This action might not be possible to undo. Are you sure you want to continue?
DEPARTMENT OF BUSINESS ADMINISTRATION SUBMITTED TO:
M. Shahid Tufail
“Final Project Report”
SUBMITTED BY: MOSAB MUNIR ( 583 ) Abdul Wahab ( 613 ) Hanzala Tariq ( 605 ) Adil Tanveer ( 572 )
MBA (Regular) Evening 4th SEMESTER
GOVERNMENT COLLEGE UNIVERSITY FAISALABAD
Ufone (official name: PTML) is a PTCL company, PTML (Ufone) - a wholly-owned subsidiary has improved its financial performance commenced its operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. During the last year Ufone successfully completed the launching of sites under Phase V in existing as well as new cities and towns by investing more than US$ 525 million. This has increased the asset base of Ufone from rupees 20 billion to 27 billion. To further enhance the subscriber base and strategically position the company in the growing telecom market, Ufone has finalized a network expansion for Phase VI contract amounting to about US$ 170 Million. Ufone currently, has network coverage in more than 4,745 locations throughout the country. Ufone's operational performance has been very encouraging despite stiff competition in Pakistan telecom market which has led to reduction of prices to bare minimum level. Ufone managed to improve its revenue and after tax profit by 87% and 54% respectively, as compared to the last year through aggressive policies and exercising strict control over expenses.
4 TABLE OF CONTENTS • • • • • • • • • • • • • • • • • Introduction of Ufone Vision & Mission Details of project Purpose of project Findings SWOT Analysis Competitive analysis EFE Matrix IFE Matrix CPM SWOT Matrix SPACE Matrix BCG(Boston Consulting Group) Matrix of Ufone GSM(Grand Strategy Matrix) IE(Internal. External) Matrix of Ufone QSPM(Quantitative Strategic Planning Matrix) Conclusion & Recommendations 05 07 08 09 10 11 14 16 18 19 21 23 26 28 29 30 33 411 .
PTML is a wholly owned subsidiary of PTCL. During the year 2001. Ufone expanded its coverage and has added new cities and highways to its coverage network. Being part of PTCL. During the year Ufone successfully completed the network expansion of Phase 4 in existing as well as in new cities and towns which amounted to more than US Dollar 170 million. Ufone has network coverage in more than 750 cities.5 INTRODUCTION History of Ufone Ufone GSM is a Pakistani GSM cellular service provider. the management of Ufone has also been handed over to Etisalat. as a consequence of PTCL’s privatization. During the year July 2005 to June 2006. The Company further expanded its coverage and has added new cities and highways. Ufone continued on the path to success. towns and across all major highways of the country. The company commenced its operations under the brand name of Ufone from Islamabad on January 29 2001. It is one of six GSM Mobile companies in Pakistan and is a subsidiary of Pakistan Telecommunication Company. Ufone is now owned by Etisalat. As a result the asset base of the Company has increased from Rs. Established to operate cellular telephony. 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). After the privatization of PTCL. 511 . 27 billion. 20 billion to Rs.
CEO Pre Pay. developing and evolving. because at Ufone. Ufone has finalized a huge network expansion contract amounting to about USD 550 million. Super Highway & Motorway Abdul Aziz.5.6 Future Plans keeping in view the growth potential of the cellular industry there is no option but to be aggressive in order to remain a potent force in the cellular industry. to go beyond their expectations. 2001 Pakistan Telecommunication Company Ltd Headquarters 13-B. Type Industry Genre Founded Founder(s) Private Telecommunication Subsidiary January 29.ufone. F-7 Markaz Islamabad. it’s all about U. Post Pay ▼ Rs. Pakistan Area served Key people Products Revenue Parent Website 2336 cities of Pakistan. As the world of telecommunications advances. towns and highways and enhance its current installed capacities in existing cities. Ufone promises its customers to stay ahead. This is the largest ever expansion project of Ufone.1 billion PKR (first quarter 2006-07). which will enhance the subscribers’ capacity by 10 million. PTCL Pakistan www. GT Road.com 611 . In order to extend cellular network to new cities.
