strategic management project

1. Mobilink Semester Project
MOBILINK
Mobilink Pakistan Premier Cellular Company Claims be to have 10 Million
Subscribers nation wide what you call such a company pioneers giants whatever
but the fact is that Mobilink is the largest Cellular Company in Pakistan. Mobilink
being the pioneers of introducing cellular networks in Pakistan established
themselves as the major cellular company of Pakistan. Covering almost every
city of Pakistan. Mobilink is giant is this the reason that they are still expensive
as compare to other companies like Ufone and Warid Tel.
Vision Statement
To be the leading mobile service provider in Pakistan, providing the best quality
services for the maximum number of customers, the best working environment
for our employees and top value for our shareholders
Mission Statement:
“To be a superior communication service company in Pakistan which
provides the best value to its customers, employees, business partners
and shareholders.”
Objective
To be No. 1 in all its mobile businesses
Continue to capture more market before competitors arrive.
To increase market share up to 70% this year
To achieve turnover of 20% in 2005
To provide customer with best value for spending and service at low cost
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2. Mobilink Semester Project
INTERNAL ENVIRONMENT ANALYSIS
Customers
• Major part of corporate sectors
• Armed forces
• Business community
• Govt. organizations
• Teen agars using JAZZ
• Students
• 99% of embassies
• Shopkeepers
• Bankers
Competitors
• Ufone
• Telenor
• Warid
• Zong
SWOT ANALYSIS
Internal Analysis
Strengths
• Mobilink is an acknowledged market leader of all the companies of its kind
• Only cellular service in Pakistan to provide coverage on the M2 motorway.
• Pioneer in GSM service in Pakistan
• Number of customers is more as compare to any other mobile service
provider in Pakistan.
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3. Mobilink Semester Project
• Highest market share not only in terms of number of subscribers but also in
terms of revenue.
• Mobilink’s short message service center allows Vehicle Tracking and Fleet
(VTF) Management services.
• Large number of corporate customers
• Economy of scale
• Mobilink and Muslim Commercial Bank have made a combined effort in order
to maximize the ease and the satisfaction of their respective customers by
offering them all banking services from their very own mobile handset.
• The network service of Mobilink is distributed over a wide area.
• Mobilink provides good service to its customers.
• The customers of Mobilink are very much satisfied; therefore it is the biggest
strength.
• Mobilink has a distinctive competence
• It has adequate financial resources
• The company has good competitive skills
• Mobilink has effective product innovation abilities
• Increased brand equity
• Premium brand image
• Jazz Advance
The company has hired well-qualified and able employees in all its departments.
The services of Mobilink are wide spread such that you can see many small
outlets in every market area.
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4. Mobilink Semester Project
Weaknesses
• Mobilink provides costly services to customers as compared to other mobile
companies
• Sometimes the network is busy and over loaded which results in poor
connectivity
• Customer services centre is not providing good quality services
External Analysis
Opportunities
• Before start of more new companies can target as many new customers as
they can.
• Can lower prices to make business difficult for new companies.
• Mobilink is completing field-testing and certification of its General Packet
Radio Service (GPRS) products; targeted to a market that delivers Internet
Protocol packet services to over 650 million GSM subscribers.
• Mobilink can expand its target markets and enter new market segments.
• This company has faster market growth so its must try to introduce such
packages that attract more and more customers.
Threats
• New market players are coming in near future.
• New companies can offer packages for corporate customers in better way.
• Wireless local loop service providers too targeting areas which are less
developed.
• Current price war may reach at a position where only brand names survive.
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5. Mobilink Semester Project
• Due to expensive quality of service now a days customers can shift to other
companies.
• After PAKTEL is captured by china, it introduced many new packages which
attract the consumer more than any other.
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6. Mobilink Semester Project
STRENGTHS WEAKNESSES
• As market leader it can • Currently providing not good
target more & more quality service because of
customers. changing their network from 900
MHz to 1800 MHz, so it may lose
• Due to running in
its customers.
economies of scale, it
easily lowers prices to • As Mobilink provides expensive
OPPORTUNITIES
prevent new entrants. call rates to customers as
compared to other mobile
• It can target due to high
companies that also have a bad
financial power &
impact on company.
competitive skills in those
cities and villages, where • As sometimes the network is busy
coverage of no other and over loaded, it negatively
company can reach. affects the brand image.
