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Page 1: Project of Mobilink

INTRODUCTION

Mobilink GSM (PMCL), a subsidiary of Orascom Telecom is the market leader in providing state-of-the-art communications solutions in Pakistan.

Orascom Telecom Holding S.A.E (OTH), the parent company based in Egypt was

established in 1998, and has grown to become the largest and most diversified GSM

network operator in the Middle East, Africa, and Pakistan. With over ten licenses

covering the region, Orascom Telecom has positioned itself as a leading

telecommunications conglomerate in emerging markets of this region. Orascom enter

in the Pakistani market through the licensing where they have to pay the Royalty fee.

Mobilink covers approximately 85 percent of Pakistan's urban population and it can

proudly boast of being the first cellular service provider in Pakistan to operate on a

100% digital GSM technology. It 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, Mobilink offers both

postpaid (Indigo) and the prepaid (JAZZ) solutions to its customers.

In addition to providing advanced voice communication services, Mobilink also offers a

number of value added services to its valued subscribers. Keeping in mind its

customers' convenience, Mobilink has also bundled mobile handsets, sold either

independently or bundled in Get Set Go Pack.

Mobilink GSM started operations in the year 1994,as a third entrant in the market,

while Paktel and Instaphone were already operating since 1991 and had acquired

substantial market penetration. Despite the re-launch of Ufone, the main competitor,

Mobilink has maintained its momentum of growth. All this has been possible due to

inter-departmental synergy and strengthening of Mobilink’s brands. Till early 2001,

they had a market share of 43%. OT took over management control of the company in

April 2001 and changed the overall market dynamics through its aggressive marketing

strategy and expertise. In less than two years time Mobilink grew by almost 400% with

market leadership of 60% market share (year end 2003).At the time when it entered

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the market it was a small player in the cellular market of Pakistan it is now the market

leader both in terms of growth as well as having the largest subscriber base in

Pakistan.

MANAGEMENT Mobilink has a very competitive management. The names of

the Top Management are given below.

Zouhair Abdul Khaliq, President and CEO Ehab Rochdy, Chief Finance OfficerTariq Rashid, Chief Information OfficerRashid khan, Chief Commercial OfficerMarwan Hayek, Chief Technical OfficerAli Raza Mehdi, Vice President Administration & Human Resources

MISSION STATEMENTHere are Mission statements of both organizations i.e. parent company and subsidry.

Orascom Telecom

“Our mission is to be the premiere telecom operator in the Middle East, Africa, and Indian sub-continent, providing the best quality services to our customers, value to our shareholders, and a dynamic working environment for our employees.”

Mobilink GSM

“To provide unparallel services while making sure to satisfy all stake holders”

PRODUCTS AND SERVICES

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Mobilink being the market leader enjoys major share of the overall market with both

Indigo and Jazz dominating the postpaid and prepaid segments respectively Mobilink

deals with postpaid Indigo and prepaid (Jazz) packages.

JAZZ

Addressing the press conference, Graham Burke,

president Pakistan Mobilink Corporation Limited

said that with the prepaid card a customer could

control its cost with the freedom to use.

This is when Jazz was first launched in Pakistan,

and with the passage of time became very popular,

especially among the young lot.

Jazz, is based on an intelligent network which is the

most advanced and expensive platform, presently

available in cellular telephone technology.

Scores of facilities available in the package will cater to the communication needs of

thousands of people in the country who cannot afford a post paid mobile phone

connection.

Jazz is an amazing prepaid service that allows customer freedom from monthly bills

and gives him/her complete control over his/her cellular expenditure. Customer

decides in advance when and how much he/she wants to spend. Jazz is simple, easy

and loads of fun.

Jazz is extremely affordable, with features like:

No daily charges

Low outgoing rates

180 days validity of Jazz Scratch Cards

Simply reactivate deactivated Jazz connection

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Jazz-Aur SunaoJazz tariffs have been reduced from Rs. 4.75 per minute to Rs. 3.50 per minute on all

calls from Jazz to any other Mobilink numbers. This tariff reduction will serve as an

unparalleled advantage to the largest mobile community in Pakistan, who will now

have to pay less to call within the Mobilink family, 24 hours a day.

