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SWOT analysis of ufone

SWOT analysis of ufone

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Published by mubie
It is the SWOT analysis of Telecommunication company in Pakistan Named U-fone gsm.
It is the SWOT analysis of Telecommunication company in Pakistan Named U-fone gsm.

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Published by: mubie on Jan 19, 2009
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05/13/2013

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Introduction
Ufone GSM
is a PakistaniGSM cellular service provider. It is one of six GSM Mobile companies in Pakistan and is a subsidiary of Pakistan Telecommunication Company.Thecompany commenced its operations under the brand name of U fone from Islamabad onJanuary 29 2001. U fone expanded its coverage and has added new cities and highways toits coverage network. After the privatization of PTCL, U fone is now owned by Etisalat.PTML is a wholly owned subsidiary of PTCL. established to operate cellular telephony.The company commenced its operations, under the brand name of Ufone from Islamabadon January 29 2001.During the year, as a consequence of PTCL’s privatization, 26% of its shares wereacquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, themanagement of Ufone has also been handed over to Etisalat. During the year July 2005 toJune 2006, Ufone continued on the path to success. The Company further expanded itscoverage and has added new cities and highways. Ufone has network coverage in morethan 750 cities, towns and across all major highways of the country. During the year Ufone successfully completed the network expansion of Phase 4 in existing as well as innew cities and towns which amounted to more than US Dollar 170 million. As a result theasset base of the Company has increased from Rs. 20 billion to Rs. 27 billion. FuturePlans Keeping in view the growth potential of the cellular industry there is no option butto be aggressive in order to remain a potent force in the cellular industry. In order toextend cellular network to new cities, towns and highways and enhance its currentinstalled capacities in existing cities, Ufone has finalized a huge network expansioncontract amounting to about USD 550 million, which will enhance the subscribers’capacity by 10 million. This is the largest ever expansion project of Ufone. 
Strengths
Ufone has network coverage in more than 750 cities, towns and across all major highways of the country.
Ufone provides International Roaming facility with more than 150 internationaloperators across 79 countries.
Ufone is proud to have an efficient and friendly customer service through 21company-owned Sales & Customer Service Centers and nearly 250 franchiseesacross the country.
Ufone has always believed in a solid commitment to growth, security andreliability. Therefore, Ufone has always balanced its expansion efforts and qualityof service. With a total current investment of $400 Million.
Utunes was launched on 4th Dec2007 which attracted many people towards ufone.
U fone is offering the service of Multi-media Messaging Service (MMS).
As mobile users in the country have reached over 78 million at a very rapid pace,Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with asubscriber base of around 16.5 million and a market share of nearly 25%. Ufonehas seen a subscriber growth rate of over 200% in the last year, and since the startof 2005 Ufone added nearly 5 million subscribers onto its network. A remarkable
 
achievement indeed, especially considering the fact that two new international players also entered into the market in 2005.
While keeping its tradition of being the trend setter in the industry, Ufone changedthe image of mobile phones from a luxury only affordable by the elite, to anecessity affordable by the common man.
Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand.
U fone has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility.
It has the post paid service that is normally to attract the Business class people.Most of the business and elite class people use post paid and other servicesoffered by the U fone.
Ufone has a subscriber base of 18.97 million as of October 2008.
U fone was the first cellular Company in Pakistan that introduced the service of GPRS and hence took the competitive advantage.
U fone has some exciting and energetic SMS packages that made SMS almostfree. They are offering Rs. 25, Rs.50, Rs.100, Rs. 150 SMS packages which itssubscribers are really loving it.
U fone has some very exciting and low call packages like “5 ka 15” , “u-one”, ucircle”, “ U fone ghanta”, “U fone has some very exciting and low call packageslike “5 ka 15” , “u-one”, u circle”, “ U fone ghanta”, “U fone life package”and “ prepay Public Demand” etc which attracted lots of customers towards it and manyother cellular company users are also switching to it.
U fone post paid is also offering black berry set that is useful and tempting for theBusiness class.
U fone currently caters for international roaming to more than 195 live operatorsacross 119 countries and introduced International roaming facility for Prepaidsubscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore,Portugal and Kuwait with lowest rates, featuring no security deposit andactivation charges. GPRS Roaming facility is available with more than 75 LiveOperators across 59 countries.
WEAKNESSES
U fone does not have the proper lists of its customers. It has the list but this list isnot authentic which is increasing the unauthorized use of its sim specially pre pay.U fone have to take serious steps to properly list its customers to ensure that thereis no misuse.
It has many franchises in the whole country but as its customers are increasingday by day so its present franchises are not enough to fulfill the needs of itcustomers.
U fone also face problems and its network get jammed on special occasions likeEid, Christmas, New year etc
 
U fone has the problem of voice quality. Though its coverage area is vast and itcovers more than 750 towns and cities in Pakistan but the voice quality is not asgood as it should be.
U fone though has some unique and distinct services but it has not yet givenmany innovative services as compared to other cellular companies.
U fone was the first to introduce the SMS packages but their packages are notflexible enough and its charges are only on monthly bases while it should be on both monthly and daily basis.
Call rates from u fone to u fone is very cheap but to other networks its rates areexpensive.
Its coverage on Southern part of Pakistan is quite good but in northern areas itscoverage is a bit poor.
In U fone web support is not available.
Its customers service staff need training because at many franchises their employees are have been complained about behaving rudely.
If U fone company have to progress and grow in market it has to improve itsadvertising campaign. Its advertisements are not good and eye catching.
Being the part of PTCL it has to face many problems like strike by employees etc.
When U fone came into the seen in Pakistan cellular market Mobilink was already prevailing in the market and it was all Mobilink monopoly that time. Though withthe passage of time U fone took many customers of Mobilink but still Mobilink has large number of users because it was first to Pakistan’s cellular market andthis is the competitive disadvantage to U fone.
U fone is plagued with some internal problems like when it is privatized toEtisalaat being the part of the PTCL many employees were not happy with the pay scale that they were offering.
OPPORTUNITIES
U fone could develop some new and innovative services to attract customers andsome of the suggestions are as under which will help them to increase their revenues:1.It should introduced International SMS packages like local SMS.Already U fone is offering lowest International SMS rates but if they introduce some package like this it will get lots and lots of success.2.They should also introduce some International call packages toMiddle Eastern countries because there are lots of Pakistanis whoare living in those countries so people will definitely be temptedtowards such package.3.In “ U fone ghanta” package time of the package should be extendtwo more hours so that more & more people will use this serviceand causing U fone to generate more revenues.

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