Stratgic Management Final Ayaz1111
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Transcript of Stratgic Management Final Ayaz1111
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TABLE OF CONTENT
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S.# Description Page #
1. Abstract 2
2. Acknowledgement 4
3. Introduction 5
4. Vision & Mission 6
6. Internal Factor Evaluation Matrix (IFE) 7
7. External Factor Evaluation Matrix (EFE) 9
8. Competitive Profile Matrix (CPM) 11
9. Value Chain 13
10. Suggestion 15
11. Conclusion 16
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ABSTRACT:
This is an Assignment of Strategic Management concepts and tools, External factor evaluation
(EFE), Internal Factor Evaluation (IFE), and Value Chain; in this Assignment we have
chosen wi-Tribe a premium wireless Broadband service provider in Pakistan.
Wi-tribe is a leading wireless broadband provider focusing on emerging markets in
Asia and Africa. The Qtel Group is one of the fastest growing wireless broadband
services providers with a presence in 16 markets in the Middle East, North Africa, and
Asia. A.A. Turki Group of Companies (ATCO) is one of the leading companies in the
Kingdom of Saudi Arabia.
Executive Summary:
WiMAX is a Worldwide Interoperability of Microwave Access. WiMAX is described in IEEE
802.16e Wireless Metropolitan Area Network (MAN) standard which has recently been introduced
in Pakistan by Wi-tribe. It is expected that WiMAX compliant systems will provide wireless
alternative to conventional DSL and Cable Internet. Wi-tribe is using Motorola's WiMAX
technology to provide wireless fixed broadband data services for residential and corporate use. The
company is using WIMAX as a cost effective and fast-to-deploy broadband solution, as part of its
strategy to create a world-class communications network in Pakistan. It brings you the ability to
connect anywhere anytime, clients and business partners seamlessly. Wi-tribe WiMAX faces
appreciation by the customers due to their better technology and services as compare to its
competitors. Now its a challenge for wi-tribe to maintain their quality network. People were
unaware of the technology that Wateen launched. The operation and installation services were not
provided properly and people were dissatisfied due to lack of knowledge about product, operation
and ineffective advantages they expected to get. The product price was high as they had high
security charges.
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ACKNOWLEDGEMENTS
We acknowledge expressing heartiest gratitude to my honorable teacher Sir. Amir
Salman, Department of Business Administration school Karachi University, for
assigning me such a perfect Strategic Management report to work and practice in real.
It gives me the opportunity to practically work on the Wi-Tribe Company focusing on
the various aspects & analysis.
We are also thankful to wi-tribe team, they helped a lot in our assignment, Special
thanks to MS. MARIUM ARIF (SENIOR EXECUTIVE MARKETING) AND
MR. SHAHEER BIN VIQAR ZUBERI(CUSTOMER SALES EXECUTIVE)
In wi-tribe, they guided and helped us to prepare and develop the content of this
report. They also performed as a focal point of gathering data of the company. We
are also grateful to all Team.
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INTRODUCTION:
Wi-Tribe, Pakistans largest wireless broadband company in the
private sector has become the detrimental catalyst that has rampantly
moved forward the country into a digital revolution with its ability to
seamlessly connect and enable smarter, faster, cost-effective and flexible
communication solutions to reach its valued customers. Wi-tribe is the
Qatar Telecom latest venture in Pakistan, after taken 75% stakes of Burraq
Telecom, Wi-Tribe main focus on providing Quality services thats why
they call the premium wireless broadband services. Wi-Tribe has been set
up to become the leading "Plug and play" providing services based on
quality, reliability and affordability in the communication and media sector.
Wi-tribe is committed to bring Next Generation services to your doorstep.
