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Mobilink GSM (PMCL), a subsidiary of Orascom Telecom is the market leader in providing state-of-the-art communications solutions in Pakistan. Orascom Telecom Holding S.A.E (OTH), the parent company based in Egypt was established in 1998, and has grown to become the largest and most diversified GSM network operator in the Middle East, Africa, and Pakistan. With over ten licenses covering the region, Orascom Telecom has positioned itself as a leading telecommunications conglomerate in emerging markets of this region. Orascom enter in the Pakistani market through the licensing where they have to pay the Royalty fee. Mobilink covers approximately 85 percent of Pakistan's urban population and it can proudly boast of being the first cellular service provider in Pakistan to operate on a 100% digital GSM technology. It offers tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen. To achieve this objective, Mobilink offers both postpaid (Indigo) and the prepaid (JAZZ) solutions to its customers. In addition to providing advanced voice communication services, Mobilink also offers a number of value added services to its valued subscribers. Keeping in mind its customers' convenience, Mobilink has also bundled mobile handsets, sold either independently or bundled in Get Set Go Pack. Mobilink GSM started operations in the year 1994,as a third entrant in the market, while Paktel and Instaphone were already operating since 1991 and had acquired substantial market penetration. Despite the re-launch of Ufone, the main competitor, Mobilink has maintained its momentum of growth. All this has been possible due to inter-departmental synergy and strengthening of Mobilink’s brands. Till early 2001, they had a market share of 43%. OT took over management control of the company in April 2001 and changed the overall market dynamics through its aggressive marketing strategy and expertise. In less than two years time Mobilink grew by almost 400% with market leadership of 60% market share (year end 2003).At the time when it entered 1
the market it was a small player in the cellular market of Pakistan it is now the market leader both in terms of growth as well as having the largest subscriber base in Pakistan.
Mobilink has a very competitive management. The names of the Top Management are given below. Zouhair Abdul Khaliq, President and CEO Ehab Rochdy, Chief Finance Officer Tariq Rashid, Chief Information Officer Rashid khan, Chief Commercial Officer Marwan Hayek, Chief Technical Officer Ali Raza Mehdi, Vice President Administration & Human Resources
Here are Mission statements of both organizations i.e. parent company and subsidry.
“Our mission is to be the premiere telecom operator in the Middle East, Africa, and Indian sub-continent, providing the best quality services to our customers, value to our shareholders, and a dynamic working environment for our employees.”
“To provide unparallel services while making sure to satisfy all stake holders”
PRODUCTS AND SERVICES
Mobilink being the market leader enjoys major share of the overall market with both Indigo and Jazz dominating the postpaid and prepaid segments respectively Mobilink deals with postpaid Indigo and prepaid (Jazz) packages. 2
JAZZ Addressing the press conference, Graham Burke, president Pakistan Mobilink Corporation Limited said that with the prepaid card a customer could control its cost with the freedom to use. This is when Jazz was first launched in Pakistan, and with the passage of time became very popular, especially among the young lot. Jazz, is based on an intelligent network which is the most advanced and expensive platform, presently available in cellular telephone technology. Scores of facilities available in the package will cater to the communication needs of thousands of people in the country who cannot afford a post paid mobile phone connection. Jazz is an amazing prepaid service that allows customer freedom from monthly bills and gives him/her complete control over his/her cellular expenditure. Customer decides in advance when and how much he/she wants to spend. Jazz is simple, easy and loads of fun. Jazz is extremely affordable, with features like: No daily charges Low outgoing rates 180 days validity of Jazz Scratch Cards Simply reactivate deactivated Jazz connection
Jazz-Aur Sunao 3
INDIGO 4 . The new Jazz customer will also get Rs.50 per minute on all calls from Jazz to any other Mobilink numbers. The essence of the campaign is that an Existing Jazz customer can refer up to 4 new customers and earn Rs. 4. Jazz Member get Member The Jazz Member get Member promo is the first of its kind where Mobilink will be giving it’s customers an opportunity to become the brand’s ambassadors and at the same time earn some free airtime.75 per minute to Rs. who will now have to pay less to call within the Mobilink family. 100 free airtime.Jazz tariffs have been reduced from Rs. 3. This tariff reduction will serve as an unparalleled advantage to the largest mobile community in Pakistan. 24 hours a day.400 in airtime.