• As it has a good brand • Call disconnectivity is too much,
image, it has introduced that irritates the customers.
such packages that have
increased the company
revenue with more
customers.
• Due to high recourses it • PAKTEL has great threat after
can easily remove threats privatization that is not so easy to
of other competitors. handle.
• It easily met the challenges • U.fone that has also large number
THREATS
appeared after PTCL & of customers and being subsidiary
PAKTEL privatization. company of PTCL is a big threat
on it.
• It has ability to work in
highly competitive • WARID & TELENOR have also
environment that has strong background which enables
created after new them to fight with exiting company
companies entrances. effectively, so it also has a threat
on MOBILINK Company.
SWOT ANALYSIS DIAGRAM
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7. Mobilink Semester Project
OPPERTUNITIES
TURNOURD AGGRESSIVE
STRETEGY STRETEGY
WEAKNESS STERNGTH
mobilink
DEFENSIVE DIVERSIFICATION
STRETEGY STRETEGY
THREATS
EXTERNAL ENVIRONMENT ANALYSIS
The Mobilink’s external-environment includes their external customers, agents
and distributors, suppliers, our competitors, etc. The country forces affecting the
environment e.g.; Political forces, Economic forces, Socio-cultural forces, and
Technological forces are the part of the external environment.
Political Factors
Environment is investor friendly telecommunication sector is under de-regulation.
Monopoly of PTA will be going to end at the end of 2005. Before WTO (World
Trade Organization) implementation government already took steps in de-
regulation of telecommunication sector.
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8. Mobilink Semester Project
If the political environment of Pakistan is stable in the then country will be doing
excellent on economic front. But now the political environment of Pakistan is so
much disturbed, so there are some problems like licensing for installing boosters
and towers, use of frequency and other interlinked matters of Mobilink are
affected by it.
Economic Factors
Mobilink should consider long term and short term state of a trading market.
Inflation is controlling by state bank and under strict eyes but unemployment rate
is going up and up with the increase of level of poverty, it shows that Mobilink is
also affected economically by these economic factors of Pakistan and their sales
are less.
Socio-Cultural Factors
As Pakistan is an Islamic country and people are very strict in case of Islam any
thing against the philosophy of Islam on either print or electronic media are
treated as against Pakistan.
Most of the people dislike anything extra-ordinary or something which interrupt
their culture or subculture. Telecommunications Companies who are targeting
upper-end of market mostly published and aired their advertisement in English
language are not attracting their customers. That’s why Mobilink made their ads
in the National Language of Pakistan and their ads fully reflects the culture of the
Pakistan.
Technological Factors
Telecommunication companies have technology with which they can compete in
the Pakistan and now companies are investing in their infrastructure to not only
expand but also to upgrade their existing structure.
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9. Mobilink Semester Project
Currently Mobilink is the company who is providing Multi-media Messaging
Services (MMS), General Packet Radio Service (GPRS), Virtual Private Network
(VPN), Pocket Stocks, Conference Calling, Wallpapers, Animated pictures
Polyphonic ring tones, Mobile Internet (WAP), and Voice Mail at low price and
Telenor is proving an addition feature that one can see TV channels on their cell.
Mobilink’s other new services are CITI Mobilink credit cards, Mobilink Internet
Connection and Blackberry connection.
So, these technological factors also affect the sales of the Mobilink against their
competitors as they provide more technological services, but the high class or
business class use their services, although their rates are high but high class
afford them and use them.
VALUE CHAIN ANALYSIS
General Administration:
• Coordination and integration of all value chain activities is so good among
all departments; which give a lot of benefit.
• They are identifying their new product market opportunities and they
offered some low cost SMS bundle packages for students and low income
customers.
• Their strategic planning system is efficient as they are achieving their
profit goals from some years.
• Mobilink is efficiently managing their financial resources.
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10. Mobilink Semester Project
• Their soft wares of resources and operations management are very
efficient, fully integrated and are handled by skillful IT professionals.
• They make their good public image by creating essence of satisfaction
amongst the customers through various services like listening Quran &
Naats, and they also provide the service of the prayer timings information.
Human Resource Management:
• They have the effectiveness of procedures for recruiting, hiring, training
and promoting at all levels of employees.
• Their job descriptions are defined in a dynamic way in order to enable the
employees to show their full potential.
