Mobilink strategic management report

1. Mobilink strategic management report

2. UNIVERSITY OF WAH
QUAID AVENUE, WAHCANTT.
Presented to:
Sir Umer Shahid.
Presented by:
Tahzeeb Khan Marwat.
BS (Hons.) Computer Sciences
BS-CS-4th
„B‟

3. Introduction of Mobilink:
Mobilink is Pakistan‟s leading cellular and Blackberry service provider.
More than 35 million subscribers.
Market share 35 %.
Employee strength Over all : ( Total 4500) Top Managers : 75, Middle Managers : 750,
Line Managers : 3675, Human Resource Department : ( Total 47), Director : 01, Vise
President : 04, Middle Managers : 16, Line Managers : 2610.
Mobilink coverage 10,000+ cities and towns nationwide as well as over 140 countries on
international roaming service.

4. The strategic management process:
The strategic management process means defining the organization‟s strategy. It is also defined
as the process by which managers make a choice of a set of strategies for the organization that
will enable it to achieve better performance.
Step 1: Identify the Organization’s Current Mission, Goals and
Strategies:
Mobilink’s Mission Statement:
“To be the unmatchable mobile system of communications in Pakistan, providing the best value
to its customers, employees, business partners and share holders”
Mobilink's Vision:
“To be the leading Telecommunication Services Provider in Pakistan by offering innovative
Communication solutions for our Customers while exceeding Shareholder value & Employee
Expectations”
Mobilink Goals and Objectives:
Business Expansion.
Better service provision.
Retaining the role of a leading telecom company.

5. Attract maximum customers and satisfy them.
Excel in meeting customer needs.
Seek employee involvement, continuous improvement and enhanced performance.
Mobilink strategies:
Low Priced promotional packages.
Improve Service and gain Market Share.
More Sponsorship in games other than cricket and football.
Partnering with Corporate Clients.
Effective & Efficient distribution Channel.
Increased Celebrity Endorsement.
Construct layers of target market for better service quality and gaining lost customers and
retaining the existing, like corporate segment, middle segment and lower segment.
Employee Benefit programs and non-financial benefits like 'Employee of the month‟
Backward Integration over their infrastructure vendors and suppliers to reduce cost and
expenses.
Offering services like competitors such as Call Block Service.
Customer Representative.
Gain competitive advantage via increasing service speed and response time to customer.
Step 2: Doing an External Analysis:

6. Opportunities:
Promotional Packages
Sponsorships for local and International events
Changing Marketing Mix
Investment and Development Opportunities
Improved Customer Service and Value Added Services
Economic Influx both globally and locally
Global Telecom Industry growth is predicted, both supply push and demand pull, pursuit
of expansion
Adoption New Technology; Mobile Wallet and Gift Cards
Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company
Adopting to MVNO and MVNE services
Local handset manufacturing
Adoption to UTMS- 3G technology up coming in Pak
Exchange Rate Fluctuation
Threats:
Intense Competition – Telenor, Ufone, Warid & Zong
Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of
Pakistan
Market Saturation of subscribers
Political Instability and Security Concern
Increasing maintenance cost
Skilled labor attracted to competitors via better benefits
High Tax Rates
Price war between brands in telecom industry
Natural Disaster; like the recent flood caused huge losses and the previous earthquake
Step 3: Doing an Internal Analysis:
Strength:
Largest Market Share & Highest number of Subscriber in Pakistan
Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer
pre-paid brand; & sweep two super brands award 2009 & Pioneers with GSM
Technology

7. Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries with
International Roaming
Engineering and Technological stability at Mobilink along with competent employees
Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93
Concern for society and adapt to work environment needs; active CSR and only cellular
operator to be awarded 6th Environmental Excellence Award by NFEH
ISO 9002 Quality Management System Certification for Billing, Engineering
Departments and CS Contact Center
First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry
Roaming services & Best extensive Network Infrastructure; optical network and satellite
links
Exponential growth in Revenue in first 3 quarter of 2010
Only cellular service in Pakistan to provide coverage on the M2 motorway and
implementation of full intelligence network (IN) platform from Siemens for the prepaid
platform
Mobilink's Short Message Service Center allows Vehicle Tracking and Fleet
Management services
Largest Call Center in Pakistan, which is there to assist the customers 24 hours
Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT &
FAT is 0.09 and 0.22 respectively
In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd among the
'Brands punching above their weights' ahead of Airtel, Tata Indicom and Reliance
Continuous and latest employee training approaches
Effective and Rapid Communication within Management
Partnership with MCB to offer all banking services to Mobilink customers via their
handsets
Weaknesses:
Service issues with customers - average to below average service
Mismanagement due to large network
Huge Expenses incurred, high cost of material and other expenses
High Tariffs as compared to competitors & expensive service quality both call rates and
sms
Call Blockage service still not offered
Sort of bureaucratic style of Management; biasness by intermediate bosses
ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2
Customer Retention

8. Step 4: Formulating Strategies of Mobilink:
The findings mentioned reflect three types of major strategies employed by the organization at
various levels. Namely they are:
1. Corporate level strategy
2. Business level strategy
3. Functional level strategy
1. Corporate Level Strategy:
As their corporate level strategy they have entered into partnerships with different
organizations. On the basis of findings, it appears that for the past few years (1999-2003),
Mobilink had a focus on internal growth. All this is evident from the fact that since the
deregulation of the mobile service industry of Pakistan, Mobilink has undertaken various. The
main reason for this change is mainly to keep up with the competition and to retain and
increase its market share. This transition is obvious in Mobilink‟s repositioning itself and
efforts to ensure that it changes its stance from concentrating on its existing market to growing
its market presence hitting the market with a new face with the catchphrase “Reshaping
communication “With the threat of new entrants into the industry after the deregulation,
Mobilink‟s strategy took a new turn. To keep abreast with the company, Mobilink took the
following steps during the last 2 years:
Expanded its international roaming Service scope in 14 more countries including
Vietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria, South Africa,
Ethiopia, Uganda, Sudan, Bahrain, and Caribbean Islands. Bilateral roaming
agreements signed with 100 countries around the world to have true roaming service
operational in 151 operators of the world.
Promotional campaign launched.
Jazz bundle offer
International summer promotion.
Indigo packages deliver nationwide cellular freedom at local call rates.
Joint Promotional Agreements with Various Organizations
JAZZ-HYUNDAI BUNDLE OFFER: Jazz connection and a latest Hyundai L-120 phone
set for only Rs. 2750
Jazz member Get Member: Opportunity for customers to become the brand‟s ambassador
and at the same time earns Rs. 400 in airtime. The new Jazz customer will also get
Rs.100 free airtime.
Mobilink‟s Nokia 9500 offer
MOBILINK-AVIS partnership: Mobilink joined hands with AVIS, a global brand and the
world‟s leading car Rental Company to offer discounted car rental rates(locally as well as
internationally) to all Mobilink post-paid customers. Foreigners visiting Pakistan using

