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					ZONG (Sub Kah Do)                 .




                      VISION



                      “Making

                    communication
                      exciting”




                                                                   1




                                  THE UNIVERSITY OF URDU KARACHI
     ZONG (Sub Kah Do)                         .




                                 MISSION



               “To be the leading mobile operator of
                          Pakistan by continuously
                innovating and offering exceptional
               quality services to be good corporate
                    citizen and envoy of friendship
                  between china and Pakistan core
                         value. Responsibility makes
                                 perfection”




                                                                                2



``


                                               THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                  .




                                 Introduction


       ABOUT ZONG
Zong is the first International brand of China Mobile being launched in Pakistan. The company is
often cited as China Mobile (Pakistan). It is meant to empower and liberate the people of
Pakistan in every nook and corner of the country. It will become a part of their hearts, their
minds and bring about a change in their lives that every one desired but few thought would be
possible. The core essence of ZONG is to allow people to communicate at will. Without
worrying about tariffs, network coverage, capacity issues or congestion. ZONG will be
supported by ground breaking communications, trend setting customer service and an
unmatched product offering which will redefine rules of the game and establish ZONG as a
serious contender for the number one spot. ZONG would offer its customers with entertaining
& innovative value added services and will empower them by giving a wide variety of products,
services    & content to choose from. We are privileged to be the pioneering country
introducing this brand with others to follow. And God willing, together we will also make ZONG
a success story for others to try and replicate.

       ABOUT China Mobile Pakistan (CMPak)
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas
set up of China Mobile came through acquisition of a license from Millicom to operate a GSM
network in Pakistan.

So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an
additional US$ 800 million will be invested till the end of year 2008.

With ambitious plans to cater to the fastest growing Pakistani market and to win over the ever
demanding Pakistani customer, it will be offering unprecedented coverage, voice and data
services as well as a wide range of tariff options to choose from.

CMPak's edge comes from the experience and expertise of running the world's largest telecom
service and the commitment they make to setting quality and customer relations standards.          3
CMPak is geared to offer neatly packaged VAS products that will benefit the individuals,
corporate as well as small businesses. Led by a team of professionals from the field of cellular



                                                              THE UNIVERSITY OF URDU KARACHI
          ZONG (Sub Kah Do)                                   .




Communication, CMPak is determined to make its mark in the Pakistani market and to change
the way people communicate.

       HISTORY
Recently china mobile company in Pakistan after replacing the code 0304 with 0314 now
introduced its new brand in called “ZONG”. With an introductory slogan “Say everything” or
“Sub Keh Do” & started its advertising campaign at popular print & electronic media outlets.
Paktel started its commercial operations in Pakistan in November 1990 as the pioneer of
cellular telephony with an AMPS network which was converted to TDMA (Digital) in 2003. Soon
after GSM quickly gained popularity all over the world and became the technology of choice
leaving AMPS/TDMA far behind. Paktel’s principal shareholder was Millicom Pakistan, which
held 98.86% equity of Paktel. But however on Feb 13th 2007 Millicom announced that it had
completed the sale of its 88.86 per cent shareholding in Paktel Limited to China Mobile
Communications Corporation which finalized Millicom’s exit from Pakistan. Soon after, china
mobile company bought all the assets of Paktel, the new management seems busy, to tie up
promotional strategies, with the intention to win the telecom market slowly & silently. Well
that is just a prediction I have made because in Pakistan Chinese products mostly are famous
due to their cheap prices. & more the 90% population in Pakistan is price conscious due to their
lower or medium income level, so lets see weather ZONG is facilitating mobile users specially
youngsters by providing lowest calling, SMS, MMS as well as GPRS rates or not.


       MISSION STATEMENT ANALYSIS


                           MISSION STATEMENT ANALYSIS
Customer                                         No
Product and services                             Yes
Market                                           No
Technology                                       Yes
Survival, growth, profit                         Yes
Self concept                                     Yes
Public image                                     Yes
Employees                                        No
Psychology                                       Yes
                                                                                                   4




       PRODUCTS AND SERVICES
                                                              THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                       .




Packages
PREPAID

ZONG 65
Ladies and Gentlemen, we bring you ZONG 65, the new pre-paid package of ZONG that delivers
100% on economy and guarantees lowest call rates to any network in Pakistan

12 Aanay Package
Talk for an entire hour - any hour, for only Rs.4.99 and for the first time in Pakistan you can
change the hour everyday!

50 Paisa/Call (8 Aanay)
People claim of simplicity and yet give you half the truth. Only ZONG gives you the full truth at
half the price. Now make calls to any other mobile network for 8 Aanay.

Free Package
For the first time in Pakistan you can make free calls for life!

ZONG Super Free Number
That's right you can literally talk your heart out 24 hours a day everyday to that special
someone - all for FREE!

Break Time Offer
For the first time in Pakistan, ZONG offers you the benefit of calling your friends and family
freely during daytime.

Aik Second Package
Make call for just 4 paisa’s per second!

Unlimited SMS Package
ZONG offers unlimited message package only for 3RS per day.




                                                                                                    5

Postpaid Packages


                                                                   THE UNIVERSITY OF URDU KARACHI
          ZONG (Sub Kah Do)                                 .




 Line Rent (Rs)                                 100      300      600      1200     2000
 On-Net Calls Airtime                           0.5      0.45     0.375    0.3      0.1
 Off-Net Calls Airtime                          0.5      0.45     0.375    0.3      0.2
 FNF                                            0.4      0.3      0.2      NA       N/A
 Spouse Number                                  N/A      N/A      N/A      Free     N/A
 Free SMS (On & Off-Net)                        20       60       100      150      300
 SMS Rate                                       1        1        1        1        1
 GPRS                                           15       15       15       15       15

 Free Minutes Break Up                          100      300      600      1,200    6,800
 On-Net                                         60       180      360      720      6,000
 Off-Net-PTCL                                   20       60       120      240      400
 Off-Net-Other Mobile Operator                  20       60       120      240      400
 Refundable Security Deposit                    600      1000     1500     2500     4000


                                                                Other     Mobile
 Interconnect Charges                                                            PTCL
                                                                Operators
 Per/ min                                                       1                0.52
 Per /30 Sec                                                    0.5              0.26


Details

      30 Sec billing
      Air-time rate for both On-Net & off-Net calls are same
      Off-Net Calls i.e. Calls to other mobile operators & PTCL will be subjected to
       Interconnect charges given above
      Free minutes will be calculated on per minutes basis
      We will offer 5 FnF (on-net only) numbers on 100, 300 & 600 package
      FnF addition charges will be Rs 15 for each addition
      For FnF Addition / Modification dial 1313 from your Mobile
      Spouse number will only be applicable on Rs 1200 price plan with zero charges
      Spouse number can be added / changed once in a month
      Free minutes calculation for Rs 1200 price plan will be exclusive of Spouse number as
       the charging on Spouse number will be zero
      Free Minutes on 1200 package are exclusive of Spouse number
                                                                                               6



      Spouse number can be added by calling our help line or visit our Customer services

                                                           THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




       centre
      Rs 2000 LR package will have 6800 free minutes in total, 6000 minutes will be On-Net
       with a daily cap of 200 Minutes (Fair usage policy)
      The first 200 minutes of the day will be charged at Rs 0 after which charging will be done
       at On-Net Airtime rates i.e. 0.1 per 30 sec


       Mobile Number Portability – MNP
Mobile Number Portability (MNP) enables customers to retain their mobile telephone numbers
(including the three digit prefix) when changing from one mobile operator to another mobile
operator.

