Mobilink strategic management report

UNIVERSITY OF WAH QUAID AVENUE, WAHCANTT.

Presented to: Sir Umer Shahid. Presented by: Tahzeeb Khan Marwat.

BS (Hons.) Computer Sciences BS-CS-4th B

Introduction of Mobilink:
Mobilink is Pakistans leading cellular and Blackberry service provider. More than 35 million subscribers. Market share 35 %. Employee strength Over all : ( Total 4500) Top Managers : 75, Middle Managers : 750, Line Managers : 3675, Human Resource Department : ( Total 47), Director : 01, Vise President : 04, Middle Managers : 16, Line Managers : 2610. Mobilink coverage 10,000+ cities and towns nationwide as well as over 140 countries on international roaming service.

The strategic management process:

The strategic management process means defining the organizations strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.

Step 1: Identify the Organizations Current Mission, Goals and Strategies:

Mobilinks Mission Statement: To be the unmatchable mobile system of communications in Pakistan, providing the best value to its customers, employees, business partners and share holders Mobilink's Vision: To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations Mobilink Goals and Objectives: Business Expansion. Better service provision. Retaining the role of a leading telecom company.

Attract maximum customers and satisfy them. Excel in meeting customer needs. Seek employee involvement, continuous improvement and enhanced performance.

Mobilink strategies: Low Priced promotional packages. Improve Service and gain Market Share. More Sponsorship in games other than cricket and football. Partnering with Corporate Clients. Effective & Efficient distribution Channel. Increased Celebrity Endorsement. Construct layers of target market for better service quality and gaining lost customers and retaining the existing, like corporate segment, middle segment and lower segment. Employee Benefit programs and non-financial benefits like 'Employee of the month Backward Integration over their infrastructure vendors and suppliers to reduce cost and expenses. Offering services like competitors such as Call Block Service. Customer Representative. Gain competitive advantage via increasing service speed and response time to customer.

Step 2: Doing an External Analysis:

Opportunities: Promotional Packages Sponsorships for local and International events Changing Marketing Mix Investment and Development Opportunities Improved Customer Service and Value Added Services Economic Influx both globally and locally Global Telecom Industry growth is predicted, both supply push and demand pull, pursuit of expansion Adoption New Technology; Mobile Wallet and Gift Cards Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company Adopting to MVNO and MVNE services Local handset manufacturing Adoption to UTMS- 3G technology up coming in Pak Exchange Rate Fluctuation

Threats: Intense Competition Telenor, Ufone, Warid & Zong Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan Market Saturation of subscribers Political Instability and Security Concern Increasing maintenance cost Skilled labor attracted to competitors via better benefits High Tax Rates Price war between brands in telecom industry Natural Disaster; like the recent flood caused huge losses and the previous earthquake

Step 3: Doing an Internal Analysis:

Strength: Largest Market Share & Highest number of Subscriber in Pakistan Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two super brands award 2009 & Pioneers with GSM Technology

Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries with International Roaming Engineering and Technological stability at Mobilink along with competent employees Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93 Concern for society and adapt to work environment needs; active CSR and only cellular operator to be awarded 6th Environmental Excellence Award by NFEH ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and satellite links Exponential growth in Revenue in first 3 quarter of 2010 Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation of full intelligence network (IN) platform from Siemens for the prepaid platform Mobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management services Largest Call Center in Pakistan, which is there to assist the customers 24 hours Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT & FAT is 0.09 and 0.22 respectively In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd among the 'Brands punching above their weights' ahead of Airtel, Tata Indicom and Reliance Continuous and latest employee training approaches Effective and Rapid Communication within Management Partnership with MCB to offer all banking services to Mobilink customers via their handsets

Weaknesses: Service issues with customers - average to below average service Mismanagement due to large network Huge Expenses incurred, high cost of material and other expenses High Tariffs as compared to competitors & expensive service quality both call rates and sms Call Blockage service still not offered Sort of bureaucratic style of Management; biasness by intermediate bosses ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2 Customer Retention

Step 4: Formulating Strategies of Mobilink:

The findings mentioned reflect three types of major strategies employed by the organization at various levels. Namely they are: 1. Corporate level strategy 2. Business level strategy 3. Functional level strategy

1. Corporate Level Strategy:

As their corporate level strategy they have entered into partnerships with different organizations. On the basis of findings, it appears that for the past few years (1999-2003), Mobilink had a focus on internal growth. All this is evident from the fact that since the deregulation of the mobile service industry of Pakistan, Mobilink has undertaken various. The main reason for this change is mainly to keep up with the competition and to retain and increase its market share. This transition is obvious in Mobilinks repositioning itself and efforts to ensure that it changes its stance from concentrating on its existing market to growing its market presence hitting the market with a new face with the catchphrase Reshaping communication With the threat of new entrants into the industry after the deregulation, Mobilinks strategy took a new turn. To keep abreast with the company, Mobilink took the following steps during the last 2 years: Expanded its international roaming Service scope in 14 more countries including Vietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria, South Africa, Ethiopia, Uganda, Sudan, Bahrain, and Caribbean Islands. Bilateral roaming agreements signed with 100 countries around the world to have true roaming service operational in 151 operators of the world. Promotional campaign launched. Jazz bundle offer International summer promotion. Indigo packages deliver nationwide cellular freedom at local call rates. Joint Promotional Agreements with Various Organizations JAZZ-HYUNDAI BUNDLE OFFER: Jazz connection and a latest Hyundai L-120 phone set for only Rs. 2750 Jazz member Get Member: Opportunity for customers to become the brands ambassador and at the same time earns Rs. 400 in airtime. The new Jazz customer will also get Rs.100 free airtime. Mobilinks Nokia 9500 offer MOBILINK-AVIS partnership: Mobilink joined hands with AVIS, a global brand and the worlds leading car Rental Company to offer discounted car rental rates(locally as well as internationally) to all Mobilink post-paid customers. Foreigners visiting Pakistan using