Jazz Member get Member  The Jazz Member get Member promo is the first of its

kind where Mobilink will be giving it’s customers an

opportunity to become the brand’s ambassadors and at

the same time earn some free airtime. The essence of

the campaign is that an Existing Jazz customer can refer

up to 4 new customers and earn Rs.400 in airtime. The new Jazz customer will also

get Rs. 100 free airtime.

INDIGO

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STRATEGIC MANAGEMENTArt and science of formulating, implementing, and evaluating cross-functional

decisions that enable an organization to achieve its objective.

STAGES OF STRATEGIC MANAGEMENTThere are three stages involved in strategic management process.

STRATEGY FORMULATION

STRATEGY IMPLEMENTATION

STRATEGY EVALUATION

STRATEGY FORMULATION

Strategy formulation includes developing a business mission, identifying an

organization external opportunities and threats, determining internal strength and

weaknesses, establishing long-term objective, generating alternative strategies, and

choosing particular strategies to pursue.

Strategists must decide which alternative strategies will benefit the firm most.

Strategy-formulation decision commits an organization to specific products, markets,

resources, and technologies over an extended period of time. Strategies determine

long-term competitive advantages. Top managers have the best perspective to

understand fully the ramifications of formulation decision; they have the authority to

commit the resources necessary for implementation.

STRATEGY IMPLEMENTATIONStrategy implementation requires a firm to establish annual objectives, devise policies,

motivate employees, and allocate resources so that formulated strategies can be

executed; strategy implementation includes developing a strategy-supportive culture,

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creating an effective organizational structure, redirecting marketing efforts, preparing

budgets, developing and utilizing information system, and linking employee

compensation to organizational performance.

Strategy implementation often is called action stage of strategic management.

Strategy implementation requires personal discipline, commitment, and sacrifice,

success full strategy implementation hinges upon managers’ ability to motivate

employee.

Interpersonal skills are especially critical to success full strategy implementation.

Every division and department must decide on answers to questions such as “What

must we do to implement over part of the organization’s strategy?” and “How best can

we get the job done?

STRATEGY EVALUATIONStrategy evaluation is the final stage in strategic management, because external and

internal factors are constantly changing. Three fundamental strategy-evaluation

activities are

Reviewing external and internal factor that are bases for current strategies

Measuring performance

Taking corrective action

Strategy evaluation is needed because success today is no guarantee of success

tomorrow success always creates new and different problems; complacent

organization experience demise.

Strategy formulation, implementation, and evaluation activities occur at three

hierarchical levels in large organization: corporate, divisional or strategic business

unit, and functional. By fostering communication and interaction among managers and

employees across hierarchical levels, Strategic management helps a firm function as

a competitive team. Nevertheless, managers and employees at these two levels

should be actively involved in strategic management activities.

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COMPONENTES OF A MISSION STATEMENT Mission statement can and do very in length, content, format, and specificity. Most

practitioners and academicians of strategic management consider an effective

statement to exhibit nine characteristics or components. Because a mission statement

is often the most visible and public part of the strategic-management process, it is

important that is includes all of these essential components. Components and

corresponding question that a mission statement should answer are given here,

CUSTOMERS Who are the firm’s customers?

PRODUCTS OR SERVICES What are the firm’s major products or services?

MARKETS Geographically, where does the firm compete?

TECHNOLOGY Is the firm technology current?

CONCERN FOR SURVIVAL, GROWTH, AND PROFITABILITY Is the firm committed to growth and financial soundness?

PHILOSOPHY What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

SELF-CONCEPT What are the firm’s distinctive competence or major competitive advantage?

CONCERN FOR PUBLIC IMAGE Is the firm responsive to social, community, and environmental concerns?

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CONCERN FOR EMPLOYEES Are employees a valuable asset of the firm?

MOBILINK’S MISSION STAEMENT ALONG WITH IT’S COMPONENTS

“To provide unparallel services while making sure to satisfy all stake holders”

THE NATURE OF AN EXTERNAL AUDIT THE NATURE OF AN EX

The purpose of an external audits us to develop a finite list of opportunities that could

benefit and threats that should be avoid. Firms should be able to respond either

offensively or defensively to the factor by formulating strategic that take advantage of

external opportunities or that minimize the impact of potential threats.

