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Prestion University Pakistan

Acknowledgement

I would like to thanks and express my gratitude firstly to ALLAH whose helping hand kept me going till
end of this final semester project , and then toward the people who Contribute in so many ways towards the
creation and completion of this project. Although we have short time to prepare it but the experience was
quite interesting. We tried our level best in preparing this particular project My instructor and guide
throughout Sir Feroz Alam , My Parents who support me in a million ways, my friends etc. Who helped
me in the completion of the project.

GROUP LEADER:

 FARAH KHAN

MEMBERS :

 ABDUL JALEEL
 ROBIN PETER
 ZIA UD DIN
 JAMEEL
 ADNAN

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Prestion University Pakistan

DEDICATION

WE DEDICATED THIS PROJECT TO OUR BELOVED TEACHER SIR FEROZE ALAM, WITHOUT
THEIR PATIENCE ,UNDERSTANDING,SUPPORT AND MOST OF ALL , LOVE THE COMPLETION OF
THIS WORK WOULD NOT HAVE BEEN POSSIBLE.

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Prestion University Pakistan

Introduction

The company commenced its operations under the brand name of Ufone from Islamabad on January 29
2001. Ufone expanded its coverage and has added new cities and highways to its coverage network. After
the privatization of PTCL, Ufone is now owned by Etisalat.

Company Profile
PTML is a wholly owned subsidiary of PTCL. established to operate cellular telephony. The company
commenced its operations, under the brand name of Ufone from Islamabad on January 29 2001.
During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates
Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been
handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on the path to success.
The Company further expanded its coverage and has added new cities and highways. Ufone has network
coverage in more than 750 cities, towns and across all major highways of the country.
During the year Ufone successfully completed the network expansion of Phase 4 in existing as well as in
new cities and towns which amounted to more than US Dollar 170 million. As a result the asset base of
the Company has increased from Rs. 20 billion to Rs. 27 billion.
During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in
positive impacts on the usage trends of subscribers as well as total subscriber base, which has increased
from 2,579k in June 2005 to 7,487k in June 2006. Ufone currently caters for international roaming to more
than 195 live operators across 119 countries and introduced International roaming facility for Prepaid
subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait
with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is
available with more than 75 Live Operators across 59 countries. The company has also been awarded a
new License for providing cellular services in Azad Jammu & Kashmir and the Northern Areas.
Operating Performance Ufone’s operational performance has been very encouraging. Despite the stiff
competition in Pakistan telecom market which has led to reduction of prices to bare minimum level, due
to its aggressive policies and exercising strict control over expenses the Company managed to improve its
revenue and after-tax profit by 87% and 54% respectively, as compared to last year.
Future Plans Keeping in view the growth potential of the cellular industry there is no option but to be
aggressive in order to remain a potent force in the cellular industry. In order to extend cellular network to
new cities, towns and highways and enhance its current installed capacities in existing cities, Ufone has
finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the
subscribers’ capacity by 10 million. This is the largest ever expansion project of Ufone. services, market
visibility through various market initiatives to fulfill subscribers’ satisfaction and demand and above all to
increase the value of investment for the shareholders.

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VISION & MISSION STATEMENT

VISION STATEMENT
To be the leading telecommunication services provider in Pakistan by offering innovate services for our
customer while exceeding shareholder value and employee expectation

MISSION STATEMENT
To become the best Cellular Communication option available in the country for “U”. At Ufone we aim to
provide you with wider coverage ,superior connectivity ,clear signal and voice quality .Where ever you
are Ufone keep you connected

Organization‘s External Opportunities & Threats

OPPORTUNITIES:
1. CONTINUING TO EXPAND GLOBALLY:

Ufone has the ability to expand globally. But due to current economic condition all its operation on
halt.

2. PUBLICITY AND MARKETING:

With the right marketing strategy they can acquire much more.

3. DEVELOP NEW VALUE ADDED SERVICE:

This is an opportunity that will never be satisfied, meaning that Ufone should always be attempting
to keep improving new value added services and as we know what is in today will be out tomorrow.

4. INTRODUCE KIOSK TECHNOLOGY:

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Ufone can surprise its competitors by introducing “Ufone kiosk”. These will be ATM like machines
and that will give 24-hour service to Ufone subscribers to load the balance just like they take money
from ATM.

