strategy map for telenor pakistan

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1 | Page STRATEGY MAP FOR TELENOR TALKSHAWK PRODUCT DEVELOPMENT & DESIGN NUST BUSINESS SCHOOL Submitted to: Mam Zeenat Jabbar Submitted by: Anum Safdar Khan Fatima Syed Qurat-ul-Ain Rauf Syed Usman Wazir

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This report tends to reflect the product design strategy map for Telenor Pakistan.

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Page 1: Strategy Map for Telenor Pakistan

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STR

ATEG

Y M

AP

FOR

TEL

ENO

R T

ALK

SHA

WK

PRO

DU

CT D

EVEL

OPM

ENT

& D

ESIG

N

NU

ST B

USI

NES

S SC

HO

OL

Submitted to: Mam Zeenat Jabbar

Submitted by:

Anum Safdar KhanFatima SyedQurat-ul-Ain RaufSyed Usman Wazir

Page 2: Strategy Map for Telenor Pakistan

ContentsFinancial Perspective:..................................................................................................................................8

Productivity Strategy...................................................................................................................................8

Asset Utilization:..........................................................................................................................................8

Growth Strategy:.........................................................................................................................................9

Planning and dimensioning.........................................................................................................................9

Operations and maintenance....................................................................................................................10

Leveraging Group relationship and knowledge.........................................................................................10

Market share:............................................................................................................................................10

Customer Perspective................................................................................................................................13

Price:..........................................................................................................................................................13

Quality:......................................................................................................................................................13

Availability:................................................................................................................................................14

Selection:...................................................................................................................................................14

Functionality:.............................................................................................................................................14

Relationship:..............................................................................................................................................15

Service:......................................................................................................................................................15

Partnership:...............................................................................................................................................15

Brand:........................................................................................................................................................16

Internal Perspective...............................................................................................................................17

Internal Perspective...............................................................................................................................18

OPERATIONS MANAGEMENT PROCESSES..............................................................................................18

Supply:...................................................................................................................................................18

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Page 3: Strategy Map for Telenor Pakistan

Production:............................................................................................................................................18

Distribution:...........................................................................................................................................21

Sales and Service Centers:.................................................................................................................22

Franchise:..........................................................................................................................................23

Other Outlets.....................................................................................................................................23

Mobile Vans :.....................................................................................................................................23

RISK MANAGEMENT..................................................................................................................................24

Innovation at Telenor:...........................................................................................................................24

Advertisements:....................................................................................................................................24

Massive network coverage:...................................................................................................................25

Highest international traffic:..................................................................................................................26

CUSTOMER MANAGEMENT PROCESSES....................................................................................................26

REGULATORY AND SOCIAL PROCESSES......................................................................................................30

Slow growth in the telecom sector:.......................................................................................................30

Increase in GST:.....................................................................................................................................30

Learning Perspective.................................................................................................................................32

HUMAN CAPITAL.......................................................................................................................................32

ORGANISATIONAL CAPITAL.......................................................................................................................33

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Page 4: Strategy Map for Telenor Pakistan

1: Financial Perspective

2: Customer Perspective

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Productivity Strategy Revenue Growth Strategy

Performance, Expertise, Experience and European quality standards

Planning and dimensioning

Operations and maintenance

Leveraging Group relationship and knowledge

Long Term Share Holder ValueLong Term Share Holder Value

Revenues from Innovative product service offerings

Page 5: Strategy Map for Telenor Pakistan

3: Internal perspective

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PRODUCTION:4-5 different packages, more than 30 value added services

PRODUCTION:4-5 different packages, more than 30 value added services

Supply:- Two vendor strategy –Nokia and Siemens Incase one vendor underperforms, Averox and Planet Beyond

Supply:- Two vendor strategy –Nokia and Siemens Incase one vendor underperforms, Averox and Planet Beyond

DISTRIBUTION:

Sales and service centres, mobile vans, franchise etc

DISTRIBUTION:

Sales and service centres, mobile vans, franchise etc

RISK MGMT:

Innovation, advertisements, network coverage, international traffic

RISK MGMT:

Innovation, advertisements, network coverage, international traffic

Benefit segmentation, most sought after benefits, low call rates, low sms rates, network coverage etc

