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To be the leading mobile operator of

Pakistan by continuously
innovating and offering exceptional
quality services to be good corporate
citizen and envoy of friendship
between china and Pakistan core
value. Responsibility makes

`` 1

Zong is the first International brand of China Mobile being launched in Pakistan. The company is
often cited as China Mobile (Pakistan). It is meant to empower and liberate the people of
Pakistan in every nook and corner 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. ZONG would offer its customers with entertaining & innovative value added
services and will empower them by giving a wide variety of products, services & content to
choose from. We are privileged to be the pioneering country introducing this brand with others
to follow. And God willing, together we will also make ZONG a success story for others to try
and replicate.

ABOUT China Mobile Pakistan (CMPak)

China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas
set up of China Mobile came through acquisition of a license from Millicom to operate a GSM
network in Pakistan.

So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an
additional US$ 800 million will be invested till the end of year 2008.

With ambitious plans to cater to the fastest growing Pakistani market and to win over the ever
demanding Pakistani customer, it will be offering unprecedented coverage, voice and data
services as well as a wide range of tariff options to choose from.

CMPak's edge comes from the experience and expertise of running the world's largest telecom
service and the commitment they make to setting quality and customer relations standards.
CMPak is geared to offer neatly packaged VAS products that will benefit the individuals,
corporate as well as small businesses. Led by a team of professionals from the field of cellular

Communication, CMPak is determined to make its mark in the Pakistani market and to change 1
the way people communicate.


Recently china mobile company in Pakistan after replacing the code 0304 with 0314 now
introduced its new brand in called ZONG. With an introductory slogan Say everything or
Sub Keh Do & started its advertising campaign at popular print & electronic media outlets.
Paktel started its commercial operations in Pakistan in November 1990 as the pioneer of cellular
telephony with an AMPS network which was converted to TDMA (Digital) in 2003. Soon after
GSM quickly gained popularity all over the world and became the technology of choice leaving
AMPS/TDMA far behind. Paktels principal shareholder was Millicom Pakistan, which held
98.86% equity of Paktel. But however on Feb 13th 2007 Millicom announced that it had
completed the sale of its 88.86 per cent shareholding in Paktel Limited to China Mobile
Communications Corporation which finalized Millicoms exit from Pakistan. Soon after, china
mobile company bought all the assets of Paktel, the new management seems busy, to tie up
promotional strategies, with the intention to win the telecom market slowly & silently. Well that
is just a prediction I have made because in Pakistan Chinese products mostly are famous due to
their cheap prices. & more the 90% population in Pakistan is price conscious due to their lower
or medium income level, so lets see weather ZONG is facilitating mobile users specially
youngsters by providing lowest calling, SMS, MMS as well as GPRS rates or not.



Customer No

Product and services Yes

Market No

Technology Yes

Survival, growth, profit Yes

Self concept Yes 1

Public image Yes


Employees No

Psychology Yes



Ladies and Gentlemen, we bring you ZONG 65, the new pre-paid package of ZONG that delivers
100% on economy and guarantees lowest call rates to any network in Pakistan

12 Aanay Package
Talk for an entire hour - any hour, for only Rs.4.99 and for the first time in Pakistan you can
change the hour everyday!

50 Paisa/Call (8 Aanay)
People claim of simplicity and yet give you half the truth. Only ZONG gives you the full truth at
half the price. Now make calls to any other mobile network for 8 Aanay.

Free Package
For the first time in Pakistan you can make free calls for life!

ZONG Super Free Number

That's right you can literally talk your heart out 24 hours a day everyday to that special
someone - all for FREE!

Break Time Offer

For the first time in Pakistan, ZONG offers you the benefit of calling your friends and family
freely during daytime.

Aik Second Package

Make call for just 4 paisas per second! 1

Unlimited SMS Package

ZONG offers unlimited message package only for 3RS per day.
Postpaid Packages

Line Rent (Rs)

100 300 600 1200 2000

On-Net Calls Airtime 0.5 0.45 0.375 0.3 0.1
Off-Net Calls Airtime 0.5 0.45 0.375 0.3 0.2
FNF 0.4 0.3 0.2 NA N/A
Spouse Number N/A N/A N/A Free N/A
Free SMS (On & Off-Net) 20 60 100 150 300
SMS Rate 1 1 1 1 1
GPRS 15 15 15 15 15

Free Minutes Break Up 100 300 600 1,200 6,800

On-Net 60 180 360 720 6,000
Off-Net-PTCL 20 60 120 240 400
Off-Net-Other Mobile Operator 20 60 120 240 400
Refundable Security Deposit 600 1000 1500 2500 4000

Other Mobile
Interconnect Charges PTCL
Per/ min 1 0.52
Per /30 Sec 0.5 0.26

30 Sec billing
Air-time rate for both On-Net & off-Net calls are same

Off-Net Calls i.e. Calls to other mobile operators & PTCL will be subjected to Interconnect
charges given above 1
Free minutes will be calculated on per minutes basis


We will offer 5 FnF (on-net only) numbers on 100, 300 & 600 package

FnF addition charges will be Rs 15 for each addition

For FnF Addition / Modification dial 1313 from your Mobile

Spouse number will only be applicable on Rs 1200 price plan with zero charges

Spouse number can be added / changed once in a month

Free minutes calculation for Rs 1200 price plan will be exclusive of Spouse number as
the charging on Spouse number will be zero

