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Strategic Management - Warid Telecom
1. P R E S E N T E D T O : Z A R R A R Z U B A I R
STRATEGIC
MANAGEMENT
2. Group Members
Umair Khalid Paracha (13257)
Zeeshan Valliani (12543)
S.M. Zeeshan (8779)
Muhammad Kashif (11017)
Muhammad Asim Hayat (11084)
ASIM
HAYAT
ZEESHAN
VALLIANI
ALI
ZEESHAN
KASHIF
UMAIR
PARACHA
3. About Warid Telecom
Warid Telecom is one of the cellular service
providers in Pakistan
100% owned company of the Abu Dhabi
Group
Started its operation in May 2005
Acquired license for $291 million US dollars
Offers state-of-the-art telecommunication
services at over 7,000 destinations in Pakistan
4. Vision & Mission Statement
Mission and Purpose
“Warid’s aim is to be perceived not only as a
telecommunication operator of voice services, but also as a
universal provider of comprehensive communications
services for both residential and business customers.
Warid's corporate identity seeks to reflect the changes in
telecom sector in relation to helping customers keep pace
with rapidly changing technology in the field of
communication, through maximum network coverage and
clear connectivity that we have committed to provide”
5. Vision & Mission Statement
Determinants Customers Products
and
Service
Markets Technology Survival
Growth and
Profitability
Self
Concept
Concern
for
Public
Image
Philosophy Concern
for
Employees
Analysis of Warid’s Mission Statement
6. Vision & Mission Statement
Vision
The company’s vision is to
“To become the primary service provider of all
communication needs of subscribers in Pakistan‚
supported by exemplary customer care”.
9. Threat of New Entrants
Yes M No
Do large firms have a cost or performance advantage in your segment
of the industry?
Are there any established brand identities in your industry?
Does your company incur any significant costs in switching suppliers?
Is a lot of capital needed to enter your industry?
Does the newcomer to your industry face difficulty in accessing
distribution channels?
Does the newcomer have any problems in obtaining the necessary
skilled people, materials or supplies?
Does your product or service have any proprietary features that give
you lower costs?
Are there any licenses, insurance or qualifications that are difficult to
obtain?
Can the newcomer expect strong retaliation on entering the market?
7 1 1
Porter’s Five Competitive Forces
10. Bargaining Power of Buyers
Yes (+) M No (-)
Are there a large number of buyers related to the number of
firms in the business?
Do you have a large number of customers, each with relatively
small purchases?
Does the buyer need a lot of important information?
Is the buyer aware of the need for additional information?
Is there anything that prevents your customer from taking your
function in-house?
Your customers are not highly sensitive to price.
Your product is unique to some degree or has accepted
branding,
Your customers’ businesses are profitable.
You provide incentives to the decision makers.
3 3 3
Porter’s Five Competitive Forces
11. Bargaining Power of Suppliers
Yes (+) M No (-)
My inputs (materials, labor, supplies, services etc.) are
standard rather than unique or differentiated.
I can switch between suppliers quickly and cheaply.
My suppliers would find it difficult to enter my business or
my customers would find it difficult to perform my function
in-house.
I can substitute inputs readily.
I have many potential suppliers.
My business is important to my suppliers.
My cost of purchases has no significant influence on my
overall costs.
4 1 2
Porter’s Five Competitive Forces
12. Threat of Substitutes
Yes (+) M No (-)
Substitutes have performance limitations that do not
completely offset their lowest price. Or, their performance is
not justified by their higher price.
The customer will incur costs in switching to a substitute.
Your customer has no real substitute.
Your customer is not likely to substitute.
2 1 1
Porter’s Five Competitive Forces
13. Rivalry Against Competitors
Yes (+) M No (-)
The industry is growing rapidly.
The industry is not cyclical with intermittent overcapacity.
The fixed costs of the business are a relatively low portion of
total costs.
There are significant product differences and brand identities
between the competitors.
The competitors are diversified rather than specialized
It would not be hard to get out of this business because there
are no specialized skills and facilities or long-term contract
commitments, etc.
My customers would incur significant costs in switching to a
competitor.
My competitors are all of approximately the same size as I
am.
0 4 4
Porter’s Five Competitive Forces
14. Overall Industry Analysis
Overall Industry
Rating
Favourable Moderate Unfavourable Implications
1 Threat of New
Entrants
7 1 1 It is difficult for new players
to enter so the current ones
can avail larger shares.
