ufone tm hi to ho.doc

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Acknowledgements

We are grateful to Almighty Allah who gave us strength, knowledge and power to accomplish thiscomprehensive assignment.

We are deeply indebted to Sir yousuf our mentor for this course, for his guidance and knowledgetowards the accomplishment of this task.


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EXECUTIVE SUMMARY

Ufone (official name: !"#$ is a !%# company, !"# (Ufone$ & a wholly&owned subsidiary

has improved its financial performance commenced its operations on

'th )anuary '**+ as a S" ** service provider. Since the outset, it has e-panded its coverage

and customer base at a rapid pace and established itself as one of the leading cellular service

providers in akistan.

uring the last year Ufone successfully completed the launching of sites under hase / in e-istingas well as new cities and towns by investing more than US0 1'1 million. !his has increased the

asset base of Ufone from rupees '* billion to '2 billion. !o further enhance the subscriber base and

strategically position the company in the growing telecom market, Ufone has finali3ed a network

e-pansion for hase /4 contract amounting to about US0 +2* "illion. Ufone currently, has

network coverage in more than 5,251 locations throughout the country.

Ufone6s operational performance has been very encouraging despite stiff competition in akistan

telecom market which has led to reduction of prices to bare minimum level. Ufone managed to

improve its revenue and after ta- profit by 728 and 158 respectively, as compared to the last year

through aggressive policies and e-ercising strict control over e-penses.


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Table of Contents

4ntroduction of Ufone

/ision 9 "ission

SW! Analysis

%ompetitive analysis

;S"(>uantitative Strategic lanning "atri-$

?ecommended strategy

%onclusion 9 ?ecommendations

?eference


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Introduction

@istory of Ufone

Ufone S" is a akistani S" cellular service provider. 4t is one of si- S" "obilecompanies in akistan and is a subsidiary of akistan !elecommunication %ompany. !he

company commenced its operations under the brand name of Ufone from 4slamabad on

)anuary ' '**+. Ufone e-panded its coverage and has added new cities and highways to

its coverage network. After the privati3ation of !%#, Ufone is now owned by ;tisalat.

PTML is a wholl owned subsidiar of PTCL!;stablished to operate cellular telephony.

!he company commenced its operations, under the brand name of Ufone from 4slamabad

on )anuary ' '**+.

uring the year, as a conseuence of !%#Bs privati3ation, 'C8 of its shares were acuired

by ;mirates !elecommunication %orporation (;tisalat$. =eing part of !%#, the

management of Ufone has also been handed over to ;tisalat. uring the year )uly '**1 to

)une '**C, Ufone continued on the path to success. !he %ompany further e-panded its

coverage and has added new cities and highways. Ufone has network coverage in more

than 21* cities, towns and across all maDor highways of the country. uring the year Ufone

successfully completed the network e-pansion of hase 5 in e-isting as well as in new

cities and towns which amounted to more than US ollar +2* million. As a result the asset

base of the %ompany has increased from ?s. '* billion to ?s. '2 billion.


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capacities in e-isting cities, Ufone has finali3ed a huge network e-pansion contractamounting to about US 11* million, which will enhance the subscribersB capacity by +*million. !his is the largest ever e-pansion proDect of Ufone.


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Vision State"ent

E!o be the leading telecommunication service provider in akistan by offering innovatecommunication solutions for our customers while e-ceeding shareholder value 9 employee

e-pectation.F

Mission State"ent

!o become the best cellular communication option available in the country for EuFGGGGG.At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals 9 voiceualityusing state of the art technology and retaining personnel of e-ceptional ability. Whereveryou are, Ufone keeps you connected.


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The "a#or co"$etitors of Ufone are do"estic co"$anies li%e

"=4#44HIakistan "obile %ommunications #imited, better known as "obilink S", is atelecommunication service provider in akistan. According to !A statistics, "obilink has J*.77million customers by )anuary '**7. "obilink6s @ead office is located in Iulsum la3a, =lue Area,and 4slamabad

!;#;H?!elenor (S;: !;#, HASA>: !;#H$ is the incumbent telecommunications company in Horway,with headuarters located at


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I&TER&AL ' EXTER&AL A&ALYSIS

I&TER&AL E&VI(R&ME&T

@uman ?esource "anagement"arketing epartment%ommercial epartmentSales epartment


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S tren)th

+. Ufone has &etwor% Co*era)ein more than 21* cities, towns and across all maDor

highways of the country.

'. Ufone provides International Roa"in) facilitwith more than +1* international

operators across 2 countries.

J. Ufone is proud to have an efficient and friendly customer service through '+ company&

owned Sales 9 %ustomer Service %enters and nearly +,- .ranchiseesacross the country.

