1 Introduction

Communication and information technologies are the foundation of the new global

information-based economy Advanced telecommunications networks and related

systems, increasingly permeate every economic sector and help business of all kinds.

It enhances their organizational efficiency and competitiveness while providing

customers better goods and services at lower prices.

1.1 Global perspective of telecom industry

The current global telecom industry, is going through a phase of turbulence after

years of stability, the situation is changing radically. The industry is facing number of

challenges; the most pressing one is opening of the telecommunication sector. It has

led to evolve genuine competition in many markets; the introduction of mobile,

Internet together with other value added services is rapidly creating new segments of

market with very few similarities with the traditional marketplace.

1.2 Telecom sector of Pakistan

Pakistan mobile industry at the moment is experiencing growth explosion. Though

the existing players are trying hard to meet the growing demand still there is a huge

amount of unmet demand in the country as against the supply of connection by the

operating mobile companies. (See figure 1)

Cellular industry of Pakistan comprises of five companies namely, Mobilink, Warid,

U-fone, Telenor and now Zong.

1.3 Role of PTA

PTA played a major role in increasing the growth rate of the industry. A transition

from MPP (Mobile Party Pay) to CPP (Calling Party Pay) made incoming calls free.

Moreover, PTA gave incentive to the operator by reducing royalty, reduction in

interconnection charges and airtime tariff. All these factors made mobile phone

affordable for a common man.

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(figure1)

2 Background of Zong

Paktel is a mobile telecommunication company in Pakistan. It was the first ever

company granted license to carry out cellular phone services in Pakistan, set up by

Cable & Wireless. It carried out AMPS services until 2004, when the company

launched GSM services as well. Its main competitor emerged in late 1990s as

Instaphone and soon began to dominate the market. However after the launch and

rapid success of Mobilink in 1998, both services lost market share. In 2003,

Millicom, bought Paktel. Millicom installed a new management team. In January

2007 Millicom sold Paktel for $284 million to China Mobile.

2.1 CMCC

ZONG is the first International brand of China Mobile being launched in Pakistan.

China Mobile is the world's largest telecom operator. Having a customer base of over

300 million customers. China Mobile is perhaps the only cellular network that

provides uninterrupted, reliable coverage through tunnels, on highways, inside sky

scrapper elevators as well on top of Mount Everest. One of the unique features of

China Mobile servicing excellence is to customize its products, services and tariffs to

suit the individual needs of its huge subscriber base.

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2.2 Powerful source of communication

The core essence of ZONG is to allow people to communicate at will without

worrying about tariffs, network coverage, capacity issues or congestion. ZONG will

be supported by ground breaking communications, trend setting customer service and

an unmatched product offering which will redefine rules of the game and establish

ZONG as a serious contender for the number one spot.

ZONG would offer its customers with entertaining & innovative value added services

and will empower them by giving a wide variety of products, services & content to

choose from.

2.3 SWOT Analysis

3 Product and its Packages

ZONG offers a wide range of new services to serve customers even better. Below is a

brief introduction of all these services.

12 Aanay Package.

50paisa/call

Free package

Zong super free num3

Break time offer

Aik sec package

3.1 Market Segment

It has targeted the low and middle end market. Top management researched and come

up with products and offers that masses wanted.. Initially they were least interested in

very few elite class customers; instead they hit the low end market.

3.2 Didn‘t rush for offerings

The calmness we can see in launch campaigns is observed in later promotions and

offerings. Let’s take an example of Zong’s free call on one number package; they

introduced it a month earlier than they started advertising it. There is another

example, when Mobilink offered Rs. 1per min call, which was responded next day by

Telenor with a similar offer. Ufone in a week or so came up with Uwon, while Zong

took two months to start Rs. 1per min call. It shows how calmly they observe market

trends before launching products.

3.4 Low operating expenses

Zong’s offices are least liverish compared to of other cellular companies in Pakistan, hence saving many of other expenses. What they say “Kam Karch-Bala Nasheen”.

4 Strategic Alternatives

Company’s Vision

“Zong to be one of the leading mobile information company in Pakistan

exceeding customer expectations, through employees dedicated to excellence,

maximizing shareholders value”

4.1 Objectives

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Increase Market Share to 30% by 2010

Restructure Business & Organization

Enhance Image: Re-launch Corporate Brand

Grow Through Partnerships, Acquisition &

New Licenses

Display Corporate Social Responsibility

4.2 PEST Analysis:

Political factors:

The current situation of telecom in Pakistan clearly indicates the success of policies

adopted by the government of Pakistan in Telecom sector. China Mobile has already

invested $500 million in the country and has plans to invest more. It has made the

largest investment among all the Chinese investment in Pakistan. PTA has recently

awarded the license for providing cellular service in Azad Jammu Kashmir and

Northern Areas to China Mobile.

Economic factors:

Marketers should consider long term and short term state of a trading market.

Inflation is getting uncontrolled and rate of unemployment is alarmingly high. Due to

downturn of the economy, the turnover ratio is increasing as companies have no more

capacity to hire the people.