Benefits

      You will be able to take advantage of ZONG’s attractive tariffs and service offerings
       without even changing your mobile number.
      You will save the inconvenience of informing all your contacts as is faced in the changing
       your number.

You will experience cost saving by avoiding stationary cost (letterheads and business cards)
printing since your number will remain the same.

       Customer service centers

“The beacon of ZONG’s impression and torch bearers of a new era in customer interaction,
taking customer service into a portal of customer excitement. These are the doors to ZONG’s
first and foremost realization of its promise to excite customers with a new trend in service.
Setting the tone and ambiance which is second only to your home, these are ZONG’s arms
across the country to welcome everyone to experience the comfort when a true promise is
fulfilled.”




                                                                                                    7
Zone              Address
                  1. S.A 16, 17 & 18, Plot # FL 17, Block 5, KDA Scheme 5, Clifton Karachi
KARACHI
                  2. Gulshan-e-Iqbal Opposite Batul Mukaram Masjid Karachi

                                                               THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




                  Big City, Shop No G 59 & 60. 3-E-2, Liberty Roundabout. Main Boulevard.
LAHORE
                  Gulberg III
ISLAMABAD         68-E Jinnah Avenue, Blue Area Islamabad
RAWALPINDI        Plot # 7, 8 ,9 Bank Road Rawalpindi
FAISALABAD        Lucky Plaza, 213 Main Susan Road. Faisalabad
MULTAN            Multan Arcade Main Katchery Road Multan
QUETTA            Fayyaz Lab, Jinnah Road- Quetta
PESHAWAR          Burjaman Centre, University Road, Peshawar
HYDERABAD         Shop # 5, Ali heights, Auto Bhan Road, near CitiBank, Hyderabad
JHELUM            Old Al-Bilal Hotel, Cantt chowk ,GT Road, Jhelum
SAHIWAL           511/BVII, Jail Road, Civil Lines. Sahiwal
DG KHAN           Azmat Road DG Khan
GUJRAT            Euro Heights GT Road Gujrat
GUJRANWALA        Near Traffic Police Office, GT Road, Gujranwala
SIALKOT           Shop No. 17, Aziz Shaheed Rd. Sialkot
ABBOTABAD         Abbotabad Business Complex, Supply Bazar, Manshera Road- Abbotabad
MARDAN            Zong Plaza, Mall Road, Mardan Cantt
SARGODHA          Parhar Plaza, Railway Road Sargodha
BAHAWALPUR        Baghdad UL Jadeed Road DIG Chowk Near Al Haq House Bahawalpur
RAWALPINDI -
SATELLITE         Plot # B130, B block- Satellite town- Rawalpindi
TOWN
SUKKUR            Shop # 421-422.C Minara Road Sukkur




Careers

ZONG is committed on attracting and retaining the best human resource from all over Pakistan.
Its also provides a working environment which satisfies the professional and personal needs of
its employees.




       ZONG Mobile Internet                                                                      8

GPRS Coverage
Fastest growing coverage in Pakistan.


                                                              THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




ZONG Unlimited
@ Rs. 400+Tax/month

ZONG Free
@ Rs. 10+Tax/M

MMS
The epoch of multimedia content is upon us and the last thing we’d want is to stick to the age
old conventional messaging techniques.

      ZONG Mobile Internet Hourly Package
Another spectacular service from ZONG that will keep you entertained 24/7. After rocking the
market with our services and all the amazing call rates, we are back with an outstanding feature
for all packages; ZONG hourly based Internet package.




                                                                                                   9




                                                              THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                 .




       ZONG Internet USB Card

The ZONG Internet USB Card is a device (with a SIM inside it) which can be inserted in your
laptop/desktop PC (in the USB Slot) to provide you with access to the internet. It works on the
EDGE/GPRS network and gives you wireless Internet connectivity, anytime anywhere!




       ZONG Mobile

Zong has come up with another interesting
Promotion…. you get a phone, almost free but
With a year’s payment in advance. This is equivalent
to the US model where customers have to sign
 a contract to get a discounted phone.
 In Zong’s case they just get the money in advance
(great for them) and hope that users will stay with
Them after 12 months.


       External Assessment:
       PEST Analysis of Pakistan in Telecom Industry
                                                                                                  10
In order to survive and remain profitable in today’s competitive marketplace, Zong need to be
able to react and adapt to changes in the external environment and ideally be proactive in
impacting these forces. External environment factors can be classified into five general

                                                              THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                     .




categories: competitive, social/cultural, legal, economic, political, and technological.


Political Factors

       Political Instability:
        Pakistan is facing political instability causing danger for the telecom industry. But the
       political factor does not effect on Zong so high because Zong related from china and
       relationship of china and Pakistan is very strong.

       Deregulation:
       The telecom sector of Pakistan has successfully liberalized in an efficient, transparent
       and fastest deregulation of telecom in the region. The Government of Pakistan gave the
       status of Industry to Pakistan Telecommunication Sector.


       Changes in Tax Laws:
       Tax rates have been increased day by day government tax rate of call is 15% and
       recently government increased it by 6 % more.

Economic Factors:
       Gross Domestic Product:

       Telecom sector of Pakistan has a share of almost 2 percent in National GDP.


        Average Revenue per User (ARPU):

       The average revenue per user is falling. It does not affect value able on Zong. Because
       Zong started in same condition.

       Decline in Money Value:

       The decline in Rupee value against the US Dollar, the decrease in the interconnect           11
       charges and lower priced tariffs have resulted in an overall decrease of ARPU in US
       Dollar terms.

       Outflow of Capital:
                                                                 THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




       The ongoing economic turmoil along with the worsening of security conditions in
       Pakistan has caused an increased outflow of capital from the country.

Technological Factors:

       Technological Development:
       Companies are investing in their infrastructure to not only expand but also to upgrade
       their existing structure. As the competition is strong Zong is focusing on its value added
       services
       Technological Advancement:
       Currently all companies are 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 (WAP), and Voice Mail at
       low price.
Technological Trends:
The well-recognized technology trends that are influencing the evolution of the network
indicate that:
    o The cost of a call is becoming even more insensitive to the distance;
    o The modularity of the network is increasing;
    o The networking is shifting from circuit-switched to packet-routing;
    o The voice communication is now independent of the network;
    o The geographic boundaries are irrelevant for emerging technology;
    o The intelligence and function are moving away from the central office.

