Strategic Management Presentation on Mobilink. The file includes information about business scope, ,market structure, distribution system, and SWOT analysis of the company. The presentation covers information about telecommunication industry's trends and Mobilink's current standing in the industry.

1. Strategic
Management

2. Business Report on
Mobilink
YamnaArshad
Syeda Marium Mahmood
Farah Sultan Khan
Syed FahadAli
WaqasKhalid
SyedAbbas HaiderAbidi

3. Business Scope
Business in the minds of customers:
A network provider which provides network coverage and
complete voice and data solution at economical rates with
high level of customer service.
Regions:
• Cellular companies provide the wide network coverage in
cities, towns, and villages across Pakistan.
• The regions include: North, Central, and South.

4. FUNCTIONS AND APPLICATIONS:
• Masses (Rural, Entrepreneur, House wife, Senior citizens,
Employees)
• Youth
• Corporate
Cellular companies provide wire-less communication that owns
or controls all the elements necessary to sell and deliver services
to an end user including
• Wireless network infrastructure
• Customer care
• Billing
• SMS & MMS – Multimedia Message Service
• GPRs – General Packet Radio Services

5. Customers and Users:
• The major customer segments are Masses, Youth, and
corporate sector.
• Masses segment is divided into Masses (Rural,
Entrepreneur, House wife, Senior citizens, Employees) .
• Due to strong brand, extensive coverage network and
attractive packages companies successfully satisfying its
customer needs and trying to capture more customers.

6. Market Structure

7. Market Size and Growth
REVENUE
Past 4 years
2011 2012 2013 2014
Rs. In millions Growth
Masses
Rural 34,159 46,269 55,568 56,221 65%
Entrepreneur 44,669 53,732 58,836 61,492 38%
Senior citizens 18,393 20,896 22,881 22,840 24%
Employees 49,925 50,747 52,299 56,221 13%
house wife 23,648 26,866 27,784 28,111 19%
Youth Youth 52,552 64,180 70,277 80,818 54%
Corporate Corporate 39,414 35,821 39,224 45,680 16%
Total Revenue 262,761 298,510 326,868 351,384 34%
Growth over last year 11.3% 13.6% 9.5% 7.5%

8. The overall cellular market saw growth of 34% in 4 year
period from 2011to 2014. The main reasons for discussed
increase are:
• Highest Contributor - the rural sector has increased its use
of cellular services in the recent past, hence 65% growth
has been noticed. The major reason for this growth is
availability of cellular network in remote areas.
• Next major contributor is youth with total increase of
54% because more and more reliance is being placed on
technological devices and the increasing interest of youth
to socialize.
CHANGE/EFFECT:

9. CHANGE/EFFECT:
• Entrepreneur, with 38% increase is another major
participant in growth. In Pakistan, number of
entrepreneurs has risen significantly due to easy financing
schemes initiated by the Banking sector.
• The reason for 24% growth in senior citizens is
awareness and better exposure to changing life trends.
• Corporate and Employee segment shows 16% and 13%
growth respectively, as focus has somewhat shifted to
internet services.

10. REVENUE
Future 4 years
2015 2016 2017 2018
Rs. In millions Growth
Masses
Rural 62,095 65,211 74,137 83,129 34%
Enterprenuer 65,858 69,286 69,776 73,892 12%
Senior citizens 26,343 30,568 30,527 27,710 5%
Employees 62,095 71,324 78,497 83,129 34%
house wife 26,343 28,530 26,166 25,400 -4%
Youth Youth 82,793 93,740 104,663 117,766 42%
Corporate Corporate 50,805 48,908 52,332 50,801 0%
Total Revenue 376,332 407,567 436,097 461,827
Growth over last year 7.10% 8.30% 7.00% 5.90%
Market Size and Growth

11. CHANGE/EFFECT:
• Youth segment is expected to show 42% growth due to rapid
increase in population as well as increasing trend of
socialization.
• Rural sector is expected to experience 34% rise due to
increasing accessibility and awareness.
• Employee is anticipated to increase by 34%, whereas
Housewife segment is expecting decrease of 4% as more and
more women are shifting their status from Housewife to
employed persons.

12. CHANGE/EFFECT:
• 5% increase in Senior Citizens is anticipated.
• High saturation in corporate sector means any growth is
unlikely.

13. Competition/ Segments
Rural
Entrepre
neur
House
wife
Employe
es
Senior
Citizens
Telenor 6 12 10 18 10 27 17 100
Ufone 7 11 9 25 14 21 13 100
Zong 8 17 4 22 24 25 0 100
Warid 7 9 18 17 14 17 18 100
Mobilink 15 18 8 17 8 15 19 100
Competition
Masses
Youth Corporate Overall

14. CHANGE/EFFECT:
• Telenor holds maximum share in Youth segment which is 27%,
whereas it has very small share in Rural segment, 6%.
• Ufone earns major portion of its revenue from employee
segment and holds 25% of share in this segment.
• Zong is very famous among Youth due to its attractive
packages and lowest rates therefore holds maximum share in
this segment i.e. 25%.
• Warid holds maximum share in corporate and house wife
segments.

