Submitted To:Sir Zarrar ZubairSubmitted By:Umair Khalid Paracha (13257)Zeeshan Valliani (12543) S.M. Zeeshan (8779)Muhammad Kashif (11017)Muhammad Asim Hayat (11084)Semester:Summer 2013

Contents1. Letter of Transmittal............................................................................................................................2

2. About Warid Telecom..........................................................................................................................3

3. Business Definition and Scope.............................................................................................................4

Analysis of Warid’s Mission Statement..........................................................................................4

4. Telecom Industry Overview.................................................................................................................5

5. Macro Environmental Analysis............................................................................................................6

Porter’s Five Forces.................................................................................................................................6

PEST Analysis.................................................................................................................................12

6. The Input Stage..................................................................................................................................13

External Factor Analysis.........................................................................................................................13

Suggested Strategies.............................................................................................................................13

Competitive Profile Matrix....................................................................................................................14

Internal Analysis....................................................................................................................................15

Strengths and weaknesses...........................................................................................................17

Suggested Strategies.....................................................................................................................18

7. The Matching Stage...........................................................................................................................20

TOWS Matrix.........................................................................................................................................20

The SPACE Matrix..................................................................................................................................22

BCG Matrix............................................................................................................................................25

The Internal-External (IE) Matrix..........................................................................................................26

Grand Strategy Matrix...........................................................................................................................27

Warid’s Company Specific Strategies..........................................................................................28

8. Decision Stage for Warid Telecom.....................................................................................................29

QSPM Matrix.........................................................................................................................................29

9. Blue Ocean Strategy..........................................................................................................................31

10. Strategy Implementation...............................................................................................................32

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1. Letter of Transmittal

September 13th, 2013

Mr. Zarrar Zubair

Lecturer Sales Management

Institute of Business Management

Dear Sir,

Presented is our term report on “Warid Telecom”. The project involved strategic analysis and re

search on the company and is prepared according to the guidelines provided during the semest

er.

We would like to thank you for providing the guidelines & suggestions which enabled us to comp

lete this report as our final project. We have worked vigorously on this project to bring you the a

ccurate and reliable results.

Sincerely,

Umair Khalid Paracha (13257)

Zeeshan Valliani (12543)

S.M. Zeeshan (8779)

Muhammad Kashif (11017)

Muhammad Asim Hayat (11084)

2

2. About Warid TelecomWarid Telecom is one of the cellular service providers in Pakistan launched in May 2005. The company is now 100% owned company of the Abu Dhabi Group and offers state-of-the-art telecommunication services at over 7,000 destinations in Pakistan. The company was formed as a joint venture between Abu Dhabi Group and Sing Tel where SingTel acquired 30% percent equity stake but later Abu Dhabi Group bought the remaining stakes in the company from Sing Tel. Many view the purchase of remaining stake as part of Abu Dhabi Group strategy to support Warid Telecom’s continued growth and enhance its market position.

Board of Directors

His Highness Sheikh Nahayan Mabarak Al Nahayan (Chairman/Director)

Mr. Boulos ("Paul") H. B. Doany (Alternate Director for Sheikh Nahayan Mabarak Al Nahayan)

Mr. Khurshid Hadi (Director)

Mr. Michael Buchen (Director)

Mr. Adeel Bajwa (Director)

Mr. Jinah Haj Ali (Director)

Mr. Muneer Farooqui (Director & Chief Executive Officer)

Management Team

Mr. Muneer Farooqui (Chief Executive Officer)

Mr. Tariq Gulzar (Chief Financial Officer)

Mr. Ali Raza Mehdi (VP Administration & Human Resources)

Mr. Younas Iqbal Sheikh (Chief Commercial Officer)

Mr. Muhammad Irfan Chaudry (Chief Technical Officer & Chief Information Officer)

Mr. Suhail Jan (VP Sales & Distribution)

3

3. Business Definition and Scope

Mission and Purpose

“We will continue to challenge ourselves and set new performance standards by investing in the future of our people and seeking knowledge and innovation in order to exceed customer expectations and serve our community”

VisionThe company’s vision is to

“To become the primary service provider of all communication needs of subscribers in Pakistan‚ supported by exemplary customer care”.

