Mobilink swot

8/6/2019 Mobilink swot

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DOWNFALL OFMOBILINK

PRINCIPLES OFMANAGEMENT

SUBMITTED TO:

Group Members:Fizza Azam

BT-08-77

Ramsha Naeem

BT-08-61

Anum Fayaz

BT-08-26

Gulshan Parveen

BT-08-58

Roop Zahra

BT-08-67

Mehroz Khan

BT-08-14

Murtaza Shabbir

BT-08-47

Ahmad Hannan

BT-08-65


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2 Downfall of Mobilink

Preface

Mobilink Pakistan, premium cellular company claims tohave 30 million subscribers nationwide; the fact is Mobilink is the largestcellular company in Pakistan. Mobilink being the pioneers of introducingcellular networks in Pakistan established themselves as the major cellularcompany of Pakistan while covering almost every city of Pakistan.

According to PTA new mobile subscribers statistics Mobilink, Pakistan largestcellular service, continues its downfall by losing 476,521 customers . Thereport has tried to illustrate and judge some of major reasons for downfall.

This report contains information about factors and some strong competitive

forces Moblink faced which resulted in crisis.

Mobilink is major cellular company and will stand in first place many years tocome. With professional approach and highly skilled staff behind Mobilink isthe premier choice for subscribers nationwide. The only problem I see withMobilink is the call rates which in my point of view are somewhat high. Asthe competition is growing I hope the rates will be cut down to attract moresubscribers.


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Acknowledgement

To Him belongs the dimensionof the Heavens and the earth, it is He whogives Life and death and He has power overall things. (Al-Quran)All acclamation to Allah who has empowered and enabled us to accomplishthe task successfully. First of all we would like to thank our Allah Almightywho really helps us in every problem during the project. We would like toexpress our sincere and humble gratitude to Almighty whose Blessings, helpand guidance has been a real source of all our achievements in our life.Under the supervision of respected Madam QuratulAin Beenish, I worked as agroup leader with my co-workers:

We interviewed Mobilinks Managers, Employees, Corporateand Retail Customers and customers which once used Mobilink, visited PTAsresults to get to know what are some of reasons for such a storming downfallMobilink faced. I would like to thank respected Mr. Bilal Chaudhry, ZRO

[Zonal Retial Officer] Multan for his deep concern and help for our topic.Moreover, I would like to thank all of Mobilinks Crew for their help in allpossible ways.


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Table Of ContentsMobilink

Mission statement

Values

History Of Mobilink

PTA

Mobilink

Orascom Telecom

Network

Organogram

Products of Mobilink

Growth Share Matrix

Downfall Of MobilinkWhat is Downfall

Literature review

Public Voices

Major Downfall Reasons

SWOT Analysis Of Moblink

Conclusion

Bibliography

Refrences

Anextures


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Mobilink

MISSION STATEMENT

To be the unmatchable mobile system of Communications in Pakistan this provides the best valueto its customers, employees, business partners andShareholders.

Mobilink's Vision

To be the leading telecommunicationservices provider in Pakistan by offering innovativecommunicationsolutions of our customers while exceeding shareholder

value and employee expectations


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Values

Total Customer Satisfaction:Customers are at the heart of our success. They have placed their trust andconfidence in us. In return, we strive to anticipate their needs and deliverservice, quality and value beyond their expectations.

Business ExcellenceWe strive for excellence in all that we do. We aspire to the highest standardsand raise the bar for ourselves everyday. This commitment to deliveringworldclass

quality translates into unmatched service and value for our customersand all stakeholders.

Trust & Integrity:At Mobilink, we take pride in practicing the highest ethical standards in anopenand honest environment, and by honoring our commitments. We takepersonalresponsibility for our actions, and treat everyone fairly, and with trust andrespect.

Respect for People:Our relationships drive our business. We respect and esteem our employeesand all stakeholders. We believe in teamwork, empowerment and honor.

Corporate Social Responsibility:As the market leader, we recognize and fulfill our responsibility towards ourcountry and the environment we operate in. We contribute to worthy causesand are dedicated to the development and progress of the societ and y.


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Pakistan TelecommunicationAuthority

Mobilink

Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started itsoperations in 1994, and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan - abase of over 28 million and growing. The first cellular service provider tooperate on a 100% digital GSM technology in Pakistan that also providesstate-of-the-art communication solutions to its customers.

