Mobicash PEST Analysis

Political Factors

Pakistan has failed to establish a political stability due to constitutional
conflict, absence of stable democratic government, economic problems

and lack of social growth.
The territorial issues and border conflicts with India, the socio-economic
differences within the country, the struggle for a share of power between
the provinces, these all together has caused in Foreign Direct Investment

(FDI) that no international state is willing to invest in Pakistan.
According to GSMA, Pakistan’s government allowed branchless banking
market and more than 17 million transactions occur per month. There are
no less than 8 active players in the market, five of which are mobile

operators and one of them is Mobicash.
Government strict the policies for the new license and they give
punishment to those retailers who are using fake license or don’t have
license at all so Mobilink has redefined their policies on licensing for

Mobicash.
The Foreign Exchange Regulations Act (FERA) of 1947, an individual could
not take out of the country an amount of more than $10,000 in cash
which restricts Mobicash to go global.

Economic Factors

As there is instability in politics, economic conditions are also in a very

bad condition.
The most important reason for political instability is our economy. We
have high inflation, large income inequality, deficit financing and a

chronic lack of expenditure for infrastructure and education.
Inflation rate has increase 4.1% in comparison to previous year and the
value of Rupee is going down and it proves as very drastic for the

economy of country.
Government has imposed heavy taxes on money transfer which goes up

in order to provide payment facilitation services to the unbanked and under banked markets in Pakistan. 2015 analysis report of State Bank of Pakistan shows that Mobicash has second most agents (52. Marketer should consider long term and short term state of a trading market so that more facilities could be provided to the customers. money transfer goes out of order. This partnering will expand Khushhali bank’s network. Mobicash signed an agreement with Khushhali bank limited. Currently rate of unemployment as per official resources is 7. Government has also limited the amount which can be transferred at a time which has made it difficult for ventures like Mobicash and Easypaisa  to attract more customers to use this facility. Socio Cultural Factors  As Pakistan is an Islamic country and people are very religious so they do not accept anything against their culture on either print or electronic media e. According to State Bank of Pakistan.083) dealing in branchless  banking.g. Major portion of Pakistan’s population consists of youth and a large number of young people who have the ability and are willing to work are unemployed. the most recent print ad of mobilink in newpaper caused a lot  of hassle.4% but according to some private estimates the rate of unemployment is 12%. allowing customers in rural areas to make payments with ease  and regularity which will marginally help in economy. The January – March. to 30%. the OTC (Over The Counter) is strongly driven and 81% of transactions are completed in  this manner.  And when there is no employment. in transfer business. Mobilink should target middle class and backward areas of the country as they usually need to transfer money from one place to another without using a bank account as most of the people of rural areas are working in . Unemployment is also regarded as a major social problem.

As most of the population of Pakistan lies in low income range therefore they should target those customers and give them cheapest possible  package by reducing own profits. this initiative was  launched by Mobicash in collaboration with Batwa and Wavetec. Mobilink has given license of Mobicash to different agents for easy access of people but it is still not enough.e. low transfer rates and easy access along with some membership to loyal customers giving members with high benefits. More licenses must be given in different areas specially backward ones where people have less access to  banking. To become Pakistan’s first Mobile Financial Service (MFS) provider to introduce an NFC service. As there are different languages spoken in Pakistan so Mobilink should give their customer assistance in all of these languages along with easy access to the Mobicash by opening more franchises and licensing  retailers.5 million mobile account holders. State Bank of Pakistan published that Mobicash launches Near Field Communication (NFC) payments on vending machines for its 1. As the lifestyle of people living in big cities are changing so they need more value added services i. Most of the people dislike anything extra-ordinary or something which sabotage their culture or sub culture so advertisements and promotions  must be in a way that is not in any way against the culture. cities and have to transfer money to their families. The rapid development of technology requires quick reaction by businesses in order to survive in an emerging competitive environment and keep up with new trends and innovative services which other . Technological Factors  Companies have technology with which they can compete in the Pakistan and now companies are investing in their infrastructure to not only  expand but also to upgrade their existing structure.

com/mobilefordevelopment/mobicashs-successful-entrystrategy-in-pakistan-leveraging-best-practices-and-improving-operationalefficiency .competitors might be offering.  According to GSMA. demanding commitment on a minimum level of investment from agents in return.gsma. Mobicash extended credit to its channel.  Mobicash set up dedicated helplines for both the agents and endconsumers to provide industry-best customer service. Both ATL and BTL communication channels were utilized.pk/money-transfer/ http://www. People with access to cellular phone and valid CNIC can transfer without  requiring any agent.  An extensive visibility drive was carried out for Mobicash to ensure better customer recall and brand presence.  SCA (Sustainable Competitive Advantage) – looking at technology from a positive perspective instead of a ‘necessary evil’. References http://mobicash. Mobicash has no online access which sometimes makes it difficult for customers to transfer money or track their transfer.  Dedicated MFS Business Development Officers were integrated with the selling channel to engage agents and consumers on Mobicash. to ensure liquidity at the agent level.com. Traditional models are changing and advantages can be achieved by investing in modern  technology. Mobilink telecommunication is providing largest variety of value added services (VAS) in Pakistan but its services regarding Mobicash are still not plenty. This is being tracked through a credit monitoring system.

com.com.sbp.com/category/political-economy/ .cssforum.dawn.org.com/news/1050686 http://www.pakistantoday.http://www.pk/search/results.wordpress.pk/publications/acd/BranchlessBanking-Oct-Dec-2014.pk/css-compulsory-subjects/essay/29767-socioeconomic-problems-pakistan.sbp.pk/business/mobicash-launches-pakistans-firstnear-field-communication-nfc-payments-solution/ http://www.html http://www.org.asp? cx=002167901857236840991:v55i2sdnxfs&cof=FORID:11&q=%20mobicash www.pk/2011/02/09/comment/editors-mail/politicalinstability-2/ https://onpakistan.com.mobilink.pdf http://www.