In these conditions competition is very strong among competitors. Zong is improving itself in
technology.

       Five Forces Porter Model



                                                                                                    12




                                                               THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                      .




Five forces looks at five key areas namely threat of new entry, power of buyers, power of
suppliers, threat of substitutes, and competitive rivalry.

Threat of New Entry
• As government of Pakistan is showing liberalism in case of telecommunication sector and
opened its policies to award new licensees to new mobile service providers so threat of new
entry is high.

• As set-up cost is in billions of dollars so in this case threat of new entry is low, but there are
companies who are working to achieve licenses and approaching PTA to know terms and
conditions for this.

• As for this business companies need a well established distributions and franchises network
so threat of new entrant is high in this case.


Bargaining Power of Buyers
• Power of buyer is high in telecommunication sector. There are six market players and players
are offering different packages at different prices and a situation of price war is running. Buyers
have a power to buy any package which is suited to them.

• Cost of switching from one company package to other company package is low. Hence, power
                                                                                                       13
of buyers is high.



Bargaining Power of Suppliers
                                                                   THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                     .




• The power of suppliers is low in case of telecommunication sector.

• But the fact is that numbers of suppliers are few in the market but they are competing in the
market to make agreements with mobile service providers.


Threat of Substitute Products
• Government also gave so many land lines and wireless local loop licenses to different
companies like PTCL wireless local loop, GO CDMA, WORLD CALL etc. these services in future
will be like mobile phone services like they are planning to offer services a lot but currently they
are        offering    SMS        and        CLI      services       to      their       customers.

Rivalry among Competing Firms in Industry
• Currently there are six market players but in future they will be eight and nine or even more.

• Thuraya satellite service is offering subscribers freedom of mobility and uninterrupted
service. Thuraya's satellite technology supplements of existing mobile service providers,
overcoming the challenges of large geographical areas and insurmountable terrain.



       Competitive Analysis
       Major competitors of ZONG include

              Mobilink
              Ufone
              Telenor
              Warid




                                                                                                       14
                                          Mobilink GSM




                                                                 THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




                         Pakistan Mobile Communications Ltd (PMCL)

                     Type            Private Limited Company

                     Genre           Subsidiary

                     Founded         1994

                     Founder         Motorola USA

                                     Islamabad, Pakistan
                     Headquarters
                                     42 Kulsum Plaza, Blue Area

                                     5000 cities, towns, and villages
                     Area served
                                     across Pakistan

                     Key people      Zouhair A Khaliq, President and CEO

                     Industry        Telecommunication

                                     postpaid Indigo , prepaid JAZZ,
                     Products
                                     Mobilink PCO

                     Owner           Naguib Sawiris

                     Parent          Orascom Telecom       Egypt

                     Slogan          Reshaping lives

                     Website         www.mobilinkgsm.com




Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a
telecommunication service provider in Pakistan. According to PTA statistics, Mobilink has 30.88    15
million customers by January 2008. Mobilink's Head office is located in Kulsum Plaza, Blue Area,
and Islamabad.


                                                               THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                    .




                                      Mobilink started operations in 1994 as the first GSM
                                      cellular Mobile service in Pakistan by MOTOROLA Inc, later
                                      it was sold to Orascom, an Egypt-based multi-national
                                      company. Mobilink's corporate postpaid package is sold
                                      under the brand name "Indigo" and prepaid by the name of
                                      "Jazz".

Mobilink is the largest cellular service provider in Pakistan




                      Pakistan Telecommunication Mobile Ltd. (PTML),
                      Ufone

                      Type             Private

                      Genre            Subsidiary

                      Founded          January 29, 2001

                                       Pakistan Telecommunication
                      Founder
                                       Company Ltd

                                       Islamabad, Pakistan
                      Headquarters                                                                 16
                                       13-B, F-7 Markaz

                      Area served      2336 cities of Pakistan, GT Road,


                                                                THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                  .




                                     Super Highway & Motorway

                    Key people       Abdul Aziz, CEO

                    Industry         Telecommunication

                    Products         Pre Pay, Post Pay

                                     ▼ Rs.5.1 billion PKR (first quarter
                    Revenue
                                     2006-07).

                    Parent           PTCL    Pakistan

                    Slogan           It’s all about U! (Tum He Tou Ho)

                    Website          www.ufone.com




Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile companies
in Pakistan and is a subsidiary of Pakistan Telecommunication Company.

The company commenced its operations under the brand name of Ufone from Islamabad on
January 29 2001. Ufone expanded its coverage and has added new cities and highways to its
coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat.

During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by
Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone
continued on the path to success. The Company further expanded its coverage and has added
new cities and highways. Ufone has network coverage in more than 750 cities, towns and
across all major highways of the country.


                                                                                                17




                                                              THE UNIVERSITY OF URDU KARACHI
ZONG (Sub Kah Do)                                   .




                              Warid Telecom

              Type             Private

              Founded          2004

                               301-Dhabi Tower, Hamdan
              Headquarters     Street, Post Box 44222, Abu
                               Dhabi, United Arab Emirates

                               Sheikh Nahayan Mabarak Al
                               Nahayan, Chairman
              Key people       Mr. Bashir A. Tahir, CEO Abu
                               Dhabi Group & Warid
                               International

              Industry         Telecommunication

              Products         Telephony

              Slogan           We Care

                               www.waridtel.com
                               (Pakistan)
              Website
                               www.waridtel.com.bd
                               (Bangladesh)

                     Warid Telecom International is an Abu Dhabi based mobile
                     telecommunication firm providing telephony services in
                     Bangladesh, Pakistan and Uganda.                                18

                     Warid is expected to launch in Congo soon.

                     In December 2005, Warid Telecom International LLC obtained a

                                                    THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                    .




15 year GSM license to operate as the sixth mobile phone operator in Bangladesh for 50 million
US dollars.

Warid Bangladesh launched their operations on the 10th of May, 2007 and uses the code 16
proceeded by the code number of Bangladesh +880. Warid Bangladesh has acquired a million
subscribers within 70 days of launch.

The company started rolling out network from mid-2006. In less than a year, amidst much
speculation, Warid Bangladesh launched their commercial operation with 26 districts – the
largest ever launch in terms of network coverage and BTS Stations. Unlike its operations in
other countries Warid Bangladesh uses the slogan be heard instead of we care.

