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Pest Analysis on Telenor in Pakistan


WHAT IS PEST ANALYSIS? A pest analysis is a scan of the external macro-environment in which the firm op erates can be expressed in terms of the following factors. A pest analysis is a scan of the external macro-environment in which the firm operates can be express ed in terms of the following factors â ¢ Political â ¢ Economic â ¢ Social â ¢ Technological The acronym PEST (or sometimes rearranged as "STEP") is used to describe a frame work for the analysis of these macro environmental factors. In this document we will discuss only two factors. 1. Socio-cultural factors 2. Technological factors TELENOR HISTORY: Telenor Pakistan is 100% owned by the Telenor Group, an international provider o f high quality voice, data, content and communication services in 11 markets acr oss Europe and Asia. Telenor Group is among the largest mobile operators in the world with 140 million mobile subscriptions (Q4 2011) and a workforce of approxi mately 30,000. Telenor Pakistan is the country's single largest European foreign direct investo r, with investments in excess of US$2 billion. It acquired a GSM license in 2004 and began commercial operations on March 15, 2005. At the end of December 2011 it had a reported subscriber base of 28.11 million. SOCIO-CULTURAL FACTORS: Social cultural factors include the cultural aspects and include health consciou sness, population growth rate, age distribution, career attitudes and emphasis o n safety. Trends in social factors affect the demand for a company's products an d how that company operates. This factor varies from country to country. Here ar e some factors which influence the Telenor in Pakistan. These are the factors which cannot be changed and the organization has to adapt these factors or adjust with these. Religion: As Pakistan is an Islamic country and people are very strict in case o f Islam. Most of the people come from ethnic background. Any things against the philosophy of Islam on either print or electronic media are treated as against P akistan. Culture: Pakistani peoples are very cultural. Most of the people dislike anythin g extra-ordinary or something which sabotage their culture or subculture. So any thing against their culture means against the peoples.

Rural areas: most of the peoples live in rural areas. Leisure time: Peoples have much leisure time. Anything which favors thes e peoples would be more profitable. automation. cannot be change and company has to adapt these. technological Shifts can affect cos ts. Recent technologies: Companies have technology with which they can compete in th e Pakistan and now companies are investing in their infrastructure to not only e xpand but also to upgrade their existing structure. technology incentives and the rate of technological change . So they have much time for this kind of things . Additional features: Currently there are only few companies who is providing Mul ti-media Messaging Services (MMS). Labor rate is very low as compare to other countries because Pakistan is a developing country. Multi-media Messaging Services (MMS) and Virtual Private Network (VPN) at very fast speed. So the Telenor must provide these services for getting custo mers. They are currently working o n a permanent recycling program that will include all of their markets.also the population of Pakist an is also increasing day by day. So they can be easily attracted by special offe rs. These factors also. Women roles: In metropolitan cities women are doing work along with their other responsibilities but other than metropolitan cities it is difficult for women to convince their parents and spouses for work. GPRS: if they improve their GPRS network in rural areas so they can also provide good internet services to the rural areas. special packages and emotionally ads.Language: The national language is Urdu and literacy rate is very low only 50% p eoples understand English . General Packet Radio Service (GPRS). Companies who are targeting upper-end of market mostly published and aired their advertisement in English language. They a lso like those things which are close to Pakistani culture and religion Islam. Such as R&D activity. and lead to innovation. S o Telenor have to care for these rural areas. Serbia and Norway. Furthermore. TECHNOLOGICAL FACTORS: Technological factors include ecological and environmental aspects. THEY can determine barriers to entry. Telenor can easily get the labors at low rates so they can save more. They understand Urdu language. As most of the women are household s. Cheap labor: Most of the people in Pakistan are jobless. They are also very near to Pakistani culture and religion as compare to urban society. minimum efficient production level and i nfluence outsourcing decisions. Fast speed: Telenor has shifted its whole network from 900 MHz to 1800 MHzâ s Telenor will be able in offering Value-Added Services like General Packet Radio Service (GPRS). This generation is more i nterested in this kind of thing.So they have to advertise and publish most of their a ds in Urdu or show a Pakistani culture otherwise it may impact on their service. Virtual . Youth generation: Young generation of Pakistan is 45%. Telenor recycles: Telenor recycles tens of thousands of mobile phones through it s recycling programs in Hungary. So the Telenor must use the very new technologies. quality.

Conference Calling.Private Network (VPN). and Voice Mail at low price and Telenor woul d be provide an addition feature that one can see TV channels on their cell. . Wallpapers Animated pi ctures Polyphonic ring tones (WAP). Pocket Stocks. By adapting these technologies Telenor can provide th e services at very low rates and can provide the better qualities. Video conferencing: video calling is the very new technology and by using this t echnology they can be successful. Technology rate: this is the era of computer and technology and rate of change o f technology is very fast.