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Mobilink Pakistan
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Assignment # 03
Submitted to: Sir. Tanvir Jafri
Sec: MBA (4, A)
Submitted by:
SAAD AHMED SIDDIQUE FA10-MBA-047
ZAHEER AHMAD FA10-MBA-051
KHURAM RASHEED FA10-MBA-042
SAEED KHAN FA10-MBA-054
TEHSEEN ATHAR FA10-MBA-034
MUSADIQ KHAN NIAZI FA10-MBA-029
HAFIZ SHAHZAD-UL-HASSAN FA10-MBA-056
MUDASIR ZIA FA10-MBA-013
Mobilink Pakistan
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MOBILINK
Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in 1994, and
has become the market leader both in terms of growth as well as having the largest customer
subscriber base in Pakistan-a base of over 30million and growing. Mobilink is the first cellular
service provider to operation a 100% digital GSM technology in Pakistan that also provides
state-of-art communication solutions to its customers.
Mobilink Pakistan is the leading Cellular Company which has 10 Million Subscribers
nationwide. Mobilink is the biggest Cellular Company in Pakistan. Mobilink introduce cellular
networks in Pakistan established themselves as the major cellular company of Pakistan. Covering
almost every city of Pakistan. Mobilink is giant is this the reason that they are still expensive as
compare to other companies like Ufone and Warid Tel.
“MOBILINK MISSION“
“To be a superior communication service company in Pakistan which provides the best value to
its customers, employees, business partners and shareholders?”
”MOBILINK VISION“
“To be the leading Telecommunication Services Provider in Pakistan by offering innovative
Communication solutions for my Customers while exceeding Shareholder value & Employee
Expectations”
Objective:
To be No. 1 in all its mobile businesses
Continue to capture more market before competitors arrive.
To increase market share up to 70% this year
To achieve turnover of 20% in 2005
To provide customer with best value for spending and service at low cost
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PRODUCTS
Mobilink offers both Pre-paid and Post-paid services. They offer 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, they offer both postpaid (Indigo) and the prepaid (JAZZ) services to their customers.
Jazz is an amazing prepaid service that allows freedom from monthly bills and gives complete control over the customer’s cellular expenditure. The user can decide in advance when and how much he wants to spend. He can load a scratch card whenever he wants to and start talking. Jazz is simple, easy and loads of fun. In addition to providing advanced voice communication services, they also offer a number of value added services to their valued subscribers
VALUE ADDED SERVICES
GPRS Mobilink Mustt Services SMS Messaging Power Tools Chat Services Dedication Services Power Tools Mail Services Info Services IVR Ring tones/Logos On Missed Call Alerts
SALES STRATEGY
Mobilink is the first cellular operator to introduce the “franchise “concept in the cellular industry in Pakistan and currently operates the largest franchise networking Pakistan with over 250 franchises/national distributors (dealer’s operated service centers). In order to extend its reach even further, Mobilink worked with its franchisees to develop a network of over 500 sub dealers, these operate as point of sales (POS) and are branded “Mobilink Connect”. Each franchisee is adequately equipped to process sales, collect bills and offer customer services. All franchises have trained sales and service staff fully capable of tackling sales challenges.
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ACHIEVEMENTS
ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center Biggest Call Center in Pakistan, which is there to assist the customers 24hours.
Bilateral-roaming agreements signed with 100 countries around the world to have true roaming service operational in 151 operators of the world.
Mobilink GSM Short Message Service Center allows Vehicle Tracking and Fleet Management services that are being provided by Tracker (Pvt.) Ltd. under the brand name of C-Track, a company licensed by Pakistan Telecom Authority (PTA). Tracker currently operates from Karachi but can provide these facilities at all those locations where GSM coverage is available
CORE COMPETENCE
People at Mobilink believe that their Research & development department is its core competence along with their workforce i.e. their employees. Mobilink is basically a customer-oriented company and it always comes up with new features and products. It surveys the markets and modifies its products according to the requirements and preferences of its customers. Mobilink has relatively rapid product development processes that allow for timely updating and release of new products. It was the first cellular company in Pakistan, which started working on 100% GSM technology. At the end of the year 2005, Mobilink crossed its target of reaching up to 10million customers. At this achievement, all the employees at Mobilink got a month’s salary as bonus in December 2005.