9. Mobilink –CITIBANK Joint Promotion (free INDIGO and Call n Control connections to
all Citibank Credit Card members)
Handset Kiosk inside Mobilink Service Center: a „hand-set Kiosk‟ set up at Mobilink
service center at Awami Markaz, Karachi. The kiosk was set up in collaboration with
Mobile Zone. It gave customers the added convenience of purchasing quality hand sets of
leading manufacturers such as Nokia Samsung or Sony Ericson right from Mobilink
Service Center the Mobilink network for cellular services swore able to receive a 20%
discount on Avis-Car rental Service.
Mobilink and UBL launch online bill payment facility for Indigo subscribers
MOB- Motorola V3 launch. On every purchase the customers would get some free gifts
to add more value to their purchase.
2. Business Level Strategy:
As their business level strategy it has focused on Differentiation strategy ever since it started.
Mobilink has always made successful attempts to distinguish their products or services from
other in the industry. They make their product unique through:
Advertising
Highly creative people in the marketing dept
Billboards, TV commercials, bringing in famous personalities from media to endorse
their packages
Distinctive Product Features
Value added services
Online billing
GPRS enabled
Mobilink also started 3 friend and family number with a charge of 2.25/min still
expensive as compared to Warid but giving incentive to subscriber there is an additional
cost of RS 25 to add friends and family number.
International roaming: Bilateral roaming agreements signed with 100countries around
the world to have true roaming service operational in 151operators of the world.
Exceptional Service
There are certain areas of Pakistan where PTCL connections are notavailable; the PTCL
cables have not reached yet, but Mobilink has itsservice in those areas.
Providing services in 413 cities
Best customer service in the cellular market: Biggest Call Center in Pakistan, which is
there to assist the customers 24 hours.
Only cellular service in Pakistan to provide coverage on the M2 motorway.
New Technology
Introduced GSM tech- bye to AMPS
GPRS system – fast and inexpensive
MOBILINK GSM Short Message Service Center allows Vehicle Tracking and Fleet
Management services that are being provided by Tracker (Pvt.)Ltd., under the brand
name of C-Track, a company licensed by Pakistan Telecom Authority (PTA). Tracker

10. currently operates from Karachi but can provide these facilities at all those locations
where GSM coverage is available.
Their differentiation strategy is usually targeted at people who are not particularly concerned
with price, so it can be quite profitable e.g. indigo and blackberry are relatively expansive
packages; blackberry is mainly targeted for the business class who can afford it. In this way,
the revenue generation remains high. Mobilink offers tariff plans that are exclusively
designed to cater to the communication needs of a diverse group of people, taking into
account occasional users to businessmen. To achieve this objective, mob offers both postpaid
(Indigo, relatively expensive) and the prepaid (JAZZ, relatively inexpensive) solutions to
their customers.
Low Cost Strategy
Mobilink does not follow a low cost strategy. Mobilink is a giant in Pakistani mobile industry
Tel. Since it first started its operations, it has been focusing its products on the upper strata of
the society. That is why its rates are higher than its competitors, Ufone, Warid, Telenor, etc
3. Functional Level Strategy:
Sales and Marketing:
Differentiation Advantage:
Because they target the customer groups they offer tariff plans that are exclusively
designed to cater to the communication needs of a diverse group of people, taking
into account occasional users to businessmen. To achieve this objective, they offer
both postpaid (Indigo) and the prepaid (JAZZ) solutions to their customers.
The marketing department immediately identifies and responds to the
customer needs.
Comes up with interesting marketing strategies which include advertising.
Commitment to Total Customer Satisfaction:
Customers are at the heart of Mobilink success. They have placed their trust and confidence in
Mobilink. In return, Mobilink strive to anticipate their needs and deliver service, quality and
value beyond their expectations.
Passion for Business Excellence:
Mobilink strive for excellence in all that they do. They aspire to the highest standards and raise
the bar for their selves every day. This commitment to delivering world-class quality translates
into unmatched service and value for their customers and all stakeholders.
Trust and integrity:
Mobilink take pride in practicing the highest ethical standards in an open and honest
environment, and by honoring their commitments. They take personal responsibility for their
actions, and treat everyone fairly, and with trust and respect.

11. Respect for people:
Mobilink relationships drive their business. They respect and esteem their employees and all
stakeholders. They believe in teamwork, empowerment and honor.
Corporate Social Responsibility:
As the market leader, Mobilink recognize and fulfill their responsibility towards their country
and the environment they operate in. they contribute to worthy causes and are dedicated to the
development and progress of the society.
Step 5: Implementing Strategies:
Making it happens
Structuring an organization
Budgeting
Motivating
Creative reward structures
Creating work environment
Information & reporting systems
Step 6: Evaluating results:
Review process
Adjust mission
Adjust objectives
Adjust strategies
Initiate corrective measures