KEY EXTERNAL FORCESExternal forces can be divided into five board categories

Economic forces

Social, cultural, demographic, and environmental forces

Political, governmental, and legal forces

Technological forces

Competitive forces.

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THE PROCESS OF PERFORMING AN EXTERNAL AUDIT To perform an external audit, a company first gathers competitive intelligence and

information about social, cultural, demographic, environmental, economic, political,

legal, governmental, and technological trends. Individuals can be asked to monitor

various sources of information such as key magazines, trade journals, and

newspaper. These persons can submit periodic scanning reports as a commit of

managers charged with performing the external audit.

Once information is gathered, it should be assimilated and evaluated. A meeting or

series of meeting of up to 20 managers needed to collective identify the most

important opportunities and threats facing the firm. A prioritized list of these factors

could be obtained. Critical success factors can very over time and by industry.

Critical success factors should be

Important to achieving long-term and annual objective

Measurable

Relatively few in number

Applicable to all competing firms

Hierarchical in the sense that some will pertain to the overall company and

others will be more narrowly focused on functional or divisional areas.

ECONOMIC FORCES Economic factors have a direct impact on the attractiveness of various strategic. For

example, if interest rates rise, then fund needed for capital expansion become more

costly or unavailable, also, interest rates rise, discretionary income declines, and the

demand for discretionary goods falls. As stock prices increases, the desirability of

equity as a source of capital for market development increases. Also, as the market

rises, consumer and business wealth expand.

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SOCIAL, CULTURAL, DEMOGRAPHIC, AND

ENVIRONMENTAL FORCESSocial, cultural, demographic, and environmental changes have a major impact upon

virtually all products, services, markets, and customers, small, large, for-profit and

nonprofit organizations in all industries are being staggered and challenged by the

opportunities and threats arising from changes in social, cultural, demographic, and

environmental variables.

POLITICAL, GOVERNMENTAL AND LEGAL FORCES Federal, state, local, and foreign governments are major regulators, deregulators,

subsidizers, employers, and customers of organizations. Political, governmental, and

legal factors therefore can represent key opportunities or threats for both small and

large organization. For industries and firms that depend heavily on government

contracts or subsidies, political forecasts can be the most important part of an external

audit. Changes in patent laws, antitrust legislation, tax rates, and lobbying activities

can affect firms significantly.

TECHNOLOGICAL FORCESRevolutionary technological changes and discoveries such as superconductivity,

computer engineering, thinking computers, robotics, unsafe factories, miracle drugs,

space communication, space manufacturing, lasers, cloning, satellite, networks, fiber

optics, biometrics, and electronic funds transfer are having a dramatic impact on

organization. Superconductivity advancement alone, Which increase the power of

electrical products by lowering resistance to current, are revolutionizing business

operations, especially in the transportation, utility, health care, electrical, and

computers industries.

KEY EXTERNAL FORCES AFFECTING MOBILINK

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Economic Environment The income level of our people varies greatly, so Mobilink GSM has paid attention to

the income levels of the people of Pakistan and introduced different packages for

each. On a larger scale, the economic environment is unstable and money is

distributed unevenly among the masses.

Technological Environment Mobilink GSM is aware of its technological environment. Currently, a lot of attention is

being given to information and cellular technology by the government. Therefore the

technical environment of Pakistan does not really pose a threat for Mobilink. With the

increasing usage of the Internet, Mobilink is focusing on the integration of the Internet

with its cellular offering, which will result in increased efficiency and effectiveness of

cellular communication.

People have also become more health conscious. Recently, an issue has arisen that

radiation from mobile handsets damages the brain. This poses a threat for the mobile

industry.

Political environmentThe political environment has, does and will effect Mobilink’s functioning in Pakistan.

This is because the government of Pakistan does not allow purely foreign ventures (of

all industries) here and that is why Mobilink GSM, a venture of the Orascom Telecom

group, had to settle with a partnership with local organizations here. Other than this

policy of the Government of Pakistan, it’s a risk for foreign companies to invest in

Pakistan because of the unstable economy and changing governments.