determining internal strength and weaknesses. STRATEGY IMPLEMENTATION Strategy implementation requires a firm to establish annual objectives. • • • STRATEGY FORMULATION STRATEGY IMPLEMENTATION STRATEGY EVALUATION STRATEGY FORMULATION Strategy formulation includes developing a business mission. STAGES OF STRATEGIC MANAGEMENT There are three stages involved in strategic management process. markets. redirecting marketing efforts. 5 . and technologies over an extended period of time. motivate employees. Top managers have the best perspective to understand fully the ramifications of formulation decision. resources. developing and utilizing information system. devise policies. identifying an organization external opportunities and threats. Strategists must decide which alternative strategies will benefit the firm most. Strategyformulation decision commits an organization to specific products. implementing.STRATEGIC MANAGEMENT Art and science of formulating. preparing budgets. establishing long-term objective. and choosing particular strategies to pursue. they have the authority to commit the resources necessary for implementation. creating an effective organizational structure. generating alternative strategies. strategy implementation includes developing a strategy-supportive culture. and allocate resources so that formulated strategies can be executed. and evaluating cross-functional decisions that enable an organization to achieve its objective. and linking employee compensation to organizational performance. Strategies determine long-term competitive advantages.
Strategy implementation often is called action stage of strategic management. complacent organization experience demise. success full strategy implementation hinges upon managers’ ability to motivate employee. because external and internal factors are constantly changing. 6 . and sacrifice. Every division and department must decide on answers to questions such as “What must we do to implement over part of the organization’s strategy?” and “How best can we get the job done? STRATEGY EVALUATION Strategy evaluation is the final stage in strategic management. Strategy implementation requires personal discipline. commitment. managers and employees at these two levels should be actively involved in strategic management activities. Strategic management helps a firm function as a competitive team. divisional or strategic business unit. Interpersonal skills are especially critical to success full strategy implementation. Nevertheless. and evaluation activities occur at three hierarchical levels in large organization: corporate. Strategy formulation. Three fundamental strategy-evaluation activities are • • • Reviewing external and internal factor that are bases for current strategies Measuring performance Taking corrective action Strategy evaluation is needed because success today is no guarantee of success tomorrow success always creates new and different problems. By fostering communication and interaction among managers and employees across hierarchical levels. and functional. implementation.
GROWTH. it is important that is includes all of these essential components. Most practitioners and academicians of strategic management consider an effective statement to exhibit nine characteristics or components. • • • • • • • • CUSTOMERS Who are the firm’s customers? PRODUCTS OR SERVICES What are the firm’s major products or services? MARKETS Geographically. format. values. where does the firm compete? TECHNOLOGY Is the firm technology current? CONCERN FOR SURVIVAL. AND PROFITABILITY Is the firm committed to growth and financial soundness? PHILOSOPHY What are the basic beliefs. aspirations. and ethical priorities of the firm? SELF-CONCEPT What are the firm’s distinctive competence or major competitive advantage? CONCERN FOR PUBLIC IMAGE Is the firm responsive to social. Components and corresponding question that a mission statement should answer are given here. Because a mission statement is often the most visible and public part of the strategic-management process. community.COMPONENTES OF A MISSION STATEMENT Mission statement can and do very in length. and specificity. and environmental concerns? 7 . content.
8 . Firms should be able to respond either offensively or defensively to the factor by formulating strategic that take advantage of external opportunities or that minimize the impact of potential threats. cultural. governmental. KEY EXTERNAL FORCES External forces can be divided into five board categories • • • • • Economic forces Social. demographic. and legal forces Technological forces Competitive forces. and environmental forces Political.• CONCERN FOR EMPLOYEES Are employees a valuable asset of the firm? MOBILINK’S MISSION STAEMENT ALONG WITH IT’S COMPONENTS “To provide unparallel services while making sure to satisfy all stake holders” THE NATURE OF AN EXTERNAL AUDIT THE NATURE OF AN EX The purpose of an external audits us to develop a finite list of opportunities that could benefit and threats that should be avoid.
trade journals. if interest rates rise. economic. Individuals can be asked to monitor various sources of information such as key magazines. legal. it should be assimilated and evaluated. a company first gathers competitive intelligence and information about social. and technological trends. As stock prices increases. Once information is gathered. Critical success factors should be • • • • • Important to achieving long-term and annual objective Measurable Relatively few in number Applicable to all competing firms Hierarchical in the sense that some will pertain to the overall company and others will be more narrowly focused on functional or divisional areas. A meeting or series of meeting of up to 20 managers needed to collective identify the most important opportunities and threats facing the firm. 9 . interest rates rise. political. For example. cultural. ECONOMIC FORCES Economic factors have a direct impact on the attractiveness of various strategic. and the demand for discretionary goods falls. Critical success factors can very over time and by industry. These persons can submit periodic scanning reports as a commit of managers charged with performing the external audit. the desirability of equity as a source of capital for market development increases.THE PROCESS OF PERFORMING AN EXTERNAL AUDIT To perform an external audit. consumer and business wealth expand. governmental. Also. discretionary income declines. and newspaper. demographic. then fund needed for capital expansion become more costly or unavailable. environmental. also. as the market rises. A prioritized list of these factors could be obtained.