5. Ufone has always believed in a solid Co""it"ent to )rowth, security and reliability.

!herefore, Ufone has always balanced its e-pansion efforts and uality of service. With a

total current investment of 05** "illion.

1. Utuneswas launched on 5th ec'**2 which attracted many people towards Ufone.

C. Ufone is offering the service of Multi/"edia Messa)in) Ser*ice 0MMS1!

As mobile users in the country have reached over 27 million at a very rapid pace.

2. Ufone has maintained itself as the +nd lar)est cellular o$erator in Pa%istanwith a

subscriber base of around +C.1 million and a market share of nearly '18. Ufone has seen a

subscriber growth rate of over '**8 in the last year, and since the start of '**1 Ufoneadded nearly 1 million subscribers onto its network. A remarkable achievement indeed,

especially considering the fact those two new international players also entered into the

market in '**1.

7. While keeping its tradition of being the Trend setterin the industry, Ufone changed the

image of mobile phones from a lu-ury only affordable by the elite, to a necessity affordable

by the common man.

. Ufone increased its .ocus on the outh se)"ent(which comprises 1*8 of the

population$, with the repay brand.

+*. Ufone has the ability to retain its e2istin) custo"erbase with a high level of customer

satisfaction via optimum network service and a '5 hour call center facility.

++. 4t has the post paid service that is normally to attract the =usiness class people. "ost of the

business and elite class people use post paid and other services offered by the Ufone.

+'. Ufone has a subscriber base of +7.2 million as of ctober '**7.


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+J. Ufone was the first cellular %ompany in akistan that introduced the service of ?S and

hence took the competitive advantage.

+5. Ufone post paid is also offering black berry set that is useful and tempting for the =usiness

class.

+1. ?S ?oaming facility is available with more than 21 #ive perators across 1 countries.

+C. /ariety of /alue Added Service.

+2. %overage on ! ?oad C*8.

+7. ;stablished customer base including lower middle class.


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56! Ufone is plagued with some internal problems like when it is privati3ed to ;tisalaat being

the part of the !%# many employees were not happy with the pay scale that they were

offering.

(PP(RTU&ITIES

+. 4t should introduced 4nternational S"S packages like local S"S. Already Ufone is offering

lowest 4nternational S"S rates but if they introduce some package like this it will get lots

and lots of success.

'. !hey should also introduce some 4nternational call packages to "iddle ;astern countries

because there are lots of akistanis who are living in those countries so people will

definitely be tempted towards such package.

J. 4n E Ufone ghantaF package time of the package should be e-tend two more hours so that

more 9 more people will use this service and causing Ufone to generate more revenues 9

hidden charges should be removed.

5. Ufone should develop some new franchises in remote areas so that people will get more

and more benefit from it and it will help to increase their customers.

1. As in akistan Mouth is almost the 1*8 of the population so Ufone can take advantage of

this demographic situation and should introduce more and more services and packages that

attracts youth towards it.

C. Ufone should e-tend its network coverage area to Horthern part of the country as well

because in that part not too many companies are giving services and if Ufone give its

service there then it will definitely attract people and its number of customers will shoot

like a rocket.

2. 4t should also introduce some packages for 4nternet users on mobile if it do so then many

people will switch from other networks towards it.

7. 4f Ufone enhance its voice uality then definitely it would be prefer more by customers.


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. Ufone can surprise its competitors by introducing EUfone kioskF. !hese will be A!" like

machines and that will give '5&hour service to Ufone subscribers to load the balance Dust

like they take money from A!".

T


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C(MPETIT(R A&ALYSIS

!he competitive environment for mobile telephony in akistan is tough and UfoneBs is a

maDor player of the market. rimary competition is of course between four mobile

operators for the share of the market. =ut there is other potential source of competition,

which should also be taken into consideration

=IRECT C(MPETITI(&>

irect competition to Ufone service is with thee licensed mobile world in todayBs

market. !hese are:

"obilink.

Warid telecom.

!elenor.

Long

I&=IRECT C(MPETITI(&>

!he indirect competition is from:


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Tar)et Mar%et

Ufone has the target market concerning youth in the nation. !his target market of youngster

comprises 5*8 of the population. Ufone has targeted the corporate class for which the Ufone is

customi3ing the packages in order to preserve the e-isting small businessman.

?ender>=oth "ale 9 "iddle 9 #ower "iddle %lass

Tar)etin)> "ainly they are targeting to youth, if we look at their ads, which are

shown on the !/, we got the clear idea.