15. CHANGE/EFFECT:
• Mobilink holds 19% share in corporate segment hence it is the
market leader in this segment.
• Mobilink is also performing well in Rural segment by its
extensive network coverage.
• Rural segment still has Potential for growth so companies
should focus on this segment in order to increase their
profitability.
• Youth is the most competitive segment therefore must be
catered with differentiation strategies.

16. Distribution Channels% OF
RS
MIL
Rural Area Entrepreneur House Wife Senior Citizens Employee Youth Corporate
2011 2014 2011 2014 2011 2014 2011 2014 2011 2014 2011 2014 2011 2014
INDIR
ECT
SALES
Franc
hise:
20 33 70 65 13 17 20 40 6 11 25 29
Retail
er
80 67 10 12 70 60 40 40 69 73 41 50
Whol
esale
(MM)
40 10 6 25 14
%
DIREC
T
BDO’
s
(KAM
's)
8 8 6 8 67 71
Custo
mer
Care
Centr
e
12 15 17 23 10 13 8 9 7 33 29
100 100 100 100 100 100 100 100 100 100 100 100 100 100

17. CHANGE/EFFECT:
• In Rural segment a shift was seen in distribution channels. In
2012 Rural segments deals 20% from franchise and now it
deals 33% percent from franchises. Whereas, contribution of
retail in this segment decreased by 13% from 2011-2014.
• There is a decreasing trend in the usage of franchises from
2011-2014. In 2011 entrepreneur used franchises 70% where
as in 2014 it changed to 65%.
• House wife segment started giving preferences to customer
care center and franchises. In 2011 their preference was retailer
and 70% preferred retailers now along with retailers they also
visit franchises and customer care center.

18. CHANGE/EFFECT:
• Share of senior citizen segment was shifted from wholesaler to
franchises and retailer.
• Employee segment take services from all distribution channels
except BDO’s.
• In youth focus shifted from wholesaler to retailer. In 2011 25%
Youth visits wholesalers to take any service or for any query
but now only 14% take services from wholesalers.

19. CHANGE/EFFECT:
• There is no significant change in corporate sector. This sector
still preferred BDO’s and customer care centers.
• Due to increase in number of franchises and retailers people
are less focusing on wholesalers.
• There is no significant difference in the price of wholesaler and
retailer therefore people go for retailers.

20. DRIVING FORCES
Customer:
The first driving force that compels the most of this industry is
“Customer”. Customers are the sole source of revenue and
their needs dictate features of products and services. A happy
and satisfied customer can increase in company’s customer
base.
Government Regulation:
• Regulations from the local government body primarily act as a
2nd biggest powerful driving force for telecom industry. For
example during eid days Government used to suspend the
cellular services on account of security concerns without
considering the impact of its action on the telecom industry
because these are highest revenue generating days and to solve
this issue all companies should unite and have dialogue with
government.

21. Driving Forces:
• Technology
In 21st century, technology acts as an imperative part of any
industry. In cellular industry, due to swift changes in communication
ways (voice & data ), technology boost the efficiency both.

22. SWOTANALYSIS
STRENGTHS WEAKNESSES
 Largest market share.
 Covering over 10,000 cities, towns
and villages across the Pakistan.
 Most expensive telecom company both
in call rates and SMS.
 Late mover in bringing new services.
 Ignorance towards employees’ issues.
OPPORTUNITIES THREATS
 Rural market is growing at a rapid
level.
 Demand of internet services is
increasing.
 Current price war may reach at a
position where only brand names
survive.
 New Government policies.

23. CHANGE/EFFECT:
• The telecommunication industry has experience a rapid and
significant technological development that has improved
services.
• The internet packages of Mobilink are not very attractive so
the company should design new and affordable internet
packages to attract customers from other network.
• Due to current price war market size is decreasing so Mobilink
should pay attention to retain its existing customer base and
increase more customers.
• Companies are frequently improving data transmission speed
and quality in order attract more and more customers.

24. Buying Criteria
Relative Importance of Factors
FACTORS ABSOLUTELY
CRITICAL
VERY
IMPORTANT
QUITE
IMPORTANT
NICE
TO
HAVE
NOT
SIGNIFICANT
DON’T
WANT
IT
VOICE QUALITY 
INTERNATIONAL
ROAMING

EASE OF
AVAILABILITY

BRAND IMAGE 
CUSTOMER
CARE SERVICE

INTERNET
SERVICE


25. RatingAgainst Customer Buying Criteria:
QUALITY & PRICE Mobilink Telenor Ufone Zong
Non-price attributes affecting
customer choice
Weight
%
Service-Related
VOICE QUALITY 20% 8
1.60
7 1.4 7.5 1.5 6 1.2
INTERNATIONAL ROAMING 10% 5
0.50
6 0.6 5.5 0.55 4 0.4
EASE OF AVAILABILITY 10% 8
0.80
7 0.7 7 0.7 5 0.5
BRAND IMAGE 20% 8
1.60
7 1.4 7 1.4 5 1
CUSTOMER CARE SERVICE 20% 8
1.60
8 1.6 8 1.6 6 1.2
INTERNET SERVICE 20% 7
1.40
8 1.6 7.5 1.5 7 1.4
Total 100%
7.50 7.30 7.25 5.70