Social factors

During the formation of marketing strategies, companies have to look after a lot of

factors. Deep study of local culture and social setups is also one of the major factors

which account much in successful strategy formation. The study of culture helps to

understand the consumer behavior and in turn assists firms to improve their marketing

strategies:

Zong has done wonderful job in this perspective. Before entering into market It has

done extensive research on the behaviors of the consumers. By doing this their aim was

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to bring forth the latent desire of the people. It has fulfilled the demands of students,

middle class and elite class equally.

Technological factors

By using different technologies a company can have competitive advantage on others

and now companies are investing in their infrastructure not only to expand but also to

upgrade their existing structure.

5 Structure of the organization

In Zong the hierarchy is very lean, in general the whole setup is centralized, all the

matters are to be reported to the main company and all the policies and targets are

approved at the higher level. But at the department level the structure is decentralized.

The human resource of Zong is highly skillful, educated and committed towards their

work. Mostly people working in Zong are masters in specialized fields. According to

them their human resource is their biggest assets. Human resource manager is

responsible of handling any disturbances but small disputes are handled by

supervisors. A continuous training is conducted inside and outside the organization to

improve the skills of the employee. On achieving different target different intrinsic

and extrinsic rewards are given. The job description of each and every employee is

predefined. Performance appraisal is done on annual basis.

Group analysis:

In our industry we need creativity, speed, execution, written communication, attitude,

knowledge & skills that is why we prefer new and young talent that’s why fresh

graduate are hired each year. Unless and until people don’t have freedom to express

their views and new ideas such organization can not grow , and to support this view

with in each department people should have decision making power and this can done

by decentralizing.

5.1 Managerial skills

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Planning, Organizing, Leading: team counseling, vision and goal setting ,

performance appraisal, job rotation, ensure motivation are common tasks. Lower

level is also involved in decision making which help them to vision some thing which

is really achievable and is according to their capability. They also keep on rotating

people to different departments relative to their field so that they don’t get lethargic

this also give them a chance to find the best place where thy can fit in .

Controlling: To ensure timely support for all “services & processes” being offered in-

use of both internal and external customers. National and international training

sessions are arranged for the employees to keep them up dated and to make them able

to work on latest technology.

5.2 Technical, human and conceptual skills

Technical skill : Persons have knowledge of processes, techniques and tools of a

specific area like technical issues of engineering, network coverage so that they can

understand problems of customer and provide better customer care services.

Human skill: involves the ability to interact effectively with people. Person

performing this job interact and cooperate with employees and customers and unless

and until they are not social and don’t have good communication skills they can’t

help their customers.

Conceptual skill: involves the formulation of ideas. Persons performing this job have

understood abstract relationships, develop ideas, and solve problems creatively to

handle the problems on the spot, to satisfy the customers.

5.3Team Building

The sales department is highly dependent on the team efforts and can only perform well

if the team is highly motivated. At Zong, sales officers are highly competitive and

motivated as they know how well they have to inculcate their ideas and product into

consumer’s mind. In this era no organization can perform its tasks effectively without

team involvement but especially cellular companies can’t even dream of doing work

without sales teams.

Hierarchal structure7

(Figure 2)

6 Role of franchises

C.O.O

Director sales& Distribution

Director Marketing

Director H.R.M

Regional Director Regional Director

S &D MS &D M

A.S.M A.S.M

B.D.O B.D.O B.D.OB.D.O

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C.E.O

Zong has almost 25 franchises working to help its users that are linked with the main

head office. The franchises are the only authorized dealers of ZONG. Every franchise

has a manager who controls and looks after all the major

Conclusion

Zong offers several promotions, services and packages to cater to different needs of a

varied customer base. They have done considerable research In order to understand

customer needs. For the first time users will get what they want, rather than being made

offers that suit operational needs more than user needs.

China mobile has proven itself as a brand now and it seems like they are going to give

tough time to other cellular companies in coming days. The hardest part of china

mobile was to rebuild the image that had been lost by Paktel: often we see, it’s easy to

make a new building, than of restructuring the damaged one.

Recommendation

Voice clarity and call discontinuity is a major issue of Zong and it can be solved

by using boosters in different areas.

Their emphasis is on fresh, young and energetic personnel which is good but

besides this they should train their old workers as they are assets of the

organization and they understand some issues more better than the new ones.

If an employee is performing dual tasks simultaneously, he/she should be well

paid. In this way they can be encouraged and hence they will increase

productivity of the organization.

As “customer is king” so Customers care services should be improved and

complaints of the customers should be solved in time.

Performance evaluation form

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Name:SMART Tasksskill or ability area

skill or ability area

specific task

measures agreed realistic timings comments/actions

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WORKS CITED

1. http://www.zong.com.pk/packages.html

2. http://www.zong.com.pk/vas.html

3. www.pakistanlaw.com/mobilepolicy28012004.pdf

4. www.cn-c114.net/576/a287756.html - 15 k

5. www.pta.gov.pk/index2.php?option=com_content&do_pdf=1&id=6

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