matrixes-101208082226-phpapp02

EXTERNAL FACTOR EVALUATIONS.No Key Internal Factors Weights

Opportunities

1 Promotional Packages 0.060 2 Sponsorships for local and International events 0.030

3 Changing Marketing Mix 0.040

4 Investment and Development Opportunities 0.060 5 Improved Customer Service and Value Added Services 0.060

6 Economic Influx both globally and locally 0.020

7 Global Telecom Industry on Growth, both supply push and demand pull, pursuit of expansion 0.020

8 Adoption New Technology; Mobile Wallet and Gift Cards 0.040

9 Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company 0.050

10 Adopting to MVNO and MVNE services 0.040

11 Local handset manufacturing 0.020

12 Adoptation to UTMS- 3G technology up coming in Pak 0.040

13 Exchange Rate Fluctuation 0.060

Threats

14 Intense Competition – Telenor, Ufone, Warid & Zong 0.080

15 Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan 0.040

16 Market Saturation of Subscribers 0.060

17 Increasing maintenance cost 0.030

18 Skilled labor attracted to competitors via better benefits 0.030

19 High Tax Rates 0.050

20 Price war between brands in telecom industry 0.080

21 Natural Disaster; like the recent flood caused huge losses and the previous earthquake 0.050

22 Political Instability and Security Concern 0.040

Total 1.00

EXTERNAL FACTOR EVALUATIONRating Weighted Score

4.0 0.244.0 0.12

3.0 0.12

4.0 0.243.0 0.18

4.0 0.08

3.0 0.06

3.0 0.12

4.0 0.20

4.0 0.16

3.0 0.06

3.0 0.12

3.0 0.18

1.88

3.0 0.24

3.0 0.12

3.0 0.18

3.0 0.09

2.5 0.08

3.0 0.15

3.0 0.24

3.0 0.15

3.0 0.12

1.37

3.25

INTERNAL FACTOR EVALUATIONS.No Key Internal Factors Weights Rating Weighted Score

Strengths

1 Largest Market Share & Highest number of Subscriber in Pakistan 0.050 3.0 0.15

2 Blackberry usage soars 0.030 4.0 0.12

3 0.030 3.0 0.09

4 0.050 4.0 0.20

5Engineering and Technological stability at Mobilink along with competent employees

0.040 4.0 0.16

6Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93

0.030 4.0 0.12

7 0.030 4.0 0.12

8 0.030 3.0 0.09

9 0.040 4.0 0.16

10 0.040 3.0 0.12

11 0.030 3.0 0.09

12 0.030 3.0 0.09

13Largest Call Center in Pakistan, which is there to assist the customers 24 hours

0.030 2.0 0.06

14 0.040 2.0 0.08

Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two superbrands award 2009 & Pioneers with GSM Technology

Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries with International Roaming

Concern for society and adapt to work environment needs; active CSR and only cellular operator to be awarded 6th Environmental Excellence Award by NFEH

ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center

First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and satellitte links

Declining Sales and EBIT by 13.5% but exponential growth in Revenue in first 3 quarter of 2010

Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation of full intelligence network (IN) platform from Siemens for the prepaid platform

Mobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management services

Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT & FAT is 0.09 and 0.22 respectively

15 0.030 3.0 0.09

16 Continuous and latest employee training approaches 0.050 3.0 0.15

17 Effective and Rapid Communication within Management 0.030 3.0 0.09

18Partnership with MCB to offer all banking services to Mobilink customers via their handsets

0.040 3.0 0.12

2.10

Weaknesses

19 Service issues with customers - average to below average service 0.060 3.0 0.18

20 Mismanagement due to large network 0.030 3.0 0.09

21 Huge Expenses incurred, high cost of material and other expenses 0.040 4.0 0.16

22High Tariffs as compared to competitors & expensive service quality both call rates and sms

0.040 2.5 0.10

23 Call Blockage service still not offered 0.040 2.0 0.08

24Sort of bureaucratic style of Management; biasness by intermediate bosses

0.020 3.0 0.06

25ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2

0.00

26 Customer Retention 0.050 2.5 0.13

27 No clear strategic direction of Orascom 0.020 2.5 0.05

28Low employee Morale; due to recent cost cutting program and employee job termination