Currently Warid Bangladesh provides both post-paid and pre-paid connection plans. The post-
paid plan is branded and marketed across the country under the name Zahi Post-paid, which
means leader or royalty. The pre-paid segment is branded and marketed and ZEM PREPAID
According to Pakistan Telecommunication Authority, currently Warid Telecom has more than 10
millions subscribers in Pakistan and is ranked as the fourth largest operator in Pakistan. Warid
Pakistan claims it has the largest "post-paid" subscriber base in Pakistan.




                                              Telenor

                               Type           Public

                               Founded        1855

                               Headquarters   Fornebu, Norway

                                              CEO: Jon Fredrik
                               Key people     Baksaas, Chairman:
                                              Thorleif Enger

                               Industry       Telecommunication
                                                                                                   19
                                              Telephony and
                               Products
                                              broadband


                                                                THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




                                            ▲ 91.1 billion NOK
                               Revenue
                                            (2006)

                               Operating    ▲ 18.3 billion NOK
                               income       (2006)

                                            ▲ 15.9 billion NOK
                               Net income
                                            (2006)

                               Employees    31,750

                               Slogan       Here to help

                               Website      www.telenor.com




Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway,
with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an international
wireless carrier with operations in Scandinavia, Eastern Europe and Asia. In addition, it has
extensive broadband and TV distribution operations in four Nordic Countries.

At year-end 2005, Telenor held controlling interests in mobile operations in Norway, Denmark,
Sweden, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh and Pakistan. In
October 2006, Telenor entered into an agreement with Vodafone Group for the acquisition of
subsidiary Vodafone Sweden for a consideration of NOK 8,170 million, including assumption of
debt.

Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March
2005 and holds one of six mobile licenses in Pakistan. Its also the fastest growing cellular
network of Pakistan. Currently Telenor holds the second largest GSM and the largest GPRS and
EDGE coverage in Pakistan. It has also achieved the second largest retailer network in Pakistan
within the 2 years of its operations and it has started operations in Azad Kashmir and the
Northern Areas of Pakistan. Telenor has reached its breakeven in the first quarter of 2007 and
                                                                                                   20
beat largest mobile operator Mobilink in sales. Telenor proactively participated in earthquake
disaster relief, and is carrying out a campaign for the welfare of flood victims in Balochistan.
Current CEO of Telenor Pakistan is Tore Johnsen.


                                                              THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                   .




Cellular Service Providers of Pakistan

 Cellular Service Provider      Market Share
 Mobilink                       31.6%
 Ufone                          21.5%
 Telenor                        21.6%
 Warid                          18.8%
 Zong                           6.1%

Source: (Pakistan Telecom Authority,2008)



                                                                                21
       Opportunities of Zong

Expand Globally

                                               THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                  .




ZONG can expand the globally and can develop it strategy in other countries.

Publicity and Marketing
With the right marketing strategy they can acquire much more.

Acquire / merger
As warid is going in loss and in the condition of liquidation its big opportunity for Zong to
acquire warid telecom.

New product development:
Zong can introduce new products such as dish TV.

Opportunity in northern areas
Zong can have a clear edge over the competition in the Northern Areas especially, as China
Mobile has huge experience of network operation in similar high mountainous areas in China
itself.




Pak China Border
Zong can cover the border of China, with the Karakoram highway (old Silk Route) and can play a
vital role in freight transportation.


       Threats of Zong
Old stable companies
Mobilink and Ufone are well-establish as compare to Zong in Pakistan.

Better Packages by Other Cellular
Companies like Telenor offer better packages for corporate customers. Telenor Postpaid
connection “Persona” is a good example of it.
Wireless local loop (WLL) service providers are also targeting areas which are less developed

Price Wars
Current price war among cellular service providers may reach at a position where only brand
names survive.
                                                                                                 22
Government Interference
Government Interference will always be treated as a threat in terms of taxes



                                                              THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




       Internal Assessment:


Management
 Through its published manual on the code of business conduct at Zong. The company
addresses individual responsibility. Its value of integrity, respect, imagination and passion and
its commitment to serving its customer, it has several sections an ethics and how Zong
encourages employees to respect explicit ethics violations or questionable ethics conduct and
give guidance on how to handle such situations. This manual also guides management on how
to handles issues of discrimination, harassment, ethics violations reports.




        Management Line Of Zong


                               MANAGEMENT LINE OF ZONG

 Management line         Name                    Location                From

 CEO                     Qin Lee                 Islambad                China

 CTO                     Xu Haiyong              Islambad                China

 CFO                     Xin Jee                 Islambad                China
                                                                                                    23
 COO                     Zafar Usmani            Islambad                Pakistan

 CHRO                    Wai Giang Fu            Islambad                China



                                                               THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                          .




Direct Rollout           Khurram Alive     Islambad              Pakistan

Director Operations      Syrus Sikander    Islambad              Pakistan

Director Finances        Amir Mahmood      Islambad              Pakistan

Director PMO             Liu Lidong        Islambad              China

Director sales           Mannan Shabbir    Islambad              Pakistan

Director NPS             Mohammed Bilal    Islambad              Pakistan




      Line Manager And Heads


                               LINE MANAGER AND HEADS

Category                        Levels                    Management

Officers                        1A+1B+1C                  Line managers+ Regional
                                                          Head

Officers                        2A+2B+2C                  Line managers+ Regional
                                                          Head

Executives                      3A+3B+3C                  Line managers+ Regional
                                                          Head                         24
Managers                        4A+4B+4C                  Line managers+ Regional
                                                          Head+SMT


                                                      THE UNIVERSITY OF URDU KARACHI
             ZONG (Sub Kah Do)                                .




 Directors                       5A+5B+5C                         SMT

 Chief                           6A+6B+6C                         SMT+CEO




Marketing Department
 Marketing is particularly important today in telecommunication industry, especially as
consumers are becoming more sensitive to price. Customers are bombarded daily with endless
solicitations and Zong and its competitors are doing what can to diversify their services and
their names being remembered as the one customers turn to when they want to sign up for
services or switch to different provider many customers are finding out that Zong bundled
services are often better across the board than its competitors promotional services, which
sometimes last for only one on the services. Marketing department select the packages for
customers Zong packages are more attractive for the customers as compare to the competitors




Finance Department

Zong has strong financial position since its inception. China mobile acquires Paktel in $27.5
billion and it has been invested $1500 million in Pakistan for Zong and want to invest more.
Zong has been collected $ 36,575,000 in 2008. The improvement in net earnings resulting from
strong internal sales growth from both postpaid prepaid segments.

Value Chain

Zong purchases equipment from four companies ZTE, Ericson, Alcetle, and Hawaii. These are
the venders and operator of Zong. Zong distributors are franchises, customer care service
centers and different outlets. Zong has 22 CCSC and 100000 different outlets in Pakistan.

