CIOReview recognizes Granite on list of 20 Most Promising Telecom Solution Pr...
Matrixes
1. EXTERNAL FACTOR EVALUATION
S.No Key Internal Factors Weights Rating Weighted Score
Opportunities
1 Promotional Packages 0.060 4.0 0.24
2 Sponsorships for local and International events 0.030 4.0 0.12
3 Changing Marketing Mix 0.040 3.0 0.12
4 Investment and Development Opportunities 0.060 4.0 0.24
5 Improved Customer Service and Value Added Services 0.060 3.0 0.18
6 Economic Influx both globally and locally 0.020 4.0 0.08
7 Global Telecom Industry on Growth, both supply push and demand pull, pursuit of expansion 0.020 3.0 0.06
8 Adoption New Technology; Mobile Wallet and Gift Cards 0.040 3.0 0.12
9 Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company 0.050 4.0 0.20
10 Adopting to MVNO and MVNE services 0.040 4.0 0.16
11 Local handset manufacturing 0.020 3.0 0.06
12 Adoptation to UTMS- 3G technology up coming in Pak 0.040 3.0 0.12
13 Exchange Rate Fluctuation 0.060 3.0 0.18
1.88
Threats
14 Intense Competition – Telenor, Ufone, Warid & Zong 0.080 3.0 0.24
15 Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan 0.040 3.0 0.12
16 Market Saturation of Subscribers 0.060 3.0 0.18
17 Increasing maintenance cost 0.030 3.0 0.09
18 Skilled labor attracted to competitors via better benefits 0.030 2.5 0.08
19 High Tax Rates 0.050 3.0 0.15
20 Price war between brands in telecom industry 0.080 3.0 0.24
21 Natural Disaster; like the recent flood caused huge losses and the previous earthquake 0.050 3.0 0.15
22 Political Instability and Security Concern 0.040 3.0 0.12
1.37
Total 1.00 3.25
2. INTERNAL FACTOR EVALUATION
S.No Key Internal Factors Weights Rating Weighted Score
Strengths
1 Largest Market Share & Highest number of Subscriber in Pakistan 0.050 3.0 0.15
2 Blackberry usage soars 0.030 4.0 0.12
Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz
3 singular pioneer pre-paid brand; & sweep two superbrands award 2009 & 0.030 3.0 0.09
Pioneers with GSM Technology cities in Pakistan and over 100
Wide Network Coverage of 10,000
4 countries with International Roaming 0.050 4.0 0.20
Engineering and Technological stability at Mobilink along with competent
5 employees 0.040 4.0 0.16
Current ratio of company to meet its obligations improved in 2009 to 1.18
6 from 0.93 0.030 4.0 0.12
Concern for society and adapt to work environment needs; active CSR and
only cellular operator to be awarded 6th Environmental Excellence Award
7 by NFEH 0.030 4.0 0.12
ISO 9002 Quality Management System Certification for Billing,
8 Engineering Departments and CS Contact Center 0.030 3.0 0.09
First mobile operator in Pakistan to offer extensive GPRS Roaming and
BlackBerry Roaming services & Best extensive Network Infrastructure;
optical network and satellitte links
9 0.040 4.0 0.16
Declining Sales and EBIT by 13.5% but exponential growth in Revenue in
10 first 3 quarter of 2010 0.040 3.0 0.12
Only cellular service in Pakistan to provide coverage on the M2 motorway
and implementation of full intelligence network (IN) platform from
11 Siemens for the prepaid platform 0.030 3.0 0.09
Mobilink's Short Message Service Center allows Vehicle Tracking and
12 Fleet Management services 0.030 3.0 0.09
Largest Call Center in Pakistan, which is there to assist the customers 24
13 hours 0.030 2.0 0.06
Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in
14 2009 TAT & FAT is 0.09 and 0.22 respectively 0.040 2.0 0.08
In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd
among the 'Brands punching above their weights' ahead of Airtel, Tata
15 Indicom and Reliance 0.030 3.0 0.09
16 Continuous and latest employee training approaches 0.050 3.0 0.15
3. 17 Effective and Rapid Communication within Management 0.030 3.0 0.09
Partnership with MCB to offer all banking services to Mobilink customers
18 via their handsets 0.040 3.0 0.12
2.10
Weaknesses
19 Service issues with customers - average to below average service 0.060 3.0 0.18
20 Mismanagement due to large network 0.030 3.0 0.09
21 Huge Expenses incurred, high cost of material and other expenses 0.040 4.0 0.16
High Tariffs as compared to competitors & expensive service quality both
22 call rates and sms 0.040 2.5 0.10
23 Call Blockage service still not offered 0.040 2.0 0.08
Sort of bureaucratic style of Management; biasness by intermediate bosses
24 0.020 3.0 0.06
ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3
25 from 1.2 0.00