Inco"e ?rou$: ?s. +1,*** 9 above


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EXTER&AL .ACT(R EVALUATI(& 0E.E1 MATRIX

4e E2ternal .actors 3ei)ht Ratin) 3ei)hted

Score

($$ortunities

5 lobali3ation -!5+ 7 -!7:

+ ublicity 9 "arketing -!-8 6 -!5:

6 %an target %orporate -!-: 6 -!+7

7 evelop Hew value Added services -!5- 7 -!7-

, ;-tend %overage to Horthern Areas -!-, 6 -!5,

8 introduced 4nternational S"S packages like localS"S 9 call package

!-8 6 !5:

9 develop some new franchises in remote areas !-: 7 !6+

: 4ntroducing EUfone kioskF.)ust like A!".

!-, + !5-

Threats

5 ld Stable %ompanies 9 arrival of %hina "obile

%ompany

-!5- + -!+

+ !%# cellular license -!-: + -!58

6 rice War -!-, + -!5-

7 overnment 4nterference -!5+ 6 -!68

, ressure groups 9 health issues due to towers inresidential areas.

!-, + !5-

T(TAL 5!-- +!;9


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I&TER&AL .ACT(R EVALUATI(&MATRIX

4EY I&TER&AL .ACT(R

STRE&?T< 3ei)ht Ratin) w! score

Hetwork coverage !-: 6 !+7

Uniue offers 9 packages !5+ 7 !7:

"arketing 9 Advertising !5- 6 !6


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CPM/Co"$etiti*e Profile Matri2

Critical

Success

.actors 0CS.1

3ei)ht Ratin) 3ei)hted

Score

Ratin) 3ei)hted

Score

Ratin) 3ei)hte

d ScoreRatin) 3ei)hted

Score

Mar%et Share *.+1 5 *.C* J *.51 + *.+1 J *.51

?rowth Rate *.+* + *.+* J *.J* 5 *.5* J *.J*

.inancial

Stren)th

*.*7 J *.'5 J *.'5 5 *.J' J *.'5

Mana)e"ent *.+' 5 *.57 J *.JC J *.JC J *.JC

Co*era)e *.+* 5 *.5* J *.J* ' *.'* ' *.'*

CCS *.+J 5 *.1' J *.J J *.J ' *.'C

Ad*ertisin) '

Mar%etin)

*.*C ' *.+' J *.+7 J *.+7 5 *.'5

@rand &a"e *.+* 5 *.5* ' *.'* J *.J* J *.J*

Pac%a)es '

(ffers

*.* ' *.+7 J *.'2 J *.'2 5 *.JC

PriceCo"$etiti*ene

ss

*.*2 ' *.+5 J *.'+ J *.'+ 5 *.'7

T(TAL 5!-- 6!5: +!;- +!9: 6!--

4n a %" the ratings and total weighted scores for rival firms can be compared to the sample firm.

!his comparative analysis provides important internal strategic information. Ufone %ompetitive


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rofile "atri- is provided in !able. 4n this matri- market share, growth rate and financial strength

are the most important critical success factors, as indicated by a weight of *.C*. 4n market share

"obilink is leading but in the growth factor Ufone is leading with the weighted point of *.5*

The ratin)s *alues are as follows>

5 "a#or wea%nessB+ "inor wea%nessB

6 "inor stren)thB

7 "a#or stren)th!

As indicated b the total wei)hted score of +!9:B on) is wea%est! @ecause it is at its initial

$osition as co"$are to co"$etitors! 3ith the $oint of 6!5: Mobilin% is leadin)! (nl ei)ht

critical success factors are included for si"$licitD this is too few in actualit


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S3(T MATRIX (. U.(&E

.

SPACE Matri2 for U.(&E

StrengthsNS

S+. %apital 9 financialpositionS'. Hetwork %overage 9voice ualitySJ. ?esourcesS5. !rend setterS1. Uniue offers 9packagesSC. @igh rowth ?ate

S2. Advertising 9 marketingS7.


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.inancial $osition 0.P1 RAIT&?S

+. ?evenues 1.*'. ?eturn on investment 5.*J. Working capital 5 .*

56!-

Co"$etiti*e $osition 0C$1+. ?esources 9 Assets &'.*'. @igh growth rate &+.*J. Advertising 9 "arketing &'.*5. %ompetition capacity utili3ation &J.*1. 'ndlargest cellular company in akistan. &+.*C. ood speed 9 superior voice uality. &J.*2. %ustomer focus. &J.*7. %omputeri3ed complaint cell &J.*. Successful brand &'.*+*. Attractive packages. &J.*

/+6!-

Stabilit $osition 0SP1

+. !echnological changes &J.*'. ?ate of inflation &5.*J. emand variability &J.*5. overnment 4nterference &+.*1. !ough competition & ' .*

/56!-

Industr $osition 0IP1

+.