Ufone keeps you connected SLOGANS One of the main reasons of the popularity of the Ufone is to use slogan to attract the customers. Wherever you are. In English "it’s all about U” 711 . superior connectivity.7 Vision Statement “To be the leading telecommunication service provider in Pakistan by offering innovate communication solutions for our customers while exceeding shareholder value & employee expectation.” Mission Statement To become the best cellular communication option available in the country for “U”……………. At Ufone we aim to provide you with wider coverage. clear signals & voice quality. The Slogan of Ufone in Urdu is “Ufone Tum Hi to Ho".
730 people. NASDAQ: TELN) is the incumbent telecommunications company in Norway.8 DETAILS OF THE PROJECT Ufone is a Cellular Service Provider founded in 2001 It is also a subsidiary firm of PTCL As of 2008. Ufone is the second largest telecommunication company in Pakistan. As of 2008. it has extensive broadband and TV distribution operations in four Nordic Countries.88 million customers by January 2008.. Mobilink has 30. And then.745 locations throughout the country. The major competitors of Ufone are domestic companies like MOBILIINK Pakistan Mobile Communications Limited. with headquarters located at Fornebu. Today. PTA (Pakistan Telecommunication Authority) has 811 . set up by Cable & Wireless. TELENOR Telenor (OSE: TEL. Moreover. ZONG (PAKTEL/ CHINA MOBILE/CMPAK) Paktel was the first ever company granted license to carry out cellular phone services in Pakistan. Blue Area. close to Oslo. Its main competitor emerged in late 1990s as Instaphone and soon began to dominate the market. on 16th May 2007. is a telecommunication service provider in Pakistan. when the company launched GSM services as well. Ufone employs more than 1. Pakistan and Uganda. In addition. According to PTA statistics. In recent years the company has endured significant improvement in services to almost 4. It carried out AMPS services until 2004. Paktel was renamed to CMPak. WARID Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing telephony services in Bangladesh. Mobilink's Head office is located in Kulsum Plaza. On 4th May 2007. China Mobile announced that it had upped its stake in CMPak to 100%. Eastern Europe and Asia. Telenor is mostly an international wireless carrier with operations in Scandinavia. It manufactures it’s the GSM company providing services to all four continents urban and rural areas. better known as Mobilink GSM. Islamabad.
No doubt that Telenor has emerged as a strong contender.35 million) were gained this year. A quick analysis of this data reveals few trends about market leadership. as it was one of the main reason for pullout by Millicom International Cellular S. The rate of growth for Ufone has been impressive as well. Zong is the first International brand of China Mobile being launched in Pakistan. Telenor was the fastest growing company. And also to encourage knowing more about the telecommunication sector in Pakistan. PURPOSE OF THE PROJECT The purpose of this project is to enhance the ability of understanding the important factors. and strategy of business.45 million) in this period. Its market share has been decreasing gradually but that’s expected with the increase in competition. 45% of their current subscribers (5. 911 .5 million subscribers. It gained 5. It took a small lead over Warid in March and has been able to maintain it.9 announced that it may resolve the frequency issue with China Mobile. Mobilink gained the most subscribers (5.32 million of the approx 20 million new subscribers in first 6 months of this year in Pakistan.A. 2009 has been a phenomenal year for the mobile market growth in Pakistan. matrix. It is meant to empower and liberate the people of Pakistan in every nook and corner of the country. Market share With the monthly additions average around 2.
10 Findings: INTERNAL & EXTERNAL ANALYSIS INTERNAL ENVIORNMENT Human Resource Management Marketing Department Commercial Department Sales Department Finance Department Payroll Department Information Technology Department Engineering Department Administration Auditing Department Customer Care EXTERNAL ENVIORNMENT Economic Conditions Social Conditions Culture Demographics Environmental Competitive Technological Consumer Attitude Globalization 1011 .