As well as Wi-Tribe is the Qatar Telecom latest communication investment
in Pakistan. Wi-Tribe current goals are to be set up as the leading
"Welcome to the tribe". With the collaboration of Motorola, they plan on
deploying a WiMAX (Wireless High Speed Connection) country-wide
network across Pakistan. This network will become one of the largest of its
kind in the world. Wi-Tribe also envisions the provisioning of LDI services
for Pakistani viewers. The commercial launch of Wi-Tribe WiMAX
(Wireless High Speed Connection) services began with 3 major cities. Wi-
Tribe uses MOTOwi4 WiMAX (Wireless High Speed Connection) by
Motorola.
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Other partners include Cisco, and Intel. Wi-Tribe is giving CPEi 750 to its
indoor usage while CPEo400 for outdoor usage to its customers.
Vision & Mission:
Vision
To be a leading broadband provider by establishing a large market presence
and creating value and profitability for shareholders.
Mission
wi-tribe aims to be the preferred supplier of wireless broadband services to
consumers. wi-tribe will aim to provide solutions that are aligned with the
changing social and business needs of the customers and achieve this goal
through innovation and state of the art customer service
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IFE MATRIX LIST KEY INTERNAL FACTORS
STRENGTHS & WEAKNESSES:
Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating
major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basisfor identifying and evaluating relationships among those areas. The Internal Factor Evaluation
matrixor short IFE matrix is used in strategy formulation.
The IFE Matrix together with the EFE matrix is a strategy-formulation tool that can be utilized to
evaluate how a company is performingin regards to identified internal strengths and weaknesses
of a company
List key internal factors as identified in the internal audit process. Use a total of from ten to
twenty internal factors, including both strengths and weaknesses. List strengths first and then
weaknesses. Be as specific as possible, using percentages, ratios, and comparative numbers.
Assign a weight that ranges from 0.0 (not important) to 1.0 (all important) to each factor.
The weight assigned to a given factor indicates the relative importance of the factor to being
successful in the firms industry. Regardless of whether a key factor is an internal strength or
weakness, factors considered to have the greatest effect on organizational performance
should be assigned the highest weights. The sum of all weights must equal 1.0.
Assign a I to 4 rating to each factor to indicate whether that factor represents a major
weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a
major strength (rating = 4). Note that strengths must receive a 4 or 3 rating and weaknesses
must receive a 1 or 2 rating. Ratings are thus company based, whereas the weights in Step 2
are industry based.
Multiply each factors weight by its rating to determine a weighted score for each variable.
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Sum the weighted scores for each variable to determine the total weighted score for the
organization.
INTERNAL FACTOR EVALUATION (IFE) MATRIX
Key Internal Factors Weight Rating Weighted Score
Strengths
1
.
Strong customer Care services 0.15 3 0.45
2
.
Focus on long term planning 0.10 4 0.40
3
.
Advertising 0.09 3 0.27
4
.
Own network dedicated BTS for WiMAX 0.12 4 0.48
5
.
Resources Assets And People 0.06 3 0.18
6
.
Network Coverage 0.10 3 0.30
7
.
Ethical System of billing 0.08 3 0.24
Weaknesses
1
.
Some Departments are not established 0.13 1 0.13
2
.
Low Market Share 0.08 1 0.08
3
.
Low acceptability 0.09 2 0.18
TOTAL 1.00 2.71
EXPLANATION
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The total weighted score of strength and weakness in INTERNAL FACTOR
EVALUTION MATRIX (IFE MATRIX) is 2.71 which is above average its mean
Wi tribe is increasing its strength and overcoming on its weakness.
EFE MATRIX LIST KEY EXTERNAL FACTORSOPPORTUNITIES & THREATS:
External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for
assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize
the opportunities and threats that a business is facing.
TheEFE matrix is very similar to the IFE matrix. The major difference between the EFE matrix and
the IFE matrix is the type of factors that are included in the model. While the IFE matrix deals with
internalfactors, the EFE matrix is concerned solely with externalfactors.
External factors assessed in the EFE matrix are the ones that are subjected to the will of social,
economic, political, legal, and other external forces.