The telecom sector of Pakistan has seen phenomenalgrowth over the past few years. According to the Pakistan

Telecommunication Authority (PTA), the total mobile phone subscribers in2007 were more than 63 million, a growth of more than80% from theprevious years. During 2006-07, the mobile sector generated Rs 133 billionin revenues, an increase of 48% from the previous years and contributed Rs63 billion to the national exchequer in terms of taxes and regulatory fees.

The telecom sector contributed 2% to the GDP in 2005-06 and received

more than $1.8 billion in foreign direct investment (FDI) in 2006-07 , whichis 35.6% of the total FDI in that period. Furthermore, the telecom sector hasalso created over one million in jobs, since its deregulation, making Pakistanone of the worlds fastest growing telecom markets. The Pakistan

Telecommunication Ordinance 1994 established the primary regulatoryframework for the telecommunication industry including the establishmentof an authority. Thereafter, Telecommunication (Re Organization) Act noXVII was promulgated in 1996 that aimed to reorganize the telecom sectorof Pakistan. Under Telecom Reorganization Act 1996, Pakistan

Telecommunication Authority (PTA) was established in January 1997 toregulate the establishment, operation and maintenance of

telecommunication systems, and the provision of telecom services. Thetelecom sector was deregulated in 2003.


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Mobilink offers exclusively designed tariff plans that cater to thecommunication needs of a diverse group of people, from individuals tobusinessmen to corporate and multinationals. To achieve this objective, weoffer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers.Compared to our competitors, both the postpaid (Indigo) and prepaid (JAZZ)

brands are the largest brands of their kind in the Pakistan cellular industry.

In addition to providing advanced voice communication services that makesthe lives of millions that much easy, we also offer a host of value-added-services to our prized customers. At the same time, Mobilink places highimportance to its coverage, which is why we cover you in 10,000+ cities andtowns nationwide as well as over 130 countries on international roamingservice. In other words, we speak your language, everywhere.

Orascom telecom

Mobilink launched its operations in August 1994 after it was founded in 1990as a joint venture between Motorola and the Saif Group and awarded alicense for mobile telecommunication system and services in July 1992. Lateron in April 2000, Orascom Telecom bought 38.6% stake in PMCL, which itlater in February 2001 increased to 68.69% by purchasing Motorolas sharein PMCL and Becoming the major shareholder of the company. In April 2001,Orascom Telecom took over management control of the company. As of December 31st, 2007, Orascom Telecom indirectly owns 100% of the sharecapital of Mobilink through direct stakes held by wholly owned subsidiaries of OTH. By December 2007, Mobilink had achieved 39.8% in market share,making it the market leader in the mobile sector of Pakistan and had acustomer base of more than 32 million by July 2008.

Network

Mobilink was awarded a 15-year license in July 1992 to establish and operatea Digital cellular telecommunication system using the GSM 900 standard andto offer telecommunication services in Pakistan. Mobilink has been growingits network, providing 2G, 2.5G, GPRS and EDGE compatibility. Mobilink was


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the first operator to start rolling out the Enhanced Data Rates for GlobalEvolution (EDGE) in Pakistan.

In addition, Mobilink also launched its BlackBerry service in December 2005through its GPRS platform. Mobilink is committed in providing the bestnetwork to their customers, which in recent times has expanded to morethan 9000 cities and reaches over 66% of the total population and 99% of the urban population as of December 31st, 20076.

Organogram

Years of Business 13

Cities 7000+

Investment USD 1 Billion+

Switches 66

Cell Sites 6,300

Optical Cable Deployment 5,000 KM

Switch Types Nokia-Siemens, Alcatel, Huawei

Radio Base Stations Motorola and Alcatel

Intelligent Networks Siemens

Microwave Equipment NEC and Alcatel

Operating Frequency 900/1800 MHz

SMSC Logica CMG


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Products

President and CEORashid Khan

Chief InformationOfficer

Tariq Rashid

Vice President HumanResources, Administration

& SecurityAli Raza Mehdi

Vice PresidentSales

Jahanzeb Taj

Vice PresidentMarketing

Bilal Munir Sheikh

Vice PresidentCustomer CareIrfan Akram

Vice President & Head of BroadbandBusiness Division.Mustafa Peracha

Vice PresidentCorporate Affairs

Agha Qasim

Chief TechnicalOfficer

Ramy ReyadKamel

Vice President/Chief Strategy

OfficerMr. Aamir


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1. Jazz Prepaid

2. Indigo Postpaid

3. Blackberry Services

They offer tariff plans that are exclusively designed to cater to thecommunication needs of a diverse group of people, taking intoaccount occasional users to businessmen. To achieve this objective,they offer both postpaid (Indigo) and the prepaid (JAZZ) services totheir customers. Jazz is an amazing prepaid service that allowsfreedom from monthly bills and gives complete control over thecustomers cellular expenditure. The user can decide in advance whenand how much he wants to spend. He can load a scratch cardwhenever he wants to and start talking. Jazz is simple, easy and loadsof fun. not only Indigo and jazz mobilink have 13 more products givenbelow,