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%A average is &'JK+* O &'.J

;S average is &+JK5 O &J.'1

4S average is 'JK1 O 5.C

irectional /ector %oordinates: -&a-is: 5.CP (&'.J$ O '.J

irectional /ector %oordinates: y&a-is: 5.JJP (&J.'1$ O +.*7J

The U.(&E should $ursue A))ressi*e strate)ies

SPACE MATRIX .(R U.(&E


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%ompanies that are large enough to be organi3ed into strategic business units face the challenge of

allocating resources among those units. 4n the early +2*6s the =oston %onsulting roup developed

a model for managing a portfolio of different business units. !he =% growth&share matri-

displays the various business units on a graph of the market growth rate vs. market share relative to

competitors.

@C? ?rowth/Share Matri2

n the vertical a-is, market growth rate provides a measure of market attractiveness. n the

hori3ontal a-is, relative market share serves as a measure of company strength in the market.

CAS< C(3 / 0L(3 ?R(3T


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A business unit that has a large market shares in a mature, slow growing industry. %ash cows

?euire little investment and generate cash that can be used to invest in other business units.

STAR / 0


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?rand Strate) Matri2

4n

rand strategy matri- Ufone lie in +stuadrant because it has strong competitive positionand rapid market growthG..

Suitable strategies of uadrant +stfor Ufone are

+. Mar%et =e*elo$"ent

'. Mar%et Penetration

J. Product =e*elo$"ent

5.


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2. Related =i*ersification

4; "atri- of U


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The Fuantitati*e Strate)ic Plannin) Matri2 0FSPM1

!he last stage of strategy formulation is decision stage. 4n this stage it is decided that which

way is most appropriate or which alternative strategy should be select.

Ste$s in $re$aration of FSPM

5! #ist of the firm6s key e-ternal opportunitiesKthreats and internal

strengthsKweaknesses in the left column of the >S".+! Assign weights to each key e-ternal and internal factor6! ;-amine the Stage ' (matching$ matrices and identify alternative strategies that the

organi3ation should consider implementing7! etermine the Attractiveness Scores (AS$,! %ompute the !otal Attractiveness Scores8! %ompute the Sum !otal Attractiveness Score

Fuantitati*e Strate)ic Plannin) Matri2 0FSPM1 of Ufone


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Fuantitati*e Strate)ic Plannin) Matri2 0FSPM1

SELECTIVE STRATE?IES Product =e*elo$"ent Mar%et Penetration

4e E2ternal .actors 3ei)ht Attracti*eness

Scores 0AS1

Total

Attracti*eness

Scores 0TAS1

Attracti*eness

Scores 0AS1

Total

Attracti*eness

Scores 0TAS1

($$ortunities

5 ?lobaliGation -!5- 6 -!6- + -!+-

+ Mar%etin) -!5, 7 -!8- 6 -!7,

6 AcHuisition -!-: 6 -!+7 + -!58

7 &ew Product

=e*elo$"ent

-!-8 6 -!5: 6 -!5:

, &orthern Areas -!5- 6 -!6- + -!+-

8 =e*elo$ so"e new

franchises in re"ote

areas

-!5+ 7 -!7: + -!+7

9 Introducin) Ufone

%ios%J!

Kust li%e ATM!

-!5- 6 !6- + -!+-

Threats

5 (ld Stable

Co"$anies

-!5- 7 -!7- 6 -!6-

+ Attracti*e Pac%a)es@ (thers

-!5- 6 -!6- + -!+-

6 Price 3ar -!-7 6 -!5+ + -!-:

7 ?o*ern"ent

Interference

-!-, 6 -!5, + -!5-

T(TAL 5!--

Stren)ths

5 In*est"ent -!5- 7 -!7- 7 -!7-

+


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Conclusions and Reco""endation

Ufone is '

nd

largest cellular company in akistan. "ore committed towards growth.!elecom industry is most growing industry of akistan still huge investment reuired for coverage.

!he market also has strong competition after the entrance of %hina "obile %ompany as player.

%ompetitors are hiring professionals to entertain the consumer which is resulting technological

implementation and value added services. eople are worried about call rates they donBt prefer any

particular company. %onsumer searches good service with lowest call rates, although companies

are minimi3ing call rates this will result more growth in the market. Ufone bring ama3ing packages

to attract the customers. Ufone promote their product through !/ commercial, Hewspaper, ?adio,

4nternet etc. !he choice of people is Ufone because Ufone price level is low and affordable that

every one can say

E4tBs all about UF

Ufone could develop some new and innovative services to attract customers to increase their

revenues as well as it customers:

4t should introduced 4nternational S"S packages

Ufone has strong financial position 9 more competitive advantages then other cellular

companies so he should more focus on his strategies.

@e should grow and maintain his position.

!hey should also introduce some 4nternational call packages to "iddle ;astern countries.


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4n EUfone hantaF package time of the package should be e-tended.

@e should pay more attention towards postpaid services

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