• Many rewards and bonuses are granted to well performing employees.
• Mobilink mainly focuses the job satisfaction of its employees.
• Mobilink offered their employees free on net calls and low rate off net calls
by giving them specific limit of free hours.
• They also give blackberry handsets to their employees.
Technology development:
• Mobilink keeps its technology updated inorder to provide best services to
its customers.
• The R&D development of Mobilink is very efficient and Mobilink spends
millions on it out of its budget.
• They have highly integrated systems in their call centers to provide timely
information and other services to its customers.
• Mobilink creates an innovative environment in its IT and marketing
department to provide platforms to innovative ideas of their employees in
this regard.
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11. Mobilink Semester Project
Procurement:
• Mobilink has built good, long-term relations with its suppliers.
• Mobilink gets its Sims and blackberry manufactured by Motorola with
which they have very long-term relations.
• Mobilink also purchases its infrastructural and office equipments from its
well related suppliers.
Inbound Logistics:
Mobilink is not a manufacturing concern so they don’t have to maintain and
govern their inbound logistics.
Operations:
• More efficient Hr of Mobilink carries out the operations more efficiently as
compared to its competitors.
• Automated systems on the help lines have reduced the load on the call
centers of Mobilink to a great extent .It has also reduce the cost of
employing more personnel in the call centers.
• Standardized equipments and machinery has helped Mobilink to carry out
its operations in time and with efficiency.
Outbound Logistics:
Mobilink is not a manufacturing concern so they don’t have to maintain and
govern their outbound logistics.
Marketing and Sales:
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12. Mobilink Semester Project
• Mobilink has brought innovations in the form of Mobilink PCOs and
flowers shops.
• Mobilink takes the services of well-known celebrities in advertising on TV
media.
• Mobilink has targeted business class and youth in most of its ads.
• Mobilink has strengthened its bonds with its customers creating customer
loyalty.
• Mobilink has an efficient sales force management with efficient sales
persons.
Services:
• Mobilink gives many of value added services to its customers e.g different
packages of Jazz and Indigo.
• It also gives credit sharing, Awaz SMS, discounted and free minutes to its
loyal customers.
• Mobilink has efficient call-centers and call persons for prompt service and
response.
• Customer complaints are carefully and quickly dealt with at Mobilink.
• Mobilink has very helpful and considerate customer relationship teams at
their franchises.
RECEOMNDATIONS
• Mobilink should provide less costly services to their customers so that the
rival companies can not reach to its standard.
• They should try to improve their customer service centers for customer’s
satisfaction.
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13. Mobilink Semester Project
• Mobilink should target those areas which are less developed for providing
their services.
• Mobilink should offer less expensive packages to the customers otherwise
customers will switch off to other cellular brands.
• They should try to provide good quality service and resolve the problem in
connectivity because it irritates the customer.
• Try to lower their call rates because it creates a bad effect on customer.
• New competitors are entering into the cellular market so Mobilink should
improve their services and offer attractive packages to hold their
customers.
• Another important thing is the positioning. Mobilink should give more
attention to their brand image in the minds of customers because
nowadays customers attract to brands.
• They should provide better packages for the corporate customers.
• Their internal environment should be as strong so that they will perform
well in a highly competitive environment.
RECOMONDADED STRATEGY
Diversification Strategy
From swot analysis we came to know that Mobilink is having very god position in
market and it is the market leader in telecom industry but with passage of time
there asr more competitors who is entering. So mobilink is facing many threats
but still it is trying to maintain its position in market due to its brand loyalty and its
image set I the mind of customers and also having lots of strength in
organization which makes its one of the best organization. So it is better time for
company to go for diversification and go back to growth stage.
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14. Mobilink Semester Project
Cost Cut Strategy
Mobilink should use standardized technology and equipments in order to achieve
low cost service process. They should also be more focused towards the quality
of operations being carried on out their. Although it’s not a long-run strategy, it is
the strategy to get the profits or benefits for short-run.
Horizontal Integration
They should acquire their competitors in order to achieve horizontal integration
because we see many players in the telecommunication sector including Ufone,
Telenor, Warid and Zong in the mobile phone sector.
Vertical Integration
Mobilink makes Sims and its black berry from Motorola. So if Mobilink go in
backward integration and manufacture its own Sims it would give more edge to
the company. So company become independent and it will not come in pressure
of suppliers.
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