1.Mobilink Indigo 2. Mobilink Jazz

3.Mobilink BlackBerry 4.Mobilink PCO

5.Mobilink WiMAX 6.Mobilink TV7.Mobilink Game ON 8.Jazz Cricket SIM

9.Conference Bridge 10.PSO Cards

11.PIA Reservations 12.Stock Watch


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13.Fax Mail 14.Corporate SMS

15.SMS Advertiser

VALUE ADDED SERVICES

In addition to providing advanced voice communication services, theyalso offer a number of value added services to their valued

subscribers.

1. GPRS 2.Mobilink Mustt Services

3.SMS Messaging 4.Power Tools

5.Chat Services 6.Dedication Services

7. Power Tools 8.Mail Services9.Info Services 10. IVR Ring tones/Logos

11.On Call Services 12.Missed Call Alerts

Strategic Business Units of

Mobilink


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Jazz One

Jazz Budget

Jazz Ladies First

Jazz Easy

Jazz Octane

Mobilink Indigo

Mobilink PCO

Classification of SBUs accordingto growth-share matrix:

CASH COW

Jazz Ladies First

Mobilink Indigo

Jazz Budget

STAR


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Jazz One

QUESTION MARK

Jazz Easy

Mobilink PCO

DOG

Jazz Octane

Downfall of mobilink

What is downfall?

Failure that results in a loss of reputation

a sudden decline in strength or number or importance;

www.wordnet.com

A sudden loss of wealth, rank, reputation, or happiness; ruin

Merriam Webster
http://www.wordnet.com/http://www.wordnet.com/


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Something that causes severe impairment, as of one's health,

fortune, honor, or hopes

www.dictionary.com

Literature review

effect of economic recession onPakistan telecom

babbar bhatti

www.telecompk.net

In pakistan the inflation is around 25% and prices for necessities of life haveskyrocketed. Real gdp growth has fallen to 3.6%. Naturally telecom hastaken a hit. In the past few years consumption was encouraged and thatresulted in more consumer spending on phones (draining the foreignexchange) and on voice and data. More first time users of mobile servicessigned up. Now with the rough patch in economy, government has raised
http://www.dictionary.com/http://www.dictionary.com/


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Oct 22, 2008

Dawn news

According to the third quarterly report of the Pakistan TelecommunicationAuthority (PTA), the total FDI in the sector was $1,824.3 million in 2007which dropped to $1,438.6 million in 2008.

The authority maintains that main reason behind the decline is that cellularoperators have already invested huge amounts to roll out the infrastructure,and, secondly, the local financial market has enabled them (operators) togenerate sources locally.

However, the operators are of the view that 'current uncertain situation' hasplayed a major role in keeping the FDI at bay. It is learnt that majorinvestment by the leading operators may not resume even next year owingto prevailing economic and political uncertainty.

On the other hand, the PTA report reveals that subscribers' growth rate hasalso registered a decrease of 61 per cent this year as compared to thecorresponding period last year.

By June last year, total subscribers were 63 million and the number has risento 89.5 million by Aug this year. The number of PTCL subscribers has alsoreduced from 4.6 million to 4.4 million this year, the report says.

By August this year, Mobilink has a subscriber-base of 31.5 million, Ufone18.6, Telenor 18.3 million, Warid 15.9, Zong 4.8 million and Instaphone321,134.

The reason of decline in the subscriber-base is said to be imposition of hightaxes. A mobile user has to pay almost 31 per cent in terms of taxes/servicecharges which is at least 14 per cent higher than anywhere in the world. Nowevery customer has to pay Rs5 more in terms of service charges to themobile phone company on topping every recharge of Rs100.

The stiff competition among cellular companies has compelled them to lowertheir call rates with an aim to capture subscribers' market, which is alsoresulting in decrease in their profitability.

The PTA report further reveals that teledensity of mobile phones has onlyreached 55 per cent in the country, an increase of only 11 per cent to that of registered in 2007. It belies the claim of those even in the PTA that 'around90' per cent of the total population of the country now has cell phonecoverage.


