SWOT Analysis of Pakistan Telecommunication Co. Ltd: a case study
BRIEF HISTORY OF PTCL
Posts & Telegraph Dept. established
Pakistan Telegraph & Telephone Deptt.
About 5 % of PTC assets transferred to
PTA,FAB & NTC.
PTCL Formed & listed on all Stock
Exchanges of Pakistan
Mobile & Internet subsidiaries established
Telecom Policy Finalized
Telecom Deregulation Policy Announced
Etisalat Takes Over PTCL's management
Pakistan Telecommunication Company Limited (the
backbone for country's telecommunication
infrastructure) was founded in 1947 while incorporated
on December 31, 1995 and commenced business on
January 1, 1996.
The Company is now listed in Karachi, Lahore and
Islamabad stock exchanges.
Originally fully owned by the Government of Pakistan,
this holding has; since 2006; been reduced to 62%, when
26% of shares and control was sold to Etisalat - and the
remaining 12% to the general public.
Etisalat is the Middle East's leading
telecommunications operator and one of the largest
corporations in the six Arab countries of the Gulf
Cooperation Council, with a market value of
approximately Dh 81 billion (US$22 billion) and
annual revenues of over Dh32.9 billion (US$9 billion).
A multinational, blue-chip organization, Etisalat has
operations in 15 countries in the Middle East, Africa
and Asia. Nearly 42,000 people are directly employed
by the company.
Etisalat acquired shares in PTCL, Pakistan's most
reliable and largest converged services carrier
providing all telecommunications services from basic
voice telephony to data, Internet, video-conferencing
and carrier services to consumers and businesses all
over the country. The company has over 20 million
mobile subscribers under the name "Ufone" and more
than 5 million fixed-line customers.
•Etisalat International Operations include Etisalat UAE
Thuraya , Zantel, Mobily , Etisalat Lanka , Canar
Atlantique Telecom (AT) , Pakistan Telecommunications Company Limited (PTCL)
Etisalat Misr , Etisalat Afghanistan, Excelcomindo (XL), Etisalat Nigeria
PTCL is a leader in providing infrastructure to other telecom
operators and corporate customers in Pakistan. PTCL is committed to
improvement, growth and quality service as is evidenced by the
modernisation of local loop services from copper to an optical network,
the acquisition of supplementary capacity on the two SEA-ME-WE and
IMEWE intercontinental cabling route to expand its international
capacity in an effort to meet the increasing demand of international
traffic. With the laying of Fibre Access Network technologies in major
metropolitan centres of Pakistan, PTCL has proved to a potential
instrument of change in Pakistan's economic growth
U.S. $16 million
Vision OF PTCL
To be the leading Information and Communication
Technology Service Provider in the region by
achieving customer satisfaction and maximizing
The future is unfolding around us. In times to come,
we will be the link that allows global communication.
We are striving towards mobilizing the world for the
future. By becoming partners in innovation, we are
ready to shape a future that offers telecom services
that bring us closer.
Mission OF PTCL
To achieve our vision by having:
•An organizational environment that fosters
professionalism, motivation and quality
•An environment that is cost effective and
•Services that are based on the most optimum
• "Quality" and "Time" conscious customer
•Sustained growth in earnings and profitability
A scan of the internal and external
environment is an important part of the
strategic planning process which is performed
by strategic planning tool called as SWOT
Environmental factors internal to the firm
usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm
can be classified as opportunities (O) or threats
Attributes of the organization
that are helpful in achieving
Oldest Telecommunication Company of
Pakistan founded in 1947.
The largest landline network of Pakistan.
Strong international brand names.
Strong financial position
Competent and Skillful Human
Resources in few specialized fields.
PTCL is offering multiple services which
includes Telephone, Internet and T.V.
PTCL can be used as a backup network if
the mobile networks are down due to any
PTCL maintain the records of customers
in an organize way with the principle of
All the telecommunication companies
operating in Pakistan directly or indirectly
dependent upon PTCL network.
It has been offering Internet DSL
connection to the customers with
students’ package offer.
It offers low rates for the national calls
etc, as compared to mobile networks.
Attributes of the organization
that are harmful in achieving
Quality of Service; offered to the Customer is very
poor and in-efficient, specially the Internet service.
Lack of technical staff in DSL technical support.
Poor organizational structure.
No clear strategic direction.
No research and development programs.
Functional units are not well organized.
