Mobilink strategic management report
UNIVERSITY OF WAHQUAID AVENUE, WAHCANTT.Presented to:Sir Umer Shahid.Presented by:Tahzeeb Khan Marwat.BS (Hons.) Computer ...
Introduction of Mobilink:Mobilink is Pakistan‟s leading cellular and Blackberry service provider.More than 35 million subs...
The strategic management process:The strategic management process means defining the organization‟s strategy. It is also d...
Attract maximum customers and satisfy them.Excel in meeting customer needs.Seek employee involvement, continuous improveme...
Opportunities:Promotional PackagesSponsorships for local and International eventsChanging Marketing MixInvestment and Deve...
Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries withInternational RoamingEngineering and Technol...
Step 4: Formulating Strategies of Mobilink:The findings mentioned reflect three types of major strategies employed by the ...
Mobilink –CITIBANK Joint Promotion (free INDIGO and Call n Control connections toall Citibank Credit Card members)Handset ...
currently operates from Karachi but can provide these facilities at all those locationswhere GSM coverage is available.The...
Respect for people:Mobilink relationships drive their business. They respect and esteem their employees and allstakeholder...
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Mobilink strategic management report

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Mobilink strategic management report

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Mobilink strategic management report

  1. 1. Mobilink strategic management report
  2. 2. UNIVERSITY OF WAHQUAID AVENUE, WAHCANTT.Presented to:Sir Umer Shahid.Presented by:Tahzeeb Khan Marwat.BS (Hons.) Computer SciencesBS-CS-4th„B‟
  3. 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, VisePresident : 04, Middle Managers : 16, Line Managers : 2610.Mobilink coverage 10,000+ cities and towns nationwide as well as over 140 countries oninternational roaming service.
  4. 4. The strategic management process:The strategic management process means defining the organization‟s strategy. It is also definedas the process by which managers make a choice of a set of strategies for the organization thatwill enable it to achieve better performance.Step 1: Identify the Organization’s Current Mission, Goals andStrategies:Mobilink’s Mission Statement:“To be the unmatchable mobile system of communications in Pakistan, providing the best valueto its customers, employees, business partners and share holders”Mobilinks Vision:“To be the leading Telecommunication Services Provider in Pakistan by offering innovativeCommunication solutions for our Customers while exceeding Shareholder value & EmployeeExpectations”Mobilink Goals and Objectives:Business Expansion.Better service provision.Retaining the role of a leading telecom company.
  5. 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 andretaining 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 andexpenses.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. 6. Opportunities:Promotional PackagesSponsorships for local and International eventsChanging Marketing MixInvestment and Development OpportunitiesImproved Customer Service and Value Added ServicesEconomic Influx both globally and locallyGlobal Telecom Industry growth is predicted, both supply push and demand pull, pursuitof expansionAdoption New Technology; Mobile Wallet and Gift CardsMerger with VimpelCom; Opportunity to be Global 5th Largest Telecom CompanyAdopting to MVNO and MVNE servicesLocal handset manufacturingAdoption to UTMS- 3G technology up coming in PakExchange Rate FluctuationThreats:Intense Competition – Telenor, Ufone, Warid & ZongInconsistent and Adhoc Regulatory Environment and Adverse Trade Policies ofPakistanMarket Saturation of subscribersPolitical Instability and Security ConcernIncreasing maintenance costSkilled labor attracted to competitors via better benefitsHigh Tax RatesPrice war between brands in telecom industryNatural Disaster; like the recent flood caused huge losses and the previous earthquakeStep 3: Doing an Internal Analysis:Strength:Largest Market Share & Highest number of Subscriber in PakistanStrong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneerpre-paid brand; & sweep two super brands award 2009 & Pioneers with GSMTechnology
  7. 7. Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries withInternational RoamingEngineering and Technological stability at Mobilink along with competent employeesCurrent ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93Concern for society and adapt to work environment needs; active CSR and only cellularoperator to be awarded 6th Environmental Excellence Award by NFEHISO 9002 Quality Management System Certification for Billing, EngineeringDepartments and CS Contact CenterFirst mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerryRoaming services & Best extensive Network Infrastructure; optical network and satellitelinksExponential growth in Revenue in first 3 quarter of 2010Only cellular service in Pakistan to provide coverage on the M2 motorway andimplementation of full intelligence network (IN) platform from Siemens for the prepaidplatformMobilinks Short Message Service Center allows Vehicle Tracking and FleetManagement servicesLargest Call Center in Pakistan, which is there to assist the customers 24 hoursTotal Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT &FAT is 0.09 and 0.22 respectivelyIn 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd among theBrands punching above their weights ahead of Airtel, Tata Indicom and RelianceContinuous and latest employee training approachesEffective and Rapid Communication within ManagementPartnership with MCB to offer all banking services to Mobilink customers via theirhandsetsWeaknesses:Service issues with customers - average to below average serviceMismanagement due to large networkHuge Expenses incurred, high cost of material and other expensesHigh Tariffs as compared to competitors & expensive service quality both call rates andsmsCall Blockage service still not offeredSort of bureaucratic style of Management; biasness by intermediate bossesARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2Customer Retention