Warid Telecom started its operation in May 2005 from Pakistan. Warid Telecom International LLC, purchased a license for operating a nationwide mobile telephone network, (WLL) and long distance international (LDI) for $291 million US dollars. Within 80 days of launch Warid attracted more than 1 million users. Currently the network has around 15 million subscribers. In Warid’s business strategy core determinants include:

Competitiveness: differentiated in value added aspects

Rapid Response of company: when need is identified they respond to it

Customer care by providing quality service: The pre-paid segment is branded an

d marketed as Zem Pre-Paid.

Users enjoy various value added services (VAS), such as SMS, MMS, GPRS, 64K SIM and a h

ost of other features.

Analysis of Warid’s Mission StatementDeterminan

t

Customer

s

Product

s and S

ervice

Market

s

Technolog

y

Survival G

rowth and

Profitabilit

y

Self Co

ncept

Concer

n for Pu

blic Ima

ge

Philosoph

y

Concern f

or Employ

ees

4

4. Telecom Industry OverviewMobilink was the first to enter the telecom sector in Pakistan. It was in early 1990s that the telec

om sector got attention of end consumers. At that time also, people were not aware of all those

value added services or the benefits of carrying a cellular network.

Telecom sector has been expanding with every passing year. The subscriber base has also incr

eased from 5.02 million to 114 million people. This shows the exponential growth of the sector.

However, the revenues from each customer have drastically decreased due to the price wars in

the sector.

Annual Cellular SubscribersMobilink Ufone Zong Instaphon

eTelenor Warid Total

2003-04 3,215,989 801,160 470,021 535,738 5,022,9082004-05 7,469,085 2,579,103 924,486 454,147 835,727 508,655 12,771,2032005-06 17,205,555 7,487,005 1,040,503 336,696 3,573,660 4,863,138 34,506,5572006-07 26,466,451 14,014,044 1,024,563 333,081 10,701,332 10,620,386 63,159,8572007-08 32,032,363 18,100,440 3,950,758 351,135 18,125,189 15,489,858 88,019,812

2008-09 29,136,839 20,004,707 6,386,571 34,048 20,893,129 17,886,736 94,342,030

2009-10 32,202,548 19,549,100 6,704,288 0 23,798,221 16,931,687 99,185,844

2010-11 33,378,161 20,533,787 10,927,693 0 26,667,079 17,387,798 108,894,518

2011-12 34,703,110 22,019,458 14,423,646 0 28,470,254 14,990,190 114,606,658

May

2013

36,747,587 23,869,218 20,199,828 0 31,693,191 12,503,036 125,012,860

If we start to observe this chart of subscribers only, then we can very clearly see that the growth is not linear but exponential but Warid seem to go through a down turn. Warid’s subscriber base has recently shrinked to approximately 12.5 million from almost 18 million 3 years back.

5

5. Macro Environmental Analysis

Porter’s Five Forces

Threat of New Entrants

Yes

(+)

M No

(-)

Do large firms have a cost or performance advantage in your segment of the industry?

Are there any established brand identities in your industry?

Does your company incur any significant costs in switching suppliers?

Is a lot of capital needed to enter your industry?

Does the newcomer to your industry face difficulty in accessing distribution channels?

Does the newcomer have any problems in obtaining the necessary skilled people, materials or supplies?

Does your product or service have any proprietary features that give you lower costs?

Are there any licenses, insurance or qualifications that are difficult to obtain?

Can the newcomer expect strong retaliation on entering the market?

6

7 1 1

The threat of new entrants is low because the industry is reaching a saturation point and the cost of entering the industry is also very high in terms of setting up the poles for signals in each area. The coverage is not easily obtained and that is where the entrance as well as survival in the industry becomes difficult for every player. They can make use of this positive element by expan

ding their coverage and customer base. *1*2

Bargaining Power of Buyers

Yes (+) M No (-)

Are there a large number of buyers related to the number of firms in the business?

Do you have a large number of customers, each with relatively small purchases?

Does the buyer need a lot of important information?

Is the buyer aware of the need for additional information?

Is there anything that prevents your customer from taking your function in-house?

Your customers are not highly sensitive to price.

Your product is unique to some degree or has accepted branding,

Your customers’ businesses are profitable.

You provide incentives to the decision makers.