Mobilink CITIBANK Joint Promotion (free INDIGO and Call n Control connections to all Citibank Credit Card members) Handset Kiosk inside Mobilink Service Center: a hand-set Kiosk set up at Mobilink service center at Awami Markaz, Karachi. The kiosk was set up in collaboration with Mobile Zone. It gave customers the added convenience of purchasing quality hand sets of leading manufacturers such as Nokia Samsung or Sony Ericson right from Mobilink Service Center the Mobilink network for cellular services swore able to receive a 20% discount on Avis-Car rental Service. Mobilink and UBL launch online bill payment facility for Indigo subscribers MOB- Motorola V3 launch. On every purchase the customers would get some free gifts to add more value to their purchase.

2. Business Level Strategy: As their business level strategy it has focused on Differentiation strategy ever since it started. Mobilink has always made successful attempts to distinguish their products or services from other in the industry. They make their product unique through: Advertising Highly creative people in the marketing dept Billboards, TV commercials, bringing in famous personalities from media to endorse their packages Distinctive Product Features Value added services Online billing GPRS enabled Mobilink also started 3 friend and family number with a charge of 2.25/min still expensive as compared to Warid but giving incentive to subscriber there is an additional cost of RS 25 to add friends and family number. International roaming: Bilateral roaming agreements signed with 100countries around the world to have true roaming service operational in 151operators of the world. Exceptional Service There are certain areas of Pakistan where PTCL connections are notavailable; the PTCL cables have not reached yet, but Mobilink has itsservice in those areas. Providing services in 413 cities Best customer service in the cellular market: Biggest Call Center in Pakistan, which is there to assist the customers 24 hours. Only cellular service in Pakistan to provide coverage on the M2 motorway. New Technology Introduced GSM tech- bye to AMPS GPRS system fast and inexpensive MOBILINK GSM Short Message Service Center allows Vehicle Tracking and Fleet Management services that are being provided by Tracker (Pvt.)Ltd., under the brand name of C-Track, a company licensed by Pakistan Telecom Authority (PTA). Tracker

currently operates from Karachi but can provide these facilities at all those locations where GSM coverage is available. Their differentiation strategy is usually targeted at people who are not particularly concerned with price, so it can be quite profitable e.g. indigo and blackberry are relatively expansive packages; blackberry is mainly targeted for the business class who can afford it. In this way, the revenue generation remains high. Mobilink offers tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen. To achieve this objective, mob offers both postpaid (Indigo, relatively expensive) and the prepaid (JAZZ, relatively inexpensive) solutions to their customers. Low Cost Strategy Mobilink does not follow a low cost strategy. Mobilink is a giant in Pakistani mobile industry Tel. Since it first started its operations, it has been focusing its products on the upper strata of the society. That is why its rates are higher than its competitors, Ufone, Warid, Telenor, etc

3. Functional Level Strategy:

Sales and Marketing: Differentiation Advantage: Because they target the customer groups they offer tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen. To achieve this objective, they offer both postpaid (Indigo) and the prepaid (JAZZ) solutions to their customers. The marketing department immediately identifies and responds to the customer needs. Comes up with interesting marketing strategies which include advertising. Commitment to Total Customer Satisfaction: Customers are at the heart of Mobilink success. They have placed their trust and confidence in Mobilink. In return, Mobilink strive to anticipate their needs and deliver service, quality and value beyond their expectations. Passion for Business Excellence: Mobilink strive for excellence in all that they do. They aspire to the highest standards and raise the bar for their selves every day. This commitment to delivering world-class quality translates into unmatched service and value for their customers and all stakeholders. Trust and integrity: Mobilink take pride in practicing the highest ethical standards in an open and honest environment, and by honoring their commitments. They take personal responsibility for their actions, and treat everyone fairly, and with trust and respect.

Respect for people: Mobilink relationships drive their business. They respect and esteem their employees and all stakeholders. They believe in teamwork, empowerment and honor. Corporate Social Responsibility: As the market leader, Mobilink recognize and fulfill their responsibility towards their country and the environment they operate in. they contribute to worthy causes and are dedicated to the development and progress of the society.

Step 5: Implementing Strategies:

Making it happens Structuring an organization Budgeting Motivating Creative reward structures Creating work environment Information & reporting systems

Step 6: Evaluating results:

Review process Adjust mission Adjust objectives Adjust strategies Initiate corrective measures