Free Minutes on 1200 package are exclusive of Spouse number

Spouse number can be added by calling our help line or visit our Customer services
Rs 2000 LR package will have 6800 free minutes in total, 6000 minutes will be On-Net
with a daily cap of 200 Minutes (Fair usage policy)

The first 200 minutes of the day will be charged at Rs 0 after which charging will be done
at On-Net Airtime rates i.e. 0.1 per 30 sec
Mobile Number Portability MNP
Mobile Number Portability (MNP) enables customers to retain their mobile telephone numbers
(including the three digit prefix) when changing from one mobile operator to another mobile


You will be able to take advantage of ZONGs attractive tariffs and service offerings
without even changing your mobile number.
You will save the inconvenience of informing all your contacts as is faced in the changing
your number.

You will experience cost saving by avoiding stationary cost (letterheads and business cards)
printing since your number will remain the same.

Customer service centers 1

The beacon of ZONGs impression and torch bearers of a new era in customer interaction,
taking customer service into a portal of customer excitement. These are the doors to ZONGs
first and foremost realization of its promise to excite customers with a new trend in service.
Setting the tone and ambiance which is second only to your home, these are ZONGs arms
across the country to welcome everyone to experience the comfort when a true promise is

Zone Address
1. S.A 16, 17 & 18, Plot # FL 17, Block 5, KDA Scheme 5, Clifton Karachi
2. Gulshan-e-Iqbal Opposite Batul Mukaram Masjid Karachi
Big City, Shop No G 59 & 60. 3-E-2, Liberty Roundabout. Main Boulevard.
Gulberg III
ISLAMABAD 68-E Jinnah Avenue, Blue Area Islamabad
RAWALPINDI Plot # 7, 8 ,9 Bank Road Rawalpindi
FAISALABAD Lucky Plaza, 213 Main Susan Road. Faisalabad
MULTAN Multan Arcade Main Katchery Road Multan
QUETTA Fayyaz Lab, Jinnah Road- Quetta
PESHAWAR Burjaman Centre, University Road, Peshawar
HYDERABAD Shop # 5, Ali heights, Auto Bhan Road, near CitiBank, Hyderabad
JHELUM Old Al-Bilal Hotel, Cantt chowk ,GT Road, Jhelum
SAHIWAL 511/BVII, Jail Road, Civil Lines. Sahiwal
DG KHAN Azmat Road DG Khan
GUJRAT Euro Heights GT Road Gujrat
GUJRANWALA Near Traffic Police Office, GT Road, Gujranwala
SIALKOT Shop No. 17, Aziz Shaheed Rd. Sialkot
ABBOTABAD Abbotabad Business Complex, Supply Bazar, Manshera Road- Abbotabad
MARDAN Zong Plaza, Mall Road, Mardan Cantt
SARGODHA Parhar Plaza, Railway Road Sargodha
BAHAWALPUR Baghdad UL Jadeed Road DIG Chowk Near Al Haq House Bahawalpur
Plot # B130, B block- Satellite town- Rawalpindi
SUKKUR Shop # 421-422.C Minara Road Sukkur



ZONG is committed on attracting and retaining the best human resource from all over Pakistan.
Its also provides a working environment which satisfies the professional and personal needs of
its employees.

ZONG Mobile Internet

GPRS Coverage
Fastest growing coverage in Pakistan.

ZONG Unlimited
@ Rs. 400+Tax/month

@ Rs. 10+Tax/M

The epoch of multimedia content is upon us and the last thing wed want is to stick to the age
old conventional messaging techniques.

ZONG Mobile Internet Hourly Package

Another spectacular service from ZONG that will keep you entertained 24/7. After rocking the
market with our services and all the amazing call rates, we are back with an outstanding feature
for all packages; ZONG hourly based Internet package.

ZONG Internet USB Card

The ZONG Internet USB Card is a device (with a SIM inside it) which can be inserted in your
laptop/desktop PC (in the USB Slot) to provide you with access to the internet. It works on the
EDGE/GPRS network and gives you wireless Internet connectivity, anytime anywhere!


ZONG Mobile

Zong has come up with another interesting

Promotion. you get a phone, almost free but
With a years payment in advance. This is equivalent
to the US model where customers have to sign
a contract to get a discounted phone.
In Zongs case they just get the money in advance
(great for them) and hope that users will stay with
Them after 12 months.

External Assessment:
PEST Analysis of Pakistan in Telecom Industry

In order to survive and remain profitable in todays competitive marketplace, Zong need to be
able to react and adapt to changes in the external environment and ideally be proactive in
impacting these forces. External environment factors can be classified into five general
categories: competitive, social/cultural, legal, economic, political, and technological.

Political Factors

Political Instability:
Pakistan is facing political instability causing danger for the telecom industry. But the
political factor does not effect on Zong so high because Zong related from china and
relationship of china and Pakistan is very strong.
The telecom sector of Pakistan has successfully liberalized in an efficient, transparent
and fastest deregulation of telecom in the region. The Government of Pakistan gave the


status of Industry to Pakistan Telecommunication Sector.