Research And Development Department (R&D)
                                                                                                  25
R&D of ZONG is working hard. Its select the site where it is feasible and check the access, now
ZONG is covering all over the Pakistan rapidly



                                                              THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




Human Resources Department

The fundamental objective of human resource function is to ensure that every aspect for the
organization, employment motivation and management of people is integrated with the
strategic objective of business and contribute to the successful achievement of those
objectives. Zong has two major sources of people inside sources and outside sources

Inside Sources

The manager of department having vacancy in mind speaks with personal manager and
together they give consideration to specific job.

Out Sources And Recruitment Method

In Zong management continuously hire fresh blood from the market through the following
sources.

      Employee Referral
      Business Colleges
      Advertising
      Online Application Bank/Unsolicited application


       Strength of Zong
Zong strength lies in the establishment of a strong, fundamental and coherent long-term
business plan, designed to sustain economic challenges in the country.

Investment:

It has invested heavily in infrastructure, technology, human resources and customer services
which have given impetus for a broad-based future planning strategy. It further is investing US $
800 million in Pakistan to develop its infrastructure. Therefore it has the competitive advantage
of making huge investments in Pakistan which no-one else had made before regarding telecom.


Network portability
                                                                                                    26
Over 500,000 people have been switched to Zong from other networks

Zong mobile


                                                               THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




Zong has come up with another interesting promotion…. you get a phone, almost free but with
a year’s payment in advance.

Resources, Assets and People
    Being a multinational company Zong has huge resources in terms of capital. It has
     billions of capital to invest in various projects. Its offices are luxuriously equipped with
     every facility.
    Zong while choosing people for jobs follow the strategy of “choosing the best among all”
     therefore majority of its staff people are highly qualified from renowned universities of
     Pakistan. A certain percent is foreign qualified as well
    So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan
     and an additional US$ 800 million will be invested till the end of year 2008.




Location and Geographical Coverage

    Zong is also covering the all cities of Pakistan and in 2008 Zong completed its record
     sites 1000 in Pakistan its great achievement.
    Now Zong is covering the northern areas of Pakistan rapidly.


Government Dealings
     Pays a huge amount in taxes to the government of Pakistan. So it’s a big source of
       revenue to the government as well.
     It conducts its business by abiding by the rules and regulations setup by the government
       and cooperates with the government in every aspect.


       Weaknesses of Zong
Coverage
                                                                                                    27
Zong is establishing but it is new in market therefore it coverage is weak in rural areas of
Pakistan.

Bad image

                                                               THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                     .




Bad image of associate with Paktel. And still now having old staff of Paktel.

Bad MIS
Zong does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim specially pre pay. Zong have to take serious
steps to properly list its customers to ensure that there is no misuse.




A Comprehensive Strategy-Formulation Framework
Important strategy-formulation techniques can be integrated into a three-stage decision-
making framework, as shown below. The tools presented in this framework are applicable to all
sizes and types of organizations and can help strategists identify, evaluate, and select
strategies.

Stage-1 (Formulation Framework)

1. External factor evaluation
2. Competitive matrix profile
3. Internal factor evaluation

Stage-2 (Matching Stage)

1. TWOS Matrix         (Threats-Opportunities-Weaknesses-Strengths)
2. SPACE Matrix        (Strategic Position and Action Evaluation)
3. BCG Matrix          (Boston Consulting Group)
4. IE Matrix           (Internal and external)
5. GS Matrix            (Grand Strategy)                                                                28

Stage-3 (Decision Stage)


                                                                  THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                     .




1. QSPM               (Quantitative Strategic Planning Matrix)




       Stage-1 (Formulation Framework)

Industry Analysis: The External Factor Evaluation (EFE) Matrix

An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate
economic, social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive information. The EFE matrix consists of five steps process.
Five-Step process:

• List key external factors (10-20)

Opportunities & threats. You have to prepare a list of all external factors which will affect the
EFE matrix. These factors should be two points to be kept in mind these are opportunities and
threats

• Assign weight to each (0 to 1.0)

 Sum of all weights = 1.0
Now you have to arrange them according to their weight age that which factor is most
important. It should be weight age in % ages. The sum of the total of all the factors should        29
always be one.

• Assign 1-4 rating to each factor


                                                                 THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                   .




Firm’s current strategies response to the factor: how well firms response to these factors.

• Multiply each factor’s weight by its rating

Produces a weighted score
How the firm will respond to these factors external factors. Such criteria are known as rating.

• Sum the weighted scores for each

Determines the total weighted score for the organization.
Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5




       EXTERNAL FACTOR EVALUATION (EFE) MATRIX


                        EXTERNAL FACTOR EVALUATION (EFE) MATRIX
Key External Factors                    Weight              Rating               Weighted Score

Opportunities

1         Globalization                 0.10                3                    0.30

2         Marketing                     0.15                4                    0.60

3         Acquisition                   0.08                2                    0.16

4         New Product Development       0.07                3                    0.21

5         Northern Areas                0.10                3                    0.30

6         Pak China Borders             0.13                3                    0.39

Threats
                                                                                                  30
1         Old Stable Companies          0.12                4                    0.48

2         Attractive Packages By        0.10                3                    0.30


                                                                THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                    .




        Others

3       Price War                      0.06                 3                   0.18

4       Government Interference        0.09                 3                   0.27

TOTAL                                  1.00                                     3.19



        Total weighted score for the ZONG external factor is 3.19 which is above average




The Competitive Profile Matrix (CPM)

The Competitive Profile Matrix (CPM) identifies a firm's major competitors and their particular
strengths and weaknesses in relation to a sample firm's strategic position.
The weights and total weighted scores in both a CPM and EFE have the same meaning.
However, the factors in a CPM include both internal and external issues; therefore, the ratings
refer to strengths and weaknesses, where 4 5 major strength, 3 5 minor strength, 2 5 minor
weakness, and 1 5 major weakness.
There are some important differences between the EFE and CPM. First of all, the critical success
factors in a CPM are broader; they do not include specific or factual data and even may focus
on internal issues. The critical success factors in a CPM also are not grouped into opportunities
and threats as they are in an EFE.
In a CPM the ratings and total weighted scores for rival firms can be compared to the sample
firm. This comparative analysis provides important internal strategic information. Zong’s
Competitive Profile Matrix is provided in Table. In this matrix market share, growth rate and
financial strength are the most important critical success factors, as indicated by a weight of
0.60. in market share Mobilink is leading but in the growth factor zong is leading with the
weighted point of 0.40




                                                                                                    31




                                                                THE UNIVERSITY OF URDU KARACHI
               ZONG (Sub Kah Do)                                       .




