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STRATEGIC MANAGEMENT

2014

ACKNOWLEDGEMENT

We are profoundly grateful to Almighty Allah for enabling us to accomplish this assignment. We are
sincerely thankful to our supervisor Sir. Naeem Bhojani for extending best possible support and
cooperation for giving us the idea for making such report on practical basis. He got a strong command
on the subject and the topics he covered, during the semester, would help us a lot while implementing
this knowledge in our practical life.
We are also thankful to Zongs representative for providing us their data and guide us for completion of
our project.
With the guidance of our supervisor we really enjoyed working on this project as it was a learning
process with a teams effort.

TABLE OF CONTENTS

EXECUTIVE SUMMARY
The purpose of this report is to observe and analyze the practices of Zong regarding its Strategic
Management process . Say it all Zong, a company very highly spoken of these days. A
company paying more attention to its customers delights rather than the customers satisfaction.
Zong is a company starting from scratch and has shown utmost performance in the last seven
years. Zong owes its success to its employees believing that providing employees with job
satisfaction motivates them to work hard and provide better results.
This report has allowed us to know various Strategies used by the company for giving benefits to
their employees. In short, the effort of making this report has helped us in understanding
different strategies used by Zong Company.
The style of management at Zong is different from the traditional organizations, Zong has
adopted participative management. This type of management creates a sense of ownership
among the employees.. The HR department at Zong also manages grievance. Zong provides
perfect environment for employees to work efficiently to gain experience and to add worth to the
organization.

INTRODUCTION
COMPANY PROFILE:
CMCC
China Mobile is the world's largest telecom operator. Having a customer base of over 300million
customers, its network routes 700 million text messages everyday and handles 250 million
calls every hour.
China Mobile is perhaps the only cellular network that provides uninterrupted, reliable
coverage through tunnels, on highways, inside sky scrapper elevators as well on top
of Mount Everest.
One

of

the

unique

features

of

China

Mobile

servicing

excellence

is

c u s t o m i z i n g i t s products, services and tariffs to suit the individual needs of its huge
subscriber base. There are hundreds of payment/tariff options to choose from according
to one's usage pattern, budget limitations and nature of use.
China Mobile is the first overseas subsidiary, China Mobile Pakistan has the license to
offer and operate voice, data and all value added services in the
entire country.
One of the fastest growing cellular markets in the world, Pakistan is a key region that is likely to offer
expansion opportunities as well the chance to make a difference in the lives of a growing clientele
that is demanding and understands and appreciates better quality and service standards
It is Pakistans second largest GSM mobile service provider and third largest mobile service in terms of
subscriber base of over 25.6 million. It has a market share of 19% among cellular operators in the
country.

ZONG PAKISTAN
ZONG is the first International brand of China Mobile being launched in Pakistan. It is
meant to empower and liberate the people of Pakistan in every nook and corne r of the
country. It will become a part of their hearts, their minds and bring about a change in
their lives that every one desired but few thought would be possible. The core essence of ZONG is to
allow people to communicate at will. Without worrying about tariffs, network coverage, capacity issues
or congestion. Zong will be supported by ground breaking communications, trend setting
customer service and an unmatched product offering which will redefine rules of the
game and establish ZONG as a serious contender for the number one spot They are privileged to
be the pioneering country introducing this brand with others to follow. And God willing
together they will also make ZONG a success story for others to try and replicate

The Brand
Zong font is futuristic depicting a clear and modern approach. It is simple and in italics, depicting the move forward, yet
comes out as composed and a coherent. The new refined font couples a tinge of dexterity transforms in to a flexible
outlook. The blue background gives the brand a young and fresher look, whereas the type phase, illustrates the
confidence, stability and corporate image,