26. CUSTOMER BUYING CRITERIA:
PRICE…% QUALITY ATTRIBUTE %

27. CHANGE/EFFECT:
• Mobilink has been known for its good service. It has packages
that suits the needs of most customer segments.
• The availability of service, voice quality and brand image is
exceptional and should be maintained in future for customer
retention.
• The overall image of customer care service is good but needs
further improvement related to delay in problem solving.
• The internet service is very important to customers therefore it
should be improved fast because it seems that in near future
the demand will rise.

28. CHANGE/EFFECT:
• Increasing interest of customers in smart communication
application via internet is the main cause of reduction in the
need of traditional call and SMS.It is essential for Mobilink to
provide innovative internet data services to its customers.

29. CostAnalysis
Strategic Cost
• Training and development cost
• Growth and expansion cost
Operational Cost
• Admin cost
• Distribution cost
• Advertising and marketing cost
• Equipment/technological cost
• Repair and maintenance cost
• Personnel Cost

30. Cost Analysis (Cont.)
STRATEGIC
COST
Mobilink Telenor Ufone Zong
Training and
Development
17% 15% 16% 15%
Growth and
expansion
20% 17% 18% 17%

31. CostAnalysis (Cont.)
OPERATING
COST
Mobilink Telenor Ufone Zong
Admin Cost 13% 14% 13% 16%
Distribution Cost 8% 9% 7% 9%
Advertising &
Marketing cost
15% 22% 23% 21%
Equipment &
Networking cost
11% 9% 9% 8%
Repair &
Maintenance
9% 8% 7% 8%
Personnel Cost 7% 6% 7% 6%

32. GAPANALYSIS:
• No significant gap exists in Training and Development as all
companies are almost dedicating the same percentage of their
investment.
• Mobilink is focusing the most on Growth and Expansion and
reaping its benefits by provision of best network coverage.
• According to analysis, Mobilink is doing well to curtail its
admin cost as it has the lowest cost among its competitors.
• All the major players are almost on same level of Distribution
Cost as in service sectors, distribution is often the less
important area. The main focus is on service improvement.

33. GAPANALYSIS:
• Mobilink needs to invest more in Advertising & Marketing to
compete with rivals and to better promote its new products and
services.
• The main reason of superior network quality is significant
investment in Equipment & Networking.
• When a company invests good amount of money on
Equipment and Networking, then it also invest on Repair and
Maintenance. Therefore, Mobilink invests more in comparison
with its competitors.
• No gap exists in Personnel Cost as all companies are investing
similarly.

34. Strategic Intent
To increase ARPU (average revenue per user) not by
lowering call and SMS rates but by providing innovative
data solutions such as improving internet speed and
lowering price of internet packages.

35. Mobilink
Vision
• To be the leading Telecommunication Services Provider in
Pakistan by offering innovative Communication solutions
that make each day better for our customers while exceeding
Shareholder value & Employee Expectations.
Mission
• To be a superior communication service company in Pakistan
by creating quality conscious and cost effective environment.

36. OBJECTIVES/ACTION PLAN
What Reasons When How Result
1. To create more customer
base in Rural Segment.
Expects growth of 34%.
Already holds highest
share.
Start Now By introducing effective
call and sms packages.
Penetrate market through
advertisement.
Increase in market
share.
2. Attract youth segment. Attractive in coming
years.
Start now By introducing packages
that fully satisfy Youth
needs.
Do more competitor
analysis.
Popularity increase
in Youth.
3. Improve data services. Shift in customer
preference towards data
services.
Data service is a new
cash cow for telecom
industry.
Immediate Introduce 3G services in
other cities as well.
Satisfying customers’
emerging needs.
4. Improve customer care
services.
Customers are not fully
satisfied with their
customer care services.
Immediate Pay close attention to
customer queries and
improve services
accordingly.
Customer retention.

37. OBJECTIVES/ACTION PLAN:
5. Respond to price war. Decrease in share. Now Strengthen customer
perception of best network.
Minimize effect of
portable price war.
6. Increase advertising and
marketing
Increase customer
awareness about new
products.
Immediate Develop creative
advertisements.
Increase BTL activities.
Brand awareness and
retention.
7. Target employees Lucrative segment
anticipated to grow by
34%.
Start now Develop applications to
facilitate them in their
work.
Success in achieving
share of employee
segment
8. Improve HR department Lack of employees’
motivation
Immediate Take corrective action to
improve HR department
Satisfied Employees

38. Key Issues:
• Customer retention.
• Price Wars - Current price war among cellular service
providers may reach at a position where only brand names
survive.
• Irresponsive Human Resource Department.
• Dissatisfactory customer service.
• Weak promotional activities.

39. THANK YOU!!