Mobilink Pakistan
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Corporate Level Strategy
As their corporate level strategy, they have entered into partnerships with different organizations.
On the basis of findings, it appears that for the past few years (1999-2003), Mobilink had a focus
on internal growth. All this is evident from the fact that since the deregulation of the mobile
service industry of Pakistan, Mobilink has undertaken various efforts to ensure that it changes its
stance from concentrating on its existing market to growing its market presence. The main
reason for this change is mainly to keep up with the competition and to retain and increase its
market share. This transition is obvious in Mobilink repositioning itself and hitting the market
with a new face with the catchphrase “Reshaping communication”
Joint Promotional Agreements with Various Organizations:
Jazz member Get Member: Opportunity for customers to become the brand’s ambassador
and at the same time earns Rs. 400 in airtime. The new Jazz customer will also get
Rs.100 free airtime.
Mobilink Nokia 9500 offer
MOBILINK-AVIS partnership: Mobilink joined hands with AVIS, a global brand and the
world’s leading car rental company to offer discounted car rental rates(locally as well as
internationally) to all Mobilink post-paid customers. Foreigners visiting Pakistan using
the Mobilink network for cellular services were able to receive a 20% discount on Avis-
Car rental Service.
Mobilink and UBL launch online bill payment facility for Indigo subscribers
MOB- Motorola V3 launch
Mobilink –CITIBANK Joint Promotion (free INDIGO and Call n Control connections to
all Citibank Credit Card members)
Handset Kiosk inside Mobilink Service Center: a ‘hand-set Kiosk’ set up at Mobilink
service center at Awami Markaz, Karachi. The kiosk was set up in collaboration with
Mobile Zone. It gave customers the added convenience of purchasing quality hand sets of
leading manufacturers such as Nokia.
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Business Level Strategy
As their business level strategy it has focused on Differentiation strategy ever since it started.
Mobilink has always made successful attempts to distinguish their products or services from
other in the industry. They make their product unique through:
Advertising:
Mobilink is using television, print, and radio advertising media to disseminate its message and to
build a brand preference but the most preferred is television since this medium is the most
powerful, reaches a broad spectrum of consumers and has the maximum customer impact.
Radio: It has a relatively large listeners‟ base and so is an effective way to communicate
the message.
Billboards and Print Media: The Company has come up with elaborate campaigns,
billboards and posters to promote Indigo, their post-paid brand.
Distinctive Product Features:
Value added services
Online billing
GPRS enabled
Mobilink also started 3 friend and family number with a charge of 2.25/min still
expensive as compared to Warid but giving incentive to subscriber there is an additional
cost of RS 25 to add friends and family number.
International roaming: Bilateral roaming agreements signed with 100countries around the
world to have true roaming service operational in 151operators of the world.
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Exceptional Service:
There are certain areas of Pakistan where PTCL connections are not available; the PTCL
cables have not reached yet, but Mobilink has its service in those areas.
Providing services in 413 cities
Best customer service in the cellular market: Biggest Call Center in Pakistan, which is
there to assist the customers 24 hours.
Only cellular service in Pakistan to provide coverage on the M2 motorway.
New Technology:
Introduced GSM tech- bye to AMPS?
GPRS system – fast and inexpensive
MOBILINK GSM Short Message Service Center allows Vehicle Tracking and Fleet
Management services that are being provided by Tracker (Pvt.) Ltd., under the brand
name of C-Track, a company licensed by Pakistan Telecom Authority (PTA).
Their differentiation strategy is usually targeted at people who are not particularly concerned
with price, so it can be quite profitable e.g. indigo and blackberry are relatively expansive
packages; blackberry is mainly targeted for the business class who can afford it. In this way, the
revenue generation remains high. Mobilink 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, mob offers both postpaid (Indigo, relatively
expensive) and the prepaid (JAZZ, relatively inexpensive) solutions to their customers.
Low Cost Strategy:
Mobilink does not follow a low cost strategy. Mobilink is a giant in Pakistani mobile industry
Tel. Since it first started its operations, it has been focusing its products on the upper strata of the
society. That is why its rates are higher than its competitors, Ufone, Warid, Telenor, etc.
Mobilink Pakistan
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Functional Level Strategy
Sales and Marketing:
Mobilink also carries out business and sales force promotions on frequent basis.
