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Stakeholders of ufone And Factors which

effect environment of ufone

Submitted to
Mahpara Shah, Lecturer
M.phil (Management), Masters of Human Resourse Management,
Bachlor of Management Sciences (PU)
Submitted By
Arslan Nawaz (D.M.D) [L1F11MCOM2165]
A.D. Ahsan [L1F11MCOM2144]
Sumbal Aftab [L1F11MCOM2146]
Usman Shahzad
Umer Farooq
Shohaib

1.0 Company Profile


Ufone GSM is a Pakistani GSM cellular service provider, It's one of five GSM Mobile companies in
Pakistan, and is a subsidiary of Pakistan Telecommunication Company started its operations in
January 2001. After the privatization of PTCL in 2006, Ufone is now owned by Etisalat which is
United Arab Emirates based telecommunications services provider, currently operating in 18
countries across Asia, the Middle East and Africa. As of February 2011, Etisalat is the 16th largest
Mobile network operator in the world, with a total customer base of more than 135 million. In
2010, Ufone total Subscribers are 20,275,002 which make it third largest mobile company in
Pakistan.

2.0 Ufone Stakeholder

20,533,787
Customers

Government

Mobile Tower
Builders

PTA
FBR

Ufone

Competitor
Mobilink
Telenor
Warid
Zong

Suppliers
Android
HTC
BlackBerry
Samsung
Nokia
Sony Ericsson

Media
Print media
Broadcast media
Display Media
Online Media

Employees

2.0.1 Detail of Stakeholders of Ufone


2.0.1.1 Customers
Customers are very important stakeholders of ufone. According to PTA, In 2010 Ufone total
Subscribers are 20,275,002 which are increased by 258785 in January 2011 to June 2011. Which
make it third largest mobile company in Pakistan by 20,533,787 cellular subscribers.
(Source PTA, Telecom Indicators)
2.0.1.2 Government
Government is highly important stakeholder of ufone. Government is stakeholder of ufone but by
these Governmental institutions.
Pakistan Telecommunication Authority (PTA) 1
Federal Board of Revenue (FBR) 2
2.0.1.3 Suppliers
Ufone have large numbers of suppliers but here we are mentioning major suppliers of ufone.
Which provide handsets along with ufone sim card.

Android
HTC 3
BlackBerry
Samsung
Nokia
Sony Ericsson

This is responsible for the establishment, operation and maintenance of


telecommunications sector in Pakistan.
2According to FBR & PTA cellular mobile industry paid 71,951 Million (Rs) in matter of Taxes.
3 HTC Corporation formerly High Tech Computer Corporation is a Taiwanese manufacturer
of smart phones.
3

2.0.1.4 Mobile Tower Builders

Communicators Globe (National)


Modaraba Al Mali (National)
Specialist Group Inc (Punjab)
Tower Share (National)
Wincom (National)
Minar Tel Asia (National)
DHAI Teleman (Punjab)

(Source PTA, List of Tower Licensees)


2.0.1.5 Employees
Ufone employees are committed with the company and do their best to make Ufone successful.
There are 3000 employees in ufone all over the Pakistan. In Ufone the T/O ratio is equal to
Moblink which is 16%.
2.0.1.6 Media
Ufone is investing a huge amount on its advertisements. After making an advertisement Ufone
pay huge amount to play its ads on TV channels almost 10 to 22 times a day which cost them into
millions rupees. Ufone spent 20% of their profit on advertisement.
For catching attention of customer Ufone have wonderful slogans;
Everybody Loves to Ufone Prepay
"Its All About U"
"Tum Hee Tao Hoo!"
Ufone used following media tools

Print media like newspapers, Magazines etc.


Broadcast media like Geo TV, Dunya News, and Express News etc.
Display Media like bill boards etc.
Online Media like websites.

2.0.1.7 Competitor
Ufone has these four competitors.
Mobilink
Telenor
Warid
Zong
Total Subscribers by Mobile Companies, 2010
Mobile Company
Mobilink
Telenor
Ufone
Warid
Zong

Total Subscribers
31,794,292
24,692,818
20,275,002
17,517,476
8,497,799

(Source PTA, Telecom Indicators)


Market Share by Mobile Companies, 2010

Market Share

Warid
17%

Zong
7%

Mobilink
32%

ufone
20%
Telenor
24%

(Source PTA, PTA Annual report 2009-2010, Page 31)

3.0 Factors which effect environment of ufone

3.0.1 Detail of Factors

3.0.1.1 Specific factors


Customers
Customers are playing very important role in changing ufone internal environment. ufone have
very large no of customers approxmintly 20,533,787 till June 2011. Customers want high
signals quality and more coverage area. Which ufone try to do.2
Suppliers
Suppliers are also playing important role in expanding ufone business.
Competitors
Competitors is changing market share of ufone as a result ufone spending more and more
amount of it profit on advertisement day by day, approxmently 20% of its profit. Due to which
its calling rate is increasing which can annoy the customer.

Ufone has network coverage in 10,000 locations and across all major highways of Pakistan,
International Roaming to more than 288 live operators in more than 160 countries, largest
GPRS & BlackBerry Roaming coverage available with more than 200 Live Operators across
122 countries. More recently, Ufone has become a focused and intensive leader in VAS,
constantly introducing innovative services, which have been the first of their kind in the
Pakistani cellular industry.
2

3.0.1.2 General factors


Economic
In Pakistan the inflation is at its peak and due to which prices are continuously fluctuate and
sometime its result in less profit of Company. And due to heavy payment in matter of
advertisement callings rates are going high which can annoy customers. These days Pakistan
are facing bad conditions in security affairs. Due to which investors are no investing as much as
Ufone needed.
Political and Legal
Customers Privacy: (Company and its staff is not allowed to disclose the personal
information of their customer to any person until it is asked by any law enforcement
authority)
Boundary Distribution: (Each marketing related employee has limited area to sell so
he is prohibited to sell in others market area)
Overall country Policies: (Government policy that affects company like general sales
policy that affects company like general sales tax, that somehow reduce the sell)
Government Actions: (Government restrictions that affects the user like in these
days, forwarding restricted sms which are against the government)
Technological
According to new technologies ufone has affected to work on modifying the technologies.
ufone has affected to work on modifying the products, eg: video calling3
Demographics
According to June 2011, 65% population of Pakistan is using mobile. So there is an enough
margin for ufone to increase its subscription.

ufone always try their level best to provide their customers latest and up-to-date
technology. For this purpose Ufone has there special team who is working only for this
purpose. Ufone was the first network who introduce MMS,Internet,PushToTalk(PTT) and
few more services. Right now there new technology the introduced is Micro SD SIMs. These
SIMs are specially designed for I-phone 4 and I-Pad
3