0.030 4.0 0.12

29 Extensive Organizational Structure 0.020 3.0 0.06

1.03

Total 1.00 3.13

In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd among the 'Brands punching above their weights' ahead of Airtel, Tata Indicom and Reliance

COMPETITIVE PROFILE MATRIXMobilink Telenor

Critical Success Factor Weight Rating Score Rating Score

Promising Business Model 0.060 3.00 0.180 4.00 0.240

Advertising 0.050 3.00 0.150 4.00 0.200

Service Quality 0.100 3.00 0.300 3.00 0.300

Market Share 0.120 4.00 0.480 3.00 0.360

Customer Loyalty 0.100 3.00 0.300 3.00 0.300

Technology & Innovation 0.150 4.00 0.600 3.00 0.450

Price Competitiveness 0.150 3.00 0.450 4.00 0.600

Financial Position 0.100 4.00 0.400 3.00 0.300

R & D 0.070 4.00 0.280 3.00 0.210

Management 0.100 3.00 0.300 4.00 0.400

Total 1.000 3.440 3.360

COMPETITIVE PROFILE MATRIXUfone

Rating Score

3.00 0.180

4.00 0.200

3.00 0.300

2.00 0.240

3.00 0.300

3.00 0.450

4.00 0.600

2.00 0.200

2.00 0.140

2.00 0.200

2.810

SWOT MATRIX

Strengths

1 1

2 Blackberry usage soars 2

3 3

4 4

5 5

6 6

7 7

8 8

9 9

10 10

Largest Market Share & Highest number of Subscriber in Pakistan



Engineering and Technological stability at Mobilink along with competent employees

Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93



First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and satelitte links


11 11

12

13

14

15

16 Continuous and latest employee training approaches

17

18



Largest Call Center in Pakistan, which is there to assist the customers 24 hours



Effective and Rapid Communication within Management

Partnership with MCB to offer all banking services to Mobilink customers via their handsets

SWOT MATRIX

Weaknesses

Mismanagement due to large network

Call Blockage service still not offered

Customer Retention

No clear strategic direction of Orascom

Service issues with customers - average to below average service

Huge Expenses incurred, high cost of material and other expenses

High Tariffs as compared to competitors & expensive service quality both call rates and sms

Sort of bureaucratic style of Management; biasness by intermediate bosses

ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2

Low employee Morale; due to recent cost cutting program and employee firing

Extensive Organizational Structure

SPACE MATRIXFactors that make the SPACE Matrix Axes

Internal Strategic Position External Strategic Position

Financial Strength (FS) Environmental Stability (ES)

Declining EBIT by 13.5% + 2.0 Economic downturnThe Return on Assets is 0.0002 + 1.0 Global Rapid Technological ChangesDebt-To-Capital Ratio; (3:7) + 5.0 Price Change by Competitor & Customer SwitchingLiquidity; CR 1.18 + 6.0 Rate of Inflation & High Interest RatesRevenue Growth Rate; declining + 4.0 Expensive InfrastructureNet Income Growth Rate; declining + 3.0

21.0

Competitive Advantage (CA) Industry Strength (IS)

Telecom Giant are competitive - 5.0 Ease of Entry into Telecom Industry

Market Share - 1.0 Profit & Growth Potential

Control over Suppliers and Distributors - 2.0 Financial Stability

Customer Loyalty - 4.0 Resource Utilization

- 12.0 Productivity, Capacity Utilization

Technological Know-How

ConclusionFS average is + 21.00 / 6 = 3.50ES average is - 18.00 / 5 = -3.60CA average is - 12.00 / 4 = -3.00IS average is + 32.00 / 6 = 5.33

Directional Vector Co-ordinates: x-axis: -3.00+(+5.33) = +2.33 y-axis: -3.60+(+3.50) = -0.1

Mobilink should pursue Competitive StrategyBackward, Forward & Horizontal IntegrationMarket PenetrationMarket DevelopmentService Development

SPACE MATRIXFactors that make the SPACE Matrix Axes

External Strategic Position

Environmental Stability (ES) The SPACE MatrixEconomic downturn - 5.0Global Rapid Technological Changes - 1.0Price Change by Competitor & Customer Switching - 6.0 + 6Rate of Inflation & High Interest Rates - 2.0 + 5Expensive Infrastructure - 4.0 + 4