satellite. and electronic funds transfer are having a dramatic impact on organization. TECHNOLOGICAL FORCES Revolutionary technological changes and discoveries such as superconductivity. networks. health care. and lobbying activities can affect firms significantly. and environmental variables. demographic. and foreign governments are major regulators. cloning.SOCIAL. DEMOGRAPHIC. fiber optics. Which increase the power of electrical products by lowering resistance to current. and customers of organizations. small. CULTURAL. biometrics. state. and legal factors therefore can represent key opportunities or threats for both small and large organization. antitrust legislation. and environmental changes have a major impact upon virtually all products. Superconductivity advancement alone. AND ENVIRONMENTAL FORCES Social. robotics. computer engineering. utility. unsafe factories. Political. markets. and customers. electrical. especially in the transportation. employers. For industries and firms that depend heavily on government contracts or subsidies. are revolutionizing business operations. lasers. for-profit and nonprofit organizations in all industries are being staggered and challenged by the opportunities and threats arising from changes in social. cultural. GOVERNMENTAL AND LEGAL FORCES Federal. demographic. governmental. subsidizers. thinking computers. large. political forecasts can be the most important part of an external audit. Changes in patent laws. miracle drugs. space communication. KEY EXTERNAL FORCES AFFECTING MOBILINK 10 . POLITICAL. and computers industries. local. space manufacturing. services. cultural. deregulators. tax rates.
a venture of the Orascom Telecom group. the economic environment is unstable and money is distributed unevenly among the masses. Other than this policy of the Government of Pakistan. The main target customers for JAZZ are young people 11 . Therefore the technical environment of Pakistan does not really pose a threat for Mobilink. so Mobilink GSM has paid attention to the income levels of the people of Pakistan and introduced different packages for each. With the increasing usage of the Internet. which will result in increased efficiency and effectiveness of cellular communication. Recently. Technological Environment Mobilink GSM is aware of its technological environment. had to settle with a partnership with local organizations here. This poses a threat for the mobile industry. Currently. Demographic Cultural and Social Environment The population of Pakistan is increasing rapidly. On a larger scale. Growing population means growing human communication needs to satisfy and this means increasing market opportunities for Mobilink GSM. it’s a risk for foreign companies to invest in Pakistan because of the unstable economy and changing governments. Political environment The political environment has. an issue has arisen that radiation from mobile handsets damages the brain. does and will effect Mobilink’s functioning in Pakistan.Economic Environment The income level of our people varies greatly. a lot of attention is being given to information and cellular technology by the government. People have also become more health conscious. Mobilink is focusing on the integration of the Internet with its cellular offering. This is because the government of Pakistan does not allow purely foreign ventures (of all industries) here and that is why Mobilink GSM.
preferences and behaviors. that’s why Mobilink should see what are the barriers which may create hurdles in advertising and promotion plan. One of such boards was burnt to ashes by activists of a religious group as according to them she portrayed in an improper dress.from ages 19 above and 30 below. Therefore it would be wrong to say that the Pakistani cultural environment is hostile to changes. Mobile communication is quenching this thirst and Mobilink GSM is the market leader in its territory. These people include students and yuppies (young urban professionals). which can eventually undermine the success of sales and promotion efforts. trying to promote Jazz. Today every body wants to be up-to-date. As happened with the bill board of jazz. 12 . cannot do without one. Our cultural environment is highly affected by this advancement. Information technology is shaping up our society’s perceptions. Mobilink also had a few problems while its promotional activities. portraying the famous Pakistani model/actress. the want is starting to shape our culture. especially to this technological change. as ours is a conservative society. Zara sheikh. which need to look into while promoting sales of a particular product as these aspects are generally ignored. Mobilink also has been a victim of such problems. Mobilink should have taken in account these religious values. Connectivity is the need of the hour. Instead of our culture shaping the wants of its people. The religious environmental pressures/trends are critical areas. People are moving in an age of connectivity. The mobile phone has become so much of a part of our culture that a professional and a non-professional alike.