Ufone has some exciting and energetic SMS packages that made SMS almost free. Fewer rates than competitors. Ufone has always believed in a solid Commitment to growth.80 packages which its subscribers really love it. Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 16. towns and across all major highways of the country. Rs. Therefore. Variety of Value Added Services. with the Prepay brand. and since the start of 2005 Ufone added nearly 5 million subscribers onto its network. Established customer base including lower middle class. Ufone provides International Roaming facility with more than 150 international operators across 79 countries. They are offering Rs. A remarkable achievement indeed. Ufone has seen a subscriber growth rate of over 200% in the last year. 1111 .11 SWOT ANALYSIS Strength Ufone has Network Coverage in more than 750 cities. Rs.5 million and a market share of nearly 25%. especially considering the fact those two new international players also entered into the market in 2005. security and reliability. With a total current investment of $400 Million.50. Ufone increased its Focus on the youth segment (which comprises 50% of the population). Ufone has always balanced its expansion efforts and quality of service. 25.
Ufone has the problem of voice quality. Ufone is not close to expected profitability Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is a bit poor. Centralized structure failed to provide proper guidance over instruction and policies Stagnant Profitability. As compared to financial assets. Ufone should develop some new franchises in remote areas so that people will get more and more benefit from it and it will help to increase their customers.12 WEAKNESSES Ufone does not have the proper lists of its customers. Poor Organizational Structure. It has the list¬ but this list is not authentic which is increasing the unauthorized use of its sim specially pre pay. Though its coverage area is vast and it covers more than 750 towns and cities in Pakistan but the voice quality is not as good as it should be. OPPORTUNITIES Ufone could develop some new and innovative services to attract♣ customers and some of the suggestions are as under which will help them to increase their revenues: They should also introduce some International call packages to Middle Eastern countries because there are lots of Pakistanis who are living in those countries so people will definitely be tempted towards such package. Ufone is plagued with some internal problems like when it is privatized¬ to Etisalaat being the part of the PTCL many employees were not happy with the pay scale that they were offering. As in Pakistan Youth is almost the 50% of the population so Ufone can take advantage of this demographic situation and should introduce more and more services and packages that attracts youth towards it. Ufone should extend its network coverage area to Northern part of the country as well because in that part not too many companies are giving services and if Ufone give its 1211 . Ufone have to take serious steps to properly list its customers to ensure that there is no misuse.
By the arrival of China Mobile Company (Zong) in cellular industry of¬ Pakistan the Ufone and other companies now have to face the severe competition. That will affect the company’s profitability in the long run. Investment of Ufone is in danger. As Zong is introducing some various attractive packages of both SMS and calls to attract customers. Orange and Vodafone. Another threat is any new company from foreign countries e. These will be ATM like machines and that will give 24-hour service to Ufone subscribers to load the balance just like they take money from ATM. In Balochistan and FATA where Ufone already has network coverage is in¬ danger because of critical situation and operation being held there. If Ufone enhance its voice quality then definitely it would be prefer more by customers. Telenor is giving higher salary to its employees as compared to Ufone so many of its skillful and competent employees are going there. Ufone have to develop strategies to counter their strategy and to survive in the market. THREATS As Ufone is cellular company and there is cut throat competition among¬ cellular companies in Pakistan. Ufone should import technological equipments from China because they are giving the best technology at very low rates so it will not only help Ufone to be ahead technologically but also will help Ufone to decrease its cost. The key threat to Ufone is also some adverse Government policies of¬ implementing Tax on telecommunication industry that will ultimately affect the revenues. 1311 . There are four other companies also working in Pakistan so Ufone would have to face some growing competitive pressures. Ufone can surprise its competitors by introducing “Ufone kiosk”.13 service there then it will definitely attract people and its number of customers will shoot like a rocket.g.