Changes in Tax Laws:

Tax rates have been increased day by day government tax rate of call is 15% and
recently government increased it by 6 % more.

Economic Factors:
Gross Domestic Product:
Telecom sector of Pakistan has a share of almost 2 percent in National GDP.

Average Revenue per User (ARPU):

The average revenue per user is falling. It does not affect value able on Zong. Because
Zong started in same condition.

Decline in Money Value:

The decline in Rupee value against the US Dollar, the decrease in the interconnect
charges and lower priced tariffs have resulted in an overall decrease of ARPU in US Dollar

Outflow of Capital:
The ongoing economic turmoil along with the worsening of security conditions in
Pakistan has caused an increased outflow of capital from the country.

Technological Factors:

Technological Development:
Companies are investing in their infrastructure to not only expand but also to upgrade
their existing structure. As the competition is strong Zong is focusing on its value added
Technological Advancement:
Currently all companies are providing Multi-media Messaging Services (MMS), General
Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference
Calling, Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at 1
low price.
Technological Trends:


The well-recognized technology trends that are influencing the evolution of the network
indicate that:
o The cost of a call is becoming even more insensitive to the distance;
o The modularity of the network is increasing;
o The networking is shifting from circuit-switched to packet-routing;
o The voice communication is now independent of the network;
o The geographic boundaries are irrelevant for emerging technology;
o The intelligence and function are moving away from the central office.

In these conditions competition is very strong among competitors. Zong is improving itself in

Five Forces Porter Model

Five forces looks at five key areas namely threat of new entry, power of buyers, power of
suppliers, threat of substitutes, and competitive rivalry.

Threat of New Entry

As government of Pakistan is showing liberalism in case of telecommunication sector and
opened its policies to award new licensees to new mobile service providers so threat of new
entry is high.

As set-up cost is in billions of dollars so in this case threat of new entry is low, but there are 1
companies who are working to achieve licenses and approaching PTA to know terms and
conditions for this.


As for this business companies need a well established distributions and franchises network so
threat of new entrant is high in this case.

Bargaining Power of Buyers

Power of buyer is high in telecommunication sector. There are six market players and players
are offering different packages at different prices and a situation of price war is running. Buyers
have a power to buy any package which is suited to them.

Cost of switching from one company package to other company package is low. Hence, power
of buyers is high.

Bargaining Power of Suppliers

The power of suppliers is low in case of telecommunication sector.

But the fact is that numbers of suppliers are few in the market but they are competing in the
market to make agreements with mobile service providers.

Threat of Substitute Products

Government also gave so many land lines and wireless local loop licenses to different
companies like PTCL wireless local loop, GO CDMA, WORLD CALL etc. these services in future
will be like mobile phone services like they are planning to offer services a lot but currently they
are offering SMS and CLI services to their customers.

Rivalry among Competing Firms in Industry

Currently there are six market players but in future they will be eight and nine or even more.

Thuraya satellite service is offering subscribers freedom of mobility and uninterrupted

service. Thuraya's satellite technology supplements of existing mobile service providers,
overcoming the challenges of large geographical areas and insurmountable terrain.

Competitive Analysis
Major competitors of ZONG include



Mobilink GSM

Pakistan Mobile Communications Ltd (PMCL)

Type Private Limited Company

Genre Subsidiary

Founded 1994

Founder Motorola USA

Islamabad, Pakistan
42 Kulsum Plaza, Blue Area

5000 cities, towns, and villages across

Area served

Key people Zouhair A Khaliq, President and CEO

Industry Telecommunication

postpaid Indigo , prepaid JAZZ,

Mobilink PCO

Owner Naguib Sawiris 1

Parent Orascom Telecom Egypt


Slogan Reshaping lives

Website www.mobilinkgsm.com

Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a

telecommunication service provider in Pakistan. According to PTA statistics, Mobilink has 30.88
million customers by January 2008. Mobilink's Head office is located in Kulsum Plaza, Blue Area,
and Islamabad.

Mobilink started operations in 1994 as the first GSM cellular

Mobile service in Pakistan by MOTOROLA Inc, later it was
sold to Orascom, an Egypt-based multi-national company.
Mobilink's corporate postpaid package is sold under the
brand name "Indigo" and prepaid by the name of "Jazz".

Mobilink is the largest cellular service provider in Pakistan

Pakistan Telecommunication Mobile Ltd. (PTML),


Type Private
Genre Subsidiary

Founded January 29, 2001

Pakistan Telecommunication
Company Ltd

Islamabad, Pakistan
13-B, F-7 Markaz

2336 cities of Pakistan, GT Road,

Area served
Super Highway & Motorway

Key people Abdul Aziz, CEO

Industry Telecommunication

Products Pre Pay, Post Pay

Rs.5.1 billion PKR (first quarter


Parent PTCL Pakistan

Slogan Its all about U! (Tum He Tou Ho)

Website www.ufone.com

Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile companies in
Pakistan and is a subsidiary of Pakistan Telecommunication Company.

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.

During the year, as a consequence of PTCLs 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 1
new cities and highways. Ufone has network coverage in more than 750 cities, towns and across
all major highways of the country.