COMPETITIVE ANALYSIS Porter's Five Forces Model Potential entrants Threat of new entrants Bargaining power of suppliers Suppliers Industry competitors Bargaining power of buyers Rivalry among existing firms Buyers Threat of substitutes Substitute products BARRIERS TO ENTRY • Absolute cost advantages • Proprietary learning curve • Access to inputs • Government policy • Economies of scale • Capital requirements 13 .
industry • Substitutes available • Buyers' incentives SUPPLIER POWER • Supplier concentration • Importance of volume to supplier • Differentiation of inputs 14 .• Brand identity • Switching costs • Access to distribution • Expected retaliation • Proprietary products THREATS OF SUBSTITUTES • Switching costs • Buyer propensity to substitute • Relative price performance of substitute BUYER POWER • Bargaining leverage • Buyer volume • Buyer information • Brand identity • Price sensitivity • Threat of backward integration • Product differentiation • Buyer concentration vs.
• Impact of inputs on cost or differentiation • Switching costs of firms in the industry • Presence of substitute inputs • Threat of forward integration • Cost relative to total purchases in industry DEGREE OF RIVALRY • Exit barriers • Industry growth • Industry concentration ratio • Fixed costs/Value added • Product differentiation • Buyers' incentives PORTER'S FIVE FORCES MODEL IN MOBILE INDUSTRY Potential entrants Entry of Telenor and Warid Bargaining power of suppliers Suppliers Industry competitors Buyers Rivalry among Mobilink and Increasing bargaining power of buyers 15 .
legal. Appropriate weights can be determined by comparing successful with unsuccessful competitors or by discussing the factor and reaching a group consensus. Be as specific as possible. 16 . but threats too can receive high receive weights if they are especially severe or threatening.0. The weight indicates the relative importance of that factor to being successful in the firms industry. List the opportunities first and then the threats. and comparative numbers whenever possible. Include a total of from 10 to 20 factors. • Assign to each factor a weight that ranges from 0.Many substitutes available Substitute products INDUDTRYS ANALYSIS THE EXTERNAL EVALUATION (EFE) MATRIX An external factor evaluation (EFE) matrix allows strategists to summarize and evaluate economic. environmental. ratios. There are five steps in developing an EFE Matrix • List key external factors as identified in the external audit-process. Governmental. Opportunities often receive higher weights then threats. political. social.0 (very important). using percentage. technological. cultural. demographic. The sum of all weight assigned to factors must equal 1. including both opportunities and threats affecting the firm and its industry. and competitive information.0 (not important) to 1.
where 4 = the response is superior.0 (very important).• Assign a 1-to-4 rating to each critical success factors to indicate how effectively the firms current strategies respond to the factor. and 1 = the response is poor. • 1-to-4 rating has been assigned to each critical success factors to indicate how effectively the firms current strategies respond to the factor. In others words. 3 = the response is above average is average.0 and the lowest possible total weighted score is 1. • • • Multiply each factors weight by its rating to determined a weighted score. and 1 = the response is poor. Each factor has been assigned a weight that ranges from 0.0 (not important) to 1. the firms strategies effectively take advantage of existing opportunities and minimize the potential adverse effect of external threats.5.0. THE EXTERNAL EVALUATION (EFE) MATRIX OF MOBILINK • • Key external factors have been identified in the external audit-process. The sum of all weights assigned to factors is equal to1. 17 . the highest possible total weighted score for an organization is 4. Rating are based on effectiveness of the firms strategies. Regardless of the number of key opportunities and threats included in an EFE Matrix. whereas the weights in step 2 are industry-based.0 indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry.0. The average total weighted score is 2. A total score of 1. Ratings are thus company-based. where 4 = the response is superior. Rating are based on effectiveness of the firms strategies. A total weighted score of 4.0 indicate that firm’s strategies are not capitalizing on opportunities or avoiding external. The weight indicates the relative importance of that factor to being successful in the firms industry. Sum the weighted scores for each variable to determined the total weighted scores for the organization. 3 = the response is above average is average. including both opportunities and threats affecting the firm and its industry.