Warid telecom. But there is other potential source of competition. These are: Mobilink.14 COMPETITOR ANALYSIS The competitive environment for mobile telephony in Pakistan is tough and Ufone’s is a major player of the market. payphone and prepaid calling cards can effect mobile business environment. Prepaid calling cards. which should also be taken into consideration DIRECT COMPETITION: Direct competition to Ufone service is with thee licensed mobile world in today’s market. Telenor. Card payphone services. Massive expansion in penetration and quality of fixed line. Zong INDIRECT COMPETITION: The indirect competition is from: Fixed line services. 1411 . Primary competition is of course between four mobile operators for the share of the market.
technological. we got the clear idea. more readily available alternatives Target Market Ufone has the target market concerning youth in the nation.0) Sum of all weights = 1. Such criteria are known as rating. 1511 . social. Gender: Both Male & Female Targeting: Mainly they are targeting to youth. demographic.15 Economic Scenario of Pakistan makes this observation relevant because mobile services are still comparatively much expensive and customer may prefer to use cheaper.0 Now you have to arrange them according to their weight age that which factor is most important. which are shown on the TV. This target market of youngster comprises 40% of the population. It should be weight age in % ages. if we look at their ads. The sum of the total of all the factors should always be one. cultural. legal. • Assign weight to each (0 to 1. governmental. • Sum the weighted scores for each Determines the total weighted score for the organization. political. Ufone has targeted the corporate class for which the Ufone is customizing the packages in order to preserve the existing small businessman. and competitive information. The EFE matrix consists of five steps process. • Multiply each factor’s weight by its rating Produces a weighted score How the firm will respond to these factors external factors. • Assign 1-4 rating to each factor Firm’s current strategies response to the factor: how well firms response to these factors. Industry Analysis: The External Factor Evaluation (EFE) Matrix An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate economic. environmental.
0.40 0.08 .10 1.05 4 3 3 4 3 3 4 2 0.05 .0.10 0.06 .12 .32 .48 0.06 0.2 0. TOTAL • Weight Rating Weighted Score 0. Average = 2.00 2.16 0.18 0. 1.08 0.05 2 2 2 3 2 0.08 0.97 which is above average.12 0. the lowest.10 0. 1611 .16 Highest possible weighted score for the organization is 4. Just like ATM. Threats 1 Old Stable Companies & arrival of China Mobile Company 2 PTCL cellular license 3 Price War 4 Government Interference 5 Pressure groups & health issues due to towers in residential areas.18 .24 0. So it has aggressive strategy.05 0.10 0.97 EXTERNAL FACTOR EVALUATION (EFE) MATRIX • Total weighted score for the Ufone external factor is 2.36 .5 EXTERNAL FACTOR EVALUATION (EFE) MATRIX of Ufone Key External Factors Opportunities 1 Globalization 2 Publicity & Marketing 3 Can target Corporate 4 Develop New value Added services 5 Extend Coverage to Northern Areas 6 introduced International SMS packages like local SMS & call package 7 develop some new franchises in remote areas 8 Introducing “Ufone kiosk”.15 .10 0.
whereas scores significantly above 2. A thorough understanding of the factors included is more important than the actual numbers.5. Assign a I to 4 rating to each factor to indicate whether that factor represents a major weakness (rating = 1). Multiply each factor’s weight by its rating to determine a weighted score for each variable. 5. including both strengths and weaknesses. or a major strength (rating = 4). a minor strength (rating = 3).0. Like the EFE Matrix. List key internal factors as identified in the internal audit process. The sum of all weights must equal 1. Be as specific as possible. ratios. an IFE Matrix should include from 10 to 20 key factors. List strengths first and then weaknesses.IFE Matrix A summary step in conducting an internal strategic management audit is to construct an Internal Factor Evaluation (IFE) Matrix. Intuitive judgments are required in developing an IFE Matrix. Note that strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2 rating.0 (all important) to each factor. The weight assigned to a given factor indicates the relative importance of the factor to being successful in the firm’s industry.0 to a high of 4. 4. The number of factors has no effect upon the range of total weighted scores because the weights always sum to 1. Assign a weight that ranges from 0. using percentages.5 indicate a strong internal position. factors considered to have the greatest effect on organizational performance should be assigned the highest weights. Total weighted scores well below 2.0. and comparative numbers.0 (not important) to 1. An IFE Matrix can be developed in five steps: 1.17 Internal Factor Evaluation Matrix. the total weighted score can range from a low of 1.5 characterize organizations that are weak internally. 3. Sum the weighted scores for each variable to determine the total weighted score for the organization. Regardless of whether a key factor is an internal strength or weakness. 1711 . This strategy formulation tool summarizes and evaluates the major strengths and weaknesses in the functional areas of a business. Regardless of how many factors are included in an IFE Matrix. whereas the weights in Step 2 are industry based. so the appearance of a scientific approach should not be interpreted to mean this is an all powerful technique. and it also provides a basis for identifying and evaluating relationships among those areas. Ratings are thus company based. 2. Use a total of from ten to twenty internal factors.0. a minor weakness (rating = 2). with the average score being 2.