Demographic Cultural and Social EnvironmentThe population of Pakistan is increasing rapidly. Growing population means growing

human communication needs to satisfy and this means increasing market

opportunities for Mobilink GSM. The main target customers for JAZZ are young people

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from ages 19 above and 30 below. These people include students and yuppies (young

urban professionals).

Connectivity is the need of the hour. People are moving in an age of connectivity.

Information technology is shaping up our society’s perceptions, preferences and

behaviors. Our cultural environment is highly affected by this advancement. Today

every body wants to be up-to-date. Mobile communication is quenching this thirst and

Mobilink GSM is the market leader in its territory.

The mobile phone has become so much of a part of our culture that a professional

and a non-professional alike, cannot do without one. Instead of our culture shaping

the wants of its people, the want is starting to shape our culture. Therefore it would be

wrong to say that the Pakistani cultural environment is hostile to changes, especially

to this technological change.

The religious environmental pressures/trends are critical areas, which need to look

into while promoting sales of a particular product as these aspects are generally

ignored, which can eventually undermine the success of sales and promotion efforts.

Mobilink also has been a victim of such problems.

Mobilink also had a few problems while its promotional activities. As happened with

the bill board of jazz, portraying the famous Pakistani model/actress, Zara sheikh,

trying to promote Jazz. One of such boards was burnt to ashes by activists of a

religious group as according to them she portrayed in an improper dress.

Mobilink should have taken in account these religious values, as ours is a

conservative society, that’s why Mobilink should see what are the barriers which may

create hurdles in advertising and promotion plan.

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COMPETITIVE ANALYSIS

BARRIERS TO ENTRYBARRIERS TO ENTRY Absolute cost advantages Absolute cost advantages

Proprietary learning curve Proprietary learning curve

Access to inputs Access to inputs

Government policy Government policy

Economies of scaleEconomies of scale

Capital requirements Capital requirements

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Porter's Five Forces Model

BuyersSuppliers

Substitute products

Potential entrants

Industry competitors

Rivalry amongexisting firms

Threat ofnew entrants

Bargaining powerof suppliers

Bargaining powerof buyers

Threat ofsubstitutes

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Brand identity Brand identity

Switching costsSwitching costs

Access to distribution Access to distribution

Expected retaliation Expected retaliation

Proprietary products Proprietary products

THREATS OF SUBSTITUTESTHREATS OF SUBSTITUTES Switching costsSwitching costs

Buyer propensity to substitute Buyer propensity to substitute

Relative price performance of substitute Relative price performance of substitute

BUYER POWERBUYER POWER Bargaining leverage Bargaining leverage

Buyer volume Buyer volume

Buyer information Buyer information

Brand identity Brand identity

Price sensitivity Price sensitivity

Threat of backward integration Threat of backward integration

Product differentiation Product differentiation

Buyer concentration vs. industry Buyer concentration vs. industry

Substitutes available Substitutes available

Buyers' incentives Buyers' incentives

SUPPLIER POWERSUPPLIER POWER Supplier concentration Supplier concentration

Importance of volume to supplier Importance of volume to supplier

Differentiation of inputs Differentiation of inputs

Impact of inputs on cost or differentiation Impact of inputs on cost or differentiation

Switching costs of firms in the industry Switching costs of firms in the industry

Presence of substitute inputs Presence of substitute inputs

Threat of forward integration Threat of forward integration

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Cost relative to total purchases in industryCost relative to total purchases in industry