Benefit segmentation, most sought after benefits, low call rates, low sms rates, network coverage etc

Innovation in services leads to enhanced customer base, scrutinize competitors, innovative services include mobile TV,

Innovation in services leads to enhanced customer base, scrutinize competitors, innovative services include mobile TV,

Classic 2.5G GSM network architecture

All radio Network is EDGE ready, hence wide band services can be offered

Media gateways (MGWs) and Intra-city Fiber Optic networks

Smart Radio Concept being utilized to extend coverage in rural areas

Slow growth in telecom sector due to high taxes and inflation

Slow growth in telecom sector due to high taxes and inflation

Increase in GST. Telenor’s share in WHT, 25%

Increase in GST. Telenor’s share in WHT, 25%

OPERATIONS MGMT PROCESSCUSTOMER MGMT PROCESS INNOVATION PROCESS

SOCIAL& REGULATORY PROCESS

Page 6: Strategy Map for Telenor Pakistan

4: Learning and growth perspective

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Human Capital Information Capital Organizational Capital

Functional specialization forming teams

Responsible for marketing, sales and

accounts

Promotes innovation and team work

Team work in Product simulation

Creative workforce

Managing creativity by hiring, promotion and training

Managing the Nokia Siemens Networks

Flexible culture

Multitasking, cross functional teams

Flexible culture

Innovation an imperative

Technology usage

Yong employees

Team work

No communication barriers

Alignment of strategy, human resource and

culture

Page 7: Strategy Map for Telenor Pakistan

FINANCIAL

PERSPECTI

VE

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Page 8: Strategy Map for Telenor Pakistan

Financial Perspective:

Productivity StrategyAt Telenor, the product quality and performance is achieved through a superior network

design, so in part the TalkShawk relies on same productivity parameters as are being followed

in all other product service offerings such as Djuice and Persona. Similarly convenience in

TalkShawk availability and usage is achieved through Easy Load and distribution setup of

Telenor itself. Simplicity and Trust on TalkShawk is maintained through pricing simplicity and

transparency which is led by affordability through unlimited validity and easy load product

quality and performance through a superior network design.

Telenor as a whole is aiming for category leadership in Pakistan. This is evident from its pricing

innovation strategy in its value based services that leads to not only customer acquisition but

retention of existing customer base, this in turn helps to increase share holders wealth as well

as the sales vs. profit stream for Telenor. On the other hand aspiration is built into the

Talkshawk brand through focus on

Performance,

Expertise,

Experience and European quality standards such as

Asset Utilization:This is achieved through the process of Site sharing which engulfs following aspects:

•Cost optimization features in the network, e.g. half rate

•Spectrum efficiency

•Ensuring sufficient quality based on market dynamics (different customer segments /

demands)

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Page 9: Strategy Map for Telenor Pakistan

•Exploring low cost rollout solutions for rural areas

–Smart Radio Concept being utilized to extend coverage in rural areas

–Partnering with various organizations to utilize their space and reduce CAPEX

Growth Strategy:Growth strategy involves expanding the revenue opportunities as well as enhancing customer

value. The revenue opportunities are being achieved for all the Telenor Products through:

Planning and dimensioning This involves following parameters:

Utilization of dense (small-cell) network within big cities in order to ensure coverage and quality

and using both 900 and 1800 spectrums being utilized in order to cater for capacity and

marketing campaigns. Similarly local traffic patterns are considered while designing the core

network for the usage of Talkshawk.

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Page 10: Strategy Map for Telenor Pakistan

Operations and maintenanceAlthough network is operated by Siemens & Nokia and Network Operation Center established

with agreed SLAs to provide Telenor Pakistan subscribers reliable service. But it is being

followed up and being monitored by Telenor staff as whole for all service packages.

Leveraging Group relationship and knowledgeNetwork dimensioned usage is the vast knowledge of Telenor Group which in turn tends to

provide a group experience with similar networks in terms of population and per capita income

(GrameenPhone etc.) This is shared and applied as whole when applying strategies for various

product or service offerings such as in Talkshawk.