18 . In others words.• • • Each factors weight has been multiplied by its rating to determined a weighted score. Total weighted scores for the organization has been reached by summing all weighted scores. A total weighted score of indicates that Mobilink is responding in an outstanding way to existing opportunities and threats in its industry. the firms strategies effectively take advantage of existing opportunities and minimize the potential adverse effect of external threats.
it has a lot of scope here. • PTCL being government owned organization-having monopoly in telecommunication sector. • Area of operations can be expanded • Mobile phone has become a part of our culture • Facilities with respect of recharging of connection.WEIGHTED KEY EXTERNAL FORCES OPPORTINITIES • Mobile market is far below saturation. • Pakistan’s government trying to boost the IT industry. • Increased bargaining power of customer. • Value added services provided by competitors. • Uneven distribution of wealth • Unstable economy and changing governments • Ignoring religious values while promoting sales through advertisement 3 3 4 2 2 1. • Growing population and growing needs for communication THREATS • New potential entry.00 3 WEIGHTS RATINGS 4 3 SCORES 19 .
00 THE COMPETITIVE PROFILE MATRIX The competitive profile matrix (CPM) identifies a firm’s major competitor and their particular strengths and weakness 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. the factors in CPM include both internal and external issues.6. However. the critical success factors in a CPM are broader. they do not include specific or factual data and even may focus on internal issues. This comparative analysis provides important internal strategic information. Advertisement and price competitiveness are most critical success factors in he industry as indicated by weights.Here critical success factors in a CPM are broader. The weights and total weighted scores in both a CPM and EFE have the same meaning. There are some important differences between the EFE and CPM. First of all. the rating refers to strength and weakness. Paktel is an average firm with weighted score of 3.75 while Mobilnk is highly competitive firm as evidenced by weighted score of 3.TOTAL 1. 20 . The factors in CPM include both internal and external issues. The critical success factors in a CPM also are not grouped into opportunities and threats as they are in an EFE. the rating refers to strength and weakness of three firms Mobilnk. Mobilinks product quality is superior as indicate by rating of 4. Paktel and Ufone.Ufone is tha weakest firm receiving a weighted score of 3.55. CPM MATRIX FOR MOBILINK The competitive profile matrix (CPM) of Mobilink identifies it’s major competitor and their particular strengths and weakness in relation to firm’s strategic position.
4 0.8 0.3 3 4 2 0.05 1.4 0.4 0.8 0.6 0.15 0.10 0.10 0.6 3 4 2 1 3 0.75 4 4 4 4 4 0.1 0.6 0.THE COMPETITIVE PROFILE (CPM) MATRIX PAKTEL CRITICAL SUC CES S FAC TOR S Advertisement Product quality Price competitiveness Management Financial position Customer loyalty Global expansion Market share TOTAL 0.2 3.10 4 2 3 0.6 0.15 2.10 0.2 0.2 0.4 0.45 0.55 0.2 0.1 0.1 2.4 0.4 0.4 0.2 2 2 4 0.4 WEIGHTS RATING SCORE RATING SCORE RATING SCORE MOBILINK UFONE 21 .00 4 3 2 1 2 0.3 0.20 0.
PROBLEM CHILDREN/QUESTION MARK 22 . It is based on the observation that a company business unit can be classified into four categories based on relative market share and market growth.BCG MATRIX Boston Matrix is a well-known tool for the marketing manager. It has two controlling aspect namely relative market share (meaning relative to your competition) and market growth. Each cell has its own name as follows. Market growth serves as proxy for industry attractiveness and relative market share serves as proxy for competitive advantages. This is simplistic in many ways and the matrix has some understandable limitations that will be considered later. The large US consulting group developed it.
If a star maintains its market share it will become a cash cow. Question marks must be analyzed carefully in order to determine whether they are worth investment required to gain market share. If question mark does not succeed in becoming market leader then perhaps after years of cash consumption it will degenerate into dog when market share declines. Cash Cows generate more than is invested in them. STARS These are firms that are in high growth markets with a relatively high share of that market. A question mark has the potential to gain market share and become a star. to cover administrative cost of the company. They consume resources and generate little in return. Stars tend to generate high amounts of income. when the market growth rate declines.These are firms with a low share of a high growth market. and eventually a cash cow when market share slows down. Cash cow provides the cash to turn dogs into market leader. They absorb most money as you attempt to increase market share. to fund research and 23 . Such business units should be milked extracting the profits and investing a little cash as possible. CASH COWS These are firms with a high share of a slow growth market.