DEGREE OF RIVALRYDEGREE OF RIVALRY Exit barriers Exit barriers

Industry growthIndustry growth

Industry concentration ratio Industry concentration ratio

Fixed costs/Value added Fixed costs/Value added

Product differentiation Product differentiation

Buyers' incentivesBuyers' incentives

PORTER'S FIVE FORCES MODEL IN MOBILE INDUSTRY

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BuyersSuppliers

Substitute products

Potential entrants

Industry competitors

Rivalry among Mobilink and

Entry of Telenor and Warid

Bargaining powerof suppliers

Many substitutes available

Increasing bargaining powerof buyers

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INDUDTRYS ANALYSIS

THE EXTERNAL EVALUATION (EFE) MATRIXAn external factor evaluation (EFE) matrix allows strategists to summarize and

evaluate economic, social, cultural, demographic, environmental, political,

Governmental, legal, technological, and competitive information. There are five steps

in developing an EFE Matrix

List key external factors as identified in the external audit-process. Include a

total of from 10 to 20 factors, including both opportunities and threats affecting

the firm and its industry. List the opportunities first and then the threats. Be as

specific as possible, using percentage, ratios, and comparative numbers

whenever possible.

Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very

important). The weight indicates the relative importance of that factor to being

successful in the firms industry. Opportunities often receive higher weights then

threats, but threats too can receive high receive weights if they are especially

severe or threatening. Appropriate weights can be determined by comparing

successful with unsuccessful competitors or by discussing the factor and

reaching a group consensus. The sum of all weight assigned to factors must

equal 1.0.

Assign a 1-to-4 rating to each critical success factors to indicate how effectively

the firms current strategies respond to the factor, where 4 = the response is

superior, 3 = the response is above average is average, and 1 = the response

is poor, Rating are based on effectiveness of the firms strategies. Ratings are

thus company-based, whereas the weights in step 2 are industry-based.

Multiply each factors weight by its rating to determined a weighted score.

Sum the weighted scores for each variable to determined the total weighted

scores for the organization.

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Regardless of the number of key opportunities and threats included in an EFE

Matrix, the highest possible total weighted score for an organization is 4.0 and

the lowest possible total weighted score is 1.0. The average total weighted

score is 2.5. A total weighted score of 4.0 indicates that an organization is

responding in an outstanding way to existing opportunities and threats in its

industry. In others words, the firms strategies effectively take advantage of

existing opportunities and minimize the potential adverse effect of external

threats. A total score of 1.0 indicate that firm’s strategies are not capitalizing on

opportunities or avoiding external.

THE EXTERNAL EVALUATION (EFE) MATRIX OF MOBILINK Key external factors have been identified in the external audit-process,

including both opportunities and threats affecting the firm and its industry.

Each factor has been assigned a weight that ranges from 0.0 (not important) to

1.0 (very important). The weight indicates the relative importance of that factor

to being successful in the firms industry. The sum of all weights assigned to

factors is equal to1.0.

1-to-4 rating has been assigned to each critical success factors to indicate how

effectively the firms current strategies respond to the factor, where 4 = the

response is superior, 3 = the response is above average is average, and 1 =

the response is poor, Rating are based on effectiveness of the firms strategies.

Each factors weight has been multiplied by its rating to determined a weighted

score.

Total weighted scores for the organization has been reached by summing all

weighted scores.

A total weighted score of indicates that Mobilink is responding in an

outstanding way to existing opportunities and threats in its industry. In others

words, the firms strategies effectively take advantage of existing opportunities

and minimize the potential adverse effect of external threats.

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KEY EXTERNAL FORCES WEIGHTS RATINGS

WEIGHTED

SCORES

OPPORTINITIES

Mobile market is far below saturation.

Pakistan’s government trying to boost the

IT industry; it has a lot of scope here.

Area of operations can be expanded

Mobile phone has become a part of our

culture

Facilities with respect of recharging of

connection.

Growing population and growing needs

for communication

4

3

2

1.00

3

THREATS

New potential entry.

PTCL being government owned

organization-having monopoly in

telecommunication sector.

Increased bargaining power of customer.

Value added services provided by

competitors.

Uneven distribution of wealth

Unstable economy and changing

governments

Ignoring religious values while promoting

sales through advertisement

42

3

3

TOTAL 1.00

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THE COMPETITIVE PROFILE MATRIXThe competitive profile matrix (CPM) identifies a firm’s major competitor and their

particular strengths and weakness in relation to a sample firm’s strategic position.