3 3 3

The bargaining power of buyers is moderate. There are both positive and negative aspects of this factor. The reason for this moderate power is that there are two types of buyers for this particular industry. One buyer is the end user of the network and another buyer is the retail stores that carry the Sim cards and the recharge vouchers. Here, the threat that it may pose is that if comp

7

anies are unable to judge the threshold of expanding into the markets, then they will end up eve

n reducing their own power over their buyers. *1

Bargaining Power of Suppliers

Yes (+) M No (-)

My inputs (materials, labor, supplies, services etc.) are standard rather than unique or differentiated.

I can switch between suppliers quickly and cheaply.

My suppliers would find it difficult to enter my business or my customers would find it difficult to perform my function in-house.

I can substitute inputs readily.

I have many potential suppliers.

My business is important to my suppliers.

My cost of purchases has no significant influence on my overall costs.

4 1 2

The bargaining power of suppliers is on the lower side. The suppliers do not have the ability to t

hreaten the company because there are abundant suppliers in the industry and also, the supplie

s are commodities instead of differentiated products. There are many retail outlets available for t

he company to expand into. *2

Threat of Substitutes

Yes (+) M No (-)

Substitutes have performance limitations that do not completely offset their lowest price. Or, their performance is not justified by their higher price.

8

The customer will incur costs in switching to a substitute.

Your customer has no real substitute.

Your customer is not likely to substitute.

2 1 1

The threat of substitutes is also low because there are no many real substitutes to make the tas

k for a company difficult. The substitutes are in the form of PTCL, Go CDMA or other such com

munication providers. But they lack the ability to mobilize their services and therefore the threat

of substitutes remains low.

Rivalry against Competitors

Yes (+) M No (-)

The industry is growing rapidly.

The industry is not cyclical with intermittent overcapacity.

The fixed costs of the business are a relatively low portion of total costs.

There are significant product differences and brand identities between the competitors.

The competitors are diversified rather than specialized

It would not be hard to get out of this business because there are no specialized skills and facilities or long-term contract commitments, etc.

My customers would incur significant costs in switching to a competitor.

My competitors are all of approximately the same size as I am.

0 4 4

9

The rivalry against competition is tough. The reason which is leading to this situation is the fact t

hat there are fewer players in the industry. The total number of players in the industry is less tha

n 10 however; the market size is big in comparison to that. A company can reduce this threat by

offering more value added services so that there is some differentiation element created. The th

reat here is that the competitors are also big in size and can simply follow what one company do

es to differentiate itself. *3*4

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Overall Industry Analysis

Overall Industry R

ating

Favourable Moderate Unfavourable Implications

1 Threat of New Ent

rants

7 1 1 It is difficult for new players t

o enter so the current ones c

an avail larger shares.

2 Bargaining Power

of buyers

3 3 3 The buyer power is moderat

e.

3 Bargaining power

of Suppliers

4 1 2 The suppliers cannot impose

any conditions on the compa

ny due to less power.

4 Threat of Substitut

es

2 1 1 There are no real substitutes

which is good for the industr

y.

5 Rivalry against co

mpetitors

0 4 4 The competition is strong th

erefore; the industry is facin

g tough competition among

all rivals.

Total 16 10 11

The industry is overall moderate in terms of its attractiveness on the basis of its overall score on

all external factors.

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PEST Analysis

Political factorsPolitical factors include government regulations and legal issues and define both formal and informal under which the firm must operate. Some examples include:

Tax policy Employment laws Environmental regulations Trade restrictions Political stability

The political factor makes the Telecom Industry unattractive in Pakistan because of the political instability issues and also the security conditions are not stable. Therefore profits can only be generated either through cost reductions or branding. Cost reductions are easy for this sector because the portion of variable cost in the total cost is low. Only the initial capital investment is

very high.*2

Economic FactorsEconomic factors affect the purchasing power of potential customers and the firm’s cost of capital. The economic factor has made the Pakistani Telecom industry unattractive as it has led to a decrease in the purchasing cost of the end consumer as well as the companies negatively. The companies can only progress if they tend to reduce the overall prices. The effect of these reduced prices directly affects the profitability of all companies. Their profit margins are cut

down and they can only survive if they stop to go for those price wars among themselves.*3

Social FactorsSince social lives have become virtual these days. We tend to send text messages or call each other instead of going for a hang out. This is why this factor is in favour of the telecom industry. The company can cash this element by coming up with packages like groups of friends and

family etc.*4

Technological FactorsTechnological factors include R & D activity, Automation, Technological incentives, and Rate of technological change.

