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Matrixes Presentation Transcript

  • 1. EXTERNAL FACTOR EVALUATIONS.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 EVALUATIONS.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 Mobilinks 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 customers18 via their handsets 0.040 3.0 0.12 2.10 Weaknesses19 Service issues with customers - average to below average service 0.060 3.0 0.1820 Mismanagement due to large network 0.030 3.0 0.0921 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 both22 call rates and sms 0.040 2.5 0.1023 Call Blockage service still not offered 0.040 2.0 0.08 Sort of bureaucratic style of Management; biasness by intermediate bosses24 0.020 3.0 0.06 ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.325 from 1.2 0.0026 Customer Retention 0.050 2.5 0.1327 No clear strategic direction of Orascom 0.020 2.5 0.05 Low employee Morale; due to recent cost cutting program and employee28 job termination 0.030 4.0 0.1229 Extensive Organizational Structure 0.020 3.0 0.06 1.03 Total 1.00 3.13
  • 4. COMPETITIVE PROFILE MATRIX Mobilink Telenor Ufone Critical Success Factor Weight Rating Score Rating Score Rating Score Promising Business Model 0.060 3.00 0.180 4.00 0.240 3.00 0.180 Advertising 0.050 3.00 0.150 4.00 0.200 4.00 0.200 Service Quality 0.100 3.00 0.300 3.00 0.300 3.00 0.300 Market Share 0.120 4.00 0.480 3.00 0.360 2.00 0.240 Customer Loyalty 0.100 3.00 0.300 3.00 0.300 3.00 0.300 Technology & Innovation 0.150 4.00 0.600 3.00 0.450 3.00 0.450 Price Competitiveness 0.150 3.00 0.450 4.00 0.600 4.00 0.600 Financial Position 0.100 4.00 0.400 3.00 0.300 2.00 0.200 R&D 0.070 4.00 0.280 3.00 0.210 2.00 0.140 Management 0.100 3.00 0.300 4.00 0.400 2.00 0.200 Total 1.000 3.440 3.360 2.810
  • 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. Mobilinks Short Message Service Center12 allows Vehicle Tracking and Fleet Management services Largest Call Center in Pakistan, which is13 there to assist the customers 24 hours Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 200914 TAT & FAT is 0.09 and 0.22 respectively In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd15 among the Brands punching above their weights ahead of Airtel, Tata Indicom and Reliance Continuous and latest employee training16 approaches Effective and Rapid Communication17 within Management Partnership with MCB to offer all18 banking services to Mobilink customers via their handsets
  • 7. SPACE MATRIXFactors that make the SPACE Matrix AxesInternal Strategic Position External Strategic PositionFinancial Strength (FS) Environmental Stability (ES)Declining EBIT by 13.5% + 2.0 Economic downturn - 5.0The Return on Assets is 0.0002 + 1.0 Global Rapid Technological Changes - 1.0Debt-To-Capital Ratio; (3:7) + 5.0 Price Change by Competitor & Customer Switching - 6.0Liquidity; CR 1.18 + 6.0 Rate of Inflation & High Interest Rates - 2.0Revenue Growth Rate; declining + 4.0 Expensive Infrastructure - 4.0Net Income Growth Rate; declining + 3.0 - ### 21.0Competitive Advantage (CA) Industry Strength (IS)Telecom Giant are competitive - 5.0 Ease of Entry into Telecom Industry + 5.0Market Share - 1.0 Profit & Growth Potential + 6.0Control over Suppliers and Distributors - 2.0 Financial Stability + 5.0Customer Loyalty - 4.0 Resource Utilization + 5.0 - 12.0 Productivity, Capacity Utilization + 5.0 Technological Know-How + 6.0 32.0ConclusionFS average is + 21.00 / 6 = 3.50ES average is - 18.00 / 5 = -3.60CA average is - 12.00 / 4 = -3.00IS average is + 32.00 / 6 = 5.33Directional Vector Co-ordinates: x-axis: -3.00+(+5.33) = +2.33 y-axis: -3.60+(+3.50) = -0.1Mobilink should pursue Competitive Strategy Backward, Forward & Horizontal Integration Market Penetration Market Development
