BUSINESS POLICIES

AND STRATEGIES OF
ZONG AND MOBILINK
SARDAR ASFANDYAR KHAN-BBA183014
MUHAMMAD RIZWAN-BBA183028
TALLAT ABBAS RAJA-BBA183029
SALAH UD DIN-BBA183030
RAJA ALI ASIF-BBA183105
INTRODUCTION
JAZZ
 Formerly known as Mobilink, the company
was founded in 1994 as a joint venture between Saif
Group and Motorola Inc.
 Jazz has over 12,500 active cell sites in the country,
with over 25,000 kilometers of fiber-optic cables laid.
 Following the merger of Mobilink and Warid, Mobilink
was officially rebranded to Jazz in 2017.
 Jazz has 72 million subscribers in Pakistan, among
which 34 million are 4G subscribers.
 It is headquartered in Islamabad, and the current CEO
is Aamir Hafeez Ibrahim.
ZONG
 Zong is a Pakistan based mobile data network operator,
owned by the company China Mobile.
 With over 14,000 4G enabled sites across the county, it
has a market share of 22% among cellular operators in
the country.
 It was the first company granted a free license to carry
out cellular phone services in Pakistan.
 On 1 April 2008, Paktel was rebranded to Zong.
  It is headquartered in Islamabad, and the current CEO is
Wang Hua.
EXTERNAL ANALYSIS

External analysis means examining the industry environment of the company, including factors such as
competitive structure, competitive position, dynamics.

 PEST Analysis.
 Porter’s Five Forces
 EFA
PEST ANALYSIS

JAZZ ZONG
Political Factors: Political Factors:
 Political Instability:  Political Instability:
Political environment of Pakistan is unstable and country is not The political factor doesn’t effect Zong that much because Zong is
progressing in terms of economic growth that was expected. related to china and relationship of china and Pakistan is very strong.

Economic Factors: Economic Factors:

 Marketers should consider long term and short term state of a  Gross Domestic Product.
trading market.
 Average Revenue per User.
 Economic instability
 Decline in Money value.
 Inflation
 Outflow of Capital.
PEST ANALYSIS

JAZZ ZONG
Social Factors: Social Factors:
 Most of the people dislike anything extra-ordinary or  Expanding seniors market.
something which sabotage their religious values or culture.
 Impact of Adults.
 Companies who are targeting upper-end of market mostly
 Increasing environmental awareness.
published and aired their advertisement in English language.
 Other than metropolitan cities it is difficult for women to Technological Factors:
convince their parents and spouses for work.  Technological Development.
Technological Factors: • The year 1962 saw the first big sector change when Post Telegraph &
Telephone services were separated by establishing independent T&T
 Telecom Companies are investing in their
and Postal Departments.
infrastructure to not only expand but also to upgrade
their existing structure.  Technological Advancement.

 Jazz shifted its whole network from 900 MHz to 1800 MHz offer • Advancement in hardware industry in Pakistan, software industry in
Value-Added Services like (GPRS), (MMS) and (VPN) etc. Pakistan, internet status in Pakistan and e- commerce Status in Pakistan.
PORTER’S FIVE FORCES

Five forces look at five key areas namely

 Threat of New Entry.
 Power of Buyers.
 Power of Suppliers.
 Threat of Substitutes.
 Competitive Rivalry
EXTERNAL FACTOR ANALYSIS (EFA)

JAZZ ZONG
Opportunities : Opportunities :
Can expand its networks in the uncovered areas. Expand Globally.
Can target maximum corporate Customers. Publicity and Marketing.
New product development.
Threats:
Opportunity in northern areas.
New market players.
Threats:
Competitors can offer packages for corporate
Old stable companies.
customers in better way.
Better Packages by Other Cellular Companies.
Wireless local loop service providers.
Price Wars.
Corporate customers can shift to other companies.
Government Interference.
Employee retention.
Loss of loyal customer.
INTERNAL ANALYSIS

 Internal Analysis of an organization, often referred to as organizational analysis, is concerned with

• Identifying
• Developing,
• Taking advantage of an organization’s resources, capabilities, and competencies.
 This is done to find out company strength and weaknesses.
INTERNAL ANALYSIS

A Resource-Based Approach to Organizational Analysis

 The resource-based view (RBV) is a model that sees resources as key to superior firm performance.
 Resource-based theory explains how strategic resources and capabilities allow firms to enjoy excellent performance
over time.
 A strategic resource is an asset that is valuable, rare, difficult to imitate, and organizational.
INTERNAL ANALYSIS

