matrixes

EXTERNAL FACTOR EVALUATIONS.No Key Internal Factors Weights Rating Weighted Score

Opportunities1 Promotional Packages 0.060 4.0 0.242 Sponsorships for local and International events 0.030 4.0 0.123 Changing Marketing Mix 0.040 3.0 0.124 Investment and Development Opportunities 0.060 4.0 0.245 Improved Customer Service and Value Added Services 0.060 3.0 0.186 Economic Influx both globally and locally 0.020 4.0 0.087 Global Telecom Industry on Growth, both supply push and demand pull, pursuit of expansion 0.020 3.0 0.068 Adoption New Technology; Mobile Wallet and Gift Cards 0.040 3.0 0.129 Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company 0.050 4.0 0.20

10 Adopting to MVNO and MVNE services 0.040 4.0 0.1611 Local handset manufacturing 0.020 3.0 0.0612 Adoptation to UTMS- 3G technology up coming in Pak 0.040 3.0 0.1213 Exchange Rate Fluctuation 0.060 3.0 0.18

1.88Threats

14 Intense Competition – Telenor, Ufone, Warid & Zong 0.080 3.0 0.2415 Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan 0.040 3.0 0.1216 Market Saturation of Subscribers 0.060 3.0 0.1817 Increasing maintenance cost 0.030 3.0 0.0918 Skilled labor attracted to competitors via better benefits 0.030 2.5 0.0819 High Tax Rates 0.050 3.0 0.1520 Price war between brands in telecom industry 0.080 3.0 0.2421 Natural Disaster; like the recent flood caused huge losses and the previous earthquake 0.050 3.0 0.1522 Political Instability and Security Concern 0.040 3.0 0.12

1.37Total 1.00 3.25

INTERNAL FACTOR EVALUATIONS.No Key Internal Factors Weights Rating Weighted Score

Strengths1 Largest Market Share & Highest number of Subscriber in Pakistan 0.050 3.0 0.15 2 Blackberry usage soars 0.030 4.0 0.12

3 0.030 3.0 0.09

4 0.050 4.0 0.20

5 0.040 4.0 0.16

6 0.030 4.0 0.12

7 0.030 4.0 0.12

8 0.030 3.0 0.09

9 0.040 4.0 0.16

10 0.040 3.0 0.12

11 0.030 3.0 0.09

12 0.030 3.0 0.09

13 0.030 2.0 0.06

14 0.040 2.0 0.08

Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two superbrands award 2009 & Pioneers with GSM TechnologyWide Network Coverage of 10,000 cities in Pakistan and over 100 countries with International RoamingEngineering and Technological stability at Mobilink along with competent employeesCurrent ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93Concern 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 CenterFirst mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and satellitte links

Declining Sales and EBIT by 13.5% but exponential growth in Revenue in first 3 quarter of 2010Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation of full intelligence network (IN) platform from Siemens for the prepaid platformMobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management servicesLargest Call Center in Pakistan, which is there to assist the customers 24 hoursTotal Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT & FAT is 0.09 and 0.22 respectively

15 0.030 3.0 0.09 16 Continuous and latest employee training approaches 0.050 3.0 0.15 17 Effective and Rapid Communication within Management 0.030 3.0 0.09

18 0.040 3.0 0.12 2.10

Weaknesses19 Service issues with customers - average to below average service 0.060 3.0 0.18 20 Mismanagement due to large network 0.030 3.0 0.09 21 Huge Expenses incurred, high cost of material and other expenses 0.040 4.0 0.16

22 0.040 2.5 0.10 23 Call Blockage service still not offered 0.040 2.0 0.08

24Sort of bureaucratic style of Management; biasness by intermediate bosses

0.020 3.0 0.06

25 0.00 26 Customer Retention 0.050 2.5 0.13 27 No clear strategic direction of Orascom 0.020 2.5 0.05

28 0.030 4.0 0.12 29 Extensive Organizational Structure 0.020 3.0 0.06

1.03 Total 1.00 3.13

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

Partnership with MCB to offer all banking services to Mobilink customers via their handsets

High Tariffs as compared to competitors & expensive service quality both call rates and sms

ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2

Low employee Morale; due to recent cost cutting program and employee job termination

COMPETITIVE PROFILE MATRIXMobilink Telenor Ufone

Critical Success Factor Weight Rating Score Rating Score Rating ScorePromising Business Model 0.060 3.00 0.180 4.00 0.240 3.00 0.180

Advertising 0.050 3.00 0.150 4.00 0.200 4.00 0.200 Service Quality 0.100 3.00 0.300 3.00 0.300 3.00 0.300 Market Share 0.120 4.00 0.480 3.00 0.360 2.00 0.240

Customer Loyalty 0.100 3.00 0.300 3.00 0.300 3.00 0.300 Technology & Innovation 0.150 4.00 0.600 3.00 0.450 3.00 0.450

Price Competitiveness 0.150 3.00 0.450 4.00 0.600 4.00 0.600 Financial Position 0.100 4.00 0.400 3.00 0.300 2.00 0.200

R & D 0.070 4.00 0.280 3.00 0.210 2.00 0.140

Management 0.100 3.00 0.300 4.00 0.400 2.00 0.200

Total 1.000 3.440 3.360 2.810

SWOT MATRIXStrengths Weaknesses

1 1

2 Blackberry usage soars 2 Mismanagement due to large network

3 3

4 4

5 5 Call Blockage service still not offered

6 6

7 7

8 8 Customer Retention

9 9 No clear strategic direction of Orascom

10 10

Largest Market Share & Highest number of Subscriber in Pakistan

Service issues with customers - average to below average service

Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two superbrands award 2009 & Pioneers with GSM Technology

Huge Expenses incurred, high cost of material and other expenses

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 employeesCurrent ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93

Sort of bureaucratic style of Management; biasness by intermediate bosses

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 satelitte links

Declining Sales and EBIT by 13.5% but exponential growth in Revenue in first 3 quarter of 2010

Low employee Morale; due to recent cost cutting program and employee firing

11 11 Extensive Organizational Structure

12

13

14

15

16

17

18

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 approachesEffective and Rapid Communication within Management Partnership with MCB to offer all banking services to Mobilink customers via their handsets

SPACE MATRIXFactors that make the SPACE Matrix Axes

Internal Strategic Position External Strategic PositionFinancial Strength (FS) Environmental Stability (ES)Declining EBIT by 13.5% + 2.0 Economic downturn - 5.0The Return on Assets is 0.0002 + 1.0 Global Rapid Technological Changes - 1.0Debt-To-Capital Ratio; (3:7) + 5.0 Price Change by Competitor & Customer Switching - 6.0Liquidity; CR 1.18 + 6.0 Rate of Inflation & High Interest Rates - 2.0Revenue Growth Rate; declining + 4.0 Expensive Infrastructure - 4.0Net Income Growth Rate; declining + 3.0 - ###

21.0

Competitive Advantage (CA) Industry Strength (IS)Telecom Giant are competitive - 5.0 Ease of Entry into Telecom Industry + 5.0Market Share - 1.0 Profit & Growth Potential + 6.0Control over Suppliers and Distributors - 2.0 Financial Stability + 5.0Customer Loyalty - 4.0 Resource Utilization + 5.0

- 12.0 Productivity, Capacity Utilization + 5.0Technological Know-How + 6.0

32.0

ConclusionFS average is + 21.00 / 6 = 3.50ES average is - 18.00 / 5 = -3.60CA average is - 12.00 / 4 = -3.00IS average is + 32.00 / 6 = 5.33

Directional Vector Co-ordinates: x-axis: -3.00+(+5.33) = +2.33 y-axis: -3.60+(+3.50) = -0.1

Mobilink should pursue Competitive StrategyBackward, Forward & Horizontal IntegrationMarket PenetrationMarket DevelopmentService Development

The SPACE Matrix

+ 6+ 5+ 4+ 3+ 2+ 10

- 6 - 5 - 4 - 3 - 2 - 1 + 1 + 2 + 3 + 4 + 5 + 6- 1- 2 (+2.33,-0.10)- 3- 4- 5- 6

Mobilink is with major competitive advantages and financially strong in ahigh growth industry