The technological factor has made the Telecom Industry very competitive as this is one crucial factor for any company in the sector of telecom. Since profits are mostly generated through economies of scale, therefore in order to achieve that objective latest state of the art technology has to be implemented to gain a competitive edge. That technology is currently available in the form

of 3G license which Warid tends to obtain from PTA.*5

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6. The Input StageOpportunities Threats

Expand customer base Buyers can easily switch to other networks

Expand network coverage High initial capital investment

Provide more value added services Price wars among competitors

Packages for Family and friends Competitors can easily follow

Acquire 3G License

External Factor Analysis

Key External Factors Weight Rating Weighted score

Opportunities

Expand customer base 0.1 2 0.2

Expand network coverage 0.1 3 0.3

Provide more value added services 0.05 4 0.2

Packages for Family and friends 0.04 3 0.12

Acquire 3G License 0.2 4 0.8

Threats

Buyers can easily switch to other networks

0.1 3 0.3

High initial capital investment 0.12 4 0.48

Price wars among competitors 0.19 3 0.57

Competitors can easily follow 0.1 3 0.3

Total 1.0 3.27

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Suggested Strategies

For the current situation, the suggested strategies for Warid include;

Acquire 3G license so that as soon as the technology becomes operable in Pakistan, then Warid would be the first one to serve its customers with that technology and this will further enhance the quality of their services and customer care.

Warid must try to expand its customer base so that the threat of competitors is also reduced and the company does not have much to fear about. For doing so, the company can come up with packages for new connections to attract more traffic of people. Providing more value added services will help the company in retaining the newly acquired customers.

Competitive Profile Matrix

Critical Success Factors Warid Mobilink Telenor Ufone

Weight Rating Weighted

Score

Rating Weighted

Score

Rating Weighted

Score

Rating Weighted S

core

Service Quality 0.15 4 0.6 3 0.45 3 0.45 3 0.45

Customer Loyalty 0.10 1 0.1 3 0.30 4 0.40 3 0.30

Human resource 0.10 2 0.2 4 0.40 3 0.30 3 0.30

Technological know-how and innovation

0.20 3 0.6 4 0.80 3 0.60 4 0.80

Pricing 0.06 2 0.12 2 0.12 2 0.12 4 0.24

Global Expansion 0.10 2 0.2 3 0.30 4 0.40 0 0

Market Share 0.12 2 0.24 4 0.48 3 0.36 3 0.36

Financial Position 0.08 2 0.16 3 0.24 3 0.24 3 0.24

After Sales Service

0.09 3 0.27 2 0.18 3 0.27 2 0.18

Total 1.00 2.49 3.27 3.14 2.87

14

From the above matrix, it is obvious that Warid’s positioning in comparison to its competitors is weak. The company should improve in the area of market share, global expansion, and also in the area of after sales services. These steps can be taken if the company focuses more on its service centre and franchisee so that each customer who enters their service centre, does not come out with an unsolved problem.

Internal Analysis

Primary Activities

Inbound LogisticsThe inbound logistics for Warid involve sim cards, designing packages, and printing handbooks or catalogs for packages.

OperationsThe operations of Warid involve consistently manufacturing attractive packages for customers. It also involves designing roaming facilities and handling them so that the end user does not come

15

Inbound LogisticsCatalogs PrintingSim cardsPackages

OperationsRoamingNetwork Signals

Outbound LogisticsCallsSms reservations

Marketing and SalesPromotion of packagesPersonified packages

ServicesQuery HandlingCorporate services for business clients

across any problems. *1

Outbound LogisticsThe outbound logistics constitute of timely delivery of services to the consumers. The customers successfully make calls and communicate with others through the network.

16

Marketing and SalesThe marketing and sales consists of the company’s promotional activities. Warid has not been

aggressively marketing as compared to other telecom players in the market. *1The company’s marketing and sales further includes personified packages for its consumers.

*2

ServicesTheir services include providing call centre facilities, timely response to the queries, and also value added services. This helps the company maintain certain differentiation from its competitors that they are able to cater to their consumers in due time. They also come across a

fewer number of customer complaints.*3Despite all of these possible elements, Warid has not been successful in creating a strong

differentiating element for the brand. The brand is still not clearly defined to its customers.*2

Support Activities

ProcurementProcurement mainly revolves around obtaining material for the packaging of the sims to shape them into the final deliverable condition. Their procurement does not have anything special or unique to offer in comparison to any other cellular network provider.