The weights and total weighted scores in both a CPM and EFE have the same

meaning. However, the factors in CPM include both internal and external issues; the

rating refers to strength and weakness. There are some important differences

between the EFE and CPM. First of all, the critical success factors in a CPM are

broader; they do not include specific or factual data and even may focus on internal

issues. The critical success factors in a CPM also are not grouped into opportunities

and threats as they are in an EFE. In a CPM the ratings and total weighted scores for

rival firms can be compared to the sample firm. This comparative analysis provides

important internal strategic information.

CPM MATRIX FOR MOBILINKThe competitive profile matrix (CPM) of Mobilink identifies it’s major competitor and

their particular strengths and weakness in relation to firm’s strategic position. The

factors in CPM include both internal and external issues; the rating refers to strength

and weakness of three firms Mobilnk, Paktel and Ufone.Here critical success factors in

a CPM are broader. Advertisement and price competitiveness are most critical

success factors in he industry as indicated by weights. Mobilinks product quality is

superior as indicate by rating of 4.Ufone is tha weakest firm receiving a weighted

score of 3.55. Paktel is an average firm with weighted score of 3.75 while Mobilnk is

highly competitive firm as evidenced by weighted score of 3.6.

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THE COMPETITIVE PROFILE (CPM) MATRIX

PAKTEL MOBILINK UFONE CRITICAL

SUCCESS

FACTORS

WEIGHTS RATING SCORE RATING SCORE RATING SCORE

Advertisement

Product quality

Price

competitiveness

Management

Financial position

Customer loyalty

Global expansion

Market share

0.2

0.20

0.10

0.10

0.15

0.10

0.10

0.05

4

2

3

4

3

2

1

2

0.8

0.4

0.3

0.4

0.45

0.2

0.1

0.1

3

4

2

4

4

4

4

4

0.6

0.8

0.2

0.4

0.6

0.4

0.4

0.2

2

2

4

3

4

2

1

3

0.4

0.4

0.4

0.3

0.6

0.2

0.1

0.15

TOTAL 1.00 2.75 3.6 2.55

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BCG MATRIX

Boston Matrix is a well-known tool for the marketing manager. The large US

consulting group developed it. It has two controlling aspect namely relative market

share (meaning relative to your competition) and market growth. It is based on the

observation that a company business unit can be classified into four categories based

on relative market share and market growth. Market growth serves as proxy for

industry attractiveness and relative market share serves as proxy for competitive

advantages.

This is simplistic in many ways and the matrix has some understandable limitations

that will be considered later. Each cell has its own name as follows.

PROBLEM CHILDREN/QUESTION MARK

These are firms with a low share of a high growth market. They consume resources

and generate little in return. They absorb most money as you attempt to increase

market share. A question mark has the potential to gain market share and become a

star, and eventually a cash cow when market share slows down. If question mark

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does not succeed in becoming market leader then perhaps after years of cash

consumption it will degenerate into dog when market share declines. Question marks

must be analyzed carefully in order to determine whether they are worth investment

required to gain market share.

STARS

These are firms that are in high growth markets with a relatively high share of that

market. Stars tend to generate high amounts of income. If a star maintains its market

share it will become a cash cow, when the market growth rate declines.

CASH COWS

These are firms with a high share of a slow growth market. Cash Cows generate more

than is invested in them. Such business units should be milked extracting the profits

and investing a little cash as possible. Cash cow provides the cash to turn dogs into

market leader, to cover administrative cost of the company, to fund research and

development, to service the corporate debts, to pay dividends to shareholders.

Because cash cow generates relatively stable cash flows its value can be determined

with reasonable accuracy by calculating present value of its cash streams using a

discounted cash flow analysis.

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DOGS

These are organizations with a low share of a low growth market. These are the

canine version of 'real turkeys!'. They do not generate cash for the company, they tend

to absorb it. Such businesses are candidate of divestiture.

Problems with the Boston Matrix

This matrix was widely used but now it has faded it’s popularity as new and more

comprehensive models have been developed. Here are some problems of this matrix.

1. There is an assumption that higher rates of profit are directly related to high

rates of market share. This may not always be the case. When Boeing launch a

new jet, it may gain a high market share quickly but it still has to cover very high

development costs.

2. It is normally applied to Strategic Business Units (SBUs). These are areas of

the business rather than products.