  • 8. Service 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 -6Mobilink is with major competitive advantages and financially strong in ahigh growth industry
  • 10. BCG MATIXBCG - 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 3.180For Jazz - Prioritize Product Development Market Penetration Market DevelopmentFor Blackberry, World & Indigo - Maintain Backward, Forward & Horizontal Integration Market Penetration Market Development
  • 11. Product DevelopmentFor Infinity - Restructuring Retrenchment Restratucture
  • 12. ATIX BCG - Based onGeographicRE 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
  • 13. 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
  • 14. 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
  • 15. GRAND STRATEGIC MAT RAPID MARKET GROWTH WEAK II ICOMPETITIVE 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 DiversificationTELECOM 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%
  • 16. C MATRIXOWTH STRONG COMPETITIVE POSITIONTH MARKET SHARE 32.47% 19.50% 23.01 16.03% 9.00%
  • 17. 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 0.05010 Adopting to MVNO and MVNE services 0.040 411 Local handset manufacturing 0.020 -12 Adoptation to UTMS- 3G technology up coming in Pak 0.040 413 Exchange Rate Fluctuation 0.060 - Threats14 Intense Competition – Telenor, Ufone, Warid & Zong 0.080 4 Inconsistent and Adhoc Regulatory Environment and Adverse Trade -15 Policies of Pakistan 0.04016 Market Saturation of Subscribers 0.060 417 Increasing maintenance cost 0.030 418 Skilled labor attracted to competitors via better benefits 0.030 419 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 0.05022 Political Instability and Security Concern 0.040 - 1.00 Strengths
  • 18. 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 311 Siemens for the prepaid platform 0.030 Mobilinks Short Message Service Center allows Vehicle Tracking and 312 Fleet Management services 0.030 Largest Call Center in Pakistan, which is there to assist the customers 24 313 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 0.03016 Continuous and latest employee training approaches 0.050 317 Effective and Rapid Communication within Management 0.030 3 Partnership with MCB to offer all banking services to Mobilink customers 418 via their handsets 0.040 Weaknesses19 Service issues with customers - average to below average service 0.060 420 Mismanagement due to large network 0.030 421 Huge Expenses incurred, high cost of material and other expenses 0.040 - High Tariffs as compared to competitors & expensive service quality both 422 call rates and sms 0.04023 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 425 1.3 from 1.226 Customer Retention 0.050 427 No clear strategic direction of Orascom 0.020 - Low employee Morale; due to recent cost cutting program and employee -28 job termination 0.03029 Extensive Organizational Structure 0.020 -
  • 19. 1.00Total
  • 20. M STRATEGIC ALTERNATIVES 1 2 Backward Integration over their ove Service and gain Market infrastructure vendors and are via Adopting MVNO, suppliers to reduce cost andVNE & UTMS Technology expenses TAS AS TAS 0.24 3 0.18 - - - 0.16 3 0.12 0.18 4 0.24 0.24 4 0.24 0.06 4 0.08 0.08 4 0.08 0.16 - - 0.2 - - 0.16 - - - 3 0.06 0.16 - - - 3 0.18 0.32 4 0.32 - - - 0.24 4 0.24 0.12 4 0.12 0.12 4 0.12 - - - 0.32 4 0.32 - 3 0.15 - - - 2.76 2.45
  • 21. 0.2 - - - - -0.12 4 0.120.2 3 0.150.16 4 0.16 - - - - - - - - -0.12 - - - - -0.09 2 0.060.09 - -0.09 - - - - - - - -0.15 - -0.09 - -0.16 - -0.24 4 0.240.12 4 0.12 - 4 0.160.16 4 0.160.16 - - - - - 0 4 00.2 4 0.2 - - - - - - - - -
  • 22. 2.35 0.887.87 6.27