These all in turn not only helps to sustain the value for customers but in turn helps to increase

customer usage as not only credibility is maintained but the cash flow stream is generated

through service usage that is both reliable and innovative at competitive price in the market.

Market share:

1 Annual report PTA10 | P a g e

Page 11: Strategy Map for Telenor Pakistan

As we can see, only the market share of Telenor and warid increased in the year 2007-2008

while those of Ufone and Mobilink declined. The highest market share growth was shown by

Telenor (23.5%). This clearly shows that the long term objective of the company is to capture

the market and become the industry leader.

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Page 12: Strategy Map for Telenor Pakistan

CUSTOMER

PERSPECTI

VE

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Page 13: Strategy Map for Telenor Pakistan

Customer Perspective

Customer is the main stakeholder for any for-profit organization. All the efforts are made to

essentially attract, cater, care and serve the customer. The customer perspective for Telenor is

as follows:

Price:Price is one of the prime driving factors to attract the customer towards any product. Given the

tough competition in the telecom market scenario currently prevailing in country the

companies are extensively relying on their pricing to compete amongst the competitors.

Now shifting our focus to TalkShawk about how they have played with their pricing strategy and

pricing to gain market share and attract customers here are the main points:

TalkShawk is a prepaid connection service being offered by Telenor. It gained rapid popularity

amongst the people due to its low call rates offering and exciting. In fact it was amongst the

pioneer services to offer such a vast range of packages based on different prices.

Quality:

Quality is imperative for any product to succeed. No matter how well it is marketed or priced, if

it lacks quality there are few chances of it to be successful in the long run. TalkShawk is

generally targeting the teenagers and youngsters which are more concerned about the

economic perspective of the service rather than the quality.

The general perception of TalkShawk is still better than most of its competitors in the prepaid

service when it comes to the quality. The signals are coming in almost all of the urban areas and

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Page 14: Strategy Map for Telenor Pakistan

they are still expanding in the northern and rural areas for better coverage and signals. They

also have an efficient customer service.

Availability:

The brand TalkShawk is available almost everywhere. They have many outlets, sales and service

centers and franchises from where the sims can be purchased, apart from that many other

stores and shops are authorized to sell the sims and new connections, but due to the current

strictness of PTA the selling of new connections has been strictly checked upon. They also have

mobile vans hat were initially used to sell connections and answer queries.

Selection:Talkshawk is a service that provides connection for the people who prefer the economic benfit

of the connection over the status associated with using a connection. Their main target includes

people who use Talkshawk for the economic benefit, coverage, new and exciting packages they

offer. The age group would include students, youngsters, teenagers, people who have bot

started to earn or are in the initial stage of their carrier. This is explained in detail in the AIOD

framework.

Functionality:The prepaid connection has a lot of features that add to the functionality of the connection. It

makes it something more useful rather than being just a connection that enables the consumer

to call and sms. It provides internet services, WAP Portal, MMS, GPRS and downloading

services. All these additional functionalities of the connection make the cell phone like a

handheld, which of course attracts the customers.

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Page 15: Strategy Map for Telenor Pakistan

Relationship:

The success of a brand depends on how strong and deep relation it is able to develop with the

customers. The relationship is primarily based on two things, the service and the partnership.

TalkShawk has been active in developing a relationship with their customers.

Service:

Service is the basic benefit they will derive from using the connection; it includes both the

customer service and the coverage and signals in the first place. If the customers are happy and

satisfied with the basic need met, they would become loyal and a positive relation would

develop. Their customer service and increasing coverage provides evidence for their concern in

giving their customers unmatched service.

Partnership:This includes involving the customers in the brand through different mediums; this could be

achieved through marketing campaigns, events, proactive feedback. What it does for the brand

is that it creates a positive image in the mind of the consumer. They select models which are

popular at that particular time so people would consider talk shawk a brand that cares for what

the people like. Apart from that the offers and deals and concerts and events that they arrange

are also evident of their consciousness towards building a relationship with their customers.

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Page 16: Strategy Map for Telenor Pakistan

Brand:

All efforts are done primarily to establish a brand and an image of that brand in the mind of the

consumer and the target audience specifically. TalkShawk was amongst the pioneer brands in

the telecom sector which marketed its prepaid service so aggressively that it took the market

by storm and gave tough competition to the than market leader in prepaid service mobilink.

