EXTERNAL FACTOR EVALUATION

S.No

Key Internal Factors
Opportunities
1 Promotional Packages
2 Sponsorships for local and International events
3 Changing Marketing Mix
4 Investment and Development Opportunities
5 Improved Customer Service and Value Added Services
6 Economic Influx both globally and locally
7 Global Telecom Industry on Growth, both supply push and demand pull, pursuit of expansion
8 Adoption New Technology; Mobile Wallet and Gift Cards
9 Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company
10 Adopting to MVNO and MVNE services
11 Local handset manufacturing
12 Adoptation to UTMS- 3G technology up coming in Pak
13 Exchange Rate Fluctuation

14
15
16
17
18
19

Threats
Intense Competition – Telenor, Ufone, Warid & Zong
Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan
Market Saturation of Subscribers
Increasing maintenance cost
Skilled labor attracted to competitors via better benefits
High Tax Rates

Weights
0.060
0.030
0.040
0.060
0.060
0.020
0.020
0.040
0.050
0.040
0.020
0.040
0.060

0.080
0.040
0.060
0.030
0.030
0.050

20 Price war between brands in telecom industry

0.080

21 Natural Disaster; like the recent flood caused huge losses and the previous earthquake

0.050

22 Political Instability and Security Concern

0.040

Total

1.00

ACTOR EVALUATION
Rating

Weighted Score

4.0
4.0
3.0
4.0
3.0
4.0
3.0
3.0
4.0
4.0
3.0
3.0
3.0

0.24
0.12
0.12
0.24
0.18
0.08
0.06
0.12
0.20
0.16
0.06
0.12
0.18
1.88

3.0
3.0
3.0
3.0
2.5
3.0

0.24
0.12
0.18
0.09
0.08
0.15

3.0

0.24

3.0

0.15

3.0

0.12
1.37
3.25

INTERNAL FACTOR EVALUATION
S.No Key Internal Factors
Strengths
1 Largest Market Share & Highest number of Subscriber in Pakistan
2 Blackberry usage soars
Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre3 paid brand; & sweep two superbrands award 2009 & Pioneers with GSM Technology
Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries with International
4 Roaming
Engineering and Technological stability at Mobilink along with competent employees
5
6

Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93

Weights

Rating

Weighted Score

0.050
0.030

3.0
4.0

0.15
0.12

0.030

3.0

0.09

0.050

4.0

0.20

0.040

4.0

0.16

0.030

4.0

0.12

0.030

4.0

0.12

0.030

3.0

0.09

0.040

4.0

0.16

0.040

3.0

0.12

0.030

3.0

0.09

0.030

3.0

0.09

0.030

2.0

0.06

0.040

2.0

0.08

Concern for society and adapt to work environment needs; active CSR and only cellular
operator to be awarded 6th Environmental Excellence Award by NFEH
7
ISO 9002 Quality Management System Certification for Billing, Engineering Departments and
8 CS Contact Center
First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming
services & Best extensive Network Infrastructure; optical network and satellitte links
9
Declining Sales and EBIT by 13.5% but exponential growth in Revenue in first 3 quarter of
10 2010
Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation
of full intelligence network (IN) platform from Siemens for the prepaid platform
11
Mobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management
12 services
13

Largest Call Center in Pakistan, which is there to assist the customers 24 hours

Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT & FAT is
14 0.09 and 0.22 respectively

09 0. due to recent cost cutting program and employee job termination 28 29 Extensive Organizational Structure 0.06 1.5 0.030 0.12 2.0 0.060 0.06 ARPU for pre-paid declined from 1.13 0.0 3.05 Low employee Morale.030 0.030 3.0 0.3 from 1.0 3.10 Weaknesses 19 Service issues with customers .5 2.030 0.040 3.0 3.050 0.15 0.09 0.040 3.0 0. Tata Indicom and Reliance 15 16 Continuous and latest employee training approaches 17 Effective and Rapid Communication within Management Partnership with MCB to offer all banking services to Mobilink customers via their handsets 18 0.00 3.5 2.08 0.040 2.3rd among the 'Brands punching above their weights' ahead of Airtel.09 0.0 0.020 2.8 to 1.020 4. Mobilink ranked in top 100 telecom companies worldwide .0 0.040 0.00 0.10 0.0 0.050 0. high cost of material and other expenses High Tariffs as compared to competitors & expensive service quality both call rates and sms 22 23 Call Blockage service still not offered 24 Sort of bureaucratic style of Management.average to below average service 20 Mismanagement due to large network 21 Huge Expenses incurred.6 but for post-paid inclined to 1.0 3. biasness by intermediate bosses 0.18 0.020 3.03 Total 1.2 25 26 Customer Retention 27 No clear strategic direction of Orascom 0.0 4.16 0.In 2009.13 .12 0.

