About Parent company:Orascom Telecom Holding S.A.E. (‘Orascom Telecom’ or‘OTH’) is a leading international telecommunicationscompany operating GSM networks in seven high growthmarkets in the Middle East, Africa and South Asia, havinga total population under license of approximately 460million with an average mobile telephony penetration ofapproximately 19% as at 30 June 2006. Orascom Telecomoperates GSM networks in Algeria (‘OTA’), Pakistan(‘Mobilink’), Egypt (‘Mobinil’), Tunisia (‘Tunisiana’), Iraq(‘Iraqna’), Bangladesh (‘Banglalink’), and Zimbabwe(‘Telecel Zimbabwe’). Among other international ventures,Orascom Telecom also owns 19.3% of Hong Kong-basedHutchison Telecommunications International Limitedoperating in 8 countries.
INTRODUCTION OFCOMPANY:Pakistan Mobile Communications (Pvt)Limited, better known as MobilinkGSM, is a telecommunication serviceprovider in Pakistan. Mobilink GSM(PMCL), a subsidiary of OrascomTelecom, started its operations in 1994,and has become the market leader bothin terms of growth as well as having thelargest customer subscriber base inPakistan – a base of over 31 million andgrowing.
PRODUCTS OF COMPANY:Mobilink Indigo and jazz have 15 moreproducts given below: Mobilink Indigo Mobilink Jazz Mobilink Black Berry Mobilink PCO Mobilink WiMax Mobilink TV
Mobilink’s Mission Statement:“To be the unmatchable mobilesystem of communications inPakistan, providing the best valueto its customers, employees,business partners and shareholders”
Mobilinks Vision Statement:“To be the leading TelecommunicationServices Provider in Pakistan byoffering innovative Communicationsolutions for our Customers whileexceeding Shareholder value &Employee Expectations”
Mobilink Goals and Objectives: Business Expansion. Better service provision. Retaining the role of a leading telecomcompany. Attract maximum customers and satisfythem. Excel in meeting customer needs. Seek employee involvement, continuousimprovement and enhancedperformance.
Mobilink strategies: Low Priced promotional packages. Improve Service and gain Market Share. More Sponsorship in games other thancricket and football. Partnering with Corporate Clients. Effective & Efficient distribution Channel. Construct layers of target market forbetter service quality and gaining lostcustomers and retaining the existing, likecorporate segment, middle segment andlower segment.
Cont… Employee Benefit programs and non-financial benefits like Employee of themonth’ Backward Integration over theirinfrastructure vendors and suppliers toreduce cost and expenses. Offering services like competitors such asCall Block Service. Customer Representative. Gain competitive advantage via increasingservice speed and response time tocustomer.
Strength: Largest Market Share & Highest number ofSubscriber in Pakistan Strong Brand Image, Indigo leading Postpaidbrand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two super brands award2009 & Pioneers with GSM Technology Wide Network Coverage of 10,000 cities inPakistan and over 100 countries withInternational Roaming Engineering and Technological stability atMobilink along with competent employees Current ratio of company to meet its obligationsimproved in 2009 to 1.18 from 0.93
Cont… Concern for society and adapt to workenvironment needs; active CSR and onlycellular operator to be awarded 6thEnvironmental Excellence Award byNFEH. First mobile operator in Pakistan to offerextensive GPRS Roaming andBlackBerry Roaming services & Bestextensive Network Infrastructure; opticalnetwork and satellite links
Cont… Exponential growth in Revenue in first 3 quarter of2010 Only cellular service in Pakistan to providecoverage on the M2 motorway andimplementation of full intelligence network (IN)platform from Siemens for the prepaid platform Mobilinks Short Message Service Center allowsVehicle Tracking and Fleet Management services Largest Call Center in Pakistan, which is there toassist the customers 24 hours Total Assets Turnover and Fixed Assets Turnoverhad been low for 3yrs, in 2009 TAT & FAT is 0.09and 0.22 respectively
Cont… In 2009, Mobilink ranked in top 100telecom companies worldwide - 3rdamong the Brands punching above theirweights ahead of Airtel, Tata Indicom andReliance Continuous and latest employee trainingapproaches Effective and Rapid Communicationwithin Management Partnership with MCB to offer all bankingservices to Mobilink customers via theirhandsets
Weaknesses: Service issues with customers - averageto below average service Mismanagement due to large network Huge Expenses incurred, high cost ofmaterial and other expenses High Tariffs as compared to competitors& expensive service quality both callrates and sms Call Blockage service still not offered
Cont… Sort of bureaucratic style of Management;biasness by intermediate bosses ARPU for pre-paid declined from 1.8 to1.6 but for post-paid inclined to 1.3 from1.2 Customer Retention
Opportunities: Promotional Packages Sponsorships for local and Internationalevents Changing Marketing Mix Investment and DevelopmentOpportunities Improved Customer Service and ValueAdded Services Economic Influx both globally and locally Global Telecom Industry growth ispredicted, both supply push and demandpull, pursuit of expansion
Cont… Adoption New Technology; MobileWallet and Gift Cards Merger with VimpelCom; Opportunity tobe Global 5th Largest TelecomCompany Adopting to MVNO and MVNE services Local handset manufacturing Adoption to UTMS- 3G technology upcoming in Pak Exchange Rate Fluctuation
Threats: Intense Competition – Telenor, Ufone,Warid & Zong Inconsistent and Adhoc RegulatoryEnvironment and Adverse Trade Policiesof Pakistan Market Saturation of subscribers Political Instability and Security Concern Increasing maintenance cost
Cont… Price war between brands in telecomindustry Natural Disaster; like the recent floodcaused huge losses and the previousearthquake Skilled labor attracted to competitorsvia better benefits High Tax Rates
SEGMENTATION, TARGETING,& POSITIONING:Segmentation:Mobilink, a telecommunication serviceprovider emphasizes on being part of avalue delivery process. The first phase,choosing the value, represents the‘homework’ marketing must do beforeany product exists. First, the marketingstaff must segment the market.