5. DEVELOP FRANCHISE IN REMOTE AREAS:

Ufone should develop some new franchises in remote areas so that people will get more and more
benefit from it and it will help to increase their customers.
Ufone should extend its network coverage area to Northern part of the country as well because in
that part not too many companies are giving services and if Ufone give its service there then it will
definitely attract people and its number of customers will shoot like a rocket.

THREAT
1. GOVERNMENT INTERFERENCE

Government interference in terms of taxes will always be treated as a threat.

2. PTCL CELLULAR LICENSE

Ufone is nothing just a cellular license to PTCL, PTCL should provide more financial support to
enhance profitability of its subsidiary company.

3. PENSION PAYOUTS

Part of this threat is their own doing and other is simply unavoidable. Ufone is responsible for
providing generous pension benefits to its employees, which at time seems like a great idea,
however they are now experiencing problems as more and more people begin to collect.

4. INCREASED HEALTH CARE COSTS

Ufone, like many large companies with quality employees’ health care benefits, is experiencing a
large financial hit that only get worse as time continues as compare to other cellular firms

5. TOUGH COMPETETION

As Ufone is cellular company and there is cut throat competition among cellular companies in
Pakistan. There are six other companies also working in Pakistan so Ufone would have to face
some growing competitive pressures.

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6. PRESSURE GROUP

Some pressure groups are protesting on the towers that are installed in residential areas. Their
opinion is that it is not good for health of people to have such towers near their homes that cause
radiations.

7. ECONOMIC PROBLEMS

Pakistan is facing some serious economic problems now days so that would also affect Ufone. The
current recession in market is not good for any kind of business including telecommunication.

SWOT ANALYSIS FOR UFONE


Ufone GSM is a Pakistani GSM cellular service provider. It is one of the six GSM mobile companies in
Pakistan and it is a subsidiary of Pakistan Telecommunication Company Limited. It has a subscriber base of
20 million as of June 2009. The company commenced its operation under the brand name of Ufone from
Islamabad in January 29 2001. During the years, Ufone continued on the path to success; the company has
network coverage in more than 5885 locations and across all major highways of the country.

STRENGTHS

1.NETWORK COVERAGE

Ufone has a network coverage in more that 5885 locations and across all major highways of the country.

2. INTERNATIONAL ROAMING

Ufone currently caters for International Roaming to more than 230 live operators in more than 130 countries.
Ufone has introduced International Roaming facility for prepaid subscriber in various countries around the
globe with the lowest call
rates, featuring no security charges and activation charges.

3. GPRS ROAMING GPRS

Roaming facility is available with more than 115 live operators across 85 countries.

4. LICENSE FOR AZAD JAMMU KASHMIR AND NORTHERN AREAS

The company has also been awarded a new license for providing cellular services in Azad Jammu and
Kashmir and Northern Areas.

5. QUALITY COVERAGE

Ufone provides its subscriber with quality coverage and clear connectivity.

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6. VALUE ADDED SERVICES

Ufone is a host of value added services and data connectivity with the best network Pakistan.

7. LOWEST PRICES

Ufone offers the most reasonable prices for its users.

8. REPRESENTATIVE OF PTCL

Ufone acts as a representative of PTCL as it is its subsidiary

9. PIONEERS OF MMS AND

GPRS Ufone was the first to launch GPRS services and Multimedia Messaging Service (MMS) and prepaid
roaming in Pakistan. The network also allows Ufone subscriber to have high speed wireless data service.

10. SECOND LARGEST MARKET SHARE

Ufone is the second largest cellular operator in Pakistan with subscriber base of around 6.5 million and a
market share of nearly 25%.Ufone’s Prepay brand is now considered to be one of the most favorite brands
by the youth market.

WEAKNESS
1.BEHIND ON EXCESSIVE DEMAND

This is Ufone’s biggest weakness; company is unable to meet the demands

2. POOR ORGANIZATIONAL STRUCTURE

Centralized structure failed to provide proper guidance over instruction and policies.

3. STAGNANT PROFITABILITY

As compared to financial assets, Ufone is not close to expected profitability.

4. OVERLY DEPENDENT ON PTCL

Since, it is a subsidiary of PTCL IT is dependent on PTCL.