         Competitive Profile Matrix (CPM)


                                       Competitive Profile Matrix (CPM)




Critical Success       Weight      Rating   Weighted   Rating   Weighted   Rating   Weighted   Rating   Weighted
Factors (CSF)                               Score               Score               Score               Score

Market Share           0.15        4        0.60       3        0.45       1        0.15       3        0.45

Growth Rate            0.10        1        0.10       3        0.30       4        0.40       3        0.30

Financial Strength     0.08        3        0.24       3        0.24       4        0.32       3        0.24

Management             0.12        4        0.48       3        0.36       3        0.36       3        0.36

Coverage               0.10        4        0.40       3        0.30       2        0.20       2        0.20

CCS                    0.13        4        0.52       3        0.39       3        0.39       2        0.26

Advertising            0.06        2        0.12       3        0.18       3        0.18       4        0.24       32

Brand Name             0.10        4        0.40       2        0.20       3        0.30       3        0.30




                                                                       THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                     .



Packages            0.09        2      0.18       3        0.27       3       0.27        4        0.36

Price               0.07        2      0.14       3        0.21       3       0.21        3        0.21
Competitiveness

TOTAL               1.00               3.18                2.90               2.78                 2.92



The ratings values are as follows:
1 = major weakness,
2 = minor weakness,
3 = minor strength,
4 =major strength.

 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 is leading. Only eight
critical success factors are included for simplicity; this is too few in actuality.

The Internal Factor Evaluation (IFE) Matrix

A summary step in conducting an internal strategic-management audit is to construct an
Internal Factor Evaluation (IFE) Matrix. This strategy-formulation tool summarizes and
evaluates the major strengths and weaknesses in the functional areas of a business, and it also
provides a basis for identifying and evaluating relationships among those areas. Intuitive
judgments are required in developing an IFE Matrix, so the appearance of a scientific approach
should not be interpreted to mean this is an all powerful technique. A thorough understanding
of the factors included is more important than the actual numbers. Similar to the EFE Matrix
and Competitive Profile Matrix, an IFE Matrix can be developed in five steps:

List key internal factors (10-20)

o Strengths & weaknesses
Assign weight to each (0 to 1.0)

o Sum of all weights = 1.0
Assign 1-4 rating to each factor

o Firm’s current strategies response to the factor
Multiply each factor’s weight by its rating
                                                                                                          33
o Produces a weighted score
Sum the weighted scores for each



                                                                  THE UNIVERSITY OF URDU KARACHI
            ZONG (Sub Kah Do)                                   .




o Determines the total weighted score for the organization
Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5




       INTERNAL FACTOR EVALUATION (IFE) MATRIX
                       INTERNAL FACTOR EVALUATION (IFE) MATRIX

Key Internal Factors                    Weight              Rating               Weighted Score

Strengths

1       Investment                      0.09                4                    0.36

2       High Growth Rate                0.11                4                    0.44

3       Advertising                     0.12                3                    0.36

4       Net Work Portability            0.12                3                    0.36

5       Zong Mobile                     0.07                3                    0.21

6       Resources Assets And            0.08                3                    0.24
        People

7       Location And Geographical       0.10                3                    0.30
        Coverage

8       Government Dealing              0.09                3                    0.27

Weaknesses                                                                                        34

1       Bad Image Of Paktel             0.06                2                    0.12



                                                                THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                    .




2       Coverage                        0.07                1                    0.07

3       Low Market Share                0.05                2                    0.10

4       Weak MIS                        0.04                2                    0.08

TOTAL                                   1.00                                     2.91



        Total weighted score for the Zong’s internal factors is 2.91 which is above average




        Stage-2 (Matching Stage)

        Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix
The Threats-Opportunities-Weaknesses-Strengths (TOWS) is also named as SWOT analysis. A
TWOS Analysis is a strategic planning tool used to evaluate the Threats, Opportunities and
Strengths, Weaknesses, involved in a project or in a business venture or in any other situation
requiring a decision. This is an important tool in order to formulate strategy. This Matrix is an
important matching tool that helps managers develops four types of strategies: SO Strategies
(strength opportunities), WO Strategies (weakness- opportunities), ST Strategies (strength-
threats), and WT Strategies (weakness-threats).The most difficult part of TOWS matrix is to
match internal and external factor. Once the objective has been identified, TOWS are
discovered and listed. TOWS are defined precisely as follows:
Strengths are attributes of the organization that are helpful to the achievement of the
objective.
Weaknesses are attributes of the organization that are harmful to the achievement of the
objective.
Opportunities are external conditions that are helpful to the achievement of the objective.
Threats are external conditions that are harmful to the achievement of the objective.

Steps for developing strategies:

There are eight steps involved in constructing a TOWS Matrix:
1. Rank external opportunities                                                                      35
2. Rank external threats
3. Rank internal strength
4. Rank internal weaknesses.


                                                                THE UNIVERSITY OF URDU KARACHI
          ZONG (Sub Kah Do)                                  .




5. Match internal strengths with external opportunities and mention the result in the SO
Strategies cell.
6. Match internal weaknesses with external opportunities and mention the result in the WO
Strategies cell..
7. Match internal strengths with external threats and mention the result in the ST Strategies
cell.
8. Match internal weaknesses with external threats and mention the result in the WT strategies
cell.




              TOWS MATRIX OF ZONG
                                       Strengths–S               Weaknesses – W

                              S1.   Capital                W1. Coverage
                              S2.   Network Portability    W2. Bad Image Of Paktel
                              S3.   Resources              W3. Low Market Share
                              S4.   Location               W4. Weak MIS
                              S5.   Government Dealings    W5. Old Staff
                              S6.   High Growth Rate
                              S7.   Advertising



    Opportunities – O                 SO-Strategies              WO-Strategies

O1. Globalization
O2. Marketing                 S1,O1 Expand
                              S3,O7 Penetration            W3,O3 Acquisition
O3. Acquiring
O4. Covering Pak China        S1,O3 Acquisition
Border
O5. Covering Northern
Areas
O6. New Product
O7. Penetration
                                                                                                 36




                                                             THE UNIVERSITY OF URDU KARACHI
          ZONG (Sub Kah Do)                                   .




        Threats – T                  ST-Strategies                WT-Strategies

T1. Old Stable Companies      S1,T3 Cost Leadership
T2. Attractive Packages By
                              S3,T2 Penetration             W3,T2 Downsizing
Competitors
T3. Price War
T4. Government
Interference




STRATEGIES FROM TOWS MATRIX

SO-Strategies

Matching the strength 1 and opportunity 4 Zong can expand their business.

From S1 and O7 they can use the strategy of penetration.

From S1 and O3 they can use the strategy of acquisition.

ST-Strategies

Matching the strength 1 and threat3 Zong can use the strategy of cost leadership.

Matching the strength 3 and threat 2 Zong can use the strategy of penetration.

WO-Strategies

Matching the weakness 3 and opportunity 3 Zong can use the strategy of acquisition.

WT-Strategies

Matching the weakness 3 and threat 2 Zong can use the strategy of downsizing.


                The Strategic Position and Action Evaluation (SPACE)                           37
                Matrix


                                                              THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                     .