Colour:
Color is second element in developing a distinctive visual identity; color can trigger an
emotion and evoke brand associations. Zong logo is predominantly blue, red and white
color, depict energy, youth sophistication and optimism. Different people different
landscapes different cultures but one nation. One common expression, one common voice,
one choice-Zong a brand that understands your need and speaks to your mind and heart.
Zong is young, progressive, energetic, genuine and honest, clearly someone from
your b u n c h o f f r i e n d s , w h o n e v e r l e t s y o u d o w n a n d d e e p l y i n c l i n e d t o y o u r
s i d e - a t r u e companion and well wisher and understands y o u r n e e d s , w i s h e s a n d d e s i r e s
a n d h e l p s y o u g e t c o n n e c t e d w i t h y o u r l o v e d o n e s anywhere, anytime. So speak your
heart out and be good to your expression as Zong is all set to mesmerize you with the ever-entertaining
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Vision:
Make communication exciting
We will conduct ourselves with integrity and live our company values deliver continuous innovation and
exceptional quality services Foster an internal environment of innovation, collaboration and trust In
doing CM Pak will become our customer partner of choice, our industry employer of choice and our
shareholder investment of choice

Mission:
To be leasing mobile operator in pak by continuously innovating and
o f f e r i n g exceptional quality and service , to be a good corporate citizen and envy of
friendship between China and Pakistan.

Core Values:
Responsibility Makes Perfection
Five Key Values
1. Trust Worthiness
Trust worthiness to be promoted between employees and with customers. Building Trust and
Integrity must characterize in everything we do. We want everyone who comes in
contact with us to know that we do things the right way at CMPak. We work
w i t h honesty, integrity and loyalty. We don't take short cuts.
2. Respect
Respect to be core part of the work environment .We treat each other with respect giving individuals
autonomy, privacy, due courtesy in day to day interaction with our customers, suppliers, contractors,
and of course each other. We tolerate and accept diversity.
3. Responsibility
Responsibility sharing and being aware of the responsibility with in the work place and
outside of it.CMPak is a much larger company today than we were. With this increased
size comes the challenge of operating in a timely fashion. We must avoid bureaucratic
delays in the pursuit of excellence. We must be agile enough to act faster
t h a n o u r competitors.
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4. Communicate Openly
We want good news to travel fast and bad news to travel even faster up the line. We need t o b e
mindful of the importance of honestly communicating problems as
w e l l a s breakthroughs. The sooner we communicate a problem, the easier it is for us to
marshal our company's resources to solve it. We must communicate with each other at all levels
fostering harmony and a culture of openness.
5. Team Work
Team works culture with in the organization. CM Paks power comes from the
talented people who make up our company. By cooperating and sharing our knowledge with each
other seamlessly across organizations, we can make our company even stronger.
communication is now a utility.
Goals and Objectives
Mobile You need your mobile phone. Zong team seeks to m e e t c o n s u m e r s a l l c o m m u n i c a t i o n
needs by providing the best technology at an affordable price.
They give you:
Coverage:

at an affordable price.

Convenience: at an affordable price.


Connectivity: at an affordable price
It would be their prime objective to be rated as the best cellular service
p r o v i d e r i n Pakistan by expanding their service area to eve ry corner of the country
which is to be backed by excellent after-sales service
As a major step towards achieving their goal of expanding their services rapidly They have
decided to award the expansion contract to different vendors in Pakistan. These high ambitions would
certainly lead us to become a major force in the development of telecom industry in Pakistan. We
know that their partners Alcatel -Lucent Technologies, Ericsson Pakistan Limited, Huawei
Technologies Pakistan and ZTE Pakistan are very well-known globally for their technical expertise and
professionalism. The professionals representing their partners will help CMPak achieve its goals in the
hottest possible time

Zong have completed acquisition of 100% shares of ZONG. US $ 723 million worth of FDI has already
been made in the country and on top of that Theyll be investing millions of dollars in the future.

Strategic Planning of Zong


The company has set up a strategic management system to formulate the company a five year
development plan and three year strategic plan which includes five management modules:
environmental analysis , an objective system, proposal formulation measures planning and
implementation assessment. These modules lay down the action plan for the company
development and establish a strong supervisory control system for the implementation of
strategies budgets and internal performance manage strengthen the guidance and driving
function of strategic on business operations.