5. LACK OF FRNACHISE

It has many franchises in the whole country but as its customers are increasing day by day so its present

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franchises are not enough to fulfill


the needs of it customers.

6. LACK OF INNOVATIVE SERVICES

Ufone though has some unique and distinct services but it has not yet given many innovative services as
compared to other cellular
companies.

7. NETWORK COVERAGE

Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is a bit poor.

8. COMPETETION

When Ufone came into the seen in Pakistan cellular market Mobilink was already prevailing in the market
and it was all Mobilink monopoly
that time. Though with the passage of time Ufone took many customers of Mobilink but still Mobilink has
large number of users because it was first to Pakistan’s cellular market and this is the competitive
disadvantage to Ufone.

9. INTERNAL PROBLEMS

Ufone is plagued with some internal problems like when it is privatized to Etisalaat being the part of the
PTCL many employees were not happy with the pay scale that they were offering.

OPPORTUNITIES
1 CONTINUING TO EXPAND GLOBALLY
Ufone has the ability to expand globally. But due to current economic condition all its operation on
halt.

2 PUBLICITY AND MARKETING

With the right marketing strategy they can acquire much more.

3 DEVELOP NEW VALUE ADDED SERVICE

This is an opportunity that will never be satisfied, meaning that Ufone should always be attempting
to keep improving new value added services and as we know what is in today will be out tomorrow.

4 INTRODUCE KIOSK TECHNOLOGY

Ufone can surprise its competitors by introducing “Ufone kiosk”. These will be ATM like machines
and that will give 24-hour service to Ufone subscribers to load the balance just like they take money
from ATM.

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Prestion University Pakistan

5 DEVELOP FRANCHISE IN REMOTE AREAS

Ufone should develop some new franchises in remote areas so that people will get more and more
benefit from it and it will help to increase their customers.
Ufone should extend its network coverage area to Northern part of the country as well because in
that part not too many companies are giving services and if Ufone give its service there then it will
definitely attract people and its number of customers will shoot like a rocket.

THREAT
1 GOVERNMENT INTERFERENCE

Government interference in terms of taxes will always be treated as a threat.

2 PTCL CELLULAR LICENSE

Ufone is nothing just a cellular license to PTCL, PTCL should provide more financial support to
enhance profitability of its subsidiary company.

3 PENSION PAYOUTS

Part of this threat is their own doing and other is simply unavoidable. Ufone is responsible for
providing generous pension benefits to its employees, which at time seems like a great idea,
however they are now experiencing problems as more and more people begin to collect.

4 INCREASED HEALTH CARE COSTS

Ufone, like many large companies with quality employees’ health care benefits, is experiencing a
large financial hit that only get worse as time continues as compare to other cellular firms

CPM -COMPETITIVE PROFILE MATRIX

EFE is used to collect competitive intelligence information from external from external environment .It not
focuses on internal issues .where as CPM is little different from EFE it is also consider the internal issues and
the best feature of CPM that it allow to compare the competitor critical success factor with your
organization.

* Find out critical success factor.


* Assign weight to each factor depend up how important the specific factor for the organization success.
* The weight range from 0.0 to 1.0 lower number shows no or minimum importance and high
weight show more importance of factor to the company.

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* Assign rating to each factor depends upon how well organization respond to that factor.
* Assign a 1 - 4 rating to each critical success factor to indicate how effectively the firm's current
strategies respond to the factor.(1= response is poor ,4=response is extremely good )
* Multiply each factors wait by its rating to determine a waited score.

*Average total weighted score is 2.5.

The above CPM matrix compares the oil marketing’s companies on importance factors.
The total calculated figures tells the exact situation.

The competitive profile matrix (CPM) identifies a firm's major competitors and their particular
strengths and weaknesses in relation to a sample firm's strategic position

In a CPM the rating and total weighted scores for rival firm's can be compared to a sample firm.