The Strategic Position and Action Evaluation (SPACE) Matrix is another important Stage 2
matching tool of formulation framework. It explains that what is our strategic position and what
possible action can be taken. It is not closed matrix. It is prepared on graph. It is closed matrix.
This follow counter clock wise direction. It contains four-quadrant named aggressive,
conservative, defensive, or competitive strategies. The axes of the SPACE Matrix represent two
internal dimensions financial strength [FS] and competitive advantage [CA]) and two external
dimensions (environmental stability [ES] and industry strength [IS]).
These four factors are the most important determinants of an organization's overall strategic
position.




               A SPACE Matrix for a Zong
Financial Strength (FS)                                                             RAITNGS

   1. Revenues                                                                        5.0
   2. Return on investment                                                            4.0
   3. Working capital                                                                 5.0
                                                                                      14

Competitive Advantage (CA)

   1.   Resources Assets                                                              -2.0
   2.   High growth rate                                                              -1.0
   3.   Advertising                                                                   -2.0
   4.   Competition capacity utilization                                              -3.0
                                                                                      -8.0

Environmental stability (ES)

   1.   Technological changes                                                         -3.0
   2.   Rate of inflation                                                             -4.0
   3.   Demand variability                                                            -2.0             38
   4.   Barriers to entry into market                                                 -1.0
                                                                                      -10



                                                                 THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                     .




Industry Strength (IS)

   1.   Deregulation increase completion in telecom industry                     3.0
   2.   Financial stability                                                      5.0
   3.   Resources utilization                                                    4.0
   4.   Profit potential                                                         4.0
                                                                                 16

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 strategies

        SPACE MATRIX FOR ZONG




                                                                                                39




                                                               THE UNIVERSITY OF URDU KARACHI
          ZONG (Sub Kah Do)                                   .




        Conservative                                   (2, 2.17)         Aggressive




        Defensive                                                        Competitive




       BCG GROWTH-SHARE MATRIX
Companies that are large enough to be organized into strategic business units face the
challenge of allocating resources among those units. In the early 1970's the Boston Consulting
Group developed a model for managing a portfolio of different business units. The BCG growth-
share matrix displays the various business units on a graph of the market growth rate vs.
market share relative to competitors.




BCG Growth-Share Matrix

                                                                                                 40




                                                              THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                      .




On the vertical axis, market growth rate provides a measure of market attractiveness. On the
horizontal axis, relative market share serves as a measure of company strength in the market.

The growth-share matrix defines four types of SBUs:

CASH COW - (LOW GROWTH, HIGH MARKET SHARE)

A business unit that has a large market shares in a mature, slow growing industry. Cash cows
Require little investment and generate cash that can be used to invest in other business units.

STAR - (HIGH GROWTH, HIGH MARKET SHARE)

A business unit that has a large market shares in a fast growing industry. Stars may generate
Cash, but because the market is growing rapidly they require investment to maintain their lead.
If successful, a star will become a cash cow when its industry matures.

QUESTION MARK - (HIGH GROWTH, LOW MARKET SHARE)

A business unit that has a small market shares in a high growth market. These business units
Require resources to grow market share, but whether they will succeed and become stars is
unknown.

DOG - (LOW GROWTH, LOW MARKET SHARE)

A business unit that has a small market shares in a mature industry. A dog may not require
Substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog
has some other strategic purpose, it should be liquidated if there is little prospect for it to gain
market share.
                                                                                                       41

Zong SBU
    Post paid

                                                                  THE UNIVERSITY OF URDU KARACHI
          ZONG (Sub Kah Do)                                  .




    Prepaid
    Zong mobile
    Zong USB

Zong postpaid has low market share of 0.25% and high growth rate of16% so in BCG matrix it
lies in 1ST quadrant of question marks.

Zong prepaid has high market share of 0.7% and high growth rate of15% so in BCG matrix it lies
in 4TH quadrant of stars.

Zong mobile has low market share of 0.4% and high growth rate of11% so in BCG matrix it lies
in 1ST quadrant of question marks.

Zong USB has low market share of 0.25% and no growth rate. So in BCG matrix it lies in 2ND
quadrant of dog.




Zong Mobile
Strategic Business Unit Of ZONG Telecom
                                                                                                 42
Zong has come up with another interesting promotion …. You get a phone, almost free but with
a year’s payment in advance. This is equivalent to the US model where customers have to sign a



                                                             THE UNIVERSITY OF URDU KARACHI
          ZONG (Sub Kah Do)                                    .




contract to get a discounted phone. In Zong case they just get the money in advance (great for
them) and hope that users will stay with them after 12 months.


Strengths of ZONG mobile
    Zong is the first company who introduced mobile
     With the brand name of ZONG. Zong is benchmark
     leader in this SBU.
    It is available at very cheap price. Anyone can get it
     paying Rs 1900 with Rs 1900 balance.
    Large number of people appreciates and gets the
     mobile immediately.

Weakness
    Mobile is totally made by china and people’s perception about china mobile is not good.
     So its resale value is low.
    Zong mobile is only made for zong network. Other networks cannot operate
     in this mobile.
    Zong is depending on ZTE.(Zheng Telecommunication Electronics) ZTE is the vender of
     zong. Zong purchase mobile from ZTE.




                              Internal Factor Evaluation

                     Internal Factor Evaluation Of Zong Mobile                                   43

   Strengths                                       Weights           Rates       Score
   Benchmark Leader                                           0.26           4       1.04

                                                               THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                    .




   Cheep Rates                                                0.35              4            1.4
   People's Appreciation                                      0.09              3           0.27
   Weakness
   Resale Value                                               0.18              2           0.36

   Restriction Of Other Networks                              0.05              2            0.1
   Dependent On ZTE                                           0.07              1           0.07
   Total                                                            1                       3.24


Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5
Total weighted score for the Zong mobile is 3.24 which is above average in its overall internal
strength.
Total weighted score by Zong in internal factor evaluation is 3.24 which is above average.




Threats of ZONG mobile
    Other competitors can introduce like this mobile in market.
    It is very simple mobile which has no extra features but the other companies have
     stylish and attracting mobiles in market.

Opportunities for ZONG mobile
    It can improve its features like other cell companies. And can attract the people.
    Zong can manufacture the mobile its own. Because it depends on others




External Factor Evaluation Of Zong Mobile

                       External Factor Evaluation Of Zong Mobile                                   44

Opportunity                                       Weights               Rates       Score

Improving Features                                0.35                  2           0.7

                                                               THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                      .




 Manufacture Mobile                                 0.15              1           0.15

 Threats

 Threats Of Competitors                             0.35              2           0.7

 Threats Of Cell Companies                          0.15              1           0.15

 Total                                              1                             1.7


Total weighted score by Zong in external factor evaluation is 1.7 which is below average.

