Mobicash PEST Analysis

Political Factors

Pakistan has failed to establish a political stability due to constitutional

conflict, absence of stable democratic government, economic problems

and lack of social growth.

The territorial issues and border conflicts with India, the socio-economic
differences within the country, the struggle for a share of power between
the provinces, these all together has caused in Foreign Direct Investment

(FDI) that no international state is willing to invest in Pakistan.

According to GSMA, Pakistans government allowed branchless banking
market and more than 17 million transactions occur per month. There are
no less than 8 active players in the market, five of which are mobile

operators and one of them is Mobicash.

Government strict the policies for the new license and they give
punishment to those retailers who are using fake license or dont have
license at all so Mobilink has redefined their policies on licensing for

Mobicash.
The Foreign Exchange Regulations Act (FERA) of 1947, an individual could
not take out of the country an amount of more than $10,000 in cash
which restricts Mobicash to go global.

Economic Factors

As there is instability in politics, economic conditions are also in a very

bad condition.
The most important reason for political instability is our economy. We
have high inflation, large income inequality, deficit financing and a

chronic lack of expenditure for infrastructure and education.

Inflation rate has increase 4.1% in comparison to previous year and the
value of Rupee is going down and it proves as very drastic for the

economy of country.
Government has imposed heavy taxes on money transfer which goes up

to 30%.
According to State Bank of Pakistan, in transfer business, the OTC (Over
The Counter) is strongly driven and 81% of transactions are completed in

this manner.
Government has also limited the amount which can be transferred at a
time which has made it difficult for ventures like Mobicash and Easypaisa

to attract more customers to use this facility.

Mobicash signed an agreement with Khushhali bank limited, in order to
provide payment facilitation services to the unbanked and under banked
markets in Pakistan. This partnering will expand Khushhali banks
network, allowing customers in rural areas to make payments with ease

and regularity which will marginally help in economy.

Marketer should consider long term and short term state of a trading
market so that more facilities could be provided to the customers.

Socio Cultural Factors

As Pakistan is an Islamic country and people are very religious so they do

not accept anything against their culture on either print or electronic
media e.g. the most recent print ad of mobilink in newpaper caused a lot

of hassle.
The January March, 2015 analysis report of State Bank of Pakistan shows
that Mobicash has second most agents (52,083) dealing in branchless

banking.
Unemployment is also regarded as a major social problem. Major portion
of Pakistans population consists of youth and a large number of young
people who have the ability and are willing to work are unemployed.
Currently rate of unemployment as per official resources is 7.4% but
according to some private estimates the rate of unemployment is 12%.

And when there is no employment, money transfer goes out of order.

Mobilink should target middle class and backward areas of the country as
they usually need to transfer money from one place to another without
using a bank account as most of the people of rural areas are working in

cities and have to transfer money to their families.

Most of the people dislike anything extra-ordinary or something which
sabotage their culture or sub culture so advertisements and promotions

must be in a way that is not in any way against the culture.

As there are different languages spoken in Pakistan so Mobilink should
give their customer assistance in all of these languages along with easy
access to the Mobicash by opening more franchises and licensing

retailers.
As most of the population of Pakistan lies in low income range therefore
they should target those customers and give them cheapest possible

package by reducing own profits.

As the lifestyle of people living in big cities are changing so they need
more value added services i.e. low transfer rates and easy access along
with some membership to loyal customers giving members with high
benefits.

Technological Factors

Companies have technology with which they can compete in the Pakistan
and now companies are investing in their infrastructure to not only

expand but also to upgrade their existing structure.

State Bank of Pakistan published that Mobicash launches Near Field
Communication (NFC) payments on vending machines for its 1.5 million
mobile account holders. To become Pakistans first Mobile Financial
Service (MFS) provider to introduce an NFC service, this initiative was

launched by Mobicash in collaboration with Batwa and Wavetec.

Mobilink has given license of Mobicash to different agents for easy access
of people but it is still not enough. More licenses must be given in
different areas specially backward ones where people have less access to

banking.
The rapid development of technology requires quick reaction by
businesses in order to survive in an emerging competitive environment
and keep up with new trends and innovative services which other

competitors might be offering. Mobicash has no online access which

sometimes makes it difficult for customers to transfer money or track
their transfer.

According to GSMA, to ensure liquidity at the agent level, Mobicash

extended credit to its channel, demanding commitment on a minimum
level of investment from agents in return. This is being tracked through a
credit monitoring system.

Mobicash set up dedicated helplines for both the agents and endconsumers to provide industry-best customer service.

Dedicated MFS Business Development Officers were integrated with the

selling channel to engage agents and consumers on Mobicash.

An extensive visibility drive was carried out for Mobicash to ensure better
customer recall and brand presence. Both ATL and BTL communication
channels were utilized.

SCA (Sustainable Competitive Advantage) looking at technology from a

positive perspective instead of a necessary evil. Traditional models are
changing and advantages can be achieved by investing in modern

technology.
People with access to cellular phone and valid CNIC can transfer without

requiring any agent.

Mobilink telecommunication is providing largest variety of value added
services (VAS) in Pakistan but its services regarding Mobicash are still not
plenty.

References
http://mobicash.com.pk/money-transfer/
http://www.gsma.com/mobilefordevelopment/mobicashs-successful-entrystrategy-in-pakistan-leveraging-best-practices-and-improving-operationalefficiency

http://www.mobilink.com.pk/business/mobicash-launches-pakistans-firstnear-field-communication-nfc-payments-solution/
http://www.sbp.org.pk/search/results.asp?
cx=002167901857236840991:v55i2sdnxfs&cof=FORID:11&q=%20mobicash
www.sbp.org.pk/publications/acd/BranchlessBanking-Oct-Dec-2014.pdf
http://www.dawn.com/news/1050686
http://www.cssforum.com.pk/css-compulsory-subjects/essay/29767-socioeconomic-problems-pakistan.html
http://www.pakistantoday.com.pk/2011/02/09/comment/editors-mail/politicalinstability-2/
https://onpakistan.wordpress.com/category/political-economy/