zong presentation
DESCRIPTION
Qaiser Abbas, Nadir Ali, Rafaqat Karamat, Shafqat Ali, Faisak Nadeem, Abdul JabbarTRANSCRIPT
Mission vision introduction and history By Ammara LatifExternal assessment By Qaiser AbbasInternal assessment By Faisal NadeemInput stage By Shafqat Alimatching stage By AbduljabbarDecision stage By Nadir Ali
Points Described By
External Assessment:PEST Analysis of Pakistan in Telecom Industry
Political FactorsPolitical Instability:Deregulation:Changes in Tax Laws:
Economic Factors:Gross Domestic Product:Average Revenue per User (ARPU):Decline in Money Value:Outflow of Capital:
Technological Factors:Technological Development:Technological Advancement:
Five Forces Porter Model Five forces looks at five key areas namely Threat Of New Entry, Power Of Buyers, Power Of Suppliers, Threat Of Substitutes, And Competitive Rivalry.
Threat of New Entry
Bargaining Power of Buyers
Bargaining Power of Suppliers
Threat of Substitute Products
Rivalry among Competing Firms in Industry
Five Forces Porter Model
Competitive Analysis
Major competitors of ZONG include
Mobilink Ufone Telenor Warid
TypePrivate Limited CompanyFounded1994FounderMotorola USAHeadquartersIslamabad, PakistanArea served5000 cities, towns, and villages across PakistanProductspostpaid Indigo , prepaid JAZZ, Mobilink PCOParentOrascom Telecom EgyptSloganReshaping livesWebsitewww.mobilinkgsm.com
Type PrivateFounded January 29, 2001
FounderPakistan Telecommunication Company Ltd
Headquarters Islamabad, Pakistan
Area served2336 cities of Pakistan, GT Road, Super Highway & Motorway
Products Pre Pay, Post Pay
Parent PTCL Pakistan
Slogan It’s all about U! (Tum He Tou Ho)
Website www.ufone.com
Telenor
Type Public
Founded 1855
Headquarters Fornebu, Norway
Industry Telecommunication
Products Telephony and broadband
Employees 31,750
Slogan Here to help
Website www.telenor.com
Market share of telecom industry
•Opportunities of Zong
Expand Globally
Publicity and Marketing
Publicity and Marketing
New product development
Opportunity in northern areas
Pak China Border
•Threats of Zong
Old stable companies
Better Packages by Other Cellular
Price Wars
Government Interference
Internal Assessment:Management
Marketing Department
Finance Department
Value Chain
Research And Development Department
Human Resources Department
•Strength of Zong Investment:
Network portability
Zong mobile
Resources, Assets and People
Location and Geographical Coverage
Government Dealings
•Weaknesses of Zong
Coverage
Bad image of paktel
Bad MIS
A Comprehensive Strategy-Formulation Framework
Stage-1 (Formulation Framework) 1. External factor evaluation2. Competitive matrix profile3. Internal factor evaluation Stage-2 (Matching Stage) 1. TWOS Matrix 2. SPACE Matrix 3. BCG Matrix 4. IE Matrix 5. GS Matrix Stage-3 (Decision Stage)1. QSPM
EXTERNAL FACTOR EVALUATION (EFE) MATRIX
Key External Factors Weight Rating Weighted Score
Opportunities1 Globalization 0.10 3 0.30
2 Marketing 0.15 4 0.60
3 Acquisition 0.08 2 0.16
4 New Product Development 0.07 3 0.21
5 Northern Areas 0.10 3 0.30
6 Pak China Borders 0.13 3 0.39
Threats1 Old Stable Companies 0.12 4 0.48
2 Attractive Packages By Others 0.10 3 0.30
3 Price War 0.06 3 0.18
4 Government Interference 0.09 3 0.27
TOTAL 1.00 3.19
Total weighted score of opportunities and threats in EFE matrix is 3.19 Which is above average. it means Zong is availing its opportunity and maximizing its threats
Interpretation
INTERNAL FACTOR EVALUATION (IFE) MATRIXKey Internal Factors Weight Rating Weighted
Score Strengths 1 Investment 0.09 4 0.36
2 High Growth Rate 0.11 4 0.44
3 Advertising 0.12 3 0.36
4 Net Work Portability 0.12 3 0.36
5 Zong Mobile 0.07 3 0.21
6 Resources Assets And People 0.08 3 0.24
7 Location And Geographical Coverage
0.10 3 0.30
8 Government Dealing 0.09 3 0.27
Weaknesses1 Bad Image Of Paktel 0.06 2 0.12
2 Coverage 0.07 1 0.07
3 Low Market Share 0.05 2 0.10
4 Weak MIS 0.04 2 0.08
TOTAL 1.00 2.91
Interpretation
Total weighted score of strengths and weaknesses in IFE matrix is 2.91 Which is above average. it means Zong is increasing its strengths and overcoming on its weakness.