Specialty Advertising: Mobilink uses certain items imprinted with its logos well
advertising messages such as calendars, caps, radios, mugs, and candles. These items are
given as gifts to customers by salespeople.
Sales Contests: Mobilink actively carries out yearly sales contests in order to motivate
the sales force to put in greater effort.
Trade Shows: mobilink actively participates in trade shows in order to enhance its
business promotions. It took part in the usual trade-show presentations of Asia Pacific
Billing and Revenue Management Week. This event has a particularly interesting through
line of taking services to understand markets.
Differentiation Advantage:
Because they target the customer groups they offer 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, they offer both
postpaid (Indigo) and the prepaid (JAZZ) solutions to their customer.
The marketing department immediately identifies and responds to the customer needs
Comes up with interesting marketing strategies which include advertising
Mobilink‟s Sales Force:
Sales force serves as the companies personal links to the customers. Mobilink fast paced growth
is fueled by the foundation of innovation and the relentless work of 4000 dynamic team
members. The sales force members are some of the best talent in the country and can be
distinguished from others on the basis of their convincing power. They have the passion and the
spirit to challenge the norms, and so they are the part of winning team.
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Sales Force Objective
The chief objective of Mobilink‟s sales force is not only to encourage sales but also to diagnose
customer’s problem and to propose an effective solution thus satisfying them completely. They
play a strong role in improving customer profitability.
Sales force Structure:
Mobilink‟s sales force manages following types of sales force:
Technical and Application Engineer
Service Personal
Distributor Sales Force
Direct Marketing:
Mobilink also uses direct channels to reach its customers without using marketing middlemen.
These channels include direct mail, catalogues, tele marketing as well ase-marketing. Mobilink
also uses a very unique technique to reach its customers directly.
SMS Marketing:
Mobilink uses SMS marketing to send messages directly to customers. SMS marketing creates
one-on-one communication with the market. Mobilink management believes that:-
“Today’s consumers are mobile and today’s marketing must reflect that.”
Electronic Marketing:
Mobilink finds it electronic marketing very important and highly accountable.
Mobilink‟s Website
Mobilink has paid special attention to the “context” & “content” of its website to encourage
repeat visits. Mobilink‟s website not only has attractive design and layout but is also very
interesting and easy to navigate
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Commitment to Total Customer Satisfaction:
Customers are at the heart of my success. They have placed their trust and confidence in us. In
return, I strive to anticipate their needs and deliver service, quality and value beyond their
expectations.
Passion for Business Excellence:
I strive for excellence in all that I do. I aspire to the highest standards and raise the bar for myself
every day. This commitment to delivering world-class quality translates into unmatched service
and value for my customers and all stakeholders.
Trust & Integrity:
At Mobilink, I take pride in practicing the highest ethical standards in an open and honest
environment, and by honeying my commitments. I take personal responsibility for my actions,
and treat everyone fairly, and with trust and respect.
Respect for People:
My relationships drive my business. I respect and esteem my employees and all stakeholders. I
believe in teamwork, empowerment and harmony.
Responsible Corporate Citizen:
As the market leader, I recognize and fulfill my responsibility towards my country and the
environment I operate in.
Competitive Strategies:
Being the market leader, first, Mobilink must find ways to expand total market demand. Second,
it must protect its current market share through good defensive and offensive actions. Third, it
has to try to increase its market share, even if the market size remains constant.
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Expanding the Total Market:
Mobile phone tele-density has increased to 35 per cent with over 53 million users. The market
growth still has 65 percent potential if not more, as Pakistan’s population is over 150 million.
The dominant firm gains the most when the total market expands. Same is the case with
Mobilink. It uses the following strategies to expand the total market.
Market-penetration strategy
New-market segment strategy
Geographical-expansion strategy
Defending Market Share:
The rapid growth in mobile phone ownership has opened a new, mass marketing channel for
marketers to reach their target market. Direct, responsive and measurable, mobile marketing is
emerging as a key element of the marketing mix for Mobilink.