Warid Telecom

Type Private

Founded 2004

301-Dhabi Tower, Hamdan

Headquarters Street, Post Box 44222, Abu
Dhabi, United Arab Emirates

Sheikh Nahayan Mabarak Al

Nahayan, Chairman
Key people Mr. Bashir A. Tahir, CEO Abu
Dhabi Group & Warid

Industry Telecommunication

Products Telephony

Slogan We Care

www.waridtel.com (Pakistan)
Website www.waridtel.com.bd

Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing
telephony services in Bangladesh, Pakistan and Uganda.

Warid is expected to launch in Congo soon.

In December 2005, Warid Telecom International LLC obtained a

15 year GSM license to operate as the sixth mobile phone
operator in Bangladesh for 50 million US dollars.


Warid Bangladesh launched their operations on the 10th of May, 2007 and uses the code 16
proceeded by the code number of Bangladesh +880. Warid Bangladesh has acquired a million
subscribers within 70 days of launch.

The company started rolling out network from mid-2006. In less than a year, amidst much
speculation, Warid Bangladesh launched their commercial operation with 26 districts the
largest ever launch in terms of network coverage and BTS Stations. Unlike its operations in other
countries Warid Bangladesh uses the slogan be heard instead of we care.

Currently Warid Bangladesh provides both post-paid and pre-paid connection plans. The post-
paid plan is branded and marketed across the country under the name Zahi Post-paid, which
means leader or royalty. The pre-paid segment is branded and marketed and ZEM PREPAID
According to Pakistan Telecommunication Authority, currently Warid Telecom has more than 10
millions subscribers in Pakistan and is ranked as the fourth largest operator in Pakistan. Warid
Pakistan claims it has the largest "post-paid" subscriber base in Pakistan.


Type Public

Founded 1855

Headquarters Fornebu, Norway

CEO: Jon Fredrik

Key people Baksaas, Chairman:
Thorleif Enger

Industry Telecommunication

Telephony and

91.1 billion NOK

Operating 18.3 billion NOK
income (2006)


15.9 billion NOK
Net income

Employees 31,750

Slogan Here to help

Website www.telenor.com

Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway,
with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an international
wireless carrier with operations in Scandinavia, Eastern Europe and Asia. In addition, it has
extensive broadband and TV distribution operations in four Nordic Countries.

At year-end 2005, Telenor held controlling interests in mobile operations in Norway, Denmark,
Sweden, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh and Pakistan. In
October 2006, Telenor entered into an agreement with Vodafone Group for the acquisition of
subsidiary Vodafone Sweden for a consideration of NOK 8,170 million, including assumption of

Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March
2005 and holds one of six mobile licenses in Pakistan. Its also the fastest growing cellular
network of Pakistan. Currently Telenor holds the second largest GSM and the largest GPRS and
EDGE coverage in Pakistan. It has also achieved the second largest retailer network in Pakistan
within the 2 years of its operations and it has started operations in Azad Kashmir and the
Northern Areas of Pakistan. Telenor has reached its breakeven in the first quarter of 2007 and
beat largest mobile operator Mobilink in sales. Telenor proactively participated in earthquake
disaster relief, and is carrying out a campaign for the welfare of flood victims in Balochistan.
Current CEO of Telenor Pakistan is Tore Johnsen.


Cellular Service Providers of Pakistan

Cellular Service Provider Market Share

Mobilink 31.6%
Ufone 21.5%
Telenor 21.6%
Warid 18.8%
Zong 6.1%

Source: (Pakistan Telecom Authority,2008)

Opportunities of Zong

Expand Globally 1
ZONG can expand the globally and can develop it strategy in other countries.

Publicity and Marketing

With the right marketing strategy they can acquire much more.
Acquire / merger
As warid is going in loss and in the condition of liquidation its big opportunity for Zong to
acquire warid telecom.

New product development:

Zong can introduce new products such as dish TV.
Opportunity in northern areas
Zong can have a clear edge over the competition in the Northern Areas especially, as China
Mobile has huge experience of network operation in similar high mountainous areas in China

Pak China Border

Zong can cover the border of China, with the Karakoram highway (old Silk Route) and can play a
vital role in freight transportation.

Threats of Zong
Old stable companies
Mobilink and Ufone are well-establish as compare to Zong in Pakistan.

Better Packages by Other Cellular

Companies like Telenor offer better packages for corporate customers. Telenor Postpaid
connection Persona is a good example of it.
Wireless local loop (WLL) service providers are also targeting areas which are less developed

Price Wars
Current price war among cellular service providers may reach at a position where only brand
names survive.

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

Internal Assessment:

Through its published manual on the code of business conduct at Zong. The company addresses
individual responsibility. Its value of integrity, respect, imagination and passion and its
commitment to serving its customer, it has several sections an ethics and how Zong encourages
employees to respect explicit ethics violations or questionable ethics conduct and give guidance
on how to handle such situations. This manual also guides management on how to handles
issues of discrimination, harassment, ethics violations reports.

