ACKNOWLEDGEMENT As a student of course.strategic management MGT 603 and all the preaching and guidance of my course teacher Mr.

. M. Shafiq. I hereby present my final project as required on firm operatingin Pakistan belonging to telecom sector. i.e Ufone one of the leading cellular service provider alongwith value added service and business strategies.I also hereby present all the facts and figures which I gather about Ufone from newspapers,websites and from Ufones annual report. Due to my job and other secular activities I couldnt beable to approach the firm directly, however with the help of my friends those close to Ufone. I prepared this project for consideration of approval of my learning and understanding about thesaid subject.

EXECUTIVE SUMMARY Ufone (official name: PTML) is a PTCL company, PTML (Ufone) - a wholly-owned subsidiaryhas improved its financial performance commenced its operations on 29th January 2001 as aGSM 900 service provider. Since the outset, it has expanded its coverage and customer base ata rapid pace and established itself as one of the leading cellular service providers in Pakistan. Dur ing t he l ast year Ufone suc cessfu lly c ompl eted the lau nc hi ng of si t es unde r Pha se V in exist i ng as wel l as new cit ies and towns by invest i ng more t han US$ 525 mi l li on. Thi s has increased the asset base of Ufone from rupees 20 billion to 27 billion. To further enhance thesubscriber base and strategically position the company in the growing telecom market, Ufone hasfinalized a network expansion for Phase VI contract amounting to about US$ 170 Million.

Ufonecurrently, has network coverage in more than 4,745 locations throughout the country. Ufone's operational performance has been very encouraging despite stiff competition in Pakistan telecom market which has led to reduction of pricesto bare minimum level. Ufone managed to improve its revenue and after taxprofit by 87% and 54% respectively, as compared to the last year throughaggressive policies and exercising strict control over expenses. 1 . 0 I N T R O D U C T I O N 1.1 DETAILS OF THE PROJECT Ufone is a Cellular Service Provider founded in 2001 It is also a subsidiary firm of PTCL As of 2008,Ufone employs more than 1,730 people. It manufactures its the GSM company providing services to allfour continents urban and rural areas., As of 2008, Ufone is the second largest telecommunicationcompany in Pakistan. In recent years the company has endured significant improvement in services toalmost 4,745 locations throughout the country.The major competitors of Ufone are domestic companies like MOBILIINK Pakistan Mobile Communications Limited, be t t e r k n o w n a s M o b i l i n k G S M , i s a telecommunicati on service provider in Pakistan. According to PTA statistics, Mobilink has 30.88million customers by January 2008. Mobilink's Head office is located in Kulsum Plaza, BlueArea, Islamabad TELENOR Telenor (OS E: TEL , NASDAQ : TEL N) i s the inc umbe nt telec omm uni cat i o ns company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly anint ern at i onal wi r el e ss carri e r wi t h operat i ons in Sc andi navi a, Eas ter n Eur ope and Asi a. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries. PAKTEL/ CHINA MOBILE/CMPAK Paktel was t he first ever company grant ed lic ense to c arry out c el l ul ar phone servi c es inPaki st an , set up by Cabl e &

Wi rel ess. It c arri ed out AMPS servi c es unt il 2004, when t hec omp any launc h ed GS M servi c es as wel l . It s mai n comp eti t or emerge d in late 1990s as Instaphone and soon began to dominate the market. On 4th May 2007, Paktel was renamed toCMPak. And then, on 16th May 2007, China Mobile announced that it had upped its stake inCMPak to 100%. Moreover, PTA (Pakistan Telecommunication Authority) has announced that itmay resolve the frequency issue with China Mobile, as it was one of the main reason for pullout by Millicom International Cellular S.A. WARID Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providingtelephony services in Bangladesh, Pakistan and Uganda. ZONG Zong is the first International brand of China Mobile being launched in Pakistan. It is meant toempower and liberate the people of Pakistan in every nook and corner of the country 1.1 PURPOSE OF THE PROJECT The purpose of this project is to enhance the ability of understanding the importantfactors, matrix, strategy of business. And also to encourage to know more about thetelecommunication sector in Pakistan.Ufone is one of my favorite cellular company. I have being using Ufone since2004. Over the past few years Ufone developed dynamically. Ufone is the purposeof my project and my communication medium in life. 2.0 FINDINGS2.1 INTERNAL & EXTERNAL ANALYSIS INTERNAL ENVIORNMENTHuman Resource ManagementMarketing DepartmentCommercial DepartmentSales DepartmentFinance DepartmentPayroll DepartmentInformation Technology DepartmentEngineering DepartmentAdministrationAuditing DepartmentCustomer CareEXTERNAL ENVIORNMENTEconomic ConditionsSocial