26 Customer Retention 0.050 2.5 0.13
27 No clear strategic direction of Orascom 0.020 2.5 0.05
Low employee Morale; due to recent cost cutting program and employee
28 job termination 0.030 4.0 0.12
29 Extensive Organizational Structure 0.020 3.0 0.06
1.03
Total 1.00 3.13
5. SWOT MATRIX
Strengths Weaknesses
Largest Market Share & Highest number Service issues with customers - average to
1 1
of Subscriber in Pakistan below average service
2 Blackberry usage soars 2 Mismanagement due to large network
Strong Brand Image, Indigo leading
Postpaid brand and Mobilink Jazz
Huge Expenses incurred, high cost of
3 singular pioneer pre-paid brand; & sweep 3
material and other expenses
two superbrands award 2009 & Pioneers
with GSM Technology
Wide Network Coverage of 10,000 cities High Tariffs as compared to competitors
4 in Pakistan and over 100 countries with 4 & expensive service quality both call rates
International Roaming and sms
Engineering and Technological stability
5 at Mobilink along with competent 5 Call Blockage service still not offered
employees
Current ratio of company to meet its
Sort of bureaucratic style of Management;
6 obligations improved in 2009 to 1.18 6
biasness by intermediate bosses
from 0.93
Concern for society and adapt to work
environment needs; active CSR and only ARPU for pre-paid declined from 1.8 to
7 cellular operator to be awarded 6th 7 1.6 but for post-paid inclined to 1.3 from
Environmental Excellence Award by 1.2
NFEH
ISO 9002 Quality Management System
8 Certification for Billing, Engineering 8 Customer Retention
Departments and CS Contact Center
First mobile operator in Pakistan to offer
extensive GPRS Roaming and
9 BlackBerry Roaming services & Best 9 No clear strategic direction of Orascom
extensive Network Infrastructure; optical
network and satelitte links
Declining Sales and EBIT by 13.5% but
Low employee Morale; due to recent cost
10 exponential growth in Revenue in first 3 10
cutting program and employee firing
quarter of 2010
Only cellular service in Pakistan to
provide coverage on the M2 motorway
11 and implementation of full intelligence 11 Extensive Organizational Structure
network (IN) platform from Siemens for
the prepaid platform
6. Mobilink's Short Message Service Center
12 allows Vehicle Tracking and Fleet
Management services
Largest Call Center in Pakistan, which is
13
there to assist the customers 24 hours
Total Assets Turnover and Fixed Assets
Turnover had been low for 3yrs, in 2009
14
TAT & FAT is 0.09 and 0.22
respectively
In 2009, Mobilink ranked in top 100
telecom companies worldwide - 3rd
15 among the 'Brands punching above their
weights' ahead of Airtel, Tata Indicom
and Reliance
Continuous and latest employee training
16
approaches
Effective and Rapid Communication
17
within Management
Partnership with MCB to offer all
18 banking services to Mobilink customers
via their handsets
7. SPACE MATRIX
Factors that make the SPACE Matrix Axes
Internal Strategic Position External Strategic Position
Financial Strength (FS) Environmental Stability (ES)
Declining EBIT by 13.5% + 2.0 Economic downturn - 5.0
The Return on Assets is 0.0002 + 1.0 Global Rapid Technological Changes - 1.0
Debt-To-Capital Ratio; (3:7) + 5.0 Price Change by Competitor & Customer Switching - 6.0
Liquidity; CR 1.18 + 6.0 Rate of Inflation & High Interest Rates - 2.0
Revenue Growth Rate; declining + 4.0 Expensive Infrastructure - 4.0
Net Income Growth Rate; declining + 3.0 - ###
21.0
Competitive Advantage (CA) Industry Strength (IS)
Telecom Giant are competitive - 5.0 Ease of Entry into Telecom Industry + 5.0
Market Share - 1.0 Profit & Growth Potential + 6.0
Control over Suppliers and Distributors - 2.0 Financial Stability + 5.0
Customer Loyalty - 4.0 Resource Utilization + 5.0
- 12.0 Productivity, Capacity Utilization + 5.0
Technological Know-How + 6.0
32.0
Conclusion
FS average is + 21.00 / 6 = 3.50
ES average is - 18.00 / 5 = -3.60
CA average is - 12.00 / 4 = -3.00
IS average is + 32.00 / 6 = 5.33
Directional Vector Co-ordinates: x-axis: -3.00+(+5.33) = +2.33
y-axis: -3.60+(+3.50) = -0.1
Mobilink should pursue Competitive Strategy
Backward, Forward & Horizontal Integration
Market Penetration
Market Development
9. The SPACE Matrix
+6
+5
+4
+3
+2
+10
- 6 - 5 - 4 - 3 - 2 - 1 + 1 + 2+ 3+ 4+ 5+ 6
-1
-2 (+2.33,-0.10)
- 3
-4
-5
-6
Mobilink is with major competitive advantages and financially strong in a
high growth industry
10.