Mobile marketing integrates across the marketing mix to drive the effectiveness of both above
and below the line activities. Delivering:
Direct marketing channel to customers
Clean, uncluttered environment to maximize the impact of the marketingmessage
Context and time relevant marketing medium
Instant response mechanism delivering true one to one communication
A digital medium enabling deep campaign measurement and analysis
Distribution Strategy:
There are three types of distribution strategies. First Intensive Distribution, second Extensive
Distribution and third is Selective Distribution. However mobilink follow both intensive and
exclusive distribution strategies. While providing its Jazz prepaid cards Mobilink follow
Intensive Distribution strategy means that stocking Jazz prepaid cards in as many outlets as
possible.
Mobilink Pakistan
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BCG GROWTH-SHARE MATRIX
Star - (High Growth, High Market Share)
Jazz One
Cash Cow-(Low Growth, High Market Share)
Jazz Ladies First Mobilink Indigo
Jazz Budget
Question Mark-(High Growth, Low Market Share)
Ja z z E a s y
Dog-(Low Growth, Low Market share)
Jazz Octane
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SWOT ANALYSIS
Strengths:
Mobilink is an acknowledged market leader of all the companies of its kind
Only cellular service in Pakistan to provide coverage on the M2 motorway.
Pioneer in GSM service in Pakistan
Number of customers is more as compare to any other mobile service provider in
Pakistan.
Highest market share not only in terms of number of subscribers but also in terms of
revenue.
Mobilink short message service center allows Vehicle Tracking and Fleet (VTF)
Management services.
Large number of corporate customers
Economy of scale
Mobilink and Muslim Commercial Bank have made a combined effort in order to
maximize the ease and the satisfaction of their respective customers by offering them all
banking services from their very own mobile handset.
The network service of Mobilink is distributed over a wide area.
Mobilink provides good service to its customers.
The customers of Mobilink are very much satisfied; therefore it is the biggest strength.
Mobilink has a distinctive competence
It has adequate financial resources
The company has good competitive skills
Mobilink has effective product innovation abilities
Increased brand equity
Premium brand image
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Jazz Advance
The company has hired well-qualified and able employees in all its departments.
The services of Mobilink are wide spread such that you can see many small outlets in
every market area.
Weaknesses:
Mobilink provides costly services to customers as compared to other mobile companies
Sometimes the network is busy and over loaded which results in poor connectivity
Customer services centre is not providing good quality services
Mobilink is expensive in comparison to other networks
Network problem and voice quality is still a big issue
There is lack of interdepartmental communication. Billing mistakes in indigo bills is
common
Mostly process are not efficient in the routine jobs
There is no proper software available for Inventory system
Opportunities:
Before start of more new companies can target as many new customers as they can
Can lower prices to make business difficult for new companies
Mobilink is completing field-testing and certification of its General Packet Radio Service
(GPRS) products; targeted to a market that delivers Internet Protocol packet services to
over 650 million GSM subscribers
Mobilink can expand its target markets and enter new market segments
This company has faster market growth so its must try to introduce such packages that
attract more and more customers
Being a market leader they can make head to head competition to their competitors and to
make them out of market
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By organizing events for some social causes they can improve the image of company
Mobilink can increase its market share by entering new market segments
Mobilink has an opportunity to add further products to its existing product line
Threats:
New market players are coming in near future.
New companies can offer packages for corporate customers in better way.
Wireless local loop service providers too targeting areas which are less developed.
Current price war may reach at a position where only brand names survive.
Due to expensive quality of service now a day’s customers can shift to other companies.
After PAKTEL is captured by china, it introduced many new packages which attract the
consumer more than any other.
USP while Mobilink is now thinking about that technology
Due to intense competition Mobilink is losing its market share
Telenor has introduced H-Stick through which by inserting the Sim in that device you can
connect through internet at your laptop or PC
Political and economical instability and terrorism in the country
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Tows Matrix of Mobilink
STRENGTHS WEAKNESSES
OP
PO
RT
UN
ITIE
S
As market leader it can target more & more customers.
Due to running in economies of scale, it easily lowers prices to prevent new entrants.
It can target due to high financial power & competitive skills in those cities and villages, where coverage of no other company can reach.
As it has a good brand image, it has introduced such packages that have increased the company revenue with more customers.
Currently providing not good quality service because of changing their network from 900 MHz to 1800 MHz, so it may lose its customers.
As Mobilink provides expensive call rates to customers as compared to other mobile companies that also have a bad impact on company.
As sometimes the network is busy and over loaded, it negatively affects the brand image.