Developing an EFE matrix is an intuitive process which works conceptually very much the same
way like creating the IFE matrix. The EFE matrix process uses the same five steps as the IFE matrix.
List factors: The first step is to gather a list of external factors. Divide factors into two
groups: opportunities and threats.
Assign weights: Assign a weight to each factor. The value of each weight should be between
0 and 1. Zero means the factor is not important. One means that the factor is the most
influential and critical one. The total value of all weights together should equal 1.
Rate factors: Assign a rating to each factor. Rating should be between 1 and 4. Rating
indicates how effective the firms current strategies respond to the factor. 1 = the response is
poor. 2 = the response is below average. 3 = above average. 4 = superior. Weights are
industry-specific. Ratings are company-specific.
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Multiply weights by ratings: Multiply each factor weight with its rating. This will calculate
the weighted score for each factor.
Total all weighted scores: Add all weighted scores for each factor. This will calculate the
total weighted score for the company.
The sum of all weighted score is equal to the total weighted score; final value of total weighted score
should be between ranges 1.0 (low) to 4.0(high). The average weighted score for EFE matrix is 2.5
any company total weighted score fall below 2.5 consider as weak. The company total weighted
score higher then 2.5 are considering as strong in position.
EXTERNAL FACTOR EVALUATION (EFE) MATRIX
Key External Factors Weight Rating Weighted Score
Opportunities
1. Underserved DSL kind network
infrastructure or no broadband access at all.
0.11 3 0.33
2. To cover untapped market 0.12 4 0.48
5. Develop new value added services 0.07 2 0.14
6. Making alliance with GSM operator to
share Base Station to expend converge
0.08 2 0.16
8. Prepaid packages 0.07 1 0.07THREAT
1 Old Stable Companies 0.10 3 0.30
2 Low penetration of population and low
ARPU.
0.09 3 0.27
3 Price War 0.11 4 0.44
4 Government Interference 0.06 2 0.12
5 Poor law and order situation in country 0.09 3 0.27
6 Less market share 0.10 2 0.20
1.00 2.78
Interpretation
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Total weighted score of opportunities and threats in EFE matrix is 2.78 which is above
average, It means Wi-tribe is availing its opportunity and avoiding its threats.
Competitive profile matrix
Competitive profile matrix is an essential strategic management tool to compare the firm with the
major players of the industry. Competitive profile matrix shows the clear picture to the firm about
their strong points and weak points relative to their competitors. The CPM score is measured on
basis of critical success factors, each factor is measured in same scale mean the weight remain same
for every firm only rating varies. The best thing about CPM that it includes your firm and also
facilitates to add other competitors make easier the comparative analysis.
IFE matrix only internal factors are evaluated and in EFE matrix external factors are evaluated but
CPM include both internal and external factors to evaluate overall position of the firm with
respective to their major
Find out critical success factor. (Internal & External )
Assign weight to each factor depend up how important the specific factor for the organization
success. The weight range from 0.0 to 1.0 lower number shows no or minimum importance
and high weight show more importance of factor to the company.
Assign rating to each factor depends upon how well organization respond to that factor.
Assign a 1-4 rating to each critical success factor to indicate how effectively the firms
current strategies respond to the factor. (1 = response is poor, 4 = response is extremely
good)
Multiply each factors weight by its rating to determine a weighted score.
Sum the weighted scores
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Interpretation
The average weighted score in competitive profile matrix of wi-tribe which isabove average which means that wi-tribe is performing well to the criticalsuccess factors in its industry. The weighted average score of wateen is more
than wi-tribe due to its early presence; Infinity and Qubee have totaled the score of
2.14 and 1.39 respectively.