ConditionsCultureDemographicsEnvironmentalCompetitiveTechnologi calConsumer AttitudeGlobalization 2.3 SWOT ANALYSISStrengths 1. Second Large Market Share Although Ufones market share has dropped due t o c u r r e n t e c o n o m i c a n d p o l i t i c a l circumstancesit but is still very much competitive at 20 percent. 2. Worldwide Cheap call Experience As explained above even with Ufones recent decline they still have the market share and theexperience to bounce back. They have been a nationwide company for nearly ten years now andhave established themselves as the national leader for most of them. 3. Variety of Value Added Service Provide variites of value added services as compared to other cellular networks 4. Representing PTCL name As it is the subsidiary of PTCL. 5. Coverage on GT Road 60% Now covering Pakistan business highway upto73% Weaknesses 1. Behind on Excessive Demand T h i s i s U f o n e ' s b i g g e s t w e a k n e s s i s n o t attempti ng 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. Subsidiary of PTCL, it is dependent on PTCL Opportunities 1. Can target Corporate

It is obvious that GM was behind its competition with regards to the research and developmento f h y b r i d v e h i c l e s . H o w e v e r h y b r i d t e c h n o l o g y i s s t i l l v e r y m u c h n e w g i v i n g G M t h e opportunity to once again become the automotive industry's leader in innovation and technology. 2. Continuing to Expand Globally. Ufone have the ability to expand globally. But due to current economic condition all its operationare on halt 3. Publicity and Marketing With the right marketing strategy they can acquire much more. 4. Develop New Value Added Service Thi s i s an opport uni t y that wil l never be sat i sfi ed, meani ng t hat Ufone shoul d al ways be attempting to keep improvising new valuedadded services, and as we know, what is intoday will be out tomorrow. Threats 1. Govt. Interference Govt. Interference will always be treated asa threat in terms of taxes. 2. PTCL cellular license Ufone is nothing just a cellular license to PTCL. PTCL should provide more financial support toenhance profitability of its subsidiary company. 3. Pension Payouts. Part of this threat is their own doing and the other is simply unavoidable. Ufone is responsiblefor providing generous pension benefits to its employees, which at the time seemed like a greatidea, 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 employee health care benefits, is experiencing alarge financial hit that only gets worse as time continues as compare to other cellular firms.

2.4 EXTERNALFACTOREVALUATION

2.8 BCG2.8.1 DETAILS OF PRODUCTS Ufone understands the value of words and the need to communicate effectively and efficiently atall levels of society, which is why companys primary focus is on U. Ufone offers, Prepay & Postpay services in the Telecom sector. The telecom markets growing rate in Pakistan is higher than any Asiancountry. Ufone offers lower rates and better network then other alreadyestablished cellular companies. All living standards have been captured byUfone, like Students, Labour and Businessmen, etc.Ufone aims to provide with wider coverage, superior connectivity, clear signals & voice qualityto their valued customers 2.8.2 MATRIX

3.0 Conclusion In View of the following data Ufone is one of the telecom sector who need to produce moreoutput by implementing new technologies, new tariffs, new consumer satisfaction value addedservice. Further, it is still the second largest cellular service provider in the country 4.0 Recomendations Should encourage new products like, Ufone PCO, Broadband services etc from its existing two services.

Suggested Strategies 1. Market Development2. Market Penetration3. Product Development4. Restructuring5. Retrenchment6. Liquidation 5.0 References Pakistan Telecommunication Website PTCL Annual Report Ufone Website Friends Teachers Handout,