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Assignment

Submitted by

Rana Rizwan zahid Reg. # 6302


Muhammad Hanif Reg. # 6287
Muhammad Ali Reg. #

Class

6312

MBA 3.5

Subject

Strategic Management

Submitted to

Sir Khalid Chuhan

International Islamic University Islamabad

QMobile
Company Overview:
QMobile has become very popular brand in Pakistan only because of its low price and
abilities to stand along with expensive mobiles like Samsung, Nokia, Apple iPhone, HTC,
Hauwei and many more. With its innovative technique to grab the attention of the users with
more features and less amount, Q Mobile has now gained the reputation as the top smart
phone selling company in Pakistan
The brand Qmobile in Pakistan is brought to you by Digicom, a new intent in the industry but
one with long and successful history of bringing and selling innovative high cellular
technology of Pakistan with a futuristic vision and exhaustive R&D. From the low cost
packed handset to the bringing in the QWERTY Era, and from social networking and high
end music phones to the feature based business phones. QMobile is to mission to successfully
overcome to the technological barriers and constantly produce Complete Mobile lifestyle
solution. Q Mobile will become a brand which people across the social status will relate and
look up for realizing their individual device preferences and other out of the box solution.

External Analysis:
Micro environment
Competitor Analysis:
QMobiles are giving tough time to china and also to the Nokia mobiles because Nokia
mobiles with technologies are expensive which is out of range of mostly peoples of Pakistan
and if we talk about china mobiles they have serious problem in their technology. So those
people who buy Nokia or china mobile are now preferred Q Mobile, the big advantage which
q mobile have gain more appreciation is his resale value which dramatically good against
Nokia and china mobiles. They recently launched E900i by the Q Mobile in an extremely
stylish touch screen mobile phone with GPRS (General public Radio Service) and java
application support. You have the benefit of being connected to the network round the clock
and are billed for the amount of data transferred and not for the time line according recent
market research which we have done in Pakistani market view of people about Q Mobile is
good as compare the Nokia and china mobiles.
Customer Analysis:
Q Mobile targeting all types of segments of the people, especially low income persons by
providing them all kinds of services according to their needs and wants. For example we are
providing different plans for different customers according to their needs and usage. Todays
customers want multimedia features and also we have separate plans for students who also
interested in those features which are in expensive mobiles. Company will receive 12%
revenue of total sales from existing customers. 5% new customers will create in one and half
year. To retain the existing customer company will use following tactics:

Improving the contract with new and old customers.


Using frequency programs.

Company isconsidering that customers are always the king of the market and
more sensitive to quality and prices at a time.

Employees:
Employees of Qmobile are committed with company performance. Mobile is using the
workforce of LG mobiles that are very trained and efficient in their work. Pakistan is
developing country so cheap workforce is available that can give competitive advantages.

Macro environment
1. Political Factors:
Political stability and consistency in government policies play a vital role in the success of
organizations working in any country. As mentioned earlier QMobile imports mobile devices
from China and sells them under QMobile brand, so the change in government import polices
have a direct impact on the products offered by QMobile like the sales of QMobile were
reduced in April and May 2013 as the prices of the products offered by QMobile were
increased by Rs.1, 000 to Rs.1, 500 due to sales tax collection of Rs.500 and Rs.1, 000 on the
import of different categories of mobile handsets and accessories. The policies of new
government has helped in encouraging new investors to invest in Pakistan by relaxing tax
laws and reducing import duties that will certainly help companies like QMobile to work
more effectively and efficiently in Pakistan. An official from QMobile Company said that
because of the steps taken by the government the mobile handsets rates have been restored to
previous prices and the sales are also boosting again which had decreased by 50 percent in
last few months feeling the heat of the extra duties.