2 Bargaining Power
of buyers
3 3 3 The buyer power is moderate.
3 Bargaining power
of Suppliers
4 1 2 The suppliers cannot impose
any conditions on the
company due to less power.
4 Threat of
Substitutes
2 1 1 There are no real substitutes
which is good for the industry.
5 Rivalry against
competitors
0 4 4 The competition is strong
therefore; the industry is
facing tough competition
among all rivals.
Total 16 10 11
16. Political Factors
Political instability issues
Security conditions are not
stable
Profits can only be generated
either through cost reductions
or branding
Cost reductions are easy for
this sector because the portion
of variable cost in the total cost
is low
Only the initial capital
investment is very high
PEST Analysis
18. Social Factors
Pakistan is a very social country
There are several Festivals
Such as Eid
Family & Friends Packages
PEST Analysis
19. Technological Factors
State of the art technology has to
be implemented to gain a
competitive edge
Must acquire 3G License
PEST Analysis
20. Opportunities Threats
Acquire 3G License
Expand Customer base
Expand Network
coverage
Provide more value
added services
Packages for Family &
Friends
Buyers can easily
switch to other
networks
High initial capital
investment
Price wars among
competitors
Competitors can easily
follow
Opportunities & Threats
21. External Factor Analysis
Key External Factors Weight Rating Weighted score
Opportunities
Expand customer base 0.1 2 0.2
Expand network
coverage
0.1 3 0.3
Provide more value
added services
0.05 4 0.2
Packages for Family
and friends
0.04 3 0.12
Acquire 3G License 0.2 4 0.8
Threats
Buyers can easily
switch to other
networks
0.1 3 0.3
High initial capital
investment
0.12 4 0.48
Price wars among
competitors
0.19 3 0.57
Competitors can
easily follow
0.1 3 0.3
Total 1.0 3.27
22. Analysis
Acquire 3G license and become one of the first
companies with the technology.
Warid must try to expand its customer base so that
the threat of competitors is also reduced.
Providing more value added services will help the
company in retaining the newly acquired customers.
24. Competitive Analysis
Warid’s positioning in comparison to its competitors
is weak.
The company should improve in the area of market
share, global expansion, and also in the area of after
sales services.
Customer Convenience should be the focused.
25. Strengths Weaknesses
Roaming facilities
Personified packages
Better customer
packages
Cooperative work groups
Appropriate value
against price
Not prone to price wars
Very few marketing
activities for the brand
Ambiguous brand
identity
Unutilized technology
Poor firm
infrastructure
Strengths & Weaknesses
26. Internal Factor Analysis
Key External Factors Weight Rating Weighted
score
STRENGTHS
Roaming facilities 0.10 3 0.30
Personified packages 0.08 3 0.24
Better customer packages 0.12 3 0.36
Cooperative work groups 0.10 4 0.4
Appropriate value against price 0.10 4 0.40
Not prone to price wars 0.05 4 0.20
WEAKNESSES
Very few marketing activities for
the brand
0.15 2 0.30
Ambiguous brand identity 0.08 2 0.16
Unutilized technology 0.12 3 0.36
Poor firm infrastructure 0.10 2 0.20
Total 1 2.92
28. Suggested Strategies
Warid should improve its firm infrastructure and
make its presence felt in the market.
The company needs to create more reminder
advertising so that people know of its presence and
remember that it is also there to serve to their needs.
The company will gain more attention if it comes up
with more personified packages because everyone
today believes in exclusivity and thus Warid will end
up having higher customer traffic.
30. Generic Strategy
Warid is following a focused
differentiation strategy.
Their packages like Zem and
Glow are to differentiate the
service from other competitors in
the market. The reason they have
a narrow audience is that they
have not targeted the whole
population.
Their focus is more on youth and
even among youth, their focus is
on A and B class of the economy
which collectively forms a very
small size of the entire
population.
Overall Cost
Leadership
Overall
Differentiation
Focused Cost
Leadership
Focused
Differentiation
•Warid Telecom
Generic
Strategy
32. The Matching Stage
TOWS Matrix
Strenghts Weaknesses
1. Roaming facilities 1. Very few marketing
activities for the brand
2. Personified packages 2. Ambiguous brand identity
3. Better customer packages 3. Unutilized technology
4. Cooperative work groups 4. Poor firm infrastructure
5. Appropriate value against
price
6. Not prone to price wars
Opportunities S-O Strategies W-O Strategies
Expand customer base 1. Expand customer base by
coming up with better
customer packages.