This was achieved through careful selection of the target audience, pricing, mediums used for

marketing, novelty in message design and the massive launch and coverage. The brand they

wanted to establish has been conveyed to the consumer, all the features, quality and price have

been well communicated to the consumers.

Everybody knows TalkShawk as the brand for youngster and teenagers, people who find

convenience but in a less expensive way, it is famous for being “in “the market through

different activities and the songs that they come up to celebrate the youth. The brand has to its

credit a novelty in its marketing and well communicating the image that they wanted to create

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Page 17: Strategy Map for Telenor Pakistan

INTERNAL

PERSPECTI

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Page 18: Strategy Map for Telenor Pakistan

Internal Perspective

OPERATIONS MANAGEMENT PROCESSES

Supply:

Two vendor strategy –Nokia and Siemens

–In case one vendor underperforms, future expansions can be awarded accordingly

–Price benchmark ensures that a check is present on the vendors

In this regards two companies are providing or supplying telenor with logistics and support with

regards to their infrastructure. These are namely:

Averox and

Planet Beyond.

Production:

Production here is referred to the different packages provided by the company. Telenor

clearly leads the industry in an overall scenario. It excels in providing most innovative (mobile

TV, EDGE/ GPRS, Auto location etc) and on the other hand, conventional packages (A1 package,

Har second etc) to its customers. Following is the list of the packages (red font) and the

services(bluefont);

Telenor

talkshawk

A1 package

Telenor

talkshawk

Har Second

Telenor

talkshawk 30

second

Telenor's

talkshawk

Har Minute

Aik Paisa

SMS

Apni Dharti

Slogan

Contest

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Page 19: Strategy Map for Telenor Pakistan

ASK Telenor

Messaging

Service

Basic

Services

Bubble

Message

Call Me Back

Content

Gifting &

Download

Service

Contact

Backup

Content

Download

Content

Download

IVR - 1704

Dynamic Sim

Menu

d-calendar

Ezetop

Easyload

EDGE

Facebook

Mobile

GPRS / WAP

Portal

Handset

Settings

International

SMS

International

MMS

IVR Music

Mantra

International

Direct

Dialing

Telenor

Islamic

service

IR Tariff

Advisor

Info Junction

Missed Call

Alerts

Mothers Day

MMS News

MMS

Opera Mini

PicShare

SMS Email

Smart Share

SMS Timer

Smart Tunes

Song

Dedication

Service

Sports Portal

Telenor

Cricket Quiz

Telenor

Photo

Express

Telenor Meri

Zubaan SMS

Telenor

SecureAll

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Page 20: Strategy Map for Telenor Pakistan

Telenor Auto

Location

Telenor Auto

Advance

Telenor

Food Recipe

Service

Telenor

Music Box

Telenor Web

Self Service

Telenor Info

Services

Telenor

Mobile TV

Telenor My

Idea

Telenor

Friends

Tele Kissan

700

Voice Mail

Web 2 SMS

7775

Akhbaar

Service

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Page 21: Strategy Map for Telenor Pakistan

Distribution:

Telenor Talkshawk can be purchased through any of the following means;

1. Sales and Service Centers

2. Franchise

3. Other Outlets

4. Mobile Vans

Page 22: Strategy Map for Telenor Pakistan

Sales and Service Centers:

These outlets not only cater in providing the Sims or connections but also deal with

addressing all the queries and providing the additional services. For e.g. for the activation of

EDGE/ GPRS on the sim, Sales and Service centers are the right place to go to. These are

responsible for all sorts of technical and non technical queries regarding the sim or the

network. The staff at these centers is also a lot more knowledgeable than at a franchise due to

the complexity of certain inquiries. Due to this they are lesser in number than franchises

because a majority of the people are just interested in buying the Sims and package activation.

The rest, they manage themselves or place a phone inquiry. More over these centers have to

have a huge setup of telephone lines and sufficient customer service representatives as well.

This adds to the cost. So they are mainly present in major cities.

