external environment of organization. In it

we identify those keys which bring opportunities for your
organization and those points which create threats or obstacles to
our performance.

The study of internal and external environment is an important part of the strategic
planning process. Environment has two factors i.e external and internal.
Environmental factors internal to the firm are Strengths [S] and Weaknesses [W].
External factors are classified as Opportunities [O] and Threats [T].

 So the analysis of these four factors is abbreviated, called SWOT

ANALYSIS.

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 SWOT ANALYSIS FRAMEWORK:

Environmental Analysis
/ \
Internal Analysis External Analysis
/ \ / \
Strengths Weaknesses Opportunities Threats
|
SWOT Matrix

Here a question arises that

"What are strengths, weaknesses, opportunities and threats?

STRENGTHS:

A firm's strengths are its resources and capabilities that can be used as a basis for
developing a competitive advantage. Examples of such strengths include:

• A new innovative product or service.

• Strong brand names.
• Good reputation among customers.
• Cost advantages from proprietary know-how.
• Exclusive access to high grade natural resources.
• Favorable access to distribution networks.
• Location of your business.
• Quality processes and procedures.
• Patents.
• Special market expertise.
• Any other aspect of business that adds value to product or services.

WEAKNESSES:

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 The absence of certain strengths may be viewed as a weakness. For
example, each of the following may be considered weaknesses:

• Poor quality products or services.

• A weak brand name.
• Poor reputation among customers.
• High cost structure.
• Lack of access to the best natural resources.
• Lack of access to key distribution channels.
• Location of your business.
• Undifferentiated products or services.
• Lack of patent protection.
• Lack of marketing expertise.

In some cases, a weakness may be the flip side of strength.

Take the case in which a firm has a large amount of manufacturing capacity.
While this capacity may be considered a strength that competitors do not share, it
also may be a considered a weakness if the large investment in manufacturing
capacity prevents the firm from reacting quickly to changes in the strategic
environment.

OPPORTUNITIES:

The external environmental analysis may reveal certain new opportunities for
profit and growth. Some examples of such opportunities include:

• A developing market.
• Moving into new markets for improved profits.
• A market vacated by ineffective competitor.
• An unfulfilled customer need.
• Arrival of new technologies.
• Loosening of regulations.
• Removal of international trade barriers.

THREATS:

Changes in the external environmental also may present threats to the firm. Some
examples of such threats include:
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 • Consumer tastes changes or shifts away from the firm's
products.
• Substitute products.
• New regulations.
• Increased trade barriers.
• A new competitor in your home market.
• Price wars with competitors.
• Competitor's superior access to channels of distribution.
• Innovative products or services by competitor.

THE SWOT MATRIX:

To develop strategies that take into account the SWOT profile, a matrix of these
factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is
shown below:

SWOT / TOWS MATRIX:

Strengths Weaknesses

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

• S-O strategies pursue opportunities that are a good fit to the company's
strengths.
• W-O strategies overcome weaknesses to pursue opportunities.
• S-T strategies identify ways that the firm can use its strengths to reduce its
vulnerability to external threats.
• W-T strategies establish a defensive plan to prevent the firm's
weaknesses from making it highly susceptible to external threats.

REASON FOR CHOOSING TELENOR

 Telenor is a Multinational corporation having a great scope and a wide
range to be discussed.
 Its growth rate in the telecommunication world is very impressive.
 We can study both of its markets i.e. National and International.

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  Being a student of MBA we should select a company for
discussion which completely satisfies the topics required by the
project. So is there in it.

HISTORY OF TELENOR

THE INTRODUCTION OF THE TELEPHONE:

The years of 1855 to 1920 was a pioneering period in the history of Norwegian
telecommunications. During two generations, the Norwegian society experienced
the introduction of three new means of communications: the telegraph in the years
of 1850, the telephone around 1880 and wireless telegraphy – radiotelegraphy – at
the turn of the century.

NORWEGIAN TELECOM TO TELENOR:

In 1994, Norwegian Telecom was established as a public corporation. One year

later, it changed its name to Telenor. In December 2000, Telenor was partly
privatized and listed on the stock exchange.

INTERNATIONAL DEVELOPMENT:

Telenor has undergone momentous change as a group – from being a strong,

national operator with significant international holdings to becoming an
international, world-class provider of mobile communications services.

MANUAL TELEPHONY TO AUTOMATIC NMT:

Manual mobile telephony services were introduced in Norway in 1966, as a

forerunner to the automatic Nordic Automatic Mobile Telephone (NMT) system,
which appeared in 1981. Its digital successor, Global System for Mobile (GSM),
was introduced in 1993, and third generation mobile network, Universal Mobile
Telecommunication System (UMTS), was launched for commercial use in 2004.
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 INTRODUCTION TO TELENOR

PRODUCTS:

Telenor is Telecommunication Company of Norway. It provides its services in

field of communication in form of following three products:
1. Mobile Operations(Connections)
2. Fixed Line
3. Broadcast

RIVALS:

Telenor is a multinational company. It is well spread all over the world. Rivals of
telenor in different countries are:

Pakistan: Bangladesh: Malaysia: Thailand:

Mobilink Aktel Maxis AIS

Ufone Banglalink Celcom True move
Warid Citycell Thai Mobile
Paktel Teletalk
Instaphone
zong

Norway: Denmark: Sweden:

NetCom TDC Mobil TeliaSonera

Chess TeliaSonera Tele2
Tele2 Tele2 “3”
Ventelo Hi3G

Hungary: Montenegro: Serbia: Ulkrain: Russia:

T-Mobile T-Mobile MTS UMC MTS

Vodafone Life Megafon
Beeline

MARKETS & OPERATORS:

Telenor has merged into three business areas.