24 .15 .18 • INTERNAL FACTOR EVALUATION for Ufone KEY INTERNAL FACTOR INTERNAL STRENGTH Network coverage Unique offers & packages Marketing & Advertising Financial position & sales Deptt.48 .08 2.74 1811 .08 .08 1 1 .04 .05 .05 .08 .08 .18 .10 Rating 3 4 3 3 3 3 2 3 w.04 .12 .08 .2 Northern areas coverage .3 . Behind on Excessive Demand Poor Organizational Structure Global Expansion (Less coverage in remote areas).12 .10 .3 . score .06 . Weight .04 . Payroll Department & HRM Latest Technology Adoption Administration Customer Care & Feed back INTERNAL WEAKNESSES Lack of Franchises Network problem on special occasions.10 2 3 3 2 2 .3 .15 .10 .04 .
Whereas CPM is little different from EFE it also consider the internal issues and best feature of CPM that it allow to compare the competitor critical success factor with your organization. So it is internally strong and aggressive approach. It not focuses on internal issues. Assign weight to each factor depend up how important the specific factor for the organization success.74 which is above average. 1911 . • • Find out critical success factor. CPM-Competitive Profile Matrix EFE is used to collect competitive intelligence information from external environment.19 • Total weighted score for the Ufone internal factor is 2.
20 • • • • The weight range from 0.40 2011 . In market share Mobilink is leading but in the growth factor Ufone is leading with the weighted point of 0. The Competitive Profile Matrix (CPM) identifies a firm's major competitors and their particular strengths and weaknesses in relation to a sample firm's strategic position In a CPM the ratings and total weighted scores for rival firms can be compared to the sample firm. Assign a 1-4 rating to each critical success factor to indicate how effectively the firm’s current Multiply each factor’s weight by its rating to determine a weighted score.0 to 1. Sum the weighted scores. This comparative analysis provides important internal strategic information. In this matrix market share. growth rate and financial strength are the most important critical success factors. • Average total weighted score is 2.0 lower number shows no or minimum importance and high Assign rating to each factor depends upon how well organization respond to that factor. as indicated by a weight of 0. (1 = response is poor. strategies respond to the factor. The total calculated figure tells the exact situation. Ufone Competitive Profile Matrix is provided in Table. 4 = response is extremely good) The above CPM matrix compares the oil marketing companies on importance factor.60. weight show more importance of factor to the company.5.
Because it is at its initial position as compare to competitors.78. this is too few in actuality • Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix 2111 . As indicated by the total weighted score of 2.18 Mobilink is leading. Zong is weakest. 2 = minor weakness. Only eight critical success factors are included for simplicity. 4 =major strength. 3 = minor strength. With the point of 3.21 The ratings values are as follows: 1 = major weakness.