1. Acquire 3G license to
eliminate the weakness of
unutilized technology
Expand network coverage 2. Expand network coverage
with the help of improved
roaming facilities within
the country and abroad.
2. Expand network coverage
with the help of improved
firm infrastructure
Provide more value added
services
3. Provide more value added
services in the form of
personified packages
Packages for Family and
friends
Acquire 3G License
33. The Matching Stage
Threats S-T Strategies S-T Strategies
Buyers can easily switch to other networks Play on the basis of quality services instead of
prices so that competitors find it hard to
imitate.
Play on the basis of quality services instead of
prices so that competitors find it hard to
imitate.
High initial capital investment Provide appropriate value against prices so
that buyers do not switch frequently.
Provide appropriate value against prices so
that buyers do not switch frequently.
Price wars among competitors Cooperative work groups can help them
reduce on their fixed operating costs
Cooperative work groups can help them
reduce on their fixed operating costs
Competitors can easily follow
37. The Internal-External (IE) Matrix
The IFE Total Weighted Score
Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
High I II III
3.0 to
3.99
Warid Telecom
Medium IV V VI
The EFE
Total
Weighted
Score
2.0 to
2.99
Low VII VIII
1.0 to
1.99
38. Grand Strategy Matrix
RAPID MARKET
GROWTH
Quadrant II Quadrant I
Target
WEAK
COMPETITIVE STRONG
POSITION COMPETITIVE
POSITION
Warid Telecom
Quadrant III Quadrant IV
SLOW MARKET
GROWTH
39. Blue Ocean Strategy
•service errors
•Physical visits to
outlets
•Virtual billing system
through paypal or
mastercard
•Provide executional
options through
helpline only.
•Value added services
•value for money
invested
•Conventional system
of recharge
•Service centre or
physical outlets
Eliminate Raise
ReduceCreate
40. Strategy Implementation
Resource Structure Culture
High quality network to support
latest technological advancements
Well established technological
structure should be present
High teamwork among
employees
Most hi-tech infrastructure to
accommodate 3G services
De-centralized structure should be
kept
Very interactive culture
exists with an open door
policy
Heavy financing will be required as
introducing 3G services is very
expensive
High class business culture
Good PR should be present to jump
through loopholes and avoid extra
taxes and licensing issues
41. Decision Stage for Warid Telecom
QSPM Matrix
QUANTITATIVE STRATEGIC PLANNING MATRIX FOR Warid Telecom
Strategic Alternatives
Critical Success Factors Weight
Expanding Network
Coverage
Acquiring and
Introducing 3G
technology
Strengths AS TAS AS TAS
Roaming facilities 0.10 3.00 0.30 2.00 0.20
Personified packages 0.08 3.00 0.24 1.00 0.08
Better customer packages 0.12 4.00 0.48 1.00 0.12
Cooperative work groups 0.10 2.00 0.20 3.00 0.30
Appropriate value against price 0.10 1.00 0.10 3.00 0.30
Not prone to price wars 0.05 ---- ---- 2.00 0.10
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
Weaknesses
Very few marketing activities for the brand 0.15 4.00 0.60 1.00 0.15
Ambiguous brand identity 0.08 4.00 0.32 2.00 0.16
Unutilized technology 0.12 ---- ---- 4.00 0.48
Poor firm infrastructure 0.10 1.00 0.10 3.00 0.30
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
SUBTOTAL 1.00 2.34 2.19
Critical Success Factors
Weig
ht
Expanding
Network
Coverage
Acquiring and
Introducing 3G
technology
Opportunities AS TAS AS TAS
Expand customer base 0.10 4.00 0.40 2.00 0.20
Expand network Coverage 0.00 4.00 ---- 3.00 ----
Provide more value added services 0.05 3.00 0.15 2.00 0.10
Packages for Family and friends 0.04 3.00 0.12 1.00 0.04
Acquire 3G License 0.20 ---- ---- 4.00 0.80
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
Threats
Buyers can easily switch to other
networks 0.10 3.00 0.30 3.00 0.30
High initial capital investment 0.12 ---- ---- 2.00 0.24
Price wars among competitors 0.19 3.00 0.57 2.00 0.38
Competitors can easily follow 0.10 2.00 0.20 4.00 0.40
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
SUBTOTAL 0.90 1.74 2.46
SUM TOTAL ATTRACTIVENESS
SCORE 4.08 4.65