Management Line Of Zong


Management line Name Location From

CEO Qin Lee Islambad China

CTO Xu Haiyong Islambad China

CFO Xin Jee Islambad China

COO Zafar Usmani Islambad Pakistan

CHRO Wai Giang Fu Islambad China

Direct Rollout Khurram Alive Islambad Pakistan

Director Operations Syrus Sikander Islambad Pakistan

Director Finances Amir Mahmood Islambad Pakistan

Director PMO Liu Lidong Islambad China

Director sales Mannan Shabbir Islambad Pakistan

Director NPS Mohammed Bilal Islambad Pakistan

Line Manager And Heads


Category Levels Management

Officers 1A+1B+1C Line managers+ Regional


Officers 2A+2B+2C Line managers+ Regional


Executives 3A+3B+3C Line managers+ Regional


Managers 4A+4B+4C Line managers+ Regional


Directors 5A+5B+5C SMT

Chief 6A+6B+6C SMT+CEO

Marketing Department
Marketing is particularly important today in telecommunication industry, especially as
consumers are becoming more sensitive to price. Customers are bombarded daily with endless
solicitations and Zong and its competitors are doing what can to diversify their services and
their names being remembered as the one customers turn to when they want to sign up for
services or switch to different provider many customers are finding out that Zong bundled
services are often better across the board than its competitors promotional services, which
sometimes last for only one on the services. Marketing department select the packages for
customers Zong packages are more attractive for the customers as compare to the competitors

Finance Department

Zong has strong financial position since its inception. China mobile acquires Paktel in $27.5
billion and it has been invested $1500 million in Pakistan for Zong and want to invest more. Zong
has been collected $ 36,575,000 in 2008. The improvement in net earnings resulting from strong
internal sales growth from both postpaid prepaid segments.

Value Chain

Zong purchases equipment from four companies ZTE, Ericson, Alcetle, and Hawaii. These are the
venders and operator of Zong. Zong distributors are franchises, customer care service centers
and different outlets. Zong has 22 CCSC and 100000 different outlets in Pakistan.

Research And Development Department (R&D)

R&D of ZONG is working hard. Its select the site where it is feasible and check the access, now
ZONG is covering all over the Pakistan rapidly

Human Resources Department

The fundamental objective of human resource function is to ensure that every aspect for the
organization, employment motivation and management of people is integrated with the
strategic objective of business and contribute to the successful achievement of those objectives.
Zong has two major sources of people inside sources and outside sources

Inside Sources


The manager of department having vacancy in mind speaks with personal manager and
together they give consideration to specific job.

Out Sources And Recruitment Method

In Zong management continuously hire fresh blood from the market through the following

Employee Referral
Business Colleges
Online Application Bank/Unsolicited application

Strength of Zong
Zong strength lies in the establishment of a strong, fundamental and coherent long-term
business plan, designed to sustain economic challenges in the country.


It has invested heavily in infrastructure, technology, human resources and customer services
which have given impetus for a broad-based future planning strategy. It further is investing US $
800 million in Pakistan to develop its infrastructure. Therefore it has the competitive advantage
of making huge investments in Pakistan which no-one else had made before regarding telecom.

Network portability

Over 500,000 people have been switched to Zong from other networks

Zong mobile
Zong has come up with another interesting promotion. you get a phone, almost free but with
a years payment in advance.

Resources, Assets and People

Being a multinational company Zong has huge resources in terms of capital. It has
billions of capital to invest in various projects. Its offices are luxuriously equipped with 1
every facility.
Zong while choosing people for jobs follow the strategy of choosing the best among all
therefore majority of its staff people are highly qualified from renowned universities of
Pakistan. A certain percent is foreign qualified as well
So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan
and an additional US$ 800 million will be invested till the end of year 2008.

Location and Geographical Coverage

Zong is also covering the all cities of Pakistan and in 2008 Zong completed its record sites
1000 in Pakistan its great achievement.
Now Zong is covering the northern areas of Pakistan rapidly.

Government Dealings
Pays a huge amount in taxes to the government of Pakistan. So its a big source of
revenue to the government as well.
It conducts its business by abiding by the rules and regulations setup by the government
and cooperates with the government in every aspect.

Weaknesses of Zong
Zong is establishing but it is new in market therefore it coverage is weak in rural areas of
Bad image
Bad image of associate with Paktel. And still now having old staff of Paktel.
Zong does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim specially pre pay. Zong have to take serious
steps to properly list its customers to ensure that there is no misuse.


A Comprehensive Strategy-Formulation Framework
Important strategy-formulation techniques can be integrated into a three-stage decision-making
framework, as shown below. The tools presented in this framework are applicable to all sizes
and types of organizations and can help strategists identify, evaluate, and select strategies.

Stage-1 (Formulation Framework)

1. External factor evaluation

2. Competitive matrix profile
3. Internal factor evaluation

Stage-2 (Matching Stage)

1. TWOS Matrix (Threats-Opportunities-Weaknesses-Strengths)

2. SPACE Matrix (Strategic Position and Action Evaluation)
3. BCG Matrix (Boston Consulting Group)
4. IE Matrix (Internal and external)
5. GS Matrix (Grand Strategy)

Stage-3 (Decision Stage)

1. QSPM (Quantitative Strategic Planning Matrix)


Stage-1 (Formulation Framework)

Industry Analysis: The External Factor Evaluation (EFE) Matrix

An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate
economic, social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive information. The EFE matrix consists of five steps process.
Five-Step process:

List key external factors (10-20)

Opportunities & threats. You have to prepare a list of all external factors which will affect the
EFE matrix. These factors should be two points to be kept in mind these are opportunities and

Assign weight to each (0 to 1.0)

Sum of all weights = 1.0

Now you have to arrange them according to their weight age that which factor is most
important. It should be weight age in % ages. The sum of the total of all the factors should
always be one.