BCG MATIXBCG - Based on Service

High 1.00 Medium 0.50High###

Medium###0.50

Low###

Division RMSP ISGRMobilink World 0.800 0.900 Mobilink Infinity 0.550 0.550 Mobilink Jazz 0.400 0.800 Indigo 0.700 0.080 Blackberry 0.900 0.850 Total 3.350 3.180

For Jazz - PrioritizeProduct DevelopmentMarket PenetrationMarket Development

INDU

STRY

SAL

ES G

ROW

TH R

ATE

RELATIVE MARKET SHARE POSITION

Invest

Prioritize I

IV

II

III

For Blackberry, World & Indigo - MaintainBackward, Forward & Horizontal IntegrationMarket PenetrationMarket DevelopmentProduct Development

For Infinity - RestructuringRetrenchmentRestratucture

BCG MATIXBCG - Based on Service BCG - Based onGeographic Divisions

Low 0.00 High 1.00High1.00

Medium

0.50

Low0.00

Geographic RegionNorthern DivisionSouthern DivisionCentral Division

Total

For All Divisions - PrioritzeBackward, Forward & Horizontal IntegrationMarket PenetrationMarket DevelopmentProduct Development

INDU

STRY

SAL

ES G

ROW

TH R

ATE


Kill

DivestI

IV


South Division

BCG - Based onGeographic Divisions

High 1.00 Medium 0.50 Low 0.00

Geographic Region Sales $ (M) Sales % Profits $ (M) % Profit RMSP ISGRNorthern Division 3.353 (7.10) 0.753 (9.74) Upper Medium HighSouthern Division 4.229 (5.34) 1.129 (3.37) High HighCentral Division 2.476 (5.16) 0.377 (13.12) upper medium medium

Total 10.06 (17.60) 2 (26.23) 0.00 0.00

For All Divisions - PrioritzeBackward, Forward & Horizontal IntegrationMarket PenetrationMarket DevelopmentProduct Development

II

III IV

I

KillInvest

DivestPrioritize


South Division North Division

Central Division

BCG - Based onGeographic Divisions

IE - Based on Services

Strong 3.00 to 4.00 Average 2.00 to 2.99 Weak 1.00 to 1.994.00 3.00 2.00 1.00

4.00

High3.00 to 4.00 3.00

Medium 2.002.00 to 2.99

Low1.00 to 1.99 1.00

I

V

II

IV

III

VII VIII

VI

IX

THE IFE TOTAL WEIGHTED SCORES

THE

EFE

TOTA

L W

EIGH

TED

SCO

RES

GRAND STRATEGIC MATRIX

Quadrant IMobilink has options for:

Market DevelopmentMarket PenetrationProduct DevelopmentHorizontal IntegrationForward IntegrationBackward IntegrationRelated Diversification

TELECOM COMPANIES NUMBER OF SUBSCRIBERSMobilink 32,203,000

Ufone 18,368,074Telenor 18,329,428Warid 15,774,299Zong 4,446,024

RAPID MARKET GROWTH

SLOW MARKET GROWTH

WEAKCOMPETITIVE

POSITION

II

III

GRAND STRATEGIC MATRIX

CELLULAR SUBSCRIBERS MARKET SHARE32.56% 32.47%19.47% 19.50%23.72% 23.00516.97% 16.03%7.27% 9.00%

RAPID MARKET GROWTH

SLOW MARKET GROWTH

STRONG COMPETITIVE

POSITION

I

IV

QSPM The Quantitive Srategic Planning matrix - QSPM

STRATEGIC ALTERNATIVES1

Key Factors Weight ASOpportunities

1 Promotional Packages 0.060 42 Sponsorships for local and International events 0.030 -3 Changing Marketing Mix 0.040 44 Investment and Development Opportunities 0.060 35 Improved Customer Service and Value Added Services 0.060 46 Economic Influx both globally and locally 0.020 3

7 0.020 4

8 Adoption New Technology; Mobile Wallet and Gift Cards 0.040 4

9 0.050 4

10 Adopting to MVNO and MVNE services 0.040 411 Local handset manufacturing 0.020 -12 Adoptation to UTMS- 3G technology up coming in Pak 0.040 413 Exchange Rate Fluctuation 0.060 -

