Zong Presentation

Mission vision introduction and history By Ammara LatifExternal assessment By Qaiser AbbasInternal assessment By Faisal NadeemInput stage By Shafqat Alimatching stage By AbduljabbarDecision stage By Nadir Ali

Points Described By

External Assessment:PEST Analysis of Pakistan in Telecom Industry

Political FactorsPolitical Instability:Deregulation:Changes in Tax Laws:

Economic Factors:Gross Domestic Product:Average Revenue per User (ARPU):Decline in Money Value:Outflow of Capital:

Technological Factors:Technological Development:Technological Advancement:

Five Forces Porter Model Five forces looks at five key areas namely Threat Of New Entry, Power Of Buyers, Power Of Suppliers, Threat Of Substitutes, And Competitive Rivalry.

Threat of New Entry

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitute Products

Rivalry among Competing Firms in Industry

Five Forces Porter Model

Competitive Analysis

Major competitors of ZONG include

Mobilink Ufone Telenor Warid

TypePrivate Limited CompanyFounded1994FounderMotorola USAHeadquartersIslamabad, PakistanArea served5000 cities, towns, and villages across PakistanProductspostpaid Indigo , prepaid JAZZ, Mobilink PCOParentOrascom Telecom EgyptSloganReshaping livesWebsitewww.mobilinkgsm.com

Type PrivateFounded January 29, 2001

FounderPakistan Telecommunication Company Ltd

Headquarters Islamabad, Pakistan

Area served2336 cities of Pakistan, GT Road, Super Highway & Motorway

Products Pre Pay, Post Pay

Parent PTCL Pakistan

Slogan It’s all about U! (Tum He Tou Ho)

Website www.ufone.com

Telenor

Type Public

Founded 1855

Headquarters Fornebu, Norway

Industry Telecommunication

Products Telephony and broadband

Employees 31,750

Slogan Here to help

Website www.telenor.com

Market share of telecom industry

•Opportunities of Zong

Expand Globally

Publicity and Marketing

Publicity and Marketing

New product development

Opportunity in northern areas

Pak China Border

•Threats of Zong

Old stable companies

Better Packages by Other Cellular

Price Wars

Government Interference

Internal Assessment:Management

Marketing Department

Finance Department

Value Chain

Research And Development Department

Human Resources Department

•Strength of Zong Investment:

Network portability

Zong mobile

Resources, Assets and People

Location and Geographical Coverage

Government Dealings

•Weaknesses of Zong

Coverage

Bad image of paktel

Bad MIS

A Comprehensive Strategy-Formulation Framework

Stage-1 (Formulation Framework) 1. External factor evaluation2. Competitive matrix profile3. Internal factor evaluation Stage-2 (Matching Stage) 1. TWOS Matrix 2. SPACE Matrix 3. BCG Matrix 4. IE Matrix 5. GS Matrix Stage-3 (Decision Stage)1. QSPM

EXTERNAL FACTOR EVALUATION (EFE) MATRIX

Key External Factors Weight Rating Weighted Score

Opportunities1 Globalization 0.10 3 0.30

2 Marketing 0.15 4 0.60

3 Acquisition 0.08 2 0.16

4 New Product Development 0.07 3 0.21

5 Northern Areas 0.10 3 0.30

6 Pak China Borders 0.13 3 0.39

Threats1 Old Stable Companies 0.12 4 0.48

2 Attractive Packages By Others 0.10 3 0.30

3 Price War 0.06 3 0.18

4 Government Interference 0.09 3 0.27

TOTAL 1.00 3.19

Total weighted score of opportunities and threats in EFE matrix is 3.19 Which is above average. it means Zong is availing its opportunity and maximizing its threats

Interpretation

INTERNAL FACTOR EVALUATION (IFE) MATRIXKey Internal Factors Weight Rating Weighted

Score Strengths 1 Investment 0.09 4 0.36

2 High Growth Rate 0.11 4 0.44

3 Advertising 0.12 3 0.36

4 Net Work Portability 0.12 3 0.36

5 Zong Mobile 0.07 3 0.21

6 Resources Assets And People 0.08 3 0.24

7 Location And Geographical Coverage

0.10 3 0.30

8 Government Dealing 0.09 3 0.27

Weaknesses1 Bad Image Of Paktel 0.06 2 0.12

2 Coverage 0.07 1 0.07

3 Low Market Share 0.05 2 0.10

4 Weak MIS 0.04 2 0.08

TOTAL 1.00 2.91

Interpretation

Total weighted score of strengths and weaknesses in IFE matrix is 2.91 Which is above average. it means Zong is increasing its strengths and overcoming on its weakness.

Competitive Profile Matrix (CPM)V

Critical Success Factors (CSF)

Weight

Rating Weighted Score

Rating

Weighted Score

Rating

Weighted Score

Rating

Weighted Score

Market Share 0.15 4 0.60 3 0.45 1 0.15 3 0.45

Growth Rate 0.10 1 0.10 3 0.30 4 0.40 3 0.30

Financial Strength 0.08 3 0.24 3 0.24 4 0.32 3 0.24

Management 0.12 4 0.48 3 0.36 3 0.36 3 0.36

Coverage 0.10 4 0.40 3 0.30 2 0.20 2 0.20

CCS 0.13 4 0.52 3 0.39 3 0.39 2 0.26

Advertising 0.06 2 0.12 3 0.18 3 0.18 4 0.24

Brand Name 0.10 4 0.40 2 0.20 3 0.30 3 0.30

Packages 0.09 2 0.18 3 0.27 3 0.27 4 0.36

Price Competitiveness

0.07 2 0.14 3 0.21 3 0.21 3 0.21

TOTAL 1.00 3.18 2.90 2.78 2.92

As indicated by the total weighted score of 2.78, Zong is weakest. because it is at its initial position as compare to competitors. With the point of 3.18 Mobilink is leading.Telenor and ufone have total the scoreOf 2.90 and 2.92 respectively.