This comparative analysis provides important internal strategic information. Ufone competitive
Profile Matrix is provided in table .In this matrix market share, growth rate and financial strength
are the most important critical success factors , as indicated by a weight of 0.60. In market share
Mobilink is leading but in the growth factors Ufone is leading with the weighted point of 0.40

Competitive Profile Matrix (CPM)


Critical Weigh Ratin Weighte Ratin Weighe Ratin Weighte Ra Weighe
Success t g d g d g d Score ti d
Factors (CSF) Score Score ng Score

Market .15 4 .60 3 0.45 1 0.15 3 0.45


Share

Growth Rate .10 1 .10 3 0.30 4 0.40 3 0.30


Financial .08 3 .24 3 0.24 4 0.32 3 0.24
Strength
Management .12 4 .48 3 0.36 3 0.36 3 0.36
Coverage .1 4 .40 3 0.30 2 0.20 2 0.20
CCS .13 4 .52 3 0.39 3 0.39 2 0.26
Advertising& .06 2 .12 3 0.18 3 0.18 4 .024
Marketing
Brand Name .10 4 .40 2 0.20 3 0.30 3 0.30
Packages& .09 2 .18 3 0.27 3 0.27 4 0.36
Offers
Price .07 2 .14 3 0.21 3 0.21 4 0.28
Competitiveness

TOTAL 1.00 3.18 2.90 2.78 3.00

The ratings values are as follows:


1 = major weakness,

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2 = minor weakness,
3 = minor strength ,
4 = major strength.

As indicated by the total weighted scores of 2.78, zong is weakest . Because it is initial position
as compare to competitors. With the point of 3.18 Mobilink is leading.only eight critical success factors
are included for simplicity; this is too few in actuality

Threat -Opportunities -Weaknesses - Strengths (TOWS) Matrix

The Threats Opportunities -Weaknesses - Strengths (TOWS) is also named as SWOT analysis .A TOWS
Analysis is a strategic planning tool used to evaluate the threats, Opportunities and strength, weaknesses,
involved in a project or in a business venture or in any other situation requiring a decision.
this is an important tool in order formulate strategy . This matrix is an important matching tool that help
manager develop four types of strategies: so Strategies (strength opportunities) ST Strategies (strength -
threats), and WT Strategies (weakness-threats). The most difficult part of TOWS matrix is to match internal
and external factor. Once the objective has been identified, TOWS are discovered
and listed. TOWS are defined precisely as follows:

Strengths are attributes of the organization that are helpful to the achievement of the objective.

Weaknesses are attributes of the organization that are harmful to the achievement of the objective.

Opportunities are external conditions that are helpful to the achievement of the objective.

Threats are external conditions that are harmful to the achievement of the objective.

Step for developing Strategies:

There are eight step involved in constructing a TOWS Matrix:


1 Rank external Opportunities
2 Rank external threats
3 Rank internal strength
4 Rank internal weaknesses.
5 Match internal strengths with external opportunities and mention the result in the So Strategies cell.
6 Match internal weaknesses with external opportunities and mention the result in the Strategies cell.
7 Match internal strengths with external threats and mention the result in the ST Strategies cell.
8 Match internal Weaknesses with external threats and mention the result in the WT Strategies cell.

TOUGH COMPETETION

As Ufone is cellular company and there is cut throat competition among cellular companies in
Pakistan. There are six other companies also working in Pakistan so Ufone would have to face
some growing competitive pressures.

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External Factors Evaluation (EFE ) Matrix of Ufone


Key External Factors Weight Rating Weighted Score

Opportunities

1 Globalization .12 4 .48

2 Publicity & Marketing .06 3 .18

3 Can target Corporate .10 4 .40

4 Develop New Value added Services .10 4 .40

5 Extend Coverage to Northern area .05 3 .15

6 Introduced international SMS packages like .06 3 .18


local SMS & call Package

7 Develop some new franchises in remote areas .08 4 .32

8 Introducing “Ufone Kiosk “ just like ATM .05 2 .10

Threats

1 Old Stable Companies & arrival of China .10 2 .2


mobile Company

2 PTCL cellular license .08 2 .16

3 Price War .05 2 .10

4 Government interference .12 3 .36

5 Pressure groups & health issue due to tower in .05 2 .10


residential areas

Total 1.00 2.97

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Internal Factor Evaluation Matrix- IFE Matrix

A summary step in conducting an internal strategic management audit is to construct an Internal Factor
Evaluation (1FE) Matrix. This strategy formulation tool summarizes and evaluates the major strengths and
weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating
relationships among those areas. Intuitive judgments are required in developing an IFE Matrix, so the
appearance of a scientific approach should not be interpreted to mean this is an all powerful technique. A
thorough understanding of the factors included is more important than the actual numbers. Similar to the
EFE Matrix and Competitive Profile Matrix described in Chapter 3, an IFE Matrix can be developed in five
steps:

1. List key internal factors as identified in the internal audit process. Use a total of from ten to twenty
internal factors, including both strengths and weaknesses. List strengths first and then weaknesses. Be as
specific as possible, using percentages, ratios, and comparative numbers.