- ### + 3+ 2+ 10

- 6 - 5 - 4 - 3 - 2 - 1 + 1 + 2 +Industry Strength (IS) - 1Ease of Entry into Telecom Industry + 5.0 - 2 (+2.33,-0.10)Profit & Growth Potential + 6.0 - 3Financial Stability + 5.0 - 4Resource Utilization + 5.0 - 5

+ 5.0 - 6Technological Know-How + 6.0

32.0

Mobilink is with major competitive advantages and financially strong in a

high growth industry

Conclusion

3 + 4 + 5 + 6

(+2.33,-0.10)

Mobilink is with major competitive advantages and financially strong in a

high growth industry

BCG MATIXBCG - Based on Service

High 1.00 Medium 0.50

High

1.00

Medium0.500

0.50

Low

0.00

Division RMSP

Mobilink World 0.800

Mobilink Infinity 0.550

Mobilink Jazz 0.400

Indigo 0.700

Blackberry 0.900

Total 3.350

For Jazz - Prioritize

Product Development

Market Penetration

Market Development

IND

US

TR

Y S

ALES

GR

OW

TH

R

ATE

RELATIVE MARKET SHARE POSITION

Invest

PrioritizeII

III

For Blackberry, World & Indigo - Maintain

Backward, Forward & Horizontal Integration

Market Penetration

Market Development

Product Development

For Infinity - Restructuring

Retrenchment

Restratucture

BCG MATIXBCG - Based on Service

Medium 0.50 Low 0.00

ISGR

0.900

0.550

0.800

0.080

0.850

3.180

For Jazz - Prioritize

Product Development

Market Penetration

Market Development


InvestKill

DivestI

IV

For Blackberry, World & Indigo - Maintain


Market Penetration

Market Development

Product Development

For Infinity - Restructuring

Retrenchment

Restratucture

BCG - Based on Service BCG - Based onGeographic Divisions

High 1.00 Medium 0.50

High

1.00

Medium

0.50

Low

0.00

Geographic Region Sales $ (M) Sales %

Northern Division 3.353 (7.10)

Southern Division 4.229 (5.34)

Central Division 2.476 (5.16)

Total 10.06 (17.60)

For All Divisions - Prioritze


Market Penetration

Market Development

Product Development

II

III

IND

US

TR

Y S

ALES

GR

OW

TH

R

ATE

Invest

Prioritize


South Division North Division

Central Division

BCG - Based onGeographic Divisions

Medium 0.50 Low 0.00

Profits $ (M) % Profit RMSP ISGR

0.753 (9.74) Upper Medium High

1.129 (3.37) High High

0.377 (13.12) upper medium medium

2 (26.23) 0.00 0.00

For All Divisions - Prioritze


Market Penetration

Market Development

Product Development

IV

I

Kill

Divest


Central Division

BCG - Based onGeographic Divisions

IE - Based on Services

Strong 3.00 to 4.00 Average 2.00 to 2.99 Weak 1.00 to 1.994.00 3.00 2.00

4.00

High3.00 to 4.00 3.00

Medium 2.002.00 to 2.99

Low1.00 to 1.99 1.00

I

V

II

IV

VII VIII

VI

IX

THE IFE TOTAL WEIGHTED SCORES

TH

E E

FE T

OTA

L W

EIG

HTED

SC

OR

ES

IE - Based on Services

Weak 1.00 to 1.99

1.00

III

VI

IX

THE IFE TOTAL WEIGHTED SCORES

GRAND STRATEGIC MATRIX

Quadrant I

Mobilink has options for:

Market Development

Market Penetration

Product Development

Horizontal Integration

Forward Integration

Backward Integration

Related Diversification

TELECOM COMPANIES NUMBER OF SUBSCRIBERS

Mobilink 32,203,000

Ufone 18,368,074

Telenor 18,329,428

Warid 15,774,299

Zong 4,446,024

RAPID MARKET GROWTH

SLOW MARKET GROWTH

WEAKCOMPETITIVE

POSITION

II

III

GRAND STRATEGIC MATRIX

CELLULAR SUBSCRIBERS MARKET SHARE

32.56% 32.47%

19.47% 19.50%

23.72% 23.005

16.97% 16.03%

7.27% 9.00%

RAPID MARKET GROWTH

SLOW MARKET GROWTH

STRONG COMPETITIVE

POSITION

I

IV

QSPM The Quantitive Srategic Planning matrix - QSPM

Key Factors Weight

Opportunities

1 Promotional Packages 0.060

2 Sponsorships for local and International events 0.030

3 Changing Marketing Mix 0.040

4 Investment and Development Opportunities 0.060

5 Improved Customer Service and Value Added Services 0.060

6 Economic Influx both globally and locally 0.020

7Global Telecom Industry on Growth, both supply push and demand pull, pursuit of expansion