Human Resource ManagementThe human resource of the organization is very strong. The company encourages people to work in groups and those groups work in a decentralized manner. Their approach is very

pragmatic.*4

Technological DevelopmentWarid is trying to utilize state of the art technologies to stay ahead of time. They are recently also trying to acquire 3G technology so that they can serve their customers in the best way. But apart from their recent efforts to acquire 3G technology, they do not presently have any such

system which can help them differentiate in any way.*317

Firm Infrastructure

The firm infrastructure is poorly managed. Despite having great human asset, they have not been able to use that human asset in managing their firm infrastructure. At present, Warid has a big customer base, but their customer base has been going down because they are not

establishing their infrastructure in a strong way.*4

Core Competencies of Warid

Warid core competency is their ability to operate on lower operating costs. They have been able to reduce their operational costs. But that cost cutting has not been passed on to the end users.

Yet, they have wisely maintained to remain competitive in terms of their prices and

packages.*5Another element which differentiates Warid from its competition is that Warid is the only company which is least affected due to these price wars. All other companies have been

reacting to each others’ strategies regarding price wars and price cuts.*6

Strengths and weaknesses

Strengths Weaknesses

Roaming facilities Very few marketing activities for the brand

Personified packages Ambiguous brand identity

Better customer packages Unutilized technology

Cooperative work groups Poor firm infrastructure

Appropriate value against price

Not prone to price wars

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Internal Factor Analysis

Key External Factors Weight Rating Weighted score

STRENGTHS

Roaming facilities 0.10 3 0.30

Personified packages 0.08 3 0.24

Better customer packages 0.12 3 0.36

Cooperative work groups 0.10 4 0.4

Appropriate value against price 0.10 4 0.40

Not prone to price wars 0.05 4 0.20

WEAKNESSES

Very few marketing activities for the brand 0.15 2 0.30

Ambiguous brand identity 0.08 2 0.16

Unutilized technology 0.12 3 0.36

Poor firm infrastructure 0.10 2 0.20

Total 1 2.92

The company’s overall position with respect to its strengths and weaknesses is average. The score indicates that the company has enough margins to improve in many areas in which it currently is giving a moderate performance.

Suggested Strategies

At this stage, the suggested strategy is to focus more on building upon the strengths rather than paying attention to the weaknesses. The action plan to do so involves introducing more personified packages so that customers feel exclusive and valued.

In order to reduce the impact of weaknesses, Warid can and must improve its firm infrastructure

19

and make its presence felt in the market. The company needs to create more reminder advertising so that people know of its presence and remember that it is also there to serve to their needs.

Response (Strengths)With respect to this action plan, the strength will pay off my being highlighted. The company will gain more attention if it comes up with more personified packages because everyone today believes in exclusivity and thus Warid will end up having higher customer traffic.

Response (Weaknesses)

The weakness will wear off if the firm makes an effort for establishing and improving on what is already built. The already established firm infrastructure can also be improved with just a little effort from the human resource and also by involving some financial resources to plan and implement it. The company can actually afford to invest on its improvement due to their efficient operations and lower costs. The profit margins for the company are also higher than its competitors because of not being highly involved in price cuts.

Generic Strategy

Warid is following a focused differentiation strategy. Their focus is on creating a difference in the

ir services. Their packages like Zem and Glow are to differentiate the service from other competi

tors in the market. They also have cost effectiveness but their focus is more on differentiation wi

th respect to their core products and services.

The reason they have a narrow audience is that they have not targeted the whole population. Th

eir focus is more on youth and even among youth, their focus is on A and B class of the econom

y which collectively forms a very small size of the entire population.

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Overall Cost Leadership Overall Differentiation

Focused Cost Leadership Focused DifferentiationWarid Telecom

Generic Strategy

7. The Matching Stage

TOWS Matrix

Strengths Weaknesses

1.

Roaming facilities 1. Very few marketing activities for the brand

2.

Personified packages 2. Ambiguous brand identity

3.

Better customer packages 3. Unutilized technology

4.

Cooperative work groups 4. Poor firm infrastructure

5.

Appropriate value against price

6.

Not prone to price wars

Opportunities S-O Strategies W-O Strategies

1.

Expand customer base

1.

