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Mobilink proj final

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strategic management project

strategic management project

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  • 1. Mobilink Semester Project MOBILINKMobilink Pakistan Premier Cellular Company Claims be to have 10 MillionSubscribers nation wide what you call such a company pioneers giants whateverbut the fact is that Mobilink is the largest Cellular Company in Pakistan. Mobilinkbeing the pioneers of introducing cellular networks in Pakistan establishedthemselves as the major cellular company of Pakistan. Covering almost everycity of Pakistan. Mobilink is giant is this the reason that they are still expensiveas compare to other companies like Ufone and Warid Tel.Vision StatementTo be the leading mobile service provider in Pakistan, providing the best qualityservices for the maximum number of customers, the best working environmentfor our employees and top value for our shareholdersMission Statement:“To be a superior communication service company in Pakistan whichprovides the best value to its customers, employees, business partnersand 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 costCOMSATS Institute of Information Technology, Lahore Page 1 of14
  • 2. Mobilink Semester Project INTERNAL ENVIRONMENT ANALYSISCustomers • Major part of corporate sectors • Armed forces • Business community • Govt. organizations • Teen agars using JAZZ • Students • 99% of embassies • Shopkeepers • BankersCompetitors • Ufone • Telenor • Warid • Zong SWOT ANALYSISInternal AnalysisStrengths• 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.COMSATS Institute of Information Technology, Lahore Page 2 of14
  • 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 AdvanceThe 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 smalloutlets in every market area.COMSATS Institute of Information Technology, Lahore Page 3 of14
  • 4. Mobilink Semester ProjectWeaknesses• 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 servicesExternal AnalysisOpportunities• 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.COMSATS Institute of Information Technology, Lahore Page 4 of14
  • 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.COMSATS Institute of Information Technology, Lahore Page 5 of14
  • 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 DIAGRAMCOMSATS Institute of Information Technology, Lahore Page 6 of14
  • 7. Mobilink Semester Project OPPERTUNITIES TURNOURD AGGRESSIVE STRETEGY STRETEGYWEAKNESS STERNGTH mobilink DEFENSIVE DIVERSIFICATION STRETEGY STRETEGY THREATS EXTERNAL ENVIRONMENT ANALYSISThe Mobilink’s external-environment includes their external customers, agentsand distributors, suppliers, our competitors, etc. The country forces affecting theenvironment e.g.; Political forces, Economic forces, Socio-cultural forces, andTechnological forces are the part of the external environment.Political FactorsEnvironment is investor friendly telecommunication sector is under de-regulation.Monopoly of PTA will be going to end at the end of 2005. Before WTO (WorldTrade Organization) implementation government already took steps in de-regulation of telecommunication sector.COMSATS Institute of Information Technology, Lahore Page 7 of14
  • 8. Mobilink Semester ProjectIf the political environment of Pakistan is stable in the then country will be doingexcellent on economic front. But now the political environment of Pakistan is somuch disturbed, so there are some problems like licensing for installing boostersand towers, use of frequency and other interlinked matters of Mobilink areaffected by it.Economic FactorsMobilink should consider long term and short term state of a trading market.Inflation is controlling by state bank and under strict eyes but unemployment rateis going up and up with the increase of level of poverty, it shows that Mobilink isalso affected economically by these economic factors of Pakistan and their salesare less.Socio-Cultural FactorsAs Pakistan is an Islamic country and people are very strict in case of Islam anything against the philosophy of Islam on either print or electronic media aretreated as against Pakistan.Most of the people dislike anything extra-ordinary or something which interrupttheir culture or subculture. Telecommunications Companies who are targetingupper-end of market mostly published and aired their advertisement in Englishlanguage are not attracting their customers. That’s why Mobilink made their adsin the National Language of Pakistan and their ads fully reflects the culture of thePakistan.Technological FactorsTelecommunication companies have technology with which they can compete inthe Pakistan and now companies are investing in their infrastructure to not onlyexpand but also to upgrade their existing structure.COMSATS Institute of Information Technology, Lahore Page 8 of14
  • 9. Mobilink Semester ProjectCurrently Mobilink is the company who is providing Multi-media MessagingServices (MMS), General Packet Radio Service (GPRS), Virtual Private Network(VPN), Pocket Stocks, Conference Calling, Wallpapers, Animated picturesPolyphonic ring tones, Mobile Internet (WAP), and Voice Mail at low price andTelenor 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 InternetConnection and Blackberry connection.So, these technological factors also affect the sales of the Mobilink against theircompetitors as they provide more technological services, but the high class orbusiness class use their services, although their rates are high but high classafford them and use them. VALUE CHAIN ANALYSISGeneral 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.COMSATS Institute of Information Technology, Lahore Page 9 of14
  • 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.COMSATS Institute of Information Technology, Lahore Page 10 of14
  • 11. Mobilink Semester ProjectProcurement: • 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 andgovern 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 andgovern their outbound logistics.Marketing and Sales:COMSATS Institute of Information Technology, Lahore Page 11 of14
  • 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.COMSATS Institute of Information Technology, Lahore Page 12 of14
  • 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 STRATEGYDiversification StrategyFrom swot analysis we came to know that Mobilink is having very god position inmarket and it is the market leader in telecom industry but with passage of timethere asr more competitors who is entering. So mobilink is facing many threatsbut still it is trying to maintain its position in market due to its brand loyalty and itsimage set I the mind of customers and also having lots of strength inorganization which makes its one of the best organization. So it is better time forcompany to go for diversification and go back to growth stage.COMSATS Institute of Information Technology, Lahore Page 13 of14
  • 14. Mobilink Semester ProjectCost Cut StrategyMobilink should use standardized technology and equipments in order to achievelow cost service process. They should also be more focused towards the qualityof operations being carried on out their. Although it’s not a long-run strategy, it isthe strategy to get the profits or benefits for short-run.Horizontal IntegrationThey should acquire their competitors in order to achieve horizontal integrationbecause 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 inbackward integration and manufacture its own Sims it would give more edge tothe company. So company become independent and it will not come in pressureof suppliers.COMSATS Institute of Information Technology, Lahore Page 14 of14