11. BCG MATIX
BCG - Based on Service
RELATIVE MARKET SHARE POSITION
High 1.00 Medium 0.50
High
II
INDUSTRY SALES GROWTH RATE
I
###
Prioritize
Medium
###
0.50
IV
Invest
Low
III
###
Division RMSP ISGR
Mobilink World 0.800 0.900
Mobilink Infinity 0.550 0.550
Mobilink Jazz 0.400 0.800
Indigo 0.700 0.080
Blackberry 0.900 0.850
Total 3.350 3.180
For Jazz - Prioritize
Product Development
Market Penetration
Market Development
For Blackberry, World & Indigo - Maintain
Backward, Forward & Horizontal Integration
Market Penetration
Market Development
13. ATIX
BCG - Based onGeographic
RE POSITION RELAT
Low 0.00 High 1.00
High
INDUSTRY SALES GROWTH RATE
I
1.00
Divest
South Division
Medium
0.50
Kill
IV Low
0.00
Geographic Region
Northern Division
Southern Division
Central Division
Total
For All Divisions - Prioritze
Backward, Forw
Market Penetr
Market Develo
Product Develo
14.
15. Based onGeographic Divisions
RELATIVE MARKET SHARE POSITION
Medium 0.50 Low 0.00
Prioritize Divest
South Division
II North Division
I
Central Division
Invest Kill
III IV
Geographic Region Sales $ (M) Sales % Profits $ (M) % Profit RMSP ISGR
Northern Division 3.353 (7.10) 0.753 (9.74) Upper Medium High
Southern Division 4.229 (5.34) 1.129 (3.37) High High
Central Division 2.476 (5.16) 0.377 (13.12) upper medium medium
Total 10.06 (17.60) 2 (26.23) 0.00 0.00
For All Divisions - Prioritze
Backward, Forward & Horizontal Integration
Market Penetration
Market Development
Product Development
16.
17.
18.