Expand customer base by coming up with better customer packages.

1. Acquire 3G license to eliminate the weakness of unutilized technology

2.

Expand network coverage

2.

Expand network coverage with the help of improved roaming facilities within the country and abroad.

2. Expand network coverage with the help of improved firm infrastructure

3.

Provide more value added services

3.

Provide more value added services in the form of personified packages

4.

Packages for Family and friends

5.

Acquire 3G License

Threats S-T Strategies W-T Strategies

21

1.

Buyers can easily switch to other networks

1.

Play on the basis of quality services instead of prices so that competitors find it hard to imitate.

1. The company must try to clarify the brand identity to reduce the threat from rivals

2.

High initial capital investment

2.

Provide appropriate value against prices so that buyers do not switch frequently.

2. Warid must increase their marketing activities so that the buyers have reasons to believe and do not leave the company.

3.

Price wars among competitors

3.

Cooperative work groups can help them reduce on their fixed operating costs

4.

Competitors can easily follow

22

The SPACE Matrix

Internal Strategic Position Rating Internal Strategic Position Rating

Financial Strength (FS)

Return on investment

Liquidity

Working Capital

Operating profit

Risk involved in business

5

5

6

5

4

Environmental Stability (ES)

Technological changes

Price range of competing products

Competitive pressure

Inflation

Barriers to entry

Ease of exit from market

-2

-1

-2

-2

-3

-2

-2

5 -2

Competitive Advantage (CA)

Market Share

Product Quality

Customer Loyalty

Technological updation

Control over supplier and distributor

-5

-5

-3

-3

-5

-3

Industry Strength (IS)

Growth Potential

Profit Potential

Financial Stability

Technological innovations

Resource utilization

Ease of entry into the market

6

6

6

5

5

2

-4 5

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SPACE Quadrant

ConservativeFS Aggressive

CA IS

DefensiveES Competitive

Aggressive QuadrantThis means that an organization is in an excellent position to use its internal strengths to:1. Take advantage of external opportunities 2. Overcome internal weaknesses 3. Avoid external threats

Strategies for SPACE QuadrantFollowing Strategies are available to a company falling in the aggressive quadrant.

1. Backward, Forward, horizontal integration

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-5 -4 -3 -2 -1 +0 +1 +2 +3 +4 +5

-6

-5

-4

-3

-2

-1

+0

+1

+2

+3

+4

+5

+6

2. Market penetration 3. Market development 4. Product development 5. Diversification

Company Specific StrategiesIn Warid’s case, the company can go for market penetration through expanding its network coverage and expanding its customer base. This will require the company to widen the scope of its own target audience and formulate its messages in such a way that they cater to a wider audience.

The company must go for product development with the help of 3G technology which is the hot topic in the industry. Warid can gain substantial attention from every corner if it acts as the pioneer in serving its consumers with 3G technology.

25

BCG Matrix

Warid’s Position on the BCG Matrix

If we begin to consider Warid as a product in the telecom sector and the remaining competitors as other products, then Warid can be placed in the quadrant of Question Mark. At this stage, it depends upon the company to decide whether it would want to grow or close down. At this stage, looking at the entire industry, Warid has more options to expand and grow as there are many underutilized resources and various open opportunities in the market to grab.

26

The Internal-External (IE) Matrix

The IFE Total Weighted Score

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99

High I II III3.0 to 3.99

Warid Telecom

Medium IV V VI

The EFE Total Weighted Score

2.0 to 2.99

Low VII VIII IX1.0 to 1.99

AnalysisThe analysis of Internal External Matrix suggests that warid must grow and build at this stage. They can grow and build by expanding into untapped segments and covering the uncovered areas of the market as well. This means they must widen the scope of their target market and try to cater to more people and more economic classes of people.

27

Grand Strategy Matrix

RAPID MARKET GROWTH

Quadrant II Quadrant I

Target

WEAK

COMPETITIVE STRONG

POSITION COMPETITIVE

POSITION

Warid Telecom

Quadrant III Quadrant IV

SLOW MARKET GROWTH

AnalysisWarid’s current position does not have much to offer but there are opportunities available in the market to benefit from. Strategies for third quadrant include:

1. Retrenchment

2. Concentric diversification

3. Horizontal diversification

4. Conglomerate diversification

5. Divestiture

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6. Liquidation

Warid’s Company Specific Strategies

Warid can apply the strategy of diversifying into related areas. Warid can come up with internet facilities in order to expand its market coverage as well as customer base. It will give more options to the end consumers to choose from as well. Concentric diversification on the level of partnerships with other smaller groups offering related services can also lead to growth opportunities for Warid.

