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    Mobilink strategic management report

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    UNIVERSITY OF WAH

    QUAID AVENUE, WAHCANTT.

    Presented to:

    Sir Umer Shahid.

    Presented by:

    Tahzeeb Khan Marwat.

    BS (Hons.) Computer Sciences

    BS-CS-4thB

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    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 oninternational roaming service.

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    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.

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    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 CompetitionTelenor, 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

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    Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries withInternational 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, EngineeringDepartments and CS Contact Center

    First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerryRoaming 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 FleetManagement 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

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    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 strategy2. Business level strategy3. 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 andincrease 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 includingVietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria, South Africa,

    Ethiopia, Uganda, Sudan, Bahrain, and Caribbean Islands. Bilateral roamingagreements 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 phoneset for only Rs. 2750

    Jazz member Get Member: Opportunity for customers to become the brands ambassadorand at the same time earns Rs. 400 in airtime. The new Jazz customer will also getRs.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 asinternationally) to all Mobilink post-paid customers. Foreigners visiting Pakistan using

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    MobilinkCITIBANK 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 Mobilinkservice center at Awami Markaz, Karachi. The kiosk was set up in collaboration withMobile Zone. It gave customers the added convenience of purchasing quality hand sets of

    leading manufacturers such as Nokia Samsung or Sony Ericson right from MobilinkService 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 additionalcost of RS 25 to add friends and family number.

    International roaming: Bilateral roaming agreements signed with 100countries aroundthe 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 PTCLcables 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 systemfast 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

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    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 exclusivelydesigned 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 totheir customers.

    Low Cost Strategy

    Mobilink does not follow a low cost strategy. Mobilink is a giant in Pakistani mobile industryTel. 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 offerboth postpaid (Indigo) and the prepaid (JAZZ) solutions to their customers.

    The marketing department immediately identifies and responds to thecustomer 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 andvalue beyond their expectations.

    Passion for Business Excellence:

    Mobilink strive for excellence in all that they do. They aspire to the highest standards and raisethe 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.

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    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 countryand 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