Call disconnectivity is too much, that irritates the customers.
TH
RE
AT
S
Due to high recourses it can easily remove threats of other competitors.
It easily met the challenges appeared after PTCL & PAKTEL privatization.
It has ability to work in highly competitive environment that has created after new companies entrances.
PAKTEL has great threat after privatization that is not so easy to handle.
U.fone that has also large number of customers and being subsidiary company of PTCL is a big threat on it.
WARID & TELENOR have also strong background which enables them to fight with exiting company effectively, so it also has a threat on MOBILINK Company.
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Mobilink external-environment Analysis
The Mobilink external-environment includes their external customers, agents and distributors,
suppliers, our competitors, etc. The country forces affecting the environment e.g.; Political
forces, Economic forces, Socio-cultural forces, and Technological forces are the part of the
external environment.
Political Factors
Environment is investor friendly telecommunication sector is under de-regulation. Monopoly of
PTA will be going to end at the end of 2005. Before WTO (World Trade Organization)
implementation government already took steps in de-regulation of telecommunication sector.
If the political environment of Pakistan is stable in the then country will be doing excellent on
economic front. But now the political environment of Pakistan is so much disturbed, so there are
some problems like licensing for installing boosters and towers, use of frequency and other
interlinked matters of Mobilink are affected by it.
Economic Factors
Mobilink should consider long term and short term state of a trading market. Inflation is
controlling by state bank and under strict eyes but unemployment rate is going up and up with
the increase of level of poverty, it shows that Mobilink is also affected economically by these
economic factors of Pakistan and their sales are less.
Socio-Cultural Factors
As Pakistan is an Islamic country and people are very strict in case of Islam any thing against the
philosophy of Islam on either print or electronic media are treated as against Pakistan.
Most of the people dislike anything extra-ordinary or something which interrupt their culture or
subculture. Telecommunications Companies who are targeting upper-end of market mostly
published and aired their advertisement in English language are not attracting their customers.
That’s why Mobilink made their ads in the National Language of Pakistan and their ads fully
reflects the culture of the Pakistan.
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Technological Factors
Telecommunication companies have technology with which they can compete in the Pakistan
and now companies are investing in their infrastructure to not only expand but also to upgrade
their existing structure.
Currently Mobilink is the company who is providing Multi-media Messaging Services (MMS),
General Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks,
Conference Calling, Wallpapers, Animated pictures Polyphonic ring tones, Mobile Internet
(WAP), and Voice Mail at low price and Telenor is proving an addition feature that one can see
TV channels on their cell. Mobilink other new services are CITI Mobilink credit cards, Mobilink
Internet Connection and Blackberry connection.
So, these technological factors also affect the sales of the Mobilink against their competitors as
they provide more technological services, but the high class or business class use their services,
although their rates are high but high class afford them and use them.
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PORTER FIVE FORCES
Rivalry among Competing Firm
Mobilink has the following competitors UFONE, WARID, ZONG, and TELENOR. The intensity of competition increases as the no of competitor increases, and the competitor become more equal in size. Rivalry also increases when customer may switch to UFONE or other connection when cost is high. This is the major issue that the management of the company has to face all the times.
Potential Entry of New Competitor
Barriers to entry may let some competitor to enter the market but Mobilink do not have any threat from such competitor because they use current technology and do not compromise on their technology. Mobilink manages the counter moves of new entrances by leverets¶ in its prices of call rates and attractive packages to all its customers all the time to restrict the new entrants.
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Potential Development of Substitute Products
There is a potential development of substitute’s product because all the competitors are provided almost same services at cheep rates as the Mobilink is providing so in order to be the most attractive it has to cover all those areas where the competitors have not yet covered in order to b the leading and the most favorite company of its users.
Bargaining Power of Suppliers
Employees are the suppliers of Mobilink they do not bargain with Mobilink as they are loyal to the organization and Mobilink is provided them maximum facilities so that they remain in connection with the company and show the commitment in the best way they can with the company. This will be the real competitive edge of the company.
Bargaining Power of Customers
Customers do not bargain with Mobilink because their packages and services are fixed on all the Mobilink franchises. So the main point of focus should be that the rates should be attractive for the customers.