Major competitors of Zong are


Moilink
Telenor

Marketing Strategy of ZONG

Marketing Mix
"Marketing Mix" is set of correlated tools that work together to achieve companys
objectives, they are:
Product
Price
Promotion
Place

Product
Product means offerings of a company, and ZONG is offering its customers Services as well as
products. In services ZONG is offering followings:
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Postpaid packages
Prepaid packages
Value added services
Postpaid packages are generally for business class and in postpaid ZONG are offering
many other packages like 100 line rent, 300 line rent, 600 line rent, 1200 line rent and
2000 line rent. Prepaid packages are for low and middle class in prepaid ZONG also
offer many packages like 12 anny, 65 paisa, free package and aik second package. And
also many exciting value added services like missed call alert, ramzan value time offer,
dial tune, E-care, happy hour and many more exciting offers. And products like mobile
phone and for postpaid ZONG offers blackberry.

Price
ZONG is offering its products and services at a low price so ZONG is using price
penetration because all the packages (postpaid and prepaid) are very low priced and
also other value added services are also very low in cost. Some of them are absolutely
free of cost like:
Postpaid packages
Prepaid packages
Value added services
Postpaid packages are generally for business class and in postpaid ZONG are offering
many other packages like 100 line rent, 300 line rent, 600 line rent, 1200 line rent and
2000 line rent. Prepaid packages are for low and middle class in prepaid ZONG also
offer many packages like 12 anny, 65 paisa, free package and aik second package. And
also many exciting value added services like missed call alert, ramzan value time offer,
dial tune, E-care, happy hour and many more exciting offers. And products like mobile
phone and for postpaid ZONG offers blackberry.

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Price
ZONG is offering its products and services at a low price so ZONG is using price
penetration because all the packages (postpaid and prepaid) are very low priced and
also other value added services are also very low in cost. Some of them are absolutely
free of cost like:
Missed call alert
E-care
MNP
Conference call
Subscription of SMS packages
As Ufone is giving its customers uth package and it charge its customers hourly rate
but ZONG gives its customers a package called location base charging it charge you
only one time charges and then whole day free and many more other.
ZONG also using bundle pricing like SMS packages, voice bundle and mobile phone
offers.

Promotion
ZONG is promoting its products and services in many ways like:
Print media
Billboards
TV ads
Mobile promotions
Through Local cable
Internet
In print media print ads and newspapers are include if ZONG is offering something in a
specific place than ZONG use print media like print ads and newspapers. Billboards are
use in all over the country. On many TV channels Ads are promoting ZONG. Mobile
promotions like in Multan and Lahore when trucks and buses decorated with ZONG
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logos and advertising about LBC and Lahore unlimited offers. On many websites ZONG
is promoting its packages and offers and also ZONG has its own commercial web site
www.zong.com.pk.

Place
Place means that how a company reach to its customers or how a customer can get product of
a company. ZONG is reaching to its customers in the following manners:
Franchises
Customer service centers
Retailers
Through Student Entrepreneurs
Franchises and customer service centers are there for customers and also customers can get
ZONGs products and services from retailers and student entrepreneurs.

Competitive Strategy

Differentiation
Differentiation is how your product is different from your competitors it can be done in
many ways like products differentiation, features differentiation, low price and many
others, for this differentiation a company should have to create a critical success factor
and ZONG is having a critical success factor of low rates and quality services. ZONG
claim that ZONG offers quality products and services in low pries.

Market Penetration
Low price packages and bundle offers to attract more customers and increase its
market

Product related Diversification


The company has just launched Time Pe mobile Banking service. Cost Leadership. The
company focuses mainly on masses and is striving to produce low cost packages
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First telecom operator in Pakistan to issue SIMs that includes a certain amount of balance
Internet Bundle package is offering the cheapest tariffs on Internet usage All the functional
departments of ZONG are focusing on cost cutting
Price of the product at the lowest level in order to attract the price sensitive customers
Majority of the role out operations are outsourced to vendors in order to reduce cost.

Zong lies in Product development


As in differentiated marketing a firm decided to target the several segments. Mainly they are
targeting youth as they have more offers than the other class or segment of the market,
through student package, zong circle, 65 paisa call etc
.The company offer new & innovative products for the main target as well as for the whole
market.

Customer perceived value


PRECIVED VALUE

Time pay
Low Rates
Zong Circle
Insurance ggifklpop

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