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 ◊ MOBILE OPERATIONS:

Telenor’s mobile operations are covering 12 countries and 3 regions. Its company
name is different in different countries. The markets of Telenor in different
countries in percentage with other rivals are as follows:

Pakistan Bangladesh Malaysia Thailand

Norway Denmark Sweden

Hungary Montenegro Serbia Ukrain

Russia

Note: Blue shaded area of circle represent Telenor market

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 ◊ FIXED LINE:

Telenor is the leading provider of fixed-line telecommunications services in

Norway, with a strong position in the growing broadband market throughout
Norway, Sweden and Denmark.

◊ BROADCAST:

Telenor is the leading provider of television and broadcasting services to

consumers and enterprises in the Nordic region, measured by subscribers and
revenues.

VISION:

Vision of telenor is to be the leading telecommunication company of world.

GOAL:

Telenor's primary goal is to create greater value for our shareholders, customers,
employees and partners, and for society in general. Telenor strive to be a driving
force in creating, simplifying and introducing communication and content
solutions to the marketplace.

MISSION STATEMENT:

“Helping people to Communicate”

TELENOR MANAGEMENT PHILOSOPHY

Telenor considers good corporate governance to be an essential tool for achieving

their vision, value creation and strategic goals, complying with their values and for
maintaining good corporate culture. Furthermore, good corporate governance is
imperative for credibility and for access to capital.

Telenor corporate governance includes openness and transparency towards the

company's owners, the Corporate Assembly, the Board and Group Management,
as well as other interested parties such as the Group's employees, customers,
suppliers, creditors, public authorities and society in general.
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 RESPONSIBLE CORPORATE CULTURE TO SECURE VALUE CREATION:

Rules and procedures provide Telenor with a sound platform for good corporate
governance and for the further development of a positive, responsible and healthy
corporate culture. The Group Management is responsible for ensuring the
existence of internal rules, procedures and structures that can efficiently secure
value creation for all stakeholders and where authority and responsibilities are
clearly set out and mutually understood.

RULES AND REGULATIONS:

Telenor is subject to Norwegian rules and regulations in countries in which the

Group conducts business. Telenor's shares are listed on the Oslo Stock Exchange.
As an issuer of shares, the company must comply with the Norwegian rules and
regulations. Being a multinational company it also follows the law of country, it is
in.

CORPORATE ASSEMBLY MEMBERS:

Pursuant to Norwegian law, Telenor has a Corporate Assembly and a Board of

Directors.

ORGANIZATION MAP OF TELENOR:

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 Telenor ASA

Jon Fredrik Baksaas

President & CEO

Chief Financial Officer

Legal

Trond Ø. Westlie
Executive Vice President

Strategy

Nordic Asia Central/East Europe Other Business

Morten Karlsen Sørby Arve Johansen Jan Edvard Thygesen

Executive Vice President Senior Executive Vice President Executive Vice President

Global Coordination

Ragnar Korsæth
Executive Vice President

Group HR

Bjørn Magnus Kopperud

Executive Vice President

Group Communications

Hilde M. Tonne
Executive Vice President

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 Strategic Plan
Telenor's main strategy is to focus on subscriber growth in mobile operations and
to increase overall profitability by combining Group industrialization with local
drive and responsiveness. Further, to develop leading position in the Nordic region
with a broad range of communication services.

This strategy implies the following focus areas:

To strengthen position as an international mobile operator:

Telenor intend to continue to strengthen mobile industrialization mobile

operations by obtaining control over selected mobile companies. Control is
essential to benefit from cross-borders synergies, such as scale in procurement, to
develop new services and implement best practices, to improve operational
efficiency and to increase overall profitability. They intend to manage their non-
strategic investments as financial investments and try to exit from international
mobile operations where they cannot obtain control over time.

To strengthen position in the Nordic region:

Telenor intend to continue to streamline their mobile and fixed line operations in
the Nordic region by exploiting the benefits resulting from economies of scale and
cross-border synergies.

To be the leading provider of communications services in Norway:

Being the leader in a broad range of services in both the residential and business
markets in Norway, Telenor seek to improve profit performance in the mobile and
fixed areas by introducing new services and through a wide range of cost-cutting
initiatives.