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Recommendations:
Mobilink should provide less costly services to their customers so that the rival
companies cannot reach to its standard
They should try to improve their customer service centers for customer’s satisfaction
Mobilink should target those areas which are less developed for providing their services
Mobilink should offer less expensive packages to the customers otherwise customers will
switch off to other cellular brands
They should try to provide good quality service and resolve the problem in connectivity
because it irritates the customer
Try to lower their call rates because it creates a bad effect on customer
Establish Research and Development Department
Ensure Network quality
Focus on subscriber retention
Adaptation of value added services, especially towards e-commerce
Better customer incentive plan
New competitors are entering into the cellular market so Mobilink should improve their
services and offer attractive packages to hold their customers
Another important thing is the positioning. Mobilink should give more attention to their
brand image in the minds of customers because nowadays customers attract to brands
They should provide better packages for the corporate customers
Their internal environment should be as strong so that they will perform well in a highly
competitive environment
MOBILINK should give keen attention towards the proper training of the employees
about the newly implemented systems
Refreshing courses will help the organization to float smoothly
Mobilink should improve its customer care services being the largest service provider
around the nation.
MOBILINK mostly give attention to interpersonal training while they must consider the
technical side of the work as well
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Innovation in technology Lower SMS rates to other networks To cover all of those sites where other operators have coverage while Mobilink doesn’t To provide more training programs for technical employees Improvement in Customer Services Employee retention plans needs to be more efficient Should introduce new brands GPRS service should be improved Make better use of internal resources and reduce reliance on outsourcing Make assurance of quality of services and to assure quick response of respective team to
fix the issue Make continuous expansion in the network to maintain the leadership Changes should be what customers want the most i.e. the latest technology and services,
backed by quality, reliability and integrity Conduct regular meetings on weekly basis with my staff regarding issues that they are
facing and try to solve them accordingly Make assurance that all the sales are genuine and there should be no fake sales Conduct training and development seminars on regular basis Conduct of extracurricular activities. Complete focus on customer retention by providing them better services and strongly
emphasize on employees retention Try to make up to date my staff with the latest state of the art tools and techniques to run
each business domain Strong interdepartmental communication which is lacking and Provide equal opportunity
for growth in each department Change its market strategy from time to time, sometimes reactive sometimes proactive
and always active Improve the database and different software that are using now days by using powerful
tools of advanced databases Eliminate the culture of “yes boss” and to encourage the two way communication with all
staff members. Try to advertise all the important roads, places, and chowks by name of Mobilink
Human resource department is not fully authorized to take all the decisions. There are many HR decisions that are taken by the other department. So, there should be a clear delegation of authority regarding decision making for HR department
Employees were not aware of the in depth policies so employees should be consulted while policy formulation stage
Benefits and rewards are too complicated for anyone to understand Mobilink should simplify its reward system for its employees to understand well
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Mobilink pursues Zero-tolerance policy for disciplinary actions. This is good but not in all cases. Mobilink should look towards its discipline polices and try to be a bit more lenient
Mobilink HR lacks in terms of career planning and development. This important function of HR does not have recognition in Policies’ statement. Mobilink should have a look at this.
The decision making is delegated to managers with goals set for each term promotion, hiring and firing is virtually in the immediate boss’s hand. This practice can cause disharmony among employees for power. Team based structure (like throne at PMO) should be preferred in all departments
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Recommended strategy
Diversification Strategy
From swot analysis we came to know that Mobilink is having very god position in market and it
is the market leader in telecom industry but with passage of time there asr more competitors who
is entering. So mobilink is facing many threats but still it is trying to maintain its position in
market due to its brand loyalty and its image set I the mind of customers and also having lots of
strength in organization which makes its one of the best organization. So it is better time for
company to go for diversification and go back to growth stage.
Cost Cut Strategy
Mobilink should use standardized technology and equipments in order to achieve low cost
service process. They should also be more focused towards the quality of operations being
carried on out their. Although it’s not a long-run strategy, it is the strategy to get the profits or
benefits for short-run.
Horizontal Integration
They should acquire their competitors in order to achieve horizontal integration because we see
many players in the telecommunication sector including Ufone, Telenor, Warid and Zong in the
mobile phone sector.
Vertical Integration
Mobilink makes Sims and its black berry from Motorola. So if Mobilink go in backward
integration and manufacture its own Sims it would give more edge to the company. So company
become independent and it will not come in pressure of suppliers.