MANAGEMENT INFORMATION SYSTEM
Syed Sajid Hussain
MINHAJ UNIVERSITY Gulberg Campus Lahore
Table of contents
Introduction of the company
• Orascom Telecom
• Mobilink GSM
• Pest Analysis
1. Political factor
2. Economical factor
3. Socio-cultural factor
4. Technology factor
• Potter’s -5 force model
Telecom industry is growing in Pakistan. With new companies getting license the
competition is getting tougher, as a result the consumer is getting benefit and
enjoying cheap call rates. With a population of 15 and half million telecom is one
of the best revenue generated industry.
Mobilink GSM, a subsidiary of Orascom Telecom, started its operations in
Pakistan in 1994, and has become the market leader both in terms of growth as
well as the largest customer subscriber base in Pakistan – a base of over 31 million
We pride ourselves on being the first cellular services provider to operate on a
100% digital GSM technology n Pakistan that also provides state-of the-art
communication solution to its customers.
The analysis of the international operations of Qrascom in general and specifically
its operations in Pakistan under the umbrella of Mobilink is the objective of this
Mobilink is enjoying a lot of strengths being a pioneer in its industry, but due to
stiff competition in the market and poor strategies implemented, its suffering from
significant losses in terms of market share and revenues.
Introduction of Company
Orascom Telecom Holding S.A.E:
OTH is considered among the largest and most diversified network operate in the Middle
East, Africa and Pakistan. Mobilink GSM (PMCL), a subsidiary of Qrascom Telecom.
Orascom group of industries: other than telecom industry Orascom has the following
• Orascom Construction Industries (OCI)
• Orascom Hotels and Development (OHD)
• Orascom Technology Solution (OTS)
Mobilink provides the most extensive network coverage footprint across Pakistan through
an integrated technology infrastructure in more than 10,000 cities, towns, villages. The
head office of Mobilink is located at KULSUM Plaza, blue area, Islamabad. Its branch
offices are located in Lahore, Karachi, Faisalabad, Rahim Yar Khan, Sukkur, Peshaa,
Quetta, Swat, Kohat etc.
Mobilink has three main contact centers in three regions of Pakistan. As for the
customers centers there are about 2000 to 2500 customers services centers all over the
Pakistan. There are about 5000 employees working in Mobilink on permanent and
temporary basis. In other words says them.
“WE SPEAK YOUR LANGUAGE…. EVERYWHERE”
“To be a superior communication services company in Pakistan who provides the
best value to its customers, employees, business partners and shareholders.”
“To be the leading telecommunication services provider in Pakistan by offering,
innovative communication solution for our Customers while exceeding shareholders.”
The country forces affecting the environment e.g. political, economics, socio-cultural,
and technological forces.
• Political instability affects Mobilink policies. With the change in government,
Mobilink cannot foresee the changes might occur I regulations and restrictions
• Orascom telecom, as a foreigner company, faces a continuous threat of terrorism
while operation in Pakistan,
• Due to the current world wide recession, Mobilink closed its hiring and applied a
policy of retaining the existing employees.
• Revenues of telecom industry increased from Rs.115 B to Rs.235 B in the last
three years and expected to increase @ 20 to 25 %. So Mobilink has an
opportunity to capture more market share.
• Orascom has a basic strategy that it applies concerning the cultural issues is
rephrasing of its brand name for each country separately because people have
perception of using connection of his own local company name.
• Companies have technology with which they can compete in the Pakistan and
now companies are investing in their infrastructure to not only expand but also to
upgrade their existing structure.
• Mobilink shifts its whole network from 900 MHz to 1800 MHz to be able to
offering Value-Added Services like 3Gs.
Potter’s -5 force Model
◊ Threats of New Entrant:
In today’s increasingly competitive world, Mobilink has a great place I telecom industry.
But they have a threat from Zong which launched one of the most successful and
aggressive campaigns and achieved 6% market share.
• Ufone: Inception 2001
Major shareholder PTCL (100%)
• WARID Inception 2005
Major shareholder Abu Dhabi Group (100%)
• Telenor Inception 2005
Major shareholder telenor (100%)
◊ Bargaining Power of Supplier:
It might look like telecom equipment suppliers have considerable bargaining power over
Telecom Company. There are enough vendors, arguably to dilute bargaining power.
◊ Customer Bargaining Power:
Mobilink has high fixed cost for high initial R&D and minimal incremental cost hence
they would like to keep their sales volume high in order to recover as much fixed cost as
possible. Due to all these reasons buyer power is high in this industry.
◊ Threats of Substitute Products:
The existence of close substitute products increases the propensity of customers to switch
to alternatives in response to price. The substitute products of Mobilink are given below.
Mobilink PCO & Blackberry
• Strong and affective and efficient management and to make coherent long run
business plan which have ability to face the economic challenges.
• It has invested heavily in infrastructure, technology, human resource and in a
customer service and further investing 500$ B in Pakistan.
• Pioneer in GSM service & first cellular company which covered the northern
areas of Pakistan.
• Mobilink earned Rs. 80 B revenues, which is 24% higher that the last year.
• They are charging high price as compare to their competitors.
• Failed to provide proper network coverage. Especially in the Karachi & Lahore.
• Due to advancement of technology they have opportunity to go with a related
diversification like Wimax, Broadband internet, USB internet etc.
• They should provide well 3G service
• Through cost focus strategy they have opportunity to target different class rather
than the business class and post paid connection users.
• The major threat which it facing is the PTA policy in which the users who has
mobilink number has right to move another network like telenor, Ufone, etc.
• Due to the increment I competition and recession it had loss the customer and
sales profit in Pakistan but still it is the market leader due to its competitive
• Telenor could be majr threat for mobilink, because telenor subscription
growth is high than the mobilink.