100 3.240 0.00 0.300 0.280 3.00 0.000 3.300 3.00 0.400 3.480 3.180 4.00 0.450 0.00 0.00 0.150 3.00 0.360 .00 0.100 4.100 3.00 0.050 3.00 0.360 0.00 0.150 4.150 4.100 3.300 0.400 1.00 0.00 0.00 0.COMPETITIVE PROFILE MATRIX Mobilink Critical Success Factor Promising Business Model Advertising Service Quality Market Share Customer Loyalty Technology & Innovation Price Competitiveness Financial Position R&D Management Total Telenor Weight Rating Score Rating Score 0.300 0.00 0.00 0.070 4.440 3.600 0.300 4.300 3.200 0.450 4.600 3.00 0.210 0.00 0.00 0.060 3.120 4.00 0.

450 4.00 0.240 3.300 3.00 0.00 0.00 0.00 0.200 2.200 3.180 4.300 2.00 0.200 2.00 0.RIX Ufone Rating Score 3.00 0.810 .140 2.600 2.00 0.00 0.

SWOT MATRIX Strengths Largest Market Share & Highest number of Subscriber in Pakistan 2 Blackberry usage soars 1 Strong Brand Image. Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand. optical network and satelitte links 9 10 Declining Sales and EBIT by 13. 3 & sweep two superbrands award 2009 & Pioneers with GSM Technology 1 2 3 4 Wide Network Coverage of 10.000 cities in Pakistan and over 100 countries with International Roaming 4 5 Engineering and Technological stability at Mobilink along with competent employees 5 6 Current ratio of company to meet its obligations improved in 2009 to 1. Engineering Departments and CS Contact Center 8 First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services 9 & Best extensive Network Infrastructure.93 6 Concern for society and adapt to work environment needs.18 from 0.5% but exponential growth in Revenue in first 3 quarter of 2010 10 . active CSR and only cellular operator to be 7 awarded 6th Environmental Excellence Award by NFEH 7 ISO 9002 Quality Management System Certification 8 for Billing.

Mobilink ranked in top 100 telecom companies worldwide . Tata Indicom and Reliance 16 Continuous and latest employee training approaches Effective and Rapid Communication within Management Partnership with MCB to offer all banking services 18 to Mobilink customers via their handsets 17 11 .3rd among the 'Brands 15 punching above their weights' ahead of Airtel.22 respectively In 2009. in 2009 TAT & FAT is 0. which is there to assist the customers 24 hours Total Assets Turnover and Fixed Assets Turnover 14 had been low for 3yrs.09 and 0.Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation 11 of full intelligence network (IN) platform from Siemens for the prepaid platform 12 Mobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management services 13 Largest Call Center in Pakistan.

6 but for post-paid inclined to 1.average to below average service Mismanagement due to large network Huge Expenses incurred.3 from 1.2 Customer Retention No clear strategic direction of Orascom Low employee Morale. biasness by intermediate bosses ARPU for pre-paid declined from 1.SWOT MATRIX Weaknesses Service issues with customers .8 to 1. high cost of material and other expenses High Tariffs as compared to competitors & expensive service quality both call rates and sms Call Blockage service still not offered Sort of bureaucratic style of Management. due to recent cost cutting program and employee firing .

Extensive Organizational Structure .

Capacity Utilization Technological Know-How .50) = -0.0002 Debt-To-Capital Ratio.0 3.0 4.33 Directional Vector Co-ordinates: x-axis: -3.0 4.60 -3.00 12.0 12.1 + + + + + + 2.00 / / / / 6 5 4 6 = = = = 3. declining Net Income Growth Rate.00 32.0 Economic downturn Global Rapid Technological Changes Price Change by Competitor & Customer Switching Rate of Inflation & High Interest Rates Expensive Infrastructure Industry Strength (IS) Ease of Entry into Telecom Industry Profit & Growth Potential Financial Stability Resource Utilization Productivity.00 18.50 -3.0 1.00+(+5.18 Revenue Growth Rate.00 5.0 - 5.33 y-axis: -3.60+(+3.5% The Return on Assets is 0. CR 1.0 21.0 5. (3:7) Liquidity.SPACE MATRIX Factors that make the SPACE Matrix Axes Internal Strategic Position External Strategic Position Financial Strength (FS) Environmental Stability (ES) Declining EBIT by 13.0 1. declining Competitive Advantage (CA) Telecom Giant are competitive Market Share Control over Suppliers and Distributors Customer Loyalty Conclusion FS average is ES average is CA average is IS average is + + 21.0 2.0 6.33) = +2.