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Competitive Profile Matrix (CPM)
Critical Success
Factors (CSF)
Weight Rating Weighted
Score
Rating Weighted
Score
Rating Weighted
Score
Rating Weighted
Score
Market Share 0.12 4 0.48 2 0.24 1 0.12 1 0.12
Quality Service 0.09 2 0.18 2 0.18 3 0.27 1 0.09
Growth Rate 0.07 2 0.14 1 0.07 2 0.14 1 0.07
Customerloyalty
0.10 2 0.20 2 0.20 3 0.30 2 0.20
Management 0.09 4 0.36 3 0.18 3 0.27 2 0.18
Coverage 0.10 4 0.40 3 0.30 2 0.20 1 0.10
Customer Care
Services
0.11 1 0.11 3 0.33 4 0.44 2 0.22
Advertising 0.06 3 0.18 2 0.12 2 0.12 1 0.06
Brand Name 0.10 4 0.40 2 0.20 1 0.10 1 0.10
Packages 0.09 3 0.27 1 0.18 2 0.18 2 0.18
Value Added
Services
0.07 3 0.21 2 0.14 1 0.07 1 0.07
TOTAL 1.00 2.93 2.14 2.21 1.39
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VALUE CHAIN
The big integrated network operators today have to focus on cost leadership and
differentiation strategies at the same time.
Wi-Tribe has to concentrate both on:
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An innovation and differentiation strategy for the service provisioning part of the
value chain.
Uniqueness perceived by the customer
Service innovation & differentiation (brand, sales, products, customercare)
A costleadership strategy for the network specific part of the value chain
Low cost position
Overall Cost Leadership (Efficient scale facilities, cost reduction, cost
control)
Telcos will come under pressure by new service providers and the backward and
forward integration of manufacturers and Content&Application Providers.
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SUGGESTION
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The vision of Wi-Tribe is to provide the premium wireless broadband service provider, now they are
making their network to strong their foot prints in the Pakistani market, if they share their BTS
equipment with other wireless companies company reduce its operating cost.
Wi-Tribe is focusing on youth, according to youth requirement they have provide some student
packages in which they provide some sort of discounts to School, College, University Students.
If wi-tribe trained their staff in the supervision of Dragonwave Solutions wi-tribe gets the benefit of
pooling their human resource Skills and the dependency level to other companies is also decreased.
Pre-paid packages option.
There are several other suggestions which are given below :
Improve e-business promotions and e-marketing through more easy to use web portal
Evaluate its existing systems efficiency and effectiveness in dealing with customer needs.
Focus on external IT facilities (SERVICES)as well as internal IT
infrastructure(INTEGRATION)
Effective design and implementation of IT facilities
Reduce cost & time through integrated systems
Hardware and software advancement and inhouse capability of innovation.(INNOVATIIVE
STRATEGY)
Lead an international culture of technology and info-communication
CONCLUSIONS
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This report summarize that wi-tribe is launched in Pakistan in 30 june, 09 with the slogan of
premium wireless broadband service provider in Pakistan, they achieve 12000 customer
across the country and around 500 operation cell sites now established in Pakistan with in 3 Months,
wi-tribe launch at time when there was recession going on.
They believe in the long term planning they establish their own BTS station Dedicated to Wi-MAX,
with personalized customer care service, they are also working on CSR projects, they are focusing
on their network because Mobilink infinity and Wateen already extended their network very rapidly
they seems to be a threat, As seeing the growth rate of wi-tribe it may possible that wi-tribe can be
the leading Wireless Broadband operator in Pakistan. Wi-tribe creates awareness about the WiMax
and their advantages to the consumer, and they can also run their campaign in which they show the
advantages of wireless internet. The key strength of wi-tribe is their network and customer support
services they have to more focus on it, if not it will become the biggest threat to the company. They
take advantage of Mobilink infinity because infinity services is only limited in Karachi, Wi-tribe
have to focus on the other untapped area major markets are Lahore, Multan, Bahawalpur, Quetta,
they markets have more potential wi-tribe have cover those area also.
If wi-tribe continues providing the facilities to consumers hopefully it will increase its Market share
and as well as show firm financial position in future.
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