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Public voices about downfall

Mobilink, the market leader, saw a drop in mobile subscriber base which fellfrom 28.315 million to 28.116 million during January-February 2009. [5]

Not only sales and number of SIMs are a part of strategic failure of Mobilink but also its policies including highly hiked operational expenses, detested

packages, deplorable services and deceptive marketing practices [6]

Mobilink, the Pakistani incumbent, has lost more than 2,000,000subscribers driven by interrupted service and blocking of illegal SIM by Pakistan Telecommunication Authority (PTA). Mobilinks subscriber base nowslided from 32 million to 30 million. It is seen that out of the 20, 00,000subscribers, 7,50,000 have ported their numbers to other subscribers and the rest 12,50,000 have been blocked by PTA after they were identified asillegal SIMs. Mobilink has been facing such problems due to poor quality of services.On the financial front the operator is going through a crisis bringing the jobsof many on stake and has been fined in past with millions of rupees by PTAfor interrupted service.The subscribers with Mobilink are seen to be using

number portability more than any other Pakitani operator. [7]

Statement from the China Mobile Chairman that China Mobile sees their Pakistan operations as a valuable experience for its subsequent internationalventures, will surely put the existing big boys of cellular services in Pakistanlike Mobilink and Ufone on high-alert and may be give them sleeplessnights. [8]
http://pakng.wordpress.com/2007/05/02/paktel-is-cms-guinea-pig/http://pakng.wordpress.com/2007/05/02/paktel-is-cms-guinea-pig/http://pakng.wordpress.com/2007/05/02/paktel-is-cms-guinea-pig/http://pakng.wordpress.com/2007/05/02/paktel-is-cms-guinea-pig/


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Mobilink, once the market leader in innovation and new ideas has not beenable to find a single new idea for its WiMAX services. They are now "stealing"ideas from their biggest rivals, Wateen. The products and services they areworking on and will be offering soon are:

1. Online gaming service (I wonder how they are going to put up so many servers)

2. IP Video Surveillance3. IPTV

4. VAS Portal (with music, movies and stuff)5. Video Telephony [9]

Mobilink forcly terminated their one thousand employees in all over Pakistan from administration and security department without any notice.Mobilink face financial crises. [10]


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Deceptive marketingpractices: Lack of quickresponse

With the arrival of Zong, A china Mobile Company, the competitors inmarket [Ufone, warid, Telenor] focused on introducing lower rates forSmart Messaging Service, but mobilink didnt put forward anyinnovative package for the particular service to compete in market.SMS is now a craze for a major customer group especially teen agers.Mobilink sat back and didnt put forward any special competiting

package for a long period of time. Meanwhile customers moved towardcheaper packages.

Mobile Number portability:Blockage of illegal SIM use

Pakistan telecommunication Authority, PTA, blocked usage of illegalSIMs. Now if you buy a new SIM, you have to dial 789 and the operatormay ask u about your Identity Card No., ID card no. connects operatotto the database of NADRA. Then operator will ask you few questionsabout your identity for example your Mothers name etc. Once youhave confirmed your identity you are allowed to subscribe to yoursubscriber network. By the launch of MNP, a large number of subscriber base who were illegally using SIMs was destroyed.According to NAWA e WAQT 3 Million people in Pakistan are still using

Illegal SIMs.


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Conclusion

Mobilink still has power and Brand Image as well as corporate Impression. Itstill needs a long time period and recession to get beaten by competingcompanies. Mobilink is major cellular company and will stand in first place manyyears to come. With professional approach and highly skilled staff behind Mobilink isthe premier choice for subscribers nationwide.


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References

PTA, Pakistan Telecommunication Authority [www.pta.gov.pk]

1. http://www.zenblog.co.cc/2008/11/mobilink-contineous-its-downfall-

warid-takes-top-level/2. Daily Times, July 27,2007.

3. www.wirelessfederation.com/news

4. www.flare.com.pk

5. www.wirelessfederation.com

www.techturtle.com

Bibliography

MNP Moibile Number portability

PTA Pakistan telecommunication Authority
http://www.zenblog.co.cc/2008/11/mobilink-contineous-its-downfall-warid-takes-top-level/http://www.zenblog.co.cc/2008/11/mobilink-contineous-its-downfall-warid-takes-top-level/http://www.wirelessfederation.com/newshttp://www.flare.com.pk/http://www.wirelessfederation.com/http://www.techturtle.com/http://www.zenblog.co.cc/2008/11/mobilink-contineous-its-downfall-warid-takes-top-level/http://www.zenblog.co.cc/2008/11/mobilink-contineous-its-downfall-warid-takes-top-level/http://www.wirelessfederation.com/newshttp://www.flare.com.pk/http://www.wirelessfederation.com/http://www.techturtle.com/

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