Forward & Horizontal Integration Market Penetration Market Development Service Development .Mobilink should pursue Competitive Strategy Backward.

2 .0 2.0 + + + + + + .0 5.4 .0 6.0 5.6 .X The SPACE Matrix - + + + + + + 5.0 5.33. Mobilink is with major competitive advantages and financially strong in high growth industry .0 6.0 32.0 1.3 .0 ### 5.0 4.1 - 6 5 4 3 2 1 0 + 1 + 2+ 1 2 3 4 5 6 (+2.0 6.5 .

.

10) Mobilink is with major competitive advantages and financially strong in a high growth industry .33.3+ 4+ 5+ 6 (+2.-0.

.

400 0.Prioritize Product Development Market Penetration Market Development Division Mobilink World Mobilink Infinity Mobilink Jazz Indigo RMSP Blackberry 0.800 0.00 For Jazz .BCG MA BCG .Based on Service RELATIVE MARKET SHARE P INDUSTRY SALES GROWTH RATE High 1.00 High 1.50 II Prioritize Medium 0.350 0.500 0.700 .550 0.00 Medium 0.900 Total 3.50 III Invest Low 0.

World & Indigo . Forward & Horizontal Integration Market Penetration Market Development Product Development For Infinity .Maintain Backward.Restructuring Retrenchment Restratucture .For Blackberry.

850 3.50 Low 0.080 0.00 I Divest Kill IV Invest ISGR 0.550 0.G MATIX MARKET SHARE POSITION Medium 0.900 0.800 0.180 .

.

Forward & Horizontal Integration Market Penetration Market Development Product Development .50 Invest III Low 0.34) (5.10) (5.353 4.229 2.60) For All Divisions .Based onGeographic Divisions RELATIVE MARKET SHARE INDUSTRY SALES GROWTH RATE High 1.00 High 1.Prioritze Backward.BCG .00 Medium 0.50 Prioritize II South Division North Division Medium Central Division 0.06 (17.16) 10.00 Geographic Region Northern Division Southern Division Central Division Total Sales $ (M) 3.476 Sales % (7.

.

ARKET SHARE POSITION edium 0.00 0.74) (3.50 Low 0.23) 0.37) (13.377 % Profit (9.753 1.00 Divest I l Division Kill IV Profits $ (M) 0.12) RMSP Upper Medium High upper medium ISGR High High medium 2 (26.00 ntal Integration .129 0.

.

.

.

00 Medium 2.IE .99 Average 2.00 to 4.00 IV V VI VII VIII IX 2.00 4.00 .99 2.00 II 3.99 3.00 to 2.00 4.00 I Weak 1.Based on Services THE IFE TOTAL WEIGHTED SCORES THE EFE TOTAL WEIGHTED SCORES Strong 3.00 1.00 to 4.99 Low 1.00 to 1.00 to 1.00 to 2.00 High 3.

00 III VI IX .99 1.to 1.

024 .368.329.203.074 18.000 18.428 15.299 4.GRAND STRATEGIC RAPID MARKET GR II WEAK COMPETITIVE POSITION III SLOW MARKET GROW Quadrant I Mobilink has options for: Market Development Market Penetration Product Development Horizontal Integration Forward Integration Backward Integration Related Diversification TELECOM COMPANIES Mobilink Ufone Telenor Warid Zong NUMBER OF SUBSCRIBERS 32.446.774.

47% 19.03% 9.56% 19.27% MARKET SHARE 32.005 16.72% 16.RATEGIC MATRIX APID MARKET GROWTH I IV STRONG COMPETITIVE POSITION W MARKET GROWTH CELLULAR SUBSCRIBERS 32.47% 23.97% 7.50% 23.00% .