Another determinant of the ease of reach of these outlets is the density of population

and thus target market. For e.g. Karachi has a total of 5 SSCs, Lahore 3, Islamabad 1 etc. other

than these the presence is also there in Rawalpindi, Multan, Hyderabad, Quetta, Faisalabad,

Gujranwala, Jhelum and a few others to name.

Page 23: Strategy Map for Telenor Pakistan

Franchise:

Franchises are present in a number of cities in the country, where ever Telenor promises

to provide its network. They also provide the sim like the service and sales centers and cater to

general queries of the customers. However if somebody has a query of technical nature, then it

might go unanswered if the staff doesn’t possess IT know how.

Other Outlets

Telenor has partnered with oil marketing companies such as PSO, Caltex and Total Parco to

make Telenor prepaid products & services available at the convenience stores located at their

filling stations.

In addition to these partnerships, Telenor is also operating Telenor branded shops housed

within large retail outlets which will also sell selected Telenor Products & Services.

Both these type of outlets offer the following products & services:

Telenor Prepaid connections

Scratch Cards

Easy load

These are currently present in only major cities however like, Faisalabad, Islamabad, Karachi,

Lahore, Multan, Peshawar, Rawalpindi.

Mobile Vans :

Mobile vans have proved to be quite an effective tool not only from distribution and sales point

of view but from markeitng perspective aswell. Even people who are brand loyal of competitors

cannot ignore the presence of the compnay, so its coming up as a good tool for promotion.

Following products and services are available in mobile vans;

Telenor Prepaid connections

Page 24: Strategy Map for Telenor Pakistan

Scratch Cards

Easy load

RISK MANAGEMENT

We all know the origin of Telenor, and undoubtedly one can say that the company has huge

financial backup. When it enters any emerging market, it is there for the purpose of gaining

market share over a long period of time, even negating the profits. The same mindset was there

when it came to Pakistan. So by diversification of risk, we do not intend to mean diversification

of financial risk, because it has still abundant resources. But our purpose is to look at the ways

the company diversifies its marketing risk.

Innovation at Telenor:

Although innovation is viewed by many as the source of exposure to risk, but for Telenor

it is otherwise. The company has been a market leader of innovation. It believes that the only

way to capture new customers and thus a bigger chunk of the market is to introduce the new

technology in the industry before the competitors do so. For e.g. the company has been a

pioneer to introduce a wide variety of innovative services for the Talkshawk prepaid package.

Some of the examples include Telenor mobile TV, Telenor food recipe service and even the now

so common smart share was introduced by Telenor. Thus being the innovator, Telenor has

managed to take care of the huge financial investment that it has undergone.

Advertisements:

This is debatable, i.e. whether Telenor has achieved the objective from its advertising campaign

or not. Telenor followed the suit of Mobilink and went for a massive advertising budget, from

the word go. Overall the company is being condemned for spending blindly and not caring for

returns. When we talk particularly about “Talkshawk” then the advertising has its pros and cons

simultaneously. The use of famous celebrities helps the company mitigate the risk but at the

Page 25: Strategy Map for Telenor Pakistan

same time, the execution of the campaign makes it go a bit over the board. They want to show

that they are using the slice of life frame work; however it is hard for a common man to identify

with celebrities dancing on train and streets etc. thus the company is not doing justice to the

budget and the risk is enhanced.

Massive network coverage:

Low Average Revenue Per User (ARPU) and tough competition in cellular mobile market of

Pakistan compelled all operators to expand the network rapidly so that they can add more

subscribers on their network to improve their revenue. Currently more than 91% of the

population has access to cellular mobile service all across Pakistan though the access is more in

thickly populated localities. As seen by the figures taken from a report published by PTA , the

highest number of cell sites are added by Mobilink, followed by Telenor. This shows that the

company wants to be a leader in network coverage.

CELL SITES BY COMPANY:

2

Highest international traffic:

Though cellular mobile companies have offered low tariffs in domestic market, they could not

succeed to increase domestic traffic significantly was the case in for of international traffic. The

main reason for this slow growth could be a strong competition between cellular and fixed line

industry offering low packages to its consumers. Telenor has presented the highest growth for

international traffic among all cellular mobile operators where its growth was reported more 2 http://www.pta.gov.pk/annual-reports/annrep0708/ch_03.pdf

Page 26: Strategy Map for Telenor Pakistan

than 300% in the year 2007-08 compare to the previous year. Telenor total international traffic

was 98.3 million minutes (34.5 outgoing and 63.8 incoming), which has jumped to 396.7 million

minutes in 2007-08 (160.2 outgoing & 236.5 incoming).