development. they tend to absorb it. They do not generate cash for the company. It is normally applied to Strategic Business Units (SBUs). Such businesses are candidate of divestiture. 4. 24 . The main problem is that it oversimplifies a complex set of decision. There is another assumption that SBUs will cooperate. it may gain a high market share quickly but it still has to cover very high development costs. Be careful. DOGS These are organizations with a low share of a low growth market. to service the corporate debts. These are areas of the business rather than products. to pay dividends to shareholders. 2. Because cash cow generates relatively stable cash flows its value can be determined with reasonable accuracy by calculating present value of its cash streams using a discounted cash flow analysis. This is not always the case. 3. Here are some problems of this matrix. Problems with the Boston Matrix This matrix was widely used but now it has faded it’s popularity as new and more comprehensive models have been developed. This may not always be the case. When Boeing launch a new jet. There is an assumption that higher rates of profit are directly related to high rates of market share. Use the Matrix as a planning tool and always rely on your gut feeling. These are the canine version of 'real turkeys!'. 1.
It is having a low share market. STAR CASH COW QUESTION MARK DOG DOG Paktel Aims is a dog in mobile industry. which are differently identified. It is having greatest market share in mobile industry. 25 . STAR Paktel GSM can be recognized as star in mobile industry. So having highest sales volume it is a star. It’s success and failure both are not sure. CASH COW Mobilink is no doubt is a cash cow in mobile industry. which is a major feature of cash cow. in mobile industry. It is generating more than is invested in it. Firstly it was a question mark but it has now moved to become a star as it has made heavy sales from it’s launch till now.BCG MATRIX IN MOBILE INDUSTRY Here are four firms. QUESTION MARK Warid an upcoming Mobile service providing company is question mark for the mobile industry.
3. Weaknesses: 1. 2. 3. 2. 2. 2.TOWS Matrix From External Analysis (EFAS) From Internal Analysis (IFAS) Opportunities: 1. Threats: 1. 3. SO Strategies WO Strategies Use strengths Use Opportunities to overcome weaknesses to take advantage of opportunities WT Strategies Defensive strategies to minimize weaknesses and ST Strategies Take advantage of avoid threats Strengths to Avoid threats 26 . Strengths: 1. 3.
Pakistan’s government trying to boost the IT industry.First company to introduce the concept of franchise in Pakistan.Known as market leader.Usually has a busy network.PTCL being government owned organization-having monopoly in telecommunication sector. 4.TOWS MATRIX FOR MOBILINK From External Analysis (EFAS) From Internal Analysi -s (IFAS) STRENGTHS 1. 2.Facilities with respect of recharging of connection. 3.Ignoring religious values while promoting sales through advertisement WEAKNESSES 1.New potential entry.Area of operations can be expanded 4.Uneven distribution of wealth 6.Value added services provided by competitors.Abundant financial resources as it doesn’t face government constraints 3. 5. OPPORTINITIES 1.Unstable economy and changing governments 7. 4. 3. 2. 2. 6. it has a lot of scope here.Mobile market is far below saturation.80% urban coverage 5.Increased bargaining power of customer. 2.Powerful brand image.Don’t think about the customers complaints SO STRATEGIES Forward integration WO STRATEGIES ST STRATEGIES WT STRATEGIES Market penetration Market development Product development Joint venture 27 .Growing population and growing needs for communication THREATS 1.Mobile phone has become a part of our culture 5.
After selling these connections.Thus they earn a profit. which comprises of the following sources: • • • • Franchisers/dealers. Shops Franchisers/dealers They deal with giving connections. Connects These only provide the connections of Mobilink. billing and also the customer services. the franchisers get commission from Mobilink. ST STRATEGIES Market penetration Mobilink promotions are through the following sources: 28 . Connects. Service centers These service centers provide the connections and you can also buy hand sets in these centers.SO STRATEGIES Forward integration Mobilink has a very effective and efficient distribution system. Service centers. They have a certain deal with Mobilink in which these franchisers purchase these connections from Mobilink at a price and hen these franchisers/dealers further sell them.
Zara Sheikh. it’s a risk for foreign companies to invest in Pakistan because of the unstable economy and changing governments. 29 . Other than this policy of the Government of Pakistan. Eiman Ali and Samina Perzada in it’s advertisements for reference sales.• • • • • • • News papers Television Billboards Pamphlets Public relation programs Word of mouth Sales promotion Newspapers and Television Mobilink has high advertising budget and it works with renowned and costly directors actors and models in its television ads and also in newspapers. Sales promotion Now a day Mobilink is offering Product development Market penetration WO STRATEGIES Joint venture Government of Pakistan does not allow purely foreign ventures (of all industries) here and that is why Mobilink GSM. had to settle with a partnership with local organizations here. a venture of the Orascom Telecom group. For example Mobilink used Shann.
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