040 0.080 0.030 0.040 0.040 0.030 0.3G technology up coming in Pak Exchange Rate Fluctuation Threats 14 Intense Competition – Telenor.060 0.060 0.QSPM The Quantitive Srategic Planning matrix .020 0.050 0.050 . pursuit of expansion 7 8 Adoption New Technology.QSPM Key Factors Opportunities 1 Promotional Packages 2 Sponsorships for local and International events 3 Changing Marketing Mix 4 Investment and Development Opportunities 5 Improved Customer Service and Value Added Services 6 Economic Influx both globally and locally Global Telecom Industry on Growth.060 0.080 0. Warid & Zong 15 16 17 18 19 20 21 Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan Market Saturation of Subscribers Increasing maintenance cost Skilled labor attracted to competitors via better benefits High Tax Rates Price war between brands in telecom industry Natural Disaster.020 0.030 0. Mobile Wallet and Gift Cards 9 10 11 12 13 Merger with VimpelCom.060 0. both supply push and demand pull. Opportunity to be Global 5th Largest Telecom Company Adopting to MVNO and MVNE services Local handset manufacturing Adoptation to UTMS.020 0.040 0. like the recent flood caused huge losses and the previous earthquake Weight 0.050 0.060 0. Ufone.040 0.

Tata Indicom and Reliance 15 16 Continuous and latest employee training approaches 17 Effective and Rapid Communication within Management 18 Partnership with MCB to offer all banking services to Mobilink customers via their handsets 0.030 0.000 cities in Pakistan and over 100 countries with International 4 Roaming Engineering and Technological stability at Mobilink along with competent employees 5 6 Current ratio of company to meet its obligations improved in 2009 to 1.040 0.050 0.00 Strengths 1 Largest Market Share & Highest number of Subscriber in Pakistan 2 Blackberry usage soars Strong Brand Image.030 0.22 respectively In 2009.040 0.040 1.040 .030 0. Engineering Departments and 8 CS Contact Center First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure.030 Concern for society and adapt to work environment needs.040 Weaknesses 19 Service issues with customers .030 0. high cost of material and other expenses High Tariffs as compared to competitors & expensive service quality both call rates and sms 22 23 Call Blockage service still not offered 0.average to below average service 20 Mismanagement due to large network 21 Huge Expenses incurred.060 0.5% but exponential growth in Revenue in first 3 quarter of 10 2010 Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation of full intelligence network (IN) platform from Siemens for the prepaid platform 11 Mobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management 12 services Largest Call Center in Pakistan.040 0.09 and 0. Indigo leading Postpaid brand and Mobilink Jazz singular pioneer prepaid brand. in 2009 TAT & FAT is 14 0. optical network and satellitte links 9 Declining Sales and EBIT by 13.030 ISO 9002 Quality Management System Certification for Billing. Mobilink ranked in top 100 telecom companies worldwide .18 from 0.040 0.030 0.22 Political Instability and Security Concern 0.030 0. & sweep two superbrands award 2009 & Pioneers with GSM Technology 3 Wide Network Coverage of 10.050 0.3rd among the 'Brands punching above their weights' ahead of Airtel.030 0.050 0.030 0.030 0. active CSR and only cellular operator to be awarded 6th Environmental Excellence Award by NFEH 7 0.040 0.040 0. which is there to assist the customers 24 hours 13 Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs.93 0.

2 25 26 Customer Retention 27 No clear strategic direction of Orascom 0.8 to 1.030 0.050 0. biasness by intermediate bosses 0.020 1.6 but for post-paid inclined to 1. due to recent cost cutting program and employee job termination 28 29 Extensive Organizational Structure 0.24 Sort of bureaucratic style of Management.020 Low employee Morale.3 from 1.020 ARPU for pre-paid declined from 1.00 Total .

12 0.16 - 3 3 0.24 0.15 .08 4 0.32 - - 3 0.12 0.06 0.24 0.16 0.18 4 0. MVNE & UTMS Technology Backward Integration over their infrastructure vendors and suppliers to reduce cost and expenses AS TAS AS TAS 4 4 3 4 3 0.32 - - - - 4 4 4 4 0.12 0.24 0.18 0.16 0.24 0.08 4 0.18 0.08 4 0.24 0.SPM STRATEGIC ALTERNATIVES 1 2 Improve Service and gain Market Share via Adopting MVNO.32 4 4 4 4 0.16 - - 4 0.06 3 3 4 4 4 0.12 0.12 0.32 4 0.2 - - 4 4 - 0.24 0.

16 4 0.16 - - .24 0.45 4 - 0.16 4 0.15 4 0.- - - 2.12 4 0.09 2 0.06 3 0.16 - - 4 4 - 0.15 0.12 - - - - - - 3 0.16 - - - - - - - - - - - - 3 0.2 - - - 4 0.12 - 4 4 4 0.16 4 0.09 - - 4 0.16 4 0.76 2.09 - - - - - - - - - - 3 3 0.12 0.2 3 0.24 0.09 - - 3 0.12 4 0.

2 - - - - - - - - - 2.2 - 4 - 0.88 7.87 6.- - - - 4 0 4 0 4 - 0.27 .35 0.