29

8. Decision Stage for Warid Telecom

QSPM Matrix

QUANTITATIVE STRATEGIC PLANNING MATRIX FOR Warid Telecom

Strategic Alternatives

Critical Success FactorsWeigh

t

Expanding Network Coverag

e

Acquiring and Introducing 3G

technology

Strengths AS TAS AS TAS

Roaming facilities 0.10 3.00 0.30 2.00 0.20

Personified packages 0.08 3.00 0.24 1.00 0.08

Better customer packages 0.12 4.00 0.48 1.00 0.12

Cooperative work groups 0.10 2.00 0.20 3.00 0.30

Appropriate value against price 0.10 1.00 0.10 3.00 0.30

Not prone to price wars 0.05 ---- ---- 2.00 0.10

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

Weaknesses

Very few marketing activities for the brand 0.15 4.00 0.60 1.00 0.15

Ambiguous brand identity 0.08 4.00 0.32 2.00 0.16

Unutilized technology 0.12 ---- ---- 4.00 0.48

Poor firm infrastructure 0.10 1.00 0.10 3.00 0.30

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

SUBTOTAL 1.00 2.34 2.19

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Critical Success FactorsWeigh

t

Expanding Network Coverag

e

Acquiring and Introducing 3G

technology

Opportunities AS TAS AS TAS

Expand customer base 0.10 4.00 0.40 2.00 0.20

Expand network Coverage 0.00 4.00 ---- 3.00 ----

Provide more value added services 0.05 3.00 0.15 2.00 0.10

Packages for Family and friends 0.04 3.00 0.12 1.00 0.04

Acquire 3G License 0.20 ---- ---- 4.00 0.80

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

ThreatsBuyers can easily switch to other networks 0.10 3.00 0.30 3.00 0.30

High initial capital investment 0.12 ---- ---- 2.00 0.24

Price wars among competitors 0.19 3.00 0.57 2.00 0.38

Competitors can easily follow 0.10 2.00 0.20 4.00 0.40

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

0.00 ---- ---- ---- ----

SUBTOTAL 0.90 1.74 2.46

SUM TOTAL ATTRACTIVENESS SCORE 4.08 4.65

QSPM Strategy to be Implemented

On the basis of the total attractiveness scores for both the alternates, Warid should go for acquiring 3G technology so that it can overcome its weakness of unutilized technology as well and serve its present and potential customers in a better way.

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9. Blue Ocean StrategyThe ERRC Grid

This is one of the unorthodox models for a cellular company which is currently not used by any other company. This model can help them bring clarity to their ambiguous brand identity and also help them in expanding their customer base which is crucial for the company at this stage of weak competitive position and low market growth.

Until now, no one seems to be eliminating the hassle of physical visits to the company franchise which really troubles almost all the consumers. Another element which is not yet thought about by any other company is of virtual billing system. People still need to buy those scratch cards to recharge their accounts. They can instead use their PayPal accounts to recharge their accounts. This will also eliminate the time constraint which was there in the scratch card system. People cannot buy scratch cards if shops are closed. On that element, cellular companies also lose huge revenues and business.

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service errorsPhysical visits to outlets

Virtual billing system through paypal or mastercardProvide executional options through helpline only.

Value added servicesvalue for money invested

Conventional system of rechargeService centre or physical outlets

Eliminate Raise

ReduceCreate

10. Strategy Implementation

This is the phase where most of the firms go wrong. Despite doing so much of homework and struggle in coming up with the right action plan and set of activities, this is the phase, which ruins it all for many companies. 9 out of ten companies fail in strategy implementation. There are three determinants which require to be given proper attention for the selected action plan to reap the desired results.

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Resource Structure Culture

High quality network to support latest technological advancements

Well established technological structure should be present

High teamwork among employees

Most hi-tech infrastructure to accommodate 3G services

De-centralized structure should be kept

Very interactive culture exists with an open door policy

Heavy financing will be required as introducing 3G services is very expensive

High class business culture

Good PR should be present to jump through loopholes and avoid extra taxes and licensing issues