Assign 1-4 rating to each factor

Firms current strategies response to the factor: how well firms response to these factors.

Multiply each factors weight by its rating

Produces a weighted score

How the firm will respond to these factors external factors. Such criteria are known as rating.

Sum the weighted scores for each

Determines the total weighted score for the organization.

Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5


Key External Factors Weight Rating Weighted Score


1 Globalization 0.10 3 0.30

2 Marketing 0.15 4 0.60

3 Acquisition 0.08 2 0.16

4 New Product Development 0.07 3 0.21

5 Northern Areas 0.10 3 0.30

6 Pak China Borders 0.13 3 0.39


1 Old Stable Companies 0.12 4 0.48

2 Attractive Packages By 0.10 3 0.30


3 Price War 0.06 3 0.18

4 Government Interference 0.09 3 0.27

TOTAL 1.00 3.19

Total weighted score for the ZONG external factor is 3.19 which is above average

The Competitive Profile Matrix (CPM)

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.


The weights and total weighted scores in both a CPM and EFE have the same meaning.
However, the factors in a CPM include both internal and external issues; therefore, the ratings
refer to strengths and weaknesses, where 4 5 major strength, 3 5 minor strength, 2 5 minor
weakness, and 1 5 major weakness.
There are some important differences between the EFE and CPM. First of all, the critical success
factors in a CPM are broader; they do not include specific or factual data and even may focus on
internal issues. The critical success factors in a CPM also are not grouped into opportunities and
threats as they are in an EFE.
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. Zongs
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 zong is leading with the
weighted point of 0.40

Competitive Profile Matrix (CPM)


Competitive Profile Matrix (CPM)

Critical Success Weight Rating Weighted Rating Weighted Rating Weighted Rating Weighted
Factors (CSF) Score Score Score Score

Market Share 0.15 4 0.60 3 0.45 1 0.15 3 0.45

Growth Rate 0.10 1 0.10 3 0.30 4 0.40 3 0.30

Financial Strength 0.08 3 0.24 3 0.24 4 0.32 3 0.24

Management 0.12 4 0.48 3 0.36 3 0.36 3 0.36

Coverage 0.10 4 0.40 3 0.30 2 0.20 2 0.20

CCS 0.13 4 0.52 3 0.39 3 0.39 2 0.26

Advertising 0.06 2 0.12 3 0.18 3 0.18 4 0.24

Brand Name 0.10 4 0.40 2 0.20 3 0.30 3 0.30

Packages 0.09 2 0.18 3 0.27 3 0.27 4 0.36

Price 0.07 2 0.14 3 0.21 3 0.21 3 0.21


TOTAL 1.00 3.18 2.90 2.78 2.92

The ratings values are as follows:

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

As indicated by the total weighted score of 2.78, Zong is weakest. because it is at its 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.

The Internal Factor Evaluation (IFE) Matrix

A summary step in conducting an internal strategic-management audit is to construct an

Internal Factor Evaluation (IFE) Matrix. This strategy-formulation tool summarizes and evaluates 1
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, an IFE Matrix can be developed in five steps:

List key internal factors (10-20)

o Strengths & weaknesses

Assign weight to each (0 to 1.0)

o Sum of all weights = 1.0

Assign 1-4 rating to each factor

o Firms current strategies response to the factor

Multiply each factors weight by its rating

o Produces a weighted score

Sum the weighted scores for each

o Determines the total weighted score for the organization

Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5



Key Internal Factors Weight Rating Weighted Score


1 Investment 0.09 4 0.36

2 High Growth Rate 0.11 4 0.44 1

3 Advertising 0.12 3 0.36


4 Net Work Portability 0.12 3 0.36

5 Zong Mobile 0.07 3 0.21

6 Resources Assets And 0.08 3 0.24


7 Location And Geographical 0.10 3 0.30


8 Government Dealing 0.09 3 0.27


1 Bad Image Of Paktel 0.06 2 0.12

2 Coverage 0.07 1 0.07

3 Low Market Share 0.05 2 0.10

4 Weak MIS 0.04 2 0.08

TOTAL 1.00 2.91

Total weighted score for the Zongs internal factors is 2.91 which is above average

Stage-2 (Matching Stage)

Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix

The Threats-Opportunities-Weaknesses-Strengths (TOWS) is also named as SWOT analysis. A
TWOS Analysis is a strategic planning tool used to evaluate the Threats, Opportunities and
Strengths, 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 to formulate strategy. This Matrix is an
important matching tool that helps managers develops four types of strategies: SO Strategies
(strength opportunities), WO Strategies (weakness- 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 1
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
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.