Competitive Profile Matrix (CPM)V
Critical Success Factors (CSF)
Weight
Rating Weighted Score
Rating
Weighted Score
Rating
Weighted Score
Rating
Weighted Score
Market Share 0.15 4 0.60 3 0.45 1 0.15 3 0.45
Growth Rate 0.10 1 0.10 3 0.30 4 0.40 3 0.30
Financial Strength 0.08 3 0.24 3 0.24 4 0.32 3 0.24
Management 0.12 4 0.48 3 0.36 3 0.36 3 0.36
Coverage 0.10 4 0.40 3 0.30 2 0.20 2 0.20
CCS 0.13 4 0.52 3 0.39 3 0.39 2 0.26
Advertising 0.06 2 0.12 3 0.18 3 0.18 4 0.24
Brand Name 0.10 4 0.40 2 0.20 3 0.30 3 0.30
Packages 0.09 2 0.18 3 0.27 3 0.27 4 0.36
Price Competitiveness
0.07 2 0.14 3 0.21 3 0.21 3 0.21
TOTAL 1.00 3.18 2.90 2.78 2.92
As indicated by the total weighted score of 2.78, Zong is weakest. because it is at its initial position as compare to competitors. With the point of 3.18 Mobilink is leading.Telenor and ufone have total the scoreOf 2.90 and 2.92 respectively.
interpretation
Strengths–SS1. CapitalS2. Network PortabilityS3. ResourcesS4. LocationS5. Government DealingsS6. High Growth RateS7. Advertising
Weaknesses – WW1. CoverageW2. Bad Image Of PaktelW3. Low Market ShareW4. Weak MISW5. Old Staff
Opportunities – OO1. GlobalizationO2. Marketing O3. Acquiring O4. Covering Pak China BorderO5. Covering Northern AreasO6. New ProductO7. Penetration
SO-Strategies
S1,O1 Expand S3,O7 Penetration S1,O3 Acquisition
WO-Strategies
W3,O3 Acquisition
Threats – T
T1. Old Stable CompaniesT2. Attractive Packages By CompetitorsT3. Price WarT4. Government Interference
ST-Strategies
S1,T3 Cost Leadership
S3,T2 Penetration
WT-Strategies
W3,T2 Downsizing
•TOWS MATRIX OF ZONG
Financial Strength (FS) RAITNGSRevenues 5.0
Return on investment 4.0
Working capital 5.0 14.0
SPACE Matrix of Zong
Competitive Advantage (CA)Resources Assets -2.0
High growth rate -1.0
Advertising -2.0
Competition capacity utilization -3.0 -8.0
Environmental stability (ES) RAITNGS
Technological changes -3.0
Rate of inflation -4.0
Demand variability -2.0
Barriers to entry into market -1.0 -10.0
Industry Strength (IS)Deregulation increase completion in telecom industry 3.0
Financial stability 5.0
Resources utilization 4.0
Profit potential 4.0 16.0
Conclusion
FS average is 14/3 = 4.67 CA average is -8/4 = -2.0 ES average is -10/4 = -2.5IS average is 16/4 = 4.0 Directional Vector Coordinates: x-axis: 4.67+ (-2.5)=2.17
Directional Vector Coordinates: y-axis: 4.0+ (-2) = 2 The Zong should peruse Aggressive strategies
SPACE MATRIX FOR ZONG
AggressiveConservative
Defensive Competitive
(2, 2.17)
BCG GROWTH-SHARE MATRIX
Internal External Evaluation Matrix
i. 1 i. 2 i. 3
i. 4 i. 5 i. 6
i. 7 i. 8 i. 9
Total weight of IFE
Total weightOf EFE
GRAND STRATEGY MATRIX FOR ZONG
Strong Competitive Position11
Rapid Market Growth
Weak Competitive Position
Slow Market Growth
Quadrant II Quadrant I
Quadrant III Quadrant IV
Quantitative Strategic Planning Matrix (QSPM)SELECTIVE STRATEGIES MARKET PENETRATION COST LEADERSHIPKey External Factors Weight Attractiveness
Scores (AS) Total Attractiveness Scores (TAS)
Attractiveness Scores (AS)
Total Attractiveness Scores (TAS)
Opportunities1 Globalization 0.10 3 0.30 2 0.20
2 Marketing 0.15 4 0.60 3 0.45
3 Acquisition 0.08 2 0.16 2 0.16
4 New Product
Development
0.07 3 0.21 3 0.21
5 Northern Areas 0.10 3 0.30 2 0.20
6 Pak China Borders 0.13 3 0.39 2 0.26
Threats1 Old Stable
Companies0.12 4 0.48 3 0.36
2 Attractive Packages By Others
0.10 3 0.30 3 0.30
3 Price War 0.06 3 0.18 2 0.12
4 Government Interference
0.09 3 0.27 2 0.18
TOTAL 1.00
Strengths 1 Investment 0.09 4 0.36 4 0.36
2 High Growth Rate 0.11 4 0.44 3 0.33
3 Advertising 0.12 3 0.36 3 0.36
4 Net Work Portability
0.12 3 0.36 3 0.36
5 Zong Mobile 0.07 3 0.21 3 0.21
6 Resources Assets And People
0.08 3 0.24 3 0.24
7 Location And Geographical Coverage
0.10 3 0.30 3 0.30
8 Government Dealing
0.09 3 0.27 3 0.27
Weaknesses1 Bad Image Of
Paktel0.06 2 0.12 1 0.06
2 Coverage 0.07 1 0.07 1 0.07
3 Low Market Share 0.05 2 0.10 2 0.10
4 Weak MIS 0.04 2 0.08 1 0.04
SUM TOTAL ATTRACTIVENESS SCORE
1.00 6.10 5.14
•CONCLUSION
Zong has strong financial position and growing fast. That is the reason we didn’t found much discrepancies. As seeing the growth rate of Zong it may possible that Zong can be the leading mobile operator in Pakistan. There are some minor discrepancies but they can adjustable with little effort.
•Recommendation
Zong Telecom should be increase their network coverage and foot prints in every corner of the country to capture the market.
Zong should adopt the strategies of market penetrationCost leadership and related diversificationbut the most effective strategy would be market penetration.
In the SBU of Zong mobile Zong should use the strategy of hold and maintain.
Zong should hire the skilled management.
Zong should not waste their opportunities and get more help as possible.
•References
www.zong.com.
www.google.com
www.pta.com.pk
Rana Armughan Zong Garden Town Ali Block Lahore
Farhan Ali Khan Zong Kchehri Chowk Multan