  8. 8. Step 4: Formulating Strategies of Mobilink:The findings mentioned reflect three types of major strategies employed by the organization atvarious levels. Namely they are:1. Corporate level strategy2. Business level strategy3. Functional level strategy1. Corporate Level Strategy:As their corporate level strategy they have entered into partnerships with differentorganizations. 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 thederegulation of the mobile service industry of Pakistan, Mobilink has undertaken various. Themain reason for this change is mainly to keep up with the competition and to retain andincrease its market share. This transition is obvious in Mobilink‟s repositioning itself andefforts to ensure that it changes its stance from concentrating on its existing market to growingits market presence hitting the market with a new face with the catchphrase “Reshapingcommunication “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 thefollowing steps during the last 2 years:Expanded its international roaming Service scope in 14 more countries includingVietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria, South Africa,Ethiopia, Uganda, Sudan, Bahrain, and Caribbean Islands. Bilateral roamingagreements signed with 100 countries around the world to have true roaming serviceoperational in 151 operators of the world.Promotional campaign launched.Jazz bundle offerInternational summer promotion.Indigo packages deliver nationwide cellular freedom at local call rates.Joint Promotional Agreements with Various OrganizationsJAZZ-HYUNDAI BUNDLE OFFER: Jazz connection and a latest Hyundai L-120 phoneset for only Rs. 2750Jazz member Get Member: Opportunity for customers to become the brand‟s ambassadorand at the same time earns Rs. 400 in airtime. The new Jazz customer will also getRs.100 free airtime.Mobilink‟s Nokia 9500 offerMOBILINK-AVIS partnership: Mobilink joined hands with AVIS, a global brand and theworld‟s leading car Rental Company to offer discounted car rental rates(locally as well asinternationally) to all Mobilink post-paid customers. Foreigners visiting Pakistan using
  9. 9. Mobilink –CITIBANK Joint Promotion (free INDIGO and Call n Control connections toall Citibank Credit Card members)Handset Kiosk inside Mobilink Service Center: a „hand-set Kiosk‟ set up at Mobilinkservice center at Awami Markaz, Karachi. The kiosk was set up in collaboration withMobile Zone. It gave customers the added convenience of purchasing quality hand sets ofleading manufacturers such as Nokia Samsung or Sony Ericson right from MobilinkService 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 subscribersMOB- Motorola V3 launch. On every purchase the customers would get some free giftsto 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 fromother in the industry. They make their product unique through:AdvertisingHighly creative people in the marketing deptBillboards, TV commercials, bringing in famous personalities from media to endorsetheir packagesDistinctive Product FeaturesValue added servicesOnline billingGPRS enabledMobilink also started 3 friend and family number with a charge of 2.25/min stillexpensive as compared to Warid but giving incentive to subscriber there is an additionalcost of RS 25 to add friends and family number.International roaming: Bilateral roaming agreements signed with 100countries aroundthe world to have true roaming service operational in 151operators of the world.Exceptional ServiceThere are certain areas of Pakistan where PTCL connections are notavailable; the PTCLcables have not reached yet, but Mobilink has itsservice in those areas.Providing services in 413 citiesBest customer service in the cellular market: Biggest Call Center in Pakistan, which isthere to assist the customers 24 hours.Only cellular service in Pakistan to provide coverage on the M2 motorway.New TechnologyIntroduced GSM tech- bye to AMPSGPRS system – fast and inexpensiveMOBILINK GSM Short Message Service Center allows Vehicle Tracking and FleetManagement services that are being provided by Tracker (Pvt.)Ltd., under the brandname of C-Track, a company licensed by Pakistan Telecom Authority (PTA). Tracker
  10. 10. currently operates from Karachi but can provide these facilities at all those locationswhere GSM coverage is available.Their differentiation strategy is usually targeted at people who are not particularly concernedwith price, so it can be quite profitable e.g. indigo and blackberry are relatively expansivepackages; 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 exclusivelydesigned to cater to the communication needs of a diverse group of people, taking intoaccount occasional users to businessmen. To achieve this objective, mob offers both postpaid(Indigo, relatively expensive) and the prepaid (JAZZ, relatively inexpensive) solutions totheir customers.Low Cost StrategyMobilink does not follow a low cost strategy. Mobilink is a giant in Pakistani mobile industryTel. Since it first started its operations, it has been focusing its products on the upper strata ofthe society. That is why its rates are higher than its competitors, Ufone, Warid, Telenor, etc3. Functional Level Strategy:Sales and Marketing:Differentiation Advantage:Because they target the customer groups they offer tariff plans that are exclusivelydesigned to cater to the communication needs of a diverse group of people, takinginto account occasional users to businessmen. To achieve this objective, they offerboth postpaid (Indigo) and the prepaid (JAZZ) solutions to their customers.The marketing department immediately identifies and responds to thecustomer 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 inMobilink. In return, Mobilink strive to anticipate their needs and deliver service, quality andvalue beyond their expectations.Passion for Business Excellence:Mobilink strive for excellence in all that they do. They aspire to the highest standards and raisethe bar for their selves every day. This commitment to delivering world-class quality translatesinto 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 honestenvironment, and by honoring their commitments. They take personal responsibility for theiractions, and treat everyone fairly, and with trust and respect.
  11. 11. Respect for people:Mobilink relationships drive their business. They respect and esteem their employees and allstakeholders. They believe in teamwork, empowerment and honor.Corporate Social Responsibility:As the market leader, Mobilink recognize and fulfill their responsibility towards their countryand the environment they operate in. they contribute to worthy causes and are dedicated to thedevelopment and progress of the society.Step 5: Implementing Strategies:Making it happensStructuring an organizationBudgetingMotivatingCreative reward structuresCreating work environmentInformation & reporting systemsStep 6: Evaluating results:Review processAdjust missionAdjust objectivesAdjust strategiesInitiate corrective measures

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