Threats14 Intense Competition – Telenor, Ufone, Warid & Zong 0.080 4

15 0.040 -

16 Market Saturation of Subscribers 0.060 417 Increasing maintenance cost 0.030 418 Skilled labor attracted to competitors via better benefits 0.030 419 High Tax Rates 0.050 -20 Price war between brands in telecom industry 0.080 4

21 0.050 -

Improve Service and gain Market Share via Adopting MVNO, MVNE & UTMS

Technology

Global Telecom Industry on Growth, both supply push and demand pull, pursuit of expansion

Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company

Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan

Natural Disaster; like the recent flood caused huge losses and the previous earthquake

22 Political Instability and Security Concern 0.040 -

1.00

Strengths1 Largest Market Share & Highest number of Subscriber in Pakistan 0.050 42 Blackberry usage soars 0.030 -

3 0.030 4

4 0.050 4

5 0.040 4

6 0.030 -

7 0.030 -

8 0.030 -

9 0.040 3

10 0.040 -

11 0.030 3

12 0.030 3

13 0.030 3

14 0.040 -

15 0.030 -

16 Continuous and latest employee training approaches 0.050 317 Effective and Rapid Communication within Management 0.030 3

18 0.040 4

Weaknesses19 Service issues with customers - average to below average service 0.060 420 Mismanagement due to large network 0.030 421 Huge Expenses incurred, high cost of material and other expenses 0.040 -

22 0.040 4

23 Call Blockage service still not offered 0.040 4

Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two superbrands award 2009 & Pioneers with GSM TechnologyWide Network Coverage of 10,000 cities in Pakistan and over 100 countries with International RoamingEngineering and Technological stability at Mobilink along with competent employeesCurrent ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93Concern for society and adapt to work environment needs; active CSR and only cellular operator to be awarded 6th Environmental Excellence Award by NFEHISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact CenterFirst mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and satellitte linksDeclining Sales and EBIT by 13.5% but exponential growth in Revenue in first 3 quarter of 2010Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation of full intelligence network (IN) platform from Siemens for the prepaid platformMobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management servicesLargest Call Center in Pakistan, which is there to assist the customers 24 hoursTotal Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT & FAT is 0.09 and 0.22 respectivelyIn 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd among the 'Brands punching above their weights' ahead of Airtel, Tata Indicom and Reliance

Partnership with MCB to offer all banking services to Mobilink customers via their handsets


24Sort of bureaucratic style of Management; biasness by intermediate bosses

0.020 -

25 4

26 Customer Retention 0.050 427 No clear strategic direction of Orascom 0.020 -

28 0.030 -

29 Extensive Organizational Structure 0.020 -

1.00

Total


Low employee Morale; due to recent cost cutting program and employee job termination

QSPM STRATEGIC ALTERNATIVES

1 2

TAS AS TAS

0.24 3 0.18- - -

0.16 3 0.120.18 4 0.240.24 4 0.240.06 4 0.08

0.08 4 0.08

0.16 - -

0.2 - -

0.16 - -- 3 0.06

0.16 - -- 3 0.18

0.32 4 0.32

- - -

0.24 4 0.240.12 4 0.120.12 4 0.12

- - -0.32 4 0.32

- 3 0.15

Improve Service and gain Market Share via Adopting MVNO, MVNE & UTMS

Technology

Backward Integration over their infrastructure vendors and

suppliers to reduce cost and expenses

- - -

2.76 2.45

0.2 - -- - -

0.12 4 0.12

0.2 3 0.15

0.16 4 0.16

- - -

- - -

- - -

0.12 - -

- - -

0.09 2 0.06

0.09 - -

0.09 - -

- - -

- - -

0.15 - -0.09 - -

0.16 - -

0.24 4 0.240.12 4 0.12

- 4 0.16

0.16 4 0.16

0.16 - -

- - -

0 4 0

0.2 4 0.2- - -

- - -

- - -

2.35 0.88

7.87 6.27

matrixes

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