Steps for developing strategies:

There are eight steps 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 WO
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


StrengthsS Weaknesses W

S1. Capital W1. Coverage

S2. Network Portability W2. Bad Image Of Paktel
S3. Resources W3. Low Market Share
S4. Location W4. Weak MIS
S5. Government Dealings W5. Old Staff
S6. High Growth Rate
S7. Advertising


Opportunities O SO-Strategies WO-Strategies

O1. Globalization
O2. Marketing S1,O1 Expand
S3,O7 Penetration W3,O3 Acquisition
O3. Acquiring
O4. Covering Pak China S1,O3 Acquisition
O5. Covering Northern
O6. New Product
O7. Penetration

Threats T ST-Strategies WT-Strategies

T1. Old Stable Companies S1,T3 Cost Leadership

T2. Attractive Packages By
S3,T2 Penetration W3,T2 Downsizing
T3. Price War
T4. Government



Matching the strength 1 and opportunity 4 Zong can expand their business.

From S1 and O7 they can use the strategy of penetration.

From S1 and O3 they can use the strategy of acquisition.


Matching the strength 1 and threat3 Zong can use the strategy of cost leadership.

Matching the strength 3 and threat 2 Zong can use the strategy of penetration. 1



Matching the weakness 3 and opportunity 3 Zong can use the strategy of acquisition.


Matching the weakness 3 and threat 2 Zong can use the strategy of downsizing.

The Strategic Position and Action Evaluation (SPACE) Matrix

The Strategic Position and Action Evaluation (SPACE) Matrix is another important Stage 2
matching tool of formulation framework. It explains that what is our strategic position and what
possible action can be taken. It is not closed matrix. It is prepared on graph. It is closed matrix.
This follow counter clock wise direction. It contains four-quadrant named aggressive,
conservative, defensive, or competitive strategies. The axes of the SPACE Matrix represent two
internal dimensions financial strength [FS] and competitive advantage [CA]) and two external
dimensions (environmental stability [ES] and industry strength [IS]).
These four factors are the most important determinants of an organization's overall strategic

A SPACE Matrix for a Zong

Financial Strength (FS) RAITNGS

1. Revenues 5.0

2. Return on investment 4.0

3. Working capital 5.0

Competitive Advantage (CA)

1. Resources Assets -2.0

2. High growth rate -1.0
3. Advertising -2.0
4. Competition capacity utilization -3.0 1

Environmental stability (ES)

1. Technological changes -3.0
2. Rate of inflation -4.0
3. Demand variability -2.0
4. Barriers to entry into market -1.0

Industry Strength (IS)

1. Deregulation increase completion in telecom industry 3.0

2. Financial stability 5.0
3. Resources utilization 4.0
4. Profit potential 4.0



FS average is 14/3 = 4.67

CA average is -8/4 = -2.0
ES average is -10/4 = -2.5
IS average is 16/4 = 4.0

Directional Vector Coordinates: x-axis: 4.67+ (-2.5) = 2.17

Directional Vector Coordinates: y-axis: 4.0+ (-2) = 2

The Zong should peruse Aggressive strategies



Conservative (2, 2.17) Aggressive

Defensive Competitive


Companies that are large enough to be organized into strategic business units face the challenge
of allocating resources among those units. In the early 1970's the Boston Consulting Group
developed a model for managing a portfolio of different business units. The BCG growth-share
matrix displays the various business units on a graph of the market growth rate vs. market share
relative to competitors.

BCG Growth-Share Matrix


On the vertical axis, market growth rate provides a measure of market attractiveness. On the
horizontal axis, relative market share serves as a measure of company strength in the market.

The growth-share matrix defines four types of SBUs:


A business unit that has a large market shares in a mature, slow growing industry. Cash cows
Require little investment and generate cash that can be used to invest in other business units.


A business unit that has a large market shares in a fast growing industry. Stars may generate
Cash, but because the market is growing rapidly they require investment to maintain their lead.
If successful, a star will become a cash cow when its industry matures.


A business unit that has a small market shares in a high growth market. These business units
Require resources to grow market share, but whether they will succeed and become stars is


A business unit that has a small market shares in a mature industry. A dog may not require
Substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has
some other strategic purpose, it should be liquidated if there is little prospect for it to gain
market share.

Zong SBU
Post paid


Zong mobile
Zong USB

Zong postpaid has low market share of 0.25% and high growth rate of16% so in BCG matrix it
lies in 1ST quadrant of question marks.

Zong prepaid has high market share of 0.7% and high growth rate of15% so in BCG matrix it lies
in 4TH quadrant of stars.

Zong mobile has low market share of 0.4% and high growth rate of11% so in BCG matrix it lies in
1ST quadrant of question marks.

Zong USB has low market share of 0.25% and no growth rate. So in BCG matrix it lies in 2 ND
quadrant of dog.

Zong Mobile
Strategic Business Unit Of ZONG Telecom
Zong has come up with another interesting promotion . You get a phone, almost free but with 1
a years payment in advance. This is equivalent to the US model where customers have to sign a
contract to get a discounted phone. In Zong case they just get the money in advance (great for
them) and hope that users will stay with them after 12 months.
Strengths of ZONG mobile
Zong is the first company who introduced mobile
With the brand name of ZONG. Zong is benchmark
leader in this SBU.
It is available at very cheap price. Anyone can get it
paying Rs 1900 with Rs 1900 balance.
Large number of people appreciates and gets the mobile

Mobile is totally made by china and peoples perception about china mobile is not good.
So its resale value is low.
Zong mobile is only made for zong network. Other networks cannot operate
in this mobile.
Zong is depending on ZTE.(Zheng Telecommunication Electronics) ZTE is the vender of
zong. Zong purchase mobile from ZTE.