0.020

8 Adoption New Technology; Mobile Wallet and Gift Cards 0.040

9Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company

0.050

10 Adopting to MVNO and MVNE services 0.040

11 Local handset manufacturing 0.020

12 Adoptation to UTMS- 3G technology up coming in Pak 0.040

13 Exchange Rate Fluctuation 0.060

Threats

14 Intense Competition – Telenor, Ufone, Warid & Zong 0.080

15Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan

0.040

16 Market Saturation of Subscribers 0.060

17 Increasing maintenance cost 0.030

18 Skilled labor attracted to competitors via better benefits 0.030

19 High Tax Rates 0.050

20 Price war between brands in telecom industry 0.080

21Natural Disaster; like the recent flood caused huge losses and the previous earthquake

0.050

22 Political Instability and Security Concern 0.040

1.00

Strengths

1 Largest Market Share & Highest number of Subscriber in Pakistan 0.050

2 Blackberry usage soars 0.030

3 0.030

4 0.050

5Engineering and Technological stability at Mobilink along with competent employees

0.040

6Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93

0.030

7 0.030

8 0.030

9 0.040

10 0.040

11 0.030

12 0.030

13Largest Call Center in Pakistan, which is there to assist the customers 24 hours

0.030

14 0.040

15 0.030

16 Continuous and latest employee training approaches 0.050

17 Effective and Rapid Communication within Management 0.030

18Partnership with MCB to offer all banking services to Mobilink customers via their handsets

0.040

Weaknesses

19 Service issues with customers - average to below average service 0.060

20 Mismanagement due to large network 0.030

21 Huge Expenses incurred, high cost of material and other expenses 0.040

22High Tariffs as compared to competitors & expensive service quality both call rates and sms

0.040

23 Call Blockage service still not offered 0.040





First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and satellitte links






24Sort of bureaucratic style of Management; biasness by intermediate bosses

0.020

25ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2

26 Customer Retention 0.050

27 No clear strategic direction of Orascom 0.020

28Low employee Morale; due to recent cost cutting program and employee job termination

0.030

29 Extensive Organizational Structure 0.020

1.00

Total

QSPM STRATEGIC ALTERNATIVES

1 2

AS TAS AS TAS

4 0.24 3 0.18

- - - -

4 0.16 3 0.12

3 0.18 4 0.24

4 0.24 4 0.24

3 0.06 4 0.08

4 0.08 4 0.08

4 0.16 - -

4 0.2 - -

4 0.16 - -

- - 3 0.06

4 0.16 - -

- - 3 0.18

4 0.32 4 0.32

- - - -

4 0.24 4 0.24

4 0.12 4 0.12

4 0.12 4 0.12

- - - -

4 0.32 4 0.32

- - 3 0.15

Improve Service and gain Market Share via Adopting MVNO, MVNE & UTMS

Technology

Backward Integration over their infrastructure vendors and suppliers to

reduce cost and expenses

- - - -

2.76 2.45

4 0.2 - -

- - - -

4 0.12 4 0.12

4 0.2 3 0.15

4 0.16 4 0.16

- - - -

- - - -

- - - -

3 0.12 - -

- - - -

3 0.09 2 0.06

3 0.09 - -

3 0.09 - -

- - - -

- - - -

3 0.15 - -

3 0.09 - -

4 0.16 - -

4 0.24 4 0.24

4 0.12 4 0.12

- - 4 0.16

4 0.16 4 0.16

4 0.16 - -

- - - -

4 0 4 0

4 0.2 4 0.2

- - - -

- - - -

- - - -

2.35 0.88

7.87 6.27

Documents

matrixes-101208082226-phpapp02