The three packages of Telenor Talkshawk (har sec, har minute and 30 sec) all provide

different international tariff rates but all being perfectly affordable.

CUSTOMER MANAGEMENT PROCESSES

The company selects and acquires customers on the basis of the most looked up to

attributes that they would seek according to their income and age. The process of customer

analysis and then segmentation and ultimately targeting is purely a work of market research.

Primarily the target audience of Telenor Talkshawk would be all the people who seek a need for

communication. But obviously the company knows that it is not the sole player in the market

and there is fierce competition. So each company has to identify and market its products to

those would really desire a particular benefit.

The core benefits offered by Telenor Talkshawk are provided in the AIOD framework.

Anyone who wants to have a new connection would want it to be cost effective. For e.g. for low

call rates it has four different packages. The company regularly keeps on coming with adverts to

promote the services. Mostly it wants to catch up the market of youth because they comprise

majority. Moreover today’s youth is up to date and is open to change. So if they deem the

services of other providers as more cost effective, they might switch. So basically it is difficult

for companies to retain this segment. Therefore Telenor by both its products, Talkshawk and

SELECTION

SELECTION

ACQUISITION

ACQUISITION

RETENTIONRETENTION GROWTH GROWTH

Page 27: Strategy Map for Telenor Pakistan

Djuice wants to personify youth. Obviously the nature of the product is such that it satisfies the

needs of many others as well but the primary message is that it is a product for young people

coming from the different classes of income ( middle & upper middle) but sharing a common

characteristic of being fun loving and trendy.

Page 28: Strategy Map for Telenor Pakistan

AIOD FRAMEWORK

BENEFITS DEMOGRAPHICS ACTIVITIES INTEREST OPINIONS

Low sms rates 16-25 years,

Urbanite,

Lower middle to

upper middle.

College and

university

students,

Watching

television,

Going out with

family and

friends,

Music, movies,

sports

Value for money,

Generally go for low

price/ moderate

quality,

Family value,

Low call rates 16-25 ( youth)

25-40 ( earning

middle class)

College &

university

students,

Watching

television,

Shopping

Going out with

friends,

Music, movies,

sports,

Balancing family

relations,

Career growth,

Value for money,

Money savings for

future,

Work life balance,

EDGE/ GPRS/

WAP

20 onwards Shopping,

Watching tv,

Browse internet

Media,

technology,

news and latest

updates

Regard high value for

time , time is an

essence,

High regards for

communicability

Page 29: Strategy Map for Telenor Pakistan

Once the customers are acquired, the next important task is to retain them. This is done

by frequently upgrading the core services, as well as providing additional services so that they

do not switch. The brand switching rate in telecom industry is substantial, because people are

concerned with the benefits of actual product and not the brand alone. Therefore all these

companies take steps to even regain their lost customers.

For the purpose of growth, it is important for the company to acquire the customers of

competition, once it has done enough to satisfy and retain its previous customers. This can be

done by scrutinizing the services offered by competitors and looking for potential gaps. Telenor

does this by bringing in each new innovation in the market before its competitors do so. For e.g.

easy load, smart share, mobile TV all were services offered by Telenor Talkshawk before its

competitors came up with something similar. These strategies are clearly aimed for growth

purposes and Telenor clearly surpassed Warid in market share due to such innovations.

Innovation and Technology:

–Dense (small-cell) network within big cities in order to ensure coverage and quality

–Both 900 and 1800 spectrums utilized in order to cater for capacity and marketing campaigns

–Local traffic patterns considered while designing the core network

In this regards the infrastructure is as such:

Classic 2.5G GSM network architecture

All radio Network is EDGE ready, hence wide band services can be offered

Media gateways (MGWs) and Intra-city Fiber Optic networks

Page 30: Strategy Map for Telenor Pakistan

REGULATORY AND SOCIAL PROCESSES

Slow growth in the telecom sector:The sector exhibited slow growth than year before. Collective Revenues of the sector

have grown by 35% in the year 2007-08 against a record growth of 48% in the year 2006-07.