Internal Factor Evaluation

Internal Factor Evaluation Of Zong Mobile

Strengths Weights Rates Score
Benchmark Leader 0.26 4 1.04
Cheep Rates 0.35 4 1.4
People's Appreciation 0.09 3 0.27


Resale Value 0.18 2 0.36

Restriction Of Other Networks 0.05 2 0.1

Dependent On ZTE 0.07 1 0.07
Total 1 3.24

Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5
Total weighted score for the Zong mobile is 3.24 which is above average in its overall internal
Total weighted score by Zong in internal factor evaluation is 3.24 which is above average.

Threats of ZONG mobile

Other competitors can introduce like this mobile in market.
It is very simple mobile which has no extra features but the other companies have stylish
and attracting mobiles in market.

Opportunities for ZONG mobile

It can improve its features like other cell companies. And can attract the people.
Zong can manufacture the mobile its own. Because it depends on others

External Factor Evaluation Of Zong Mobile

External Factor Evaluation Of Zong Mobile

Opportunity Weights Rates Score

Improving Features 0.35 2 0.7

Manufacture Mobile 0.15 1 0.15 1



Threats Of Competitors 0.35 2 0.7

Threats Of Cell Companies 0.15 1 0.15

Total 1 1.7

Total weighted score by Zong in external factor evaluation is 1.7 which is below average.

The Internal-External (IE) Matrix

This is also an important matrix of matching stage of strategy formulation. This matrix already
explains earlier. It relate to internal (IFE) and external factor evaluation (EFE). The findings form
internal and external position and weighted score plot on it. It contains nine cells. Its
characteristics is a s follow
Positions an organizations various divisions in a nine-cell display.
Similar to BCG Matrix except the IE Matrix:
o Requires more information about the divisions
o Strategic implications of each matrix are different
Based on two key dimensions
o The IFE total weighted scores on the x-axis
o The EFE total weighted scores on the y-axis
Divided into three major regions
o Grow and build Cells I, II, or IV
o Hold and maintain Cells III, V, or VII
o Harvest or divest Cells VI, VIII, or IX

Internal External Evaluation Matrix


Total weight of IFE
4 3.4 3 2 1
i. 1 i. 2 ii. 3

iii. 4 iv. 5 v. 6
Total weight

vi. 7 vii. 8 viii. 9

Steps for the development of IE matrix

Based on two key dimensions IFE and EFE.

Plot IFE total weighted scores on the x-axis and the EFE total weighted scores on the
y axis
On the x-axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99 represents a
Internal position; a score of 2.0 to 2.99 is considered average; and a score of 3.0 to
4.0 is strong.
On the y-axis, an EFE total weighted score of 1.0 to 1.99 is considered low; a score of
2.0 to 2.99 is
Medium; and a score of 3.0 to 4.0 are high.
IE Matrix divided into three major regions.
Grow and build Cells I, II, or IV
Hold and maintain Cells III, V, or VII
Harvest or divest Cells VI, VIII, or IX
The SBU of Zong (mobile) lies in 3, 5, 7 quadrant. So the strategy of these quadrants (hold and
maintained) will be apply here.

Grand Strategy Matrix


This is also an important matrix of strategy formulation frame work. Grand strategy matrix it is
popular tool for formulating alternative strategies. In this matrix all organization divides into
four quadrants.
Any organization should be placed in any one of four quadrants. Appropriate strategies for an
Organization to consider is listed in sequential order of attractiveness in each quadrant of the
matrix. It is based two major dimensions
1. Market growth
2. Competitive position
All quadrants contain all possible strategies there are four quadrants in grand matrix that
further contain various set strategies.

Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification

Market development
Market penetration
Product development
Horizontal integration

Concentric diversification
Horizontal diversification
Conglomerate diversification

Concentric diversification
Horizontal diversification



Rapid Market

Quadrant II Quadrant I

Weak Strong
Competitive Competitive
Position Position

Quadrant III Quadrant IV

Slow Market

ZONG lies in first quadrant so the all strategies of 1st quadrant can be apply on zong

Stage-3 (Decision Stage)

The Quantitative Strategic Planning Matrix (QSPM)

The last stage of strategy formulation is decision stage. In this stage it is decided that which way
is most appropriate or which alternative strategy should be select.
Steps in preparation of QSPM


1. List of the firm's key external opportunities/threats and internal strengths/weaknesses
in the left column of the QSPM.
2. Assign weights to each key external and internal factor
3. Examine the Stage 2 (matching) matrices and identify alternative strategies that the
organization should consider implementing
4. Determine the Attractiveness Scores (AS)
5. Compute the Total Attractiveness Scores
6. Compute the Sum Total Attractiveness Score

Quantitative Strategic Planning Matrix (QSPM)


Key External Factors Weight Attractiveness