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Warid strategy

Warid strategy

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Published by madign
warid business strategy
warid business strategy

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Published by: madign on Dec 25, 2009
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06/12/2013

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BUSSINESS POLICY AND STRATEGYAnalysis of warid telecomSubmitted to: Sir Muhammad s
hafiqueFACULTY OF MANAGEMENT SCIENCESINTERNATIONALISLAMIC UNIVERSITY ISLAMABAD
 
1.What is, if any, the ‘business strategy’ of Warid Telecom in Pakistan andhow are they actualizing it?
 
Vision:
“Be a part of largest post paid cellular base in Pakistan”
Warid Mission and Purpose:
“Our aim is to be perceived not only as a telecommunication operator of voiceservices, but also as a universal provider of comprehensive communications servicesfor both residential and business customers.Warid's corporate identity seeks to reflectthe changes in telecom sector in relation to helping customers keep pace with rapidlychanging technology in the field of communication, through maximum networcoverage and clear connectivity that we have committed to provide”
Warid Business Strategy in Pakistan:
Warid Telecom is owned by the Abu Dhabi Group led by His Highness Sheikh NahayanMabarak Al Nahayan Minister Higher Education and Scientific Researcher in UAE.Warid Telecom started its operation in May 2005 from Pakistan.Warid TelecomInternational LLC, purchased a license for operating a nationwide mobile telephonynetwork, (WLL) and long distance international (LDI) for $291 million US dollars.Within 80 days of launch Warid attracted more then 1 million users.Currently thenetwork has around 7.6 million subscribers.In Warid business strategy three things are:
Competitiveness :
differentiated in value added aspects
Cost Leadership:
by providing less price service/product
Rapid Response of company :
when need identify they response to it
Customer care by providing quality service:
The pre-paid segment is branded and marketed as
Zem Pre-Paid
. Zahi-Post-paid and Zem Pre-paiduser enjoy various value added services (VAS), such as SMS, MMS, GPRS,64K SIM and a host of other features. However International Roaming is onlyavailable to its Zahi(post-paid) users.
External Analysis of Warid:
In Pakistan’s telecom sector Liberalizing and deregulation start.Goverment issue licenseto Warid. In 2004 mobile licenses to two new companies were awarded through open bidding against auction bidding price of US$291 million each. Warid is one of them.
 
Warid try to come with innovative ideas. Like Warid comes in the market with the low prices. They target the low class people. Warid take initiative of introducing “30 sec billing” as opposed to per minute billing. It has a pricing strategy that is comparable andgive reasonable return to their shareholders. There major target was the customers thatare new mobile users, the rest have churned from other service providers.Warid telecomis the First LDI operator who has started the build up of nation wide fiber optic network.It is likely that this will result in increased capacity in the marketplace and will bring thetariffs further down. Other factors that Warid was concentrated on are: 1) Advertising2) Market assessment 3)Price packaging. The Warid came with the challenge in mind of how to differentiate themselves from others and to expand the horizon of telecom inPakistan, by ensuring a high standard of network quality and customer service. Wariddifferentiating factor are their customer care and support, which is currently secondary inthe cellular market in Pakistan.Mobilink has strong network throughout Pakistan so waridhas major threat from it before implementation of MNP (mobile number portability).Warid and Telenor are tough competitors.
Internal Analysis of Warid:
Warid is providing low prices to their customers.Initial strategy they have to get morecustomer then generate revenue.Following issues are:
Warid have to pay for USD (Universal Service Organization) andUSF(Universal Service Fund).
Strategic Alliance
Warid had issue to use existing network.As in Pakistan lotof unbundling(The network is not one person custody there are primary andsecondary exchanges),So warid start negotions to hire network on the basis of no profit no loss.They negotiated with Ericsson and hired there network.finalizing the strategic alliance agreement held in Lahore recently is for Ericsson to provide Warid Telecom a complete “turnkey state of the art” GSMnetwork solution, which encompasses the supply of core and Radio network equipment, network design
,
rollout as well as professional services like fulloperations and maintenance. The network will be GSM / GPRS based and itscoverage build out will commence immediately. Warid is strategic alliancewith Ericsson and Nokia for Pakistan and in Bangladesh with Motorola.

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