Rank internal weaknesses. This Matrix is an important matching tool that helps managers develops four types of strategies: SO Strategies (strength opportunities). 8. This is an important tool in order to formulate strategy. TOWS are discovered and listed. ST Strategies (strength-threats).The most difficult part of TOWS matrix is to match internal and external factor. WO Strategies (weakness. Rank external threats 3. and WT Strategies (weakness-threats). Match internal weaknesses with external opportunities and mention the result in the WO Strategies cell. Match internal weaknesses with external threats and mention the result in the WT strategies cell. Steps for developing strategies: There are eight steps involved in constructing a TOWS Matrix: 1. involved in a project or in a business venture or in any other situation requiring a decision. Threats are external conditions that are harmful to the achievement of the objective. Match internal strengths with external threats and mention the result in the ST Strategies cell.22 The Threats-Opportunities-Weaknesses-Strengths (TOWS) is also named as SWOT analysis.opportunities). Rank internal strength 4. Match internal strengths with external opportunities and mention the result in the SO Strategies cell. Once the objective has been identified. 6. 5. Opportunities and Strengths. Rank external opportunities 2. TOWS are defined precisely as follows: Strengths are attributes of the organization that are helpful to the achievement of the objective. Weaknesses are attributes of the organization that are harmful to the achievement of the objective. Weaknesses. • SWOT MATRIX OF UFONE 2211 . Opportunities are external conditions that are helpful to the achievement of the objective. 7. A TWOS Analysis is a strategic planning tool used to evaluate the Threats.
O2 Attract new customers. Price War T4. Advertising & marketing S8.O7 Penetration S1. ST-Strategies S1. Northern areas Coverage W2. Low Market Share W4. Covering Northern Areas O6. O5 Increased coverage & franchises S3.O3 Acquisition & Make the post paid package more attractive S4. Publicity O3. High Growth Rate S7. T1 Market Leader S5. Trend setter S5. Unique offers & packages S6. 23 Opportunities – O O1. Subsidiary of PTCL W3. New value added services O5. Old Stable Companies T2.O3 Acquisition WT-Strategies W3. T2 Penetration & co branding with others like banks. Weaknesses – W W1. Attractive Packages By Competitors T3. Globalization O2. Focus & retain customers SO-Strategies S1. S4.O6 Increased loyalty & brand image S7. Penetration Threats – T T1.O1 Expand S2.. New Product (Ufone kiosk) O7.O5 Enhance coverage & market share W3. Old Staff Less motivated & unfamiliar to IT. Capital & financial position S2. Resources S4. Network Coverage & voice quality S3. Government Interference T5.T2 Downsizing • The Strategic Position and Action Evaluation (SPACE) Matrix 2311 . Can target corporate O4. Pressure groups & health issues WO-Strategies W1.T3 Cost Leadership S3. Weak MIS W5.Strengths–S S1. T2 Introduce new packages & services.
or competitive strategies. Good speed & superior voice quality.0 -3. Working capital 5. • SPACE Matrix for UFONE Financial Strength (FS) RAITNGS 1.0 -1.0 -3. Resources & Assets 2. Revenues 2.0 2411 . High growth rate 3. Return on investment 3. These four factors are the most important determinants of an organization's overall strategic position. 2nd largest cellular company in Pakistan. It is not closed matrix.0 -2.0 Competitive Advantage (CA) 1.24 The Strategic Position and Action Evaluation (SPACE) Matrix is another important Stage 2 matching tool of formulation framework. defensive. Competition capacity utilization 5.0 -1. It is prepared on graph.0 4. 6. It explains that what is our strategic position and what possible action can be taken.0 13. This follow counter clockwise direction. conservative. -2. Advertising & Marketing 4. It contains four-quadrant named aggressive. The axes of the SPACE Matrix represent two internal dimensions financial strength [FS] and competitive advantage [CA]) and two external dimensions (environmental stability [ES] and industry strength [IS]).0 4. It is closed matrix.
0 5. -3.0 -13. GPRS Technology 5. 8. Profit potential 4.0 5.0 -2.0 -23.0 -3.0 -3. Financial stability 2. Government Interference 5.25 7.0 -3.0 Environmental stability (ES) 1.0 23. Customer focus.0 4. Attractive packages.0 -1.0 Industry Strength (IS) 1. Computerized complaint cell 9.0 Conclusion 2511 . Demand variability 4.0 -2. Technological changes 2. Scope in Ruler areas 5. Rate of inflation 3.0 -4. Resources utilization 3.0 4. Successful brand 10. Tough competition -3.