Weak marketing of new services.
Bad debts due to non payments of bills.
Low revenue per user.
Political intervention in decision making.
Low rate of customer retention.
Extra employee overhead due to over-hiring.
Very low employee morale.
V-wireless coverage and service is feeble.
Form processing for new connection takes
more time in larger cities.
External conditions that may be helpful,
In achieving the objectives.
Huge market size to Increase market share.
Development of new, innovative and customized
products (Increase in company product lines)
Re-structuring of organizational hierarchy (Proper
planning and implementation is required, to Improve
Adopt latest technologies.
Making technology accessible to all (e.g.
Hire competent marketers and adopt aggressive
marketing that is required to promote offered
services and give tough time to competitors.
Improvement in customer services.
Joint ventures with other telecommunication
companies for introducing new services.
Hire technical staff in specific areas e.g for DSL
issues in order to increase customer satisfaction.
External conditions that
may be harmful in achieving
Strong competition from telecommunication
New players in the industry.
Inconsistent and Adhoc decisions by Company
Security and fraud issues.
Cyber crimes percentage is
Inflation in the country, may increase
the cost of services which will finally
transferred to customers.
Rapid raise in Government taxes.
Recession in economy.
An oldest telecommunication company of Pakistan,
containing good reputation, customers trust & high
brand loyalty as strengths can grab the opportunity to
increase its market share and position globally.
•Having a high reputation and brand name, it has an
opportunity of Joint ventures with other
telecommunication companies for introducing new
services so can increase its market share.
The largest land-line network having a strong financial
position can increase further its product lines, invest its
capital, hiring competent marketers to adopt aggressive
marketing strategies particularly advertising. hiring 0f
expertise and skillful human resources to adopt latest
technologies and to make technology accessible to
Good financial position of PTCL can help availing the
opportunity of developing new and innovative
Producing customized products as per demand of
the customers can able PTCL to compete with other
companies in the industry. For instant students’
package for DSL.
PTCL offering multiple services, enjoying
competitive advantage in the industry, can cope
with its national and international competitors
through its valuable resources.
PTCL can be used as a more sophisticated and
secure backup network.
Continuous improvement in customer services: PTCL
can increase its market share by improving its customer
services including privacy of customers, secrecy and
organization of profiles, before /during & after sale
low call (national & international) rates or uniform
fixed service charges may help PTCL to enjoy long term
sustainability and growth
PTCL has weak marketing of new services and contain
an opportunity to adopt latest on-line technologies to
overcome this weakness.
The company can also overcome this weakness by
availing opportunities of hiring competent marketers and
to adopt aggressive marketing strategies particularly
• Enhancing employees morale with organizational
polices and leadership trust .
Poor and in-efficient customer service can be
overcome through re-structuring of organizational
hierarchy and delegate authority in a limit with
responsibility to low level staff, that may increase level of
motivation with accountability.
Impact of poor overall management structure and
policies can be reduced through re-structuring of
organizational hierarchy and benchmarking.
Bad debts (non payments of bills from customers)
requires improved , enthusiastic and efficient
management in decision making process.
Low Revenue per user, generated by company, can be
overcome by increasing its market size to make it
acceptable and sufficient for company.
Technical staff in DSL technical support can be helpful
to the level of DSL issues and to increase customer
To adopt latest on-line technologies the company may
overcome the weakness of form processing and can
make it easier.
PTCL good reputation, customers trust & high brand
loyalty can eliminate the threat of new comers in
PTCL financial position can overcome the threat of
existing competition with other telecommunication
companies in the industry through differentiation.
PTCL also maintains privacy of its customers by
keeping customer profiles secret and in well organized
manner to enhance customer satisfaction and resolve
the security issues like fraud and cyber crimes
Following weaknesses /problems have to be addressed
to avoid or minimize the threats of competitive
Poor organizational/management structure
inconsistent and adhoc decisions by company’s
in-efficient customer service (especially internet
weak V-wireless coverage and service
Extra employee overhead due to extra hiring
Low employee morale
Form processing duration for new connection
political intervention in decision making process
PTCL is at maturity stage now. They are
following the cost leadership & differentiation
strategies. They are providing advanced
technologies and services to their customers by
lowering the prices and they are the only ones,
who are providing the services to such a big
extent. The suggested strategies are under
consideration. If serious attention been on
required actions , the company can enjoy long
term sustainability and competitive edge.