2. Economic Factors:
We live in a country where inflation is skyrocketing and unemployment is also spreading like
fire. Everyone cant afford buying expensive mobile phones. For the society like ours
QMobile has brought a nice alternative for people who demand mobile phones with plenty of
features, as the products offered by QMobile are not only attractive, stylish, and loaded with
numerous features but they are also low at price as compared to mobile phones of other
brands that offer similar features. QMobile is introducing better smart phones from time to
time at very affordable rates. It has such rates that even a night guard can afford one of its
Android smart phones. Today, in Pakistan, people of every locality and class owns a QMobile
handset. Instead of spending so much money on a Nokia mobile or Samsung mobile, you can
get the similar functions on QMobile at a reasonable price that you can easily afford. The
quality and affordability of QMobile is the main reason behind the tremendous successful
QMobile in the country.
3. Social Factors:
Mobile phones offered by QMobile are used by people of all ages without discrimination of
gender. The actual breakthrough for the QMobile was witnessed after the release of QMobile

Noir series. This series have gained immense attention and respect from the people of
Pakistan. After the release of this series the perception of QMobile has entirely changed
amongst the people. Those who used to degrade QMobile once now own a QMobile and they
are not using it happily but also appreciate the efforts of QMobile. Its latest smart phones
contain the latest updated Android version on which every application runs smoothly without
giving any trouble.
4. Technological Factors
Improvement in technology and use of latest technology is important to succeed in todays
changing market. Q Mobile has disturbed the entire local market of cell phones through its
extremely affordable price rates. It alone has not only affected sales of Apple in Pakistan but
also has affected other renowned manufacturers namely Sony, HTC and Samsung. The smart
phones that are produced by QMobile are nothing less than other expensive brands. They also
have fast processors, good storage capacity and long life. The amazing thing is that one can
get the similar technology at half the price of international branded smart phones. QMobile
produces dependable, innovative and super quality handsets at very feasible costs. Even the
care services for customers are proper and excellent. In very few time it has attracted great
mass of people because its cell phones are not of latest technology only but they are also
pretty stylish.

Internal Analysis
Swot Analysis:
Strengths:
Strengths are internally generated long term advantage in the industry. Strength gives a
company a long term advantage over its rivals. When we talk about Q mobile we see that Q
mobile is constantly innovating. Qmobile is bringingnew features in its phones. This is
necessary due to the competition in the market. Q mobiles provide a diversified product line
targeting both middle and lower end customer. These phones vary in designs feature
Bluetooth, dual Sims, 1.3 mp camera and 2GB etc.

Experiences work force of DIGILCOM and LG is the big strength of Q mobile.


Improved Sales distribution channel across the Pakistan.
User friendly
Long time battery
Brand availability everywhere.
Wide model range

Weaknesses
A weakness is something that causes issues for the underlying business, which take
considerable time and effort to fix and are internally generated or controlled.
Not much expansion left in the market.
Q mobiles provide all features at relatively cheaper prices but somehow customers
dont associate quality with q mobiles because it is relatively new player in the
market.
Small users.

No information in rural areas.


Opportunities
Opportunities are external conditions that are helpful to a company.
Smart Phones (Android)
Looser regulations allow Q mobile to perform in a way that is most advantages for
them and their customers.
New products can help Q mobile to expand their business and diversity their customer
base.
Q mobile can use online market to reach their customers with low cost.
Threats
Unstable political condition of the country. Too much investment is not feasible.
China assembled can destroy their market.
People have more trust in established brands Nokia and Samsung.
If any big problem found in Q mobile phone it will damage the image of Q mobile
because it is new player in the market.
Tough competitors in the market like Nokia and Samsung. And they are operating in
market for long period.
Price war

IFE Matrix:
Internal Strength
Largest
Manufacturer In
the market
Good reputation
and image
Strong
management
team
Increasing cash
flow
Loyal employees
Access to cheap
and reliable
financing
History of minimal
service complaint
Financial ratio
Internal
Weaknesses
Saturated Market
Little
Diversification
Absence to
Strategic Partner

Weight
10%

Rating
4

Weighted Score
0.40

12%

0.48

4%

0.12

8%

0.12

4%
5%

3
4

0.15
0.12

4%

0.12

5%

0.20

10%
8%

1
2

0.10
0.16

4%

0.04

Limited Access to
international
market
Total Weighted
Score

4%

100%

0.04

2.79