3. There is another assumption that SBUs will cooperate. This is not always the

case.

4. The main problem is that it oversimplifies a complex set of decision. Be careful.

Use the Matrix as a planning tool and always rely on your gut feeling.

BCG MATRIX IN MOBILE INDUSTRY

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Here are four firms, which are differently identified, in mobile industry.

STARPaktel GSM can be recognized as star in mobile industry. Firstly it was a question

mark but it has now moved to become a star as it has made heavy sales from it’s

launch till now. So having highest sales volume it is a star.

CASH COW

Mobilink is no doubt is a cash cow in mobile industry. It is generating more than is

invested in it. It is having greatest market share in mobile industry, which is a major

feature of cash cow.

STAR QUESTION MARK

CASH COW DOG

DOG

Paktel Aims is a dog in mobile industry. It is having a low share market.

QUESTION MARK

Warid an upcoming Mobile service providing company is question mark for the mobile

industry. It’s success and failure both are not sure.

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TOWS MATRIX FOR MOBILINK

STRENGTHS WEAKNESSES

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TOWS Matrix

Threats:1.2.3.

Opportunities:1.2.3.

ST StrategiesTake advantage of

Strengths toAvoid threats

SO StrategiesUse strengths to take advantage of opportunities

Strengths:1.2.3.

WT Strategies Defensive strategies to minimize weaknesses andavoid threats

WO StrategiesUse Opportunities to overcome weaknesses

Weaknesses:1.2.3.

From Internal Analysis

(IFAS)

From External Analysis (EFAS)

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1.Powerful brand image.2.Abundant financial resources as it doesn’t face government constraints3.Known as market leader.4.80% urban coverage5.First company to introduce the concept of franchise in Pakistan.

1.Usually has a busy network.2.Don’t think about the customers complaints

OPPORTINITIES

1.Mobile market is far below saturation.2.Pakistan’s government trying to boost the IT industry; it has a lot of scope here.3.Area of operations can be expanded4.Mobile phone has become a part of our culture5.Facilities with respect of recharging of connection.6.Growing population and growing needs for communication

SO STRATEGIES

Forward integration

WO STRATEGIES

THREATS

1.New potential entry.2.PTCL being government owned organization-having monopoly in telecommunication sector.3.Increased bargaining power of customer.4.Value added services provided by competitors. 5.Uneven distribution of wealth6.Unstable economy and changing governments7.Ignoring religious values while promoting sales through advertisement

ST STRATEGIES

Market penetrationMarket developmentProduct development

WT STRATEGIES

Joint venture

SO STRATEGIES

Forward integration

From External Analysis (EFAS)

From Inter-nal Analysi-s (IFAS)

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Mobilink has a very effective and efficient distribution system, which comprises of the

following sources:

Franchisers/dealers.

Service centers.

Connects.

Shops

Franchisers/dealersThey deal with giving connections, billing and also the customer services. They have a

certain deal with Mobilink in which these franchisers purchase these connections from

Mobilink at a price and hen these franchisers/dealers further sell them. After selling

these connections, the franchisers get commission from Mobilink.Thus they earn a

profit.

Service centersThese service centers provide the connections and you can also buy hand sets in

these centers.

Connects These only provide the connections of Mobilink.

ST STRATEGIES

Market penetration

Mobilink promotions are through the following sources:

News papers

Television

Billboards

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Pamphlets

Public relation programs

Word of mouth

Sales promotion

Newspapers and Television

Mobilink has high advertising budget and it works with

renowned and costly directors actors and models in its

television ads and also in newspapers. For example Mobilink

used Shann, Zara Sheikh, Eiman Ali and Samina Perzada in it’s

advertisements for reference sales.

Sales promotionNow a day Mobilink is offering

Product developmentMarket penetrationWO STRATEGIESJoint ventureGovernment of Pakistan does not allow purely foreign ventures (of all industries) here

and that is why Mobilink GSM, a venture of the Orascom Telecom group, had to settle

with a partnership with local organizations here. Other than this policy of the

Government of Pakistan, it’s a risk for foreign companies to invest in Pakistan

because of the unstable economy and changing governments.

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