interpretation

Strengths–SS1. CapitalS2. Network PortabilityS3. ResourcesS4. LocationS5. Government DealingsS6. High Growth RateS7. Advertising

Weaknesses – WW1. CoverageW2. Bad Image Of PaktelW3. Low Market ShareW4. Weak MISW5. Old Staff

Opportunities – OO1. GlobalizationO2. Marketing O3. Acquiring O4. Covering Pak China BorderO5. Covering Northern AreasO6. New ProductO7. Penetration

SO-Strategies

S1,O1 Expand S3,O7 Penetration S1,O3 Acquisition

WO-Strategies

W3,O3 Acquisition

Threats – T

T1. Old Stable CompaniesT2. Attractive Packages By CompetitorsT3. Price WarT4. Government Interference

ST-Strategies

S1,T3 Cost Leadership

S3,T2 Penetration

WT-Strategies

W3,T2 Downsizing

•TOWS MATRIX OF ZONG

Financial Strength (FS) RAITNGSRevenues 5.0

Return on investment 4.0

Working capital 5.0 14.0

SPACE Matrix of Zong

Competitive Advantage (CA)Resources Assets -2.0

High growth rate -1.0

Advertising -2.0

Competition capacity utilization -3.0 -8.0

Environmental stability (ES) RAITNGS

Technological changes -3.0

Rate of inflation -4.0

Demand variability -2.0

Barriers to entry into market -1.0 -10.0

Industry Strength (IS)Deregulation increase completion in telecom industry 3.0

Financial stability 5.0

Resources utilization 4.0

Profit potential 4.0 16.0

Conclusion

FS average is 14/3 = 4.67 CA average is -8/4 = -2.0 ES average is -10/4 = -2.5IS average is 16/4 = 4.0 Directional Vector Coordinates: x-axis: 4.67+ (-2.5)=2.17

Directional Vector Coordinates: y-axis: 4.0+ (-2) = 2 The Zong should peruse Aggressive strategies

SPACE MATRIX FOR ZONG

AggressiveConservative

Defensive Competitive

(2, 2.17)

BCG GROWTH-SHARE MATRIX

Internal External Evaluation Matrix

i. 1 i. 2 i. 3

i. 4 i. 5 i. 6

i. 7 i. 8 i. 9

Total weight of IFE

Total weightOf EFE

GRAND STRATEGY MATRIX FOR ZONG

Strong Competitive Position11

Rapid Market Growth

Weak Competitive Position

Slow Market Growth

Quadrant II Quadrant I

Quadrant III Quadrant IV

Quantitative Strategic Planning Matrix (QSPM)SELECTIVE STRATEGIES MARKET PENETRATION COST LEADERSHIPKey External Factors Weight Attractiveness

Scores (AS) Total Attractiveness Scores (TAS)

Attractiveness Scores (AS)

Total Attractiveness Scores (TAS)

Opportunities1 Globalization 0.10 3 0.30 2 0.20

2 Marketing 0.15 4 0.60 3 0.45

3 Acquisition 0.08 2 0.16 2 0.16

4 New Product

Development

0.07 3 0.21 3 0.21

5 Northern Areas 0.10 3 0.30 2 0.20

6 Pak China Borders 0.13 3 0.39 2 0.26

Threats1 Old Stable

Companies0.12 4 0.48 3 0.36

2 Attractive Packages By Others

0.10 3 0.30 3 0.30

3 Price War 0.06 3 0.18 2 0.12

4 Government Interference

0.09 3 0.27 2 0.18

TOTAL 1.00

Strengths 1 Investment 0.09 4 0.36 4 0.36

2 High Growth Rate 0.11 4 0.44 3 0.33

3 Advertising 0.12 3 0.36 3 0.36

4 Net Work Portability

0.12 3 0.36 3 0.36

5 Zong Mobile 0.07 3 0.21 3 0.21

6 Resources Assets And People

0.08 3 0.24 3 0.24

7 Location And Geographical Coverage

0.10 3 0.30 3 0.30

8 Government Dealing

0.09 3 0.27 3 0.27

Weaknesses1 Bad Image Of

Paktel0.06 2 0.12 1 0.06

2 Coverage 0.07 1 0.07 1 0.07

3 Low Market Share 0.05 2 0.10 2 0.10

4 Weak MIS 0.04 2 0.08 1 0.04

SUM TOTAL ATTRACTIVENESS SCORE

1.00 6.10 5.14

•CONCLUSION

Zong has strong financial position and growing fast. That is the reason we didn’t found much discrepancies. As seeing the growth rate of Zong it may possible that Zong can be the leading mobile operator in Pakistan. There are some minor discrepancies but they can adjustable with little effort.

•Recommendation

Zong Telecom should be increase their network coverage and foot prints in every corner of the country to capture the market.

Zong should adopt the strategies of market penetrationCost leadership and related diversificationbut the most effective strategy would be market penetration.

In the SBU of Zong mobile Zong should use the strategy of hold and maintain.

Zong should hire the skilled management.

Zong should not waste their opportunities and get more help as possible.

•References

www.zong.com.

www.google.com

www.pta.com.pk

Rana Armughan Zong Garden Town Ali Block Lahore

Farhan Ali Khan Zong Kchehri Chowk Multan