VRIO Framework of Analysis

The VRIO Framework is used to evaluate an organization's resources and capabilities.
 Value: Does it provide customer value and competitive advantage?
 Rareness: Does only one other competitor or preferably do no competitors possess it at relatively the same level?
 Imitability: Do the competitors have the financial ability (viewed in the widest sense) to imitate?
 Organization: Is the firm organized to exploit the resource?
VRIO MODEL
ZONG
Zong Organizational Resources & Capabilities V R I O

NON-CORE COMPETENCIES:

Business process automation ✔      

Competitive employee compensation packages ✔ ✔    

Human resource capabilities for innovation ✔ ✔    

Product mix diversity ✔ ✔ ✔  

CORE COMPETENCIES OR SUSTAINED (LONG-TERM) COMPETITIVE ADVANTAGES:        

Globally popular premium brand ✔ ✔ ✔ ✔

Systems set up for rapid innovation ✔ ✔ ✔ ✔

Ecosystem of complementary products ✔ ✔ ✔ ✔

Access to user information ✔ ✔ ✔ ✔

Artificial intelligence capabilities ✔ ✔ ✔ ✔

Global distribution and sales network ✔ ✔ ✔ ✔

VRIO MODEL
JAZZ
Mobilink’s Organizational Resources & Capabilities V R I O

NON-CORE COMPETENCIES:

Business process automation ✔      

Competitive employee compensation packages ✔ ✔    

Human resource capabilities for innovation ✔ ✔    

Product mix diversity ✔ ✔ ✔  

CORE COMPETENCIES OR SUSTAINED (LONG-TERM) COMPETITIVE ADVANTAGES:        

Globally popular premium brand ✔ ✔ ✔ ✔

Systems set up for rapid innovation ✔ ✔ ✔ ✔

Ecosystem of complementary products ✔ ✔ ✔ ✔

Access to user information ✔ ✔ ✔ ✔

Artificial intelligence capabilities ✔ ✔ ✔ ✔

Global distribution and sales network ✔ ✔ ✔ ✔

INTERNAL FACTOR ANALYSIS

JAZZ ZONG
Strengths : Strengths :
 Potential customers.  Investment.
 Highest Coverage.  Network portability.
 First to introduce IR.  Zong mobile.
 Bilateral roaming with 50 operators.  Resources, Assets and People.
 Tracking and Fleet (VTF) Management services.  Location and Geographical Coverage.

Weaknesses :  Government Dealings.

 Most expensive telecom company both in call rates and SMS. Weaknesses :
 Weak customer retention.  Low Coverage.
 Engineering department of Mobilink is not well competent.  Bad image of Paktel.
 Bad MIS.
CONCLUSION

JAZZ ZONG
 Mobilink has been in operation since 1994, and since  Zong has strong financial position and growing fast.
then has become the market leader by providing its
 Seeing the growth rate of Zong it may be possible that
customers with the state of the art products and
Zong can be the leading mobile operator in Pakistan.
services. Mobilink has for years enjoyed a good
market share of the total industry; its current market  There are some minor discrepancies but they are
share is 36% 3. adjustable with little effort.
 The mobile industry has seen phenomenal growth
over the year, showing growth rate of more than 80%
in 2007. This growth is not new to the industry, as
previous years have shown substantial growth as well.
RECOMMENDATION

JAZZ ZONG
 Firstly we would recommend that the department
 Zong Telecom should be increasing their network
officially start job rotation. The major benefit of which
coverage and foot prints in every corner of the country
would include even more motivated employees, with
to capture the market.
enhanced skills.
 Zong should adopt the strategies of market penetration
 Furthermore, the organization structure of the treasury
market development and related diversification, but the
department makes it easy for job rotation, as all sub
most effective strategy would be market penetration.
departments major functions are interlinked to each
other and mostly all departments currently have more  In the SBU of Zong mobile Zong should use the
than one associate employee, except cash management. strategy of hold and maintain.
 Lastly, we would suggest, that Mobilink adheres to its  Zong should hire the skilled management.
job advancement procedures because for an employee
 Zong should not waste their opportunities and get more
that has worked with Mobilink for more than 2-3 years,
help as possible
they should be awarded with the fruits of job
advancement.