To continue to be the leading distributor of TV services to consumers in

the Nordic region:

Telenor will continue to develop new opportunities to strengthen their strategic

position as a leading distributor of subscription-based television in the Nordic

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region. They focus on attracting new subscribers and increasing revenue per user
by providing attractive content and new interactive services

SWOT ANALYSIS OF TELENOR

STRENGTHS OF TELENOR:

Telenor is a multinational company. It has its branches in 12 different countries

and mostly holds the market of many countries. Telenor’s strength lies in its
management tacts and the fact that it is spreading it market all over the world.
Some of the strengths of telenor are:

METHOD OF INNOVATION:

Most of the innovation in telecommunications today doesn’t happen in

laboratories. It happens and evolves in a highly dynamic interplay between user
demands and technological advances.

Telenor does innovations in the manner explained above and succeed most of time
in as it is the best way one can move forward according to its environment.

GOODWILL THROUGH SOCIAL RESPONSIBILITY:

Telenor currently has a good understanding of how its activities, products and
services can impact on the environment. Telenor are committed to preventing or
minimizing those impacts.

The following act of telenor create goodwill among the government and people in
sense that they know their responsibility towards the environment and are try to
make the environment free of pollution.

MARKET:

Telenor is providing services in 12 countries across the world in Europe and Asia.
Telenor users in the world are more than 147 million people.

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 Telenor is increasing the local competitiveness of mobile operations by
taking advantage of global joint competence and scale.

RECYCLING OF MOBILE PHONES:

Mobile phone recycling is a key area. Telenor recycles tens of thousands of mobile
phones through its recycling programmes in Hungary, Serbia and Norway. Telenor
are currently working on a permanent recycling programme that will encompass
all of markets.

POWERING BASE STATIONS BY RENEWABLE ENERGY:

Telenor is currently testing hydrogen, wind and solar energy as power sources for
base stations. A promising result is that these renewable energy sources produce
more energy than is required to power the base stations. This excess electricity can
be used to benefit local communities in the future. To achieve this, Telenor will
depend on strong partnerships with energy providers.

Telenor’s renewable energy effort is an investment that will ensure network

stability in a future where the supply of electricity may be unreliable and
expensive.

WEAKNESSES:

SERVICES:

In Pakistan service of Telenor is not up to the mark. Telenor does not provide
coverage at all areas of Pakistan. Signals of Telenor in many areas are weak. Rates
of Telenor are very high if packages are not activated. Packages like djuice makes
sms very cheap but increases call rates.

NO DIVERSIFICATION:

Telenor no doubt is developing day by day and progressing but it is dealing in just
one type of business that is telecommunication. Its rivalry is increasing fast still
Telenor is not diversifying toward other business.

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OPPORTUNITIES:

EASY LOAD:

Telenor introduced easy load as well as sharing of credit. This was first time
introduced in Pakistan that a person can load credit of only Rs. 10 or more than
that without buying a card of Rs. 100. As before this, there was only the system of
pre paid cards. So it became easy and convenient for all to load credit of how
much they want.

MOBILE TV:

Introduces mobile tv first. No network other than telenor felt the need and
importance of it. It was an innovation and attracted people a lot.

 "The development has revealed that this was the right way to go. Norway is
one of the world's leading nations, when it comes to developing mobile
services. This is not least due to the cooperation between mobile operators
and service providers” says, director of the External Service Market
Department
.
PAYMENT OF BILLS:

In Bangladesh, people without a bank account can now pay their electricity bills
safely and conveniently through a new solution based on mobile communication.
They don’t even need their own mobile phone. In Draymen, Norway, homecare
nurses can do their office work on a mobile PDA, allowing half an hour of extra
time for their patients every day.

THREATS:

CENTRAL ASIA:

It was a tough task and a very challenging step for Telenor Corporation to start its
network in Central ASIA because in these areas making the minds of people for
buying a product is a tough task. Here people always refer the customized and
local products

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 In Asian countries the basic needs of the people are not fulfilled so
they cannot afford a mobile. So it is a challenging task to motivate
them to use mobile
.

CULTURE:

The change between the cultures makes the greatest resistance. People do not trust
the new especially western companies and also don’t accept their ways and
strategies of businesses.

COMPETITION WITH LOCAL MARKET:

.
Competition in a foreign country with local companies is a great threat as a single
wrong step of not only the organization itself but the country can affect the whole
business.

ENVIRONMENT:

The fluctuating and unstable situations i.e. political, economical, social situations
of countries especially in central Asia really effect the growth, position,
investment and profit level and service quality and availability.

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 CONCLUSION

Telenor is a telecommunication company having fewer weaknesses because of its

well organized managerial structure and a better study of local markets. Despite of
having so many threats Telenor came with very attractive packages and captured
the attention of youngsters, shift of young generation was due to affordable rates,
relaxation in Short Message Service, Easy Load Facility and GPRS Facility all at a
same time.

Telenor faced a lot of challenges during last years but survived due to strategic
planning and better distribution of sales and services.

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 REFERENCES

1. Internet
a. Telenor.com
b. Wikipedia
c. Ask.com
d. google.com

2. Books
a. Management Griffin

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