2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all important) to each thctor. The weight
assigned to a given factor indicates the relative importance of the factor to being successful in the firm's
industry. Regardless of whether a key factor is an internal strength or weakness, factors considered to have
the greatest effect on organizational performance should be assigned the highest weights. The sum of all
weights must equal 1.0.

3. Assign a Ito 4 rating to each factor to indicate whether that factor represents a major weakness (rating =
1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4). Note that
strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2 rating. Ratings are thus company
based, whereas the weights in Step 2 are industry based.

4. Multiply each factor's weight by its rating to determine a weighted score for each variable.

5. Sum the weighted scores for each variable to determine the total weighted score for the organization.
Regardless of how many factors arc included in an IFE Matrix, the total weighted score can range from a
low of 1.0 to a high of 4.0, with the average score being 2.5. Total weighted scores well below 2.5
characterize organizations that are weak internally, whereas scores significantly above 2.5 indicate a strong
internal position. Like the EFE Matrix, an IFE Matrix should include from 10 to 20 key factors. The number
of factors has no effect upon the range of total weighted scores because the weights always sum to 1.0.

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Internal Factor Evaluation – Matrix for Ufone

• Total weighted score for the Ufone internal factor is 2.74 which is above average.

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CPM-Competitive Profile Matrix

EFE is used to collect competitive intelligence information from external environment. It not focuses on
internal issues. Whereas CPM is little different from EFE it also consider the internal issues and best feature
of CPM that it allow to compare the competitor critical success factor with your organization.

• Find out critical success factor.

• Assign weight to each factor depend up how important the specific factor for the organization success.

• The weight range from 0.0 to 1.0 lower number shows no or minimum importance and high weight show
more importance of factor to the company.

• Assign rating to each factor depends upon how well organization respond to that factor.

• Assign a 1-4 rating to each critical success factor to indicate how effectively the firm's current strategies
respond to the factor. (I = response is poor, 4 = response is extremely good)

• Multiply each factor's weight by its rating to determine a weighted score.

Sum the weighted scores.

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• Average total weighted score is 2.5.

The above CPM matrix compares the oil marketing companies on importance factor. The total calculated
figure tells the exact situation.

The Competitive Profile Matrix (CPM) identifies a firm's major competitors and their particular strengths
and weaknesses in relation to a sample strategic position

In a CPM the ratings and total weighted scores for rival firms can be compared to the sample firm. This
comparative analysis provides important internal strategic information. Ufone Competitive Profile Matrix is
provided in Table. In this matrix market share, growth rate and financial strength are the most important
critical success factors, as indicated by a weight of 0.60. In market share Mobilink is leading but in the
growth factor Ufone is leading with the weighted point of 0.40

Recommended strategy
We select the two strategies market penetration and product development. There total attractive score is 5.02 and 6.27
respectively. The strategy product development has big score that is why we select him.

Conclusion & Recommendation


Fine is 2nd largest cellular company in Pakistan. More committed toward growth.

Telecom industry is most growing industry of Pakistan still huge investment require for coverage. The market also has strong
competition after the entrance of china mobile company as a player. Competition are hiring professionals to entertain the
consumer which is resulting technological implementation and value added services. Consumer searches good services with
lowest call rates, although companies are minimizing call rate this will result more growth in the market. Ufone bring amazing
packages to attract the customers. Ufone promote their product through TV commercial, newspaper, radio, internet etc. The
choice of people is ufone because Ufone price level is low and affordable that every one can say.

“IT’S ALL ABOUT U”


UFONE could develop some new and innovative services to attract customer to increase their revenues as well as it customers:

It should introduce international SMS packages

UFONE has strong financial position & more competitive advantages then other cellular companies so he should more focus on
his strategies.

He should grow and maintain his position

They should also introduce some international call packages to middle eastern countries

In “UFONE GHANTA” packages time of the packages should be extended.

He should pay more attention towards postpaid services.

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