         The Internal-External (IE) Matrix
This is also an important matrix of matching stage of strategy formulation. This matrix already
explains earlier. It relate to internal (IFE) and external factor evaluation (EFE). The findings form
internal and external position and weighted score plot on it. It contains nine cells. Its
characteristics is a s follow
• Positions an organization’s various divisions in a nine-cell display.
• Similar to BCG Matrix except the IE Matrix:
o Requires more information about the divisions
o Strategic implications of each matrix are different
• Based on two key dimensions
o The IFE total weighted scores on the x-axis
o The EFE total weighted scores on the y-axis
• Divided into three major regions
o Grow and build – Cells I, II, or IV
o Hold and maintain – Cells III, V, or VII
o Harvest or divest – Cells VI, VIII, or IX




           Internal External Evaluation Matrix

                                                                                                        45




                                                                  THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                       .




                                        Total weight of IFE
                   4              3.4   3                     2                  1
                        i.    1               i.   2                   ii.   3


               3
                       iii.   4             iv.    5                   v.    6

Total weight
Of EFE
               2

                       vi.    7             vii.   8              viii.      9



               1


Steps for the development of IE matrix


          Based on two key dimensions IFE and EFE.
          Plot IFE total weighted scores on the x-axis and the EFE total weighted scores on the
          y axis
          On the x-axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99 represents a
          weak
          Internal position; a score of 2.0 to 2.99 is considered average; and a score of 3.0 to
          4.0 is strong.
          On the y-axis, an EFE total weighted score of 1.0 to 1.99 is considered low; a score of
          2.0 to 2.99 is
          Medium; and a score of 3.0 to 4.0 are high.
          IE Matrix divided into three major regions.
          Grow and build – Cells I, II, or IV
          Hold and maintain – Cells III, V, or VII
          Harvest or divest – Cells VI, VIII, or IX                                                 46
The SBU of Zong (mobile) lies in 3, 5, 7 quadrant. So the strategy of these quadrants (hold and
maintained) will be apply here.



                                                                  THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                    .




Grand Strategy Matrix
This is also an important matrix of strategy formulation frame work. Grand strategy matrix it is
popular tool for formulating alternative strategies. In this matrix all organization divides into
four quadrants.
Any organization should be placed in any one of four quadrants. Appropriate strategies for an
Organization to consider is listed in sequential order of attractiveness in each quadrant of the
matrix. It is based two major dimensions
1. Market growth
2. Competitive position
All quadrants contain all possible strategies there are four quadrants in grand matrix that
further contain various set strategies.

Quardrant-1
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification

Quardrant-2
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation

Quardrant-3
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Liquidation

Quardrant-4
                                                                                                    47
Concentric diversification
Horizontal diversification




                                                                THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




               GRAND STRATEGY MATRIX FOR ZONG



                                    Rapid Market
                                      Growth


                   Quadrant II                                     Quadrant I




     Weak                                                            Strong
     Competitive                                                     Competitive
     Position                                                        Position


                    Quadrant III                      Quadrant IV




                                    Slow Market
                                       Growth




ZONG lies in first quadrant so the all strategies of 1st quadrant can be apply on zong




Stage-3 (Decision Stage)
                                                                                                48
The Quantitative Strategic Planning Matrix (QSPM)



                                                               THE UNIVERSITY OF URDU KARACHI
             ZONG (Sub Kah Do)                                             .




The last stage of strategy formulation is decision stage. In this stage it is decided that which way
is most appropriate or which alternative strategy should be select.

Steps in preparation of QSPM

    1. List of the firm's key external opportunities/threats and internal strengths/weaknesses
       in the left column of the QSPM.
    2. Assign weights to each key external and internal factor
    3. Examine the Stage 2 (matching) matrices and identify alternative strategies that the
       organization should consider implementing
    4. Determine the Attractiveness Scores (AS)
    5. Compute the Total Attractiveness Scores
    6. Compute the Sum Total Attractiveness Score


                                 Quantitative Strategic Planning Matrix (QSPM)

SELECTIVE STRATEGIES                   MARKET PENETRATION                      MARKET DEVELOPMENT

Key External Factors      Weight       Attractiveness     Total                Attractiveness   Total
                                       Scores (AS)        Attractiveness       Scores (AS)      Attractiveness
                                                          Scores (TAS)                          Scores (TAS)

Opportunities

1   Globalization         0.10         3                  0.30                 2                0.20

2   Marketing             0.15         4                  0.60                 3                0.45

3   Acquisition           0.08         2                  0.16                 2                0.16

4   New Product           0.07         3                  0.21                 3                0.21

    Development

5   Northern Areas        0.10         3                  0.30                 2                0.20



6   Pak China Borders     0.13         3                  0.39                 2                0.26

Threats

1   Old Stable            0.12         4                  0.48                 3                0.36             49
    Companies




                                                                           THE UNIVERSITY OF URDU KARACHI
             ZONG (Sub Kah Do)               .



2   Attractive Packages    0.10   3   0.30       3            0.30
    By Others

3   Price War              0.06   3   0.18       2            0.12

4   Government             0.09   3   0.27       2            0.18
    Interference

TOTAL                      1.00

Strengths

1   Investment             0.09   4   0.36       4            0.36

2   High Growth Rate       0.11   4   0.44       3            0.33

3   Advertising            0.12   3   0.36       3            0.36

4   Net Work Portability   0.12   3   0.36       3            0.36

5   Zong Mobile            0.07   3   0.21       3            0.21

6   Resources Assets       0.08   3   0.24       3            0.24
    And People

7   Location And           0.10   3   0.30       3            0.30
    Geographical
    Coverage

8   Government Dealing     0.09   3   0.27       3            0.27

Weaknesses

1   Bad Image Of Paktel    0.06   2   0.12       1            0.06

2   Coverage               0.07   1   0.07       1            0.07

3   Low Market Share       0.05   2   0.10       2            0.10

4   Weak MIS               0.04   2   0.08       1            0.04

SUM TOTAL                  1.00       6.10                    5.14
ATTRACTIVENESS SCORE



                                                                              50




                                             THE UNIVERSITY OF URDU KARACHI
           ZONG (Sub Kah Do)                                   .




We select the two strategies market penetration and market development. There total
attractive score is 6.10 and 5.01 respectively. The strategy market penetration has big score.


       CONCLUSION

 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 be possible that Zong can be the leading
mobile operator in Pakistan. There are some minor discrepancies but they are adjustable with
little effort.


       Recommendation
       Zong Telecom should be increasing their network coverage and foot prints in every
       corner of the country to capture the market.
       Zong should adopt the strategies of market penetration market development and
       related diversification, but the most effective strategy would be market penetration.

       In the SBU of Zong mobile Zong should use the strategy of hold and maintain.

       Zong should hire the skilled management.
       Zong should not waste their opportunities and get more help as possible.


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

                                                                                                   51


                                               The end


                                                               THE UNIVERSITY OF URDU KARACHI

				
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