Cont….The variables used forsegmenting the consumer marketdemographic as well aspsychographic: Age Income Occupation Social Class
Targeting:Mobilink’s target market varies with itsdifferent product lines e.g. the MobilinkIndigo brand mainly targets thecorporate sector of the Pakistanicommunity. The Jazz Octane is designedto attract youth; Jazz Budget is aimed atthe middle and upper-middle class, whileMobilink World targets the masses withits diverse value added services.
Positioning:Developing the offering’s value positioning isthe last part of choosing the value phase ofthe value delivery process.Mobilink’s catchphrase “Mobilink…Reshaping Lives” tells all about how theywant to position the brand in the minds of theirtarget customers.The message they want to communicate to theconsumer market is that Mobilink is the bestsolution for telecommunication and can betrusted to provide communication facilities allacross the globe where no other service isavailable.
COMPETITION WITH OTHERCELLULAR NETWORKS:Out of 376 tehsils across Pakistan,almost 77 % are covered with mobilenetworks.In 2005 there were less than 2000 cellsites erected by all mobile operatorsall together for provision of mobileservices. Today total Cell sites of allmobile operators are more than17,500.
Cont…In 2010 the share of each company inmobile market exhibited a Change,except for Ufone whose subscribershare remained more or Less the same.Mobilink kept on loosing its share foranother year in favor of Telenor andZong despite its secure subscriberbase, Whereas Warid share in themarket has dropped significantly.
MANAGEMENT FUNCTIONS:Planning (Selecting goals & ways toachieve them) Goals are set by parent company. Strategic goals are set by 4 think tankswithin an organization in contact withforeign think tanks in Egypt. Every employee work individually toachieve common directed goal inautonomous (as long as it can bestretched) way. Hive mentality method (every employeethink alike), follow target achieving method.
Controlling (Monitor activitiesand make corrections) Reporting is mechanism of monitoring. President reports to Parent company. Employee empowerment, delegation of authority(span of control). Each employee has autonomous control, noneed to follow hierarchy/chain of command inorder to make correction and confirmations, cancontact management personnel at top in case ofneed and urgency and make corrections bythemselves whatever the position. Monitoring activities as responsible employeewithin the specified limitations/goals butspecified limitations/goals have enoughelasticity. Little direct supervision (Org structure)
Leading (Influence) Leaders of team/departments in majorcases/scenarios follow consensus. Take consideration of suggestions,feedback of each employee in teams forbetter outcome. Very friendly leaders with highcommunication skills to convey ideas /orders back and forth. Increasing motivations and participation.
Organizing (Assign responsibilityfor task accomplishment) Department based task, e.g. Finance department deals with financialmatters of the company. Customer care marketing department dealswith competition. Deals in support centre, call centre, servicecentre (franchise, charity etc.) Strategy department deals in planning.Sales department deals in sales. HR department deals in workforcedecision.
ORGANIZATIONALSTRUCTURE OF MOBILINK:Although, all departments in an organizationplay a vital role in achieving goals andobjectives. Mobilink has cross functional teams,decentralization, low formalization, opencommunication network, minimal formal rules,and wide span of control. Yet the majordepartments are as follows: Marketing Finance Human Resources Customer Care Strategy Sales
PROBLEMS FACED BY COMPANY: Cultural Difference:Mobilink is a multinational company havingthousands of employees from different areas andhaving entirely different culture, it faces a greatproblem in its day to day business activities. Connectivity issue:The temporary connectivity issue faced byMobilink users was caused by a software problemthat occurred because of up gradation of systemsin Lahore. Mobilink service was also affected afteran exchange in Islamabad caught fire resulting indowntime of services for almost a day. Theseproblems caused serious effects on theircustomers.
Cont… Information overload and messagecomMobilink in Lahore is the land office inPakistan which deals to the wholePakistan. There are million ofmessage which come from customerand they have not enough time to readand reply, thus barrier incommunication.
CONCLUSION: Mobilink is following all managementfunctions effectively, as it is the subsidiaryof Orascom, corporate strategies aredeveloped and communicated from the toplevel. Region is accountable to the parentcompany from where instructions arereceived and applied in the organizationnationwide. Mobilink has a friendly environment whereeach employee is empowered to exercisedelegated powers and has an authority todirectly contact the president, if need be.
Cont… Mobilink has research setup that identifiesemerging local opportunities and makessuggestions to the parent organization. They are agile to adopt latest technologies,launch innovative products & services, andoffer a learning environment to itsemployees. Marketing team at Mobilink is working atthe best of their abilities in designing andexecuting distinctive marketing approachesin such a competitive local telecomscenario.
Cont… Vindicated Compensation planningand exquisite retention policieshave enabled Mobilink to hire andretain best professionals in theindustry. Mobilink has proven itself as asocially responsible corporate byparticipating in charity andeducation programs that supportthe poor.