Zong Presentation

Points Described By

vMission vision introduction and history By Ammara Latif vExternal assessment By Qaiser Abbas vInternal assessment By Faisal Nadeem vInput stage By Shafqat Ali vmatching stage

External Assessment: PEST Analysis of Pakistan in Telecom Industry

Political Factors Political Instability: Deregulation: Changes in Tax Laws:

Economic Factors:

Gross Domestic Product: Average Revenue per User (ARPU): Decline in Money Value: Outflow of Capital:

Technological Factors: Technological Development: Technological Advancement:

Five Forces Porter Model   Five forces looks at five key areas namely Threat Of New Entry, Power Of Buyers, Power Of Suppliers,

Five Forces Porter Model üThreat of New Entry üBargaining Power of Buyers üBargaining Power of Suppliers üThreat of Substitute Products üRivalry among Competing

Competitive Analysis Major competitors of ZONG include Mobilink Ufone Telenor

Type Private Limited Company Founded 1994 Founder Motorola USA Headquarters Islamabad, Pakistan Area served 5000 cities, towns, and villages across Pakistan Products postpaid Indigo , prepaid JAZZ, Mobilink PCO Parent Orascom Telecom Egypt Slogan Reshaping lives Website www.mobilinkgsm.com

Market share of telecom industry

•Opportunities of Zong üExpand Globally üPublicity and Marketing üPublicity and Marketing üNew product development üOpportunity in northern areas

•Threats of Zong Old stable companies Better Packages by Other Cellular Price Wars Government Interference

Internal üAssessment: Management üMarketing Department üFinance Department üValue Chain üResearch And Development Department üHuman Resources Department

•Strength of Zong Investment: Network portability Zong mobile Resources, Assets and People Location and Geographical Coverage

•Weaknesses of Zong Coverage Bad image of paktel Bad MIS

A Comprehensive Strategy-Formulation Framework Stage-1 (Formulation Framework)   1. External factor evaluation 2. Competitive matrix profile 3. Internal factor evaluation  

Stage-2 (Matching Stage)   1. 2. 3. 4. 5.  

TWOS Matrix SPACE Matrix BCG Matrix IE Matrix GS Matrix

Stage-3 (Decision Stage)

Interpreta tion Total weighted score of opportunities and threats in EFE matrix is 3.19 Which is above average. it means Zong is availing its opportunity and maximizing

Interpreta tion Total weighted score of strengths and weaknesses in IFE matrix is 2.91 Which is above average. it means Zong is

interpreta tion As indicated by the total weighted score of 2.78, Zong is weakest. because it is at its initial position as compare to competitors. With the point of 3.18 Mobilink

•TOWS MATRIX OF ZONG

ØSPACE Matrix of Zong Financial Strength (FS) Revenues Return on investment Working capital

14.0

RAITNGS 5.0

4.0 5.0

Competitive Advantage (CA) Resources Assets

-2.0

High growth rate

-1.0

Advertising

-2.0

Competition capacity utilization -3.0 -8.0

Environmental stability (ES) RAITNGS Technological changes

-3.0

Rate of inflation Demand variability

-4.0 -2.0

Barriers to entry into market -10.0

-1.0

Industry Strength (IS)

Deregulation increase completion in telecom industry 3.0 Financial stability

5.0

Resources utilization

4.0

Profit potential 16.0

4.0

Conclusion FS average is 14/3 = 4.67 CA average is -8/4 = -2.0 ES average is -10/4 = -2.5 IS average is 16/4 = 4.0   Directional Vector Coordinates: x-axis: 4.67+ (-2.5)=2.17 Directional Vector Coordinates: y-axis: 4.0+ (-2) = 2   The Zong should peruse Aggressive

SPACE MATRIX FOR ZONG Conservative

Defensive

(2, 2.17)

Aggressive

Competitive

BCG GROWTH-SHARE MATRIX

Internal External Evaluation Matrix Tot al w eigh t of

Total weight Of EFE

GRAND STRATEGY MATRIX FOR ZONG Rapid Market Growth Quadrant II

Quadrant I

Weak Competitive Position

Strong Competitive Position11

Quadrant III

Slow Market Growth

Quadrant IV

•CONCLUSI ON Zong has strong financial position and growing fast. That is the reason we didn’t found much discrepancies. As seeing the growth rate of Zong it may possible that Zong can be the leading mobile operator in Pakistan. There

•Recommendation üZong Telecom should be increase their network coverage and foot prints in every corner of the country to capture the market. üZong should adopt the strategies of market penetration Cost leadership and related diversification but the most effective strategy would be market penetration. üIn the SBU of Zong mobile Zong should use the strategy of hold and maintain.

•Referenc es

www.zong.com. www.google.com www.pta.com.pk Rana Armughan Zong Garden Town Ali Block Lahore Farhan Ali Khan Zong Kchehri Chowk