19. IE - Based on Services
THE IFE TOTAL WEIGHTED SCORES
Strong 3.00 to 4.00 Average 2.00 to 2.99 Weak 1.00 to 1.99
4.00 3.00 2.00 1.00
4.00
I II III
THE EFE TOTAL WEIGHTED SCORES
High
3.00 to 4.00 3.00
IV V VI
Medium 2.00
2.00 to 2.99
VII VIII IX
Low
1.00 to 1.99 1.00
20. GRAND STRATEGIC MAT
RAPID MARKET GROWTH
WEAK
II I
COMPETITIVE
POSITION
III IV
SLOW MARKET GROWTH
Quadrant I
Mobilink has options for:
Market Development
Market Penetration
Product Development
Horizontal Integration
Forward Integration
Backward Integration
Related Diversification
TELECOM COMPANIES NUMBER OF SUBSCRIBERS CELLULAR SUBSCRIBERS
Mobilink 32,203,000 32.56%
Ufone 18,368,074 19.47%
Telenor 18,329,428 23.72%
Warid 15,774,299 16.97%
Zong 4,446,024 7.27%
21. C MATRIX
OWTH
STRONG
COMPETITIVE
POSITION
TH
MARKET SHARE
32.47%
19.50%
23.01
16.03%
9.00%
22. QSPM
The Quantitive Srategic Planning matrix - QSPM
STRATEGIC ALTERNA
1
Improve Service and gain Market
Share via Adopting MVNO,
MVNE & UTMS Technology
Key Factors Weight AS
Opportunities
1 Promotional Packages 0.060 4
2 Sponsorships for local and International events 0.030 -
3 Changing Marketing Mix 0.040 4
4 Investment and Development Opportunities 0.060 3
5 Improved Customer Service and Value Added Services 0.060 4
6 Economic Influx both globally and locally 0.020 3
Global Telecom Industry on Growth, both supply push and demand pull,
4
7 pursuit of expansion 0.020
8 Adoption New Technology; Mobile Wallet and Gift Cards 0.040 4
Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom
4
9 Company 0.050
10 Adopting to MVNO and MVNE services 0.040 4
11 Local handset manufacturing 0.020 -
12 Adoptation to UTMS- 3G technology up coming in Pak 0.040 4
13 Exchange Rate Fluctuation 0.060 -
Threats
14 Intense Competition – Telenor, Ufone, Warid & Zong 0.080 4
Inconsistent and Adhoc Regulatory Environment and Adverse Trade
-
15 Policies of Pakistan 0.040
16 Market Saturation of Subscribers 0.060 4
17 Increasing maintenance cost 0.030 4
18 Skilled labor attracted to competitors via better benefits 0.030 4
19 High Tax Rates 0.050 -
20 Price war between brands in telecom industry 0.080 4
Natural Disaster; like the recent flood caused huge losses and the previous
-
21 earthquake 0.050
22 Political Instability and Security Concern 0.040 -
1.00
Strengths
23. 1 Largest Market Share & Highest number of Subscriber in Pakistan 0.050 4
2 Blackberry usage soars 0.030 -
Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz
singular pioneer pre-paid brand; & sweep two superbrands award 2009 & 4
3 Pioneers with GSM Technology 0.030
Wide Network Coverage of 10,000 cities in Pakistan and over 100
4
4 countries with International Roaming 0.050
Engineering and Technological stability at Mobilink along with competent
4
5 employees 0.040
Current ratio of company to meet its obligations improved in 2009 to 1.18
-
6 from 0.93 0.030
Concern for society and adapt to work environment needs; active CSR and
only cellular operator to be awarded 6th Environmental Excellence Award -
7 by NFEH 0.030
ISO 9002 Quality Management System Certification for Billing,
-
8 Engineering Departments and CS Contact Center 0.030
First mobile operator in Pakistan to offer extensive GPRS Roaming and
BlackBerry Roaming services & Best extensive Network Infrastructure; 3
9 optical network and satellitte links 0.040
Declining Sales and EBIT by 13.5% but exponential growth in Revenue in
-
10 first 3 quarter of 2010 0.040
Only cellular service in Pakistan to provide coverage on the M2 motorway
and implementation of full intelligence network (IN) platform from 3
11 Siemens for the prepaid platform 0.030
Mobilink's Short Message Service Center allows Vehicle Tracking and
3
12 Fleet Management services 0.030
Largest Call Center in Pakistan, which is there to assist the customers 24
3
13 hours 0.030
Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs,
-
14 in 2009 TAT & FAT is 0.09 and 0.22 respectively 0.040
In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd
among the 'Brands punching above their weights' ahead of Airtel, Tata -
15 Indicom and Reliance 0.030
16 Continuous and latest employee training approaches 0.050 3
17 Effective and Rapid Communication within Management 0.030 3
Partnership with MCB to offer all banking services to Mobilink customers
4
18 via their handsets 0.040
Weaknesses
19 Service issues with customers - average to below average service 0.060 4
20 Mismanagement due to large network 0.030 4
21 Huge Expenses incurred, high cost of material and other expenses 0.040 -
High Tariffs as compared to competitors & expensive service quality both
4
22 call rates and sms 0.040
23 Call Blockage service still not offered 0.040 4
Sort of bureaucratic style of Management; biasness by intermediate bosses
-
24 0.020
ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to
4
25 1.3 from 1.2
26 Customer Retention 0.050 4
27 No clear strategic direction of Orascom 0.020 -
Low employee Morale; due to recent cost cutting program and employee
-
28 job termination 0.030
29 Extensive Organizational Structure 0.020 -
