MANAGEMENT INFORMATION SYSTEM

Topic:Industry AnalysisSWOT Analysis

Submitted to:

Mr. Moeed

Submitted by:

Syed Sajid Hussain

MINHAJ UNIVERSITY Gulberg Campus Lahore

Table of contents

Executive Summary

Introduction of the company

Orascom Telecom Mobilink GSM

MissionVision

Industry Analysis

Pest Analysis1. Political factor2. Economical factor3. Socio-cultural factor4. Technology factor

Potter’s -5 force model

SWOT Analysis1. Strength2. Weakness3. Opportunity4. Threat

Executive Summery

Telecom industry is growing in Pakistan. With new companies getting license the competition is getting tougher, as a result the consumer is getting benefit and enjoying cheap call rates. With a population of 15 and half million telecom is one of the best revenue generated industry.

Mobilink GSM, a subsidiary of Orascom Telecom, started its operations in Pakistan in 1994, and has become the market leader both in terms of growth as well as the largest customer subscriber base in Pakistan – a base of over 31 million and growing.

We pride ourselves on being the first cellular services provider to operate on a 100% digital GSM technology n Pakistan that also provides state-of the-art communication solution to its customers.

The analysis of the international operations of Qrascom in general and specifically its operations in Pakistan under the umbrella of Mobilink is the objective of this research project.

Mobilink is enjoying a lot of strengths being a pioneer in its industry, but due to stiff competition in the market and poor strategies implemented, its suffering from significant losses in terms of market share and revenues.

Introduction of Company

Orascom Telecom Holding S.A.E:

OTH is considered among the largest and most diversified network operate in the Middle East, Africa and Pakistan. Mobilink GSM (PMCL), a subsidiary of Qrascom Telecom. Orascom group of industries: other than telecom industry Orascom has the following business units.

Orascom Construction Industries (OCI) Orascom Hotels and Development (OHD) Orascom Technology Solution (OTS)

Mobilink GSM:

Mobilink provides the most extensive network coverage footprint across Pakistan through an integrated technology infrastructure in more than 10,000 cities, towns, villages. The head office of Mobilink is located at KULSUM Plaza, blue area, Islamabad. Its branch offices are located in Lahore, Karachi, Faisalabad, Rahim Yar Khan, Sukkur, Peshaa, Quetta, Swat, Kohat etc.

Mobilink has three main contact centers in three regions of Pakistan. As for the customers centers there are about 2000 to 2500 customers services centers all over the Pakistan. There are about 5000 employees working in Mobilink on permanent and temporary basis. In other words says them.“WE SPEAK YOUR LANGUAGE…. EVERYWHERE”

Mission:

“To be a superior communication services company in Pakistan who provides the best value to its customers, employees, business partners and shareholders.”

Vision:

“To be the leading telecommunication services provider in Pakistan by offering, innovative communication solution for our Customers while exceeding shareholders.”

Industry Analysis

Pest Analysis:

The country forces affecting the environment e.g. political, economics, socio-cultural, and technological forces.

Political Factors:

Political instability affects Mobilink policies. With the change in government, Mobilink cannot foresee the changes might occur I regulations and restrictions imposed.

Orascom telecom, as a foreigner company, faces a continuous threat of terrorism while operation in Pakistan,

Economics Factor:

Due to the current world wide recession, Mobilink closed its hiring and applied a policy of retaining the existing employees.

Revenues of telecom industry increased from Rs.115 B to Rs.235 B in the last three years and expected to increase @ 20 to 25 %. So Mobilink has an opportunity to capture more market share.

Socio-cultural Factor:

Orascom has a basic strategy that it applies concerning the cultural issues is rephrasing of its brand name for each country separately because people have perception of using connection of his own local company name.

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.

Mobilink shifts its whole network from 900 MHz to 1800 MHz to be able to offering Value-Added Services like 3Gs.

Potter’s -5 force Model◊ Threats of New Entrant:

In today’s increasingly competitive world, Mobilink has a great place I telecom industry. But they have a threat from Zong which launched one of the most successful and aggressive campaigns and achieved 6% market share.

◊ Competitors:

Ufone: Inception 2001Technology GSM-900/1800Major shareholder PTCL (100%)

WARID Inception 2005Technology GSM-900/1800Major shareholder Abu Dhabi Group (100%)

Telenor Inception 2005Technology GSM-900/1800Major shareholder telenor (100%)

◊ Bargaining Power of Supplier:

It might look like telecom equipment suppliers have considerable bargaining power over Telecom Company. There are enough vendors, arguably to dilute bargaining power.

◊ Customer Bargaining Power:

Mobilink has high fixed cost for high initial R&D and minimal incremental cost hence they would like to keep their sales volume high in order to recover as much fixed cost as possible. Due to all these reasons buyer power is high in this industry.

◊ Threats of Substitute Products:

The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price. The substitute products of Mobilink are given below.

BroadbandV wirelessMobilink PCO & Blackberry

SWOT Analysis

Strength:

Strong and affective and efficient management and to make coherent long run business plan which have ability to face the economic challenges.

It has invested heavily in infrastructure, technology, human resource and in a customer service and further investing 500$ B in Pakistan.

Pioneer in GSM service & first cellular company which covered the northern areas of Pakistan.

Mobilink earned Rs. 80 B revenues, which is 24% higher that the last year.

Weakness:

They are charging high price as compare to their competitors.

Failed to provide proper network coverage. Especially in the Karachi & Lahore.

Opportunities:

Due to advancement of technology they have opportunity to go with a related diversification like Wimax, Broadband internet, USB internet etc.

They should provide well 3G service

Through cost focus strategy they have opportunity to target different class rather than the business class and post paid connection users.

Threats:

The major threat which it facing is the PTA policy in which the users who has mobilink number has right to move another network like telenor, Ufone, etc.

Due to the increment I competition and recession it had loss the customer and sales profit in Pakistan but still it is the market leader due to its competitive advantages.

Telenor could be majr threat for mobilink, because telenor subscription growth is high than the mobilink.