Cellular subscribers grew by about 40% in the year 2007-08, as against 82% in 2006 -07 and

more than 100% during 2005-06. Main reason for its slow growth can be attributed to the rising

inflation which affects the affordability, higher taxes, saturation of the urban markets and low

tariffs.3

Increase in GST:In the current budget, government has increased the rate of GST on telecom sector

significantly and analysts are of the view that it may have an advance impact on telecom usage

and resultantly, the GST collection may drop considerably from the sector. So far, the

Government revenue from telecom sector in terms of taxes is increasing continuously since

2004-05 after the liberalization of the sector. In terms of GST sector has contributed about Rs.

37 billion, which is 30% more than of the last year. However, the growth of the GST collection

from cellular mobile sector has declined from 50% in 2006-07 to 30% in the year 2007-08. The

main reason for this decline in GST collection growth rate could be low tariffs, closure of over

10 million SIMs and increased rates of GST. Telenor share in total WHT was 25% who deposited

over Rs. 5.8 billion during 2007-08.

3 http://www.pta.gov.pk/annual-reports/annrep0708/ch_03.pdf

Page 31: Strategy Map for Telenor Pakistan

LEARNING

PERSPECTIV

E

Page 32: Strategy Map for Telenor Pakistan

Learning Perspective

HUMAN CAPITAL

Telenor has a flexible culture which encourages its employees to be innovative and

creative. It has different product lines likes TalkShawk, persona and Djuice. Each product line

has functional specialists who possess deep functional expertise. These functional specialists

form teams for each product. The roles and responsibilities of each employee in the team are

specified giving them sense of ownership and empowerment within the scope of their

responsibility. This inculcates in employees the characteristics of being innovative and creative.

The functional specialists in each team are responsible for the sales, marketing and account of

that particular product for example TalkShawk. The culture at Telenor is highly team oriented

and innovation oriented. The process of decision making involves employees encouraging

participation and workable ideas. If the ideas are feasible enough to be implemented and prove

to be effective then the employees are duly rewarded for their contributions. For example the

company capitalizes on the fact that sales personnel have a greater interaction with customers

and knowledge of their needs so they convey the information to the management who can use

it to design better consumer packages.

Cross functional teams are major form of integrating the activities of every department and

involving employees. Multitasking is also practiced so that the when employees go on leave

others compensate. Full responsibility is given to the cross functional teams which shows

decentralized approach of the organization. Communication gap is eliminated by inter and intra

net portal system used to communicate information efficiently.

Telenor encourages use of new technology to improve service quality and also follows proactive

approach. In order to achieve innovative approach several motivational strategies are

formulated that includes bonuses, long term incentives, career growth and advancement,

promotions and training (personal learning).

Page 33: Strategy Map for Telenor Pakistan

ORGANISATIONAL CAPITAL

Innovation is the core of Telenor. The organization ensures that innovative ideas are

implemented. For this the organization recruits human resource which matches the innovative

and flexible culture of Telenor.

The organization ensures no communication barriers which if not present can obstruct the

innovation process. Employees are motivated and trained to promote creativity and are

empowered so that they own the organization they are working in.

Young employees are selected fresh people come up with new innovative ideas resulting in

following the proactive approach. Secondly the organization also believes that young talent can

be easily blended and molded according to the culture of Telenor.

Telenor also manages diversity in its culture and does not follow any quota system that can lead

to deprived talent because of cultural differences. It gives priority to the talent and innovative

human resource ignoring the differences in culture, religion and geographic disparity.

Telenor believes that the employees should work in teams which lead to more people working

on a particular project giving innovative and creative input for the project. This approach also

helps Telenor achieve innovation and creativity.

The organization also emphasizes the alignment between the strategy culture and human

resource. The basic aim of the organization is to help its customers as stated in its vision

statement. For the vision to be followed it believes in developing a culture that helps in

implementing the strategies and molding its human resource accordingly.