25) = 1. 1.26 FS average is 13/3 = 4.3.3) = 2.083 CA average is -23/10 = -2.33 = -3.3 ES average is -13/4 IS average is 23/5 = 4.083) Aggressive Aggressive CA IS Defensive Competitive ES Aggressive strategies of Ufone are: 2611 .25 4.3 4.6+ (-2.33+ (-3.6 Directional Vector Coordinates: x-axis: Directional Vector Coordinates: y-axis: The UFONE should peruse Aggressive strategies……… • SPACE MATRIX FOR UFONE FS Conservative (2.
27 Integration Intensive Related diversification. • BCG GROWTH-SHARE MATRIX FOR UFONE Companies that are large enough to be organized into strategic business units face the challenge of allocating resources among those units. market share relative to competitors. The BCG growth-share matrix displays the various business units on a graph of the market growth rate vs. In the early 1970's the Boston Consulting Group developed a model for managing a portfolio of different business units. BCG Growth-Share Matrix Ufone 2711 .
HIGH MARKET SHARE) A business unit that has a large market shares in a mature. relative market share serves as a measure of company strength in the market. it should be liquidated if there is little prospect for it to gain market share. QUESTION MARK . DOG . a star will become a cash cow when its industry matures. Stars may generate Cash. These business units Require resources to grow market share. but whether they will succeed and become stars is unknown. HIGH MARKET SHARE) A business unit that has a large market shares in a fast growing industry. but because the market is growing rapidly they require investment to maintain their lead. A dog may not require Substantial cash.(LOW GROWTH. Cash cows Require little investment and generate cash that can be used to invest in other business units. market growth rate provides a measure of market attractiveness. slow growing industry. STAR .(HIGH GROWTH. The growth-share matrix defines four types of SBUs: CASH COW . LOW MARKET SHARE) A business unit that has a small market shares in a mature industry. 2811 .(LOW GROWTH. Unless a dog has some other strategic purpose. but it ties up capital that could better be deployed elsewhere. LOW MARKET SHARE) A business unit that has a small market shares in a high growth market. On the horizontal axis.(HIGH GROWTH.28 On the vertical axis. If successful.
Backward Integration 7. Market Penetration 3. Market Development 2. 2911 .29 Grand Strategy Matrix In Grand strategy matrix Ufone lie in 1st quadrant because it has strong competitive position and rapid market growth…. Related Diversification IE Matrix of UFONE: The Internal-External (IE) matrix is another strategic management tool used to analyze working conditions and strategic position of a business. Forward Integration 6. Product Development 4. The Internal External Matrix or short IE matrix is based on an analysis of internal and external business factors which are combined into one suggestive model. Horizontal Integration 5. Suitable strategies of quadrant 1st for Ufone are 1..
0 to 4.0 to 2. and IX are characterized with the harvest or exit strategy. plot it on the x axis.30 The IE matrix is a continuation of the EFE matrix and IFE matrix models. forward integration. This means intensive and aggressive tactical strategies. Score from the IFE matrix -. Your strategies should focus on market penetration. market development. your tactical strategies should focus on market penetration and product development.99 is considered low.99 is medium. A score of 2. On the y axis.this score is plotted on the y-axis 2.plotted on the x-axis The IE matrix works in a way that you plot the total weighted score from the EFE matrix on the y axis and draw a horizontal line across the plane.0 to 4. The IE matrix belongs to the group of strategic portfolio management tools. On the x axis of the IE Matrix. The IE matrix can be divided into three major regions that have different strategy implications. and horizontal integration should also be considered. then it should be attempted to revitalize the business. From the operational perspective. and draw a vertical line across the plane. This point shows the strategy that your company should follow. V.0 is strong. In this case. II. The IE matrix is based on the following two criteria: 1. A score of 3.0 is high.0 to 1. Cells IV.0 to 1. and product development. and VI suggest the hold and maintain strategy. VIII. Cells VII. Then you take the score calculated in the IFE matrix. the IE matrix positions an organization into a nine cell matrix. a backward integration. an EFE total weighted score of 1. In other cases. and III suggest the grow and build strategy. 3011 . If costs for rejuvenating the business are low. You should follow a strategy depending on in which cell those lines intersect. Cells I. A score of 2. In a similar manner like the BCG matrix. The point where your horizontal line meets your vertical line is the determinant of your strategy.0 to 2.99 is considered average. aggressive cost management is a way to play the end game. Your horizontal and vertical lines meet in one of the nine cells in the IE matrix.99 represents a weak internal position. A score of 3. an IFE total weighted score of 1. Score from the EFE matrix -.
Compute the Sum Total Attractiveness Score 3111 .31 Stage-3 (Decision Stage) The Quantitative Strategic Planning Matrix (QSPM) The last stage of strategy formulation is decision stage. Determine the Attractiveness Scores (AS) 5. Assign weights to each key external and internal factor Ufone Prepay 3. In this stage it is decided that which way is most appropriate or which alternative strategy should be select. 2. List of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM. Compute the Total Attractiveness Scores Postpaid 6. Steps in preparation of QSPM 1. Examine the Stage 2 (matching) matrices and identify alternative strategies that the organization should consider implementing 4.
04 0.20 2 Marketing 0.30 2 2 0.24 2 0.30 3211 .12 0.10 3 0.10 4 3 0.10 0.10 3 0.10 0.05 1.48 .40 0.08 3 0.15 3 2 2 2 0.20 0.20 0.30 2 0.10 0.30 4 3 3 3 0.18 Development 5 Northern Areas 0.30 2 0.40 0.32 Quantitative Strategic Planning Matrix (QSPM) of Ufone Quantitative Strategic Planning Matrix (QSPM) SELECTIVE STRATEGIES Product Development Market Penetration Key External Factors Weight Attractiveness Total Attractiveness Total Scores (AS) Attractiveness Scores (AS) Attractiveness Scores (TAS) Scores (TAS) Opportunities 1 Globalization 0.10 4 4 3 3 0.16 4 New Product 0.20 6 Develop some new franchises in remote areas 7 Introducing “Ufone kiosk”.06 3 0.30 0. Threats 1 Old Stable Companies 2 Attractive Packages By Others 3 Price War 4 Government Interference TOTAL Strengths 1 Investment 2 High Growth Rate 3 Advertising 4 Net Work Portability 0.08 0.12 0.36 0.36 0.15 4 0.40 0.40 0.10 4 3 3 3 0.30 0.60 3 0.45 3 Acquisition 0.12 0. Just like ATM.30 0.00 0.10 0.24 0.18 3 0.
30 0.08 6.27 0.08 0. 3311 .02 and 6.08 0.30 0.10 0.07 0. There total attractive score is 5.05 0.10 0. The strategy Product Development has big score that’s why we select it.33 5 6 Ufone Mobile Resources Assets And People 7 Location And Geographical Coverage 8 Government Dealing Weaknesses 1 Lack of Franchises 2 Coverage 3 Less Market Share & behind the demand 4 Weak MIS SUM TOTAL ATTRACTIVENESS SCORE 0.04 5.27 respectively.05 0.08 0.10 0.04 1.05 0.27 0.00 3 3 3 3 2 1 2 2 0.27 3 3 3 3 1 1 2 1 0.21 0.10 0.30 0.30 0.21 0.02 Recommended strategy……… We select the two strategies Market Penetration and Product development.10 0.09 0.
This will result more growth in the market. Ufone promote their product through TV commercials. The market also has strong competition after the entrance of China Mobile Company. More committed towards growth. Newspaper. Internet etc. Competitors are hiring professionals to entertain the consumers which is resulting technological implementation and value added services. Consumer searches good service with lowest call rates. The choice of people is Ufone because Ufone price level is low and affordable that every one can say “It’s all about U” Ufone could develop some new and innovative services to attract customers to increase their revenues as well as it customers: 3411 . although companies are minimizing call rates. Telecom industry is most growing industry of Pakistan and still huge investment required for coverage. Ufone bring amazing packages to attract the customers. Radio.34 Conclusions and Recommendation Ufone is 2nd largest cellular company in Pakistan.
35 It should introduced International SMS packages Ufone has strong financial position & more competitive advantages then other cellular companies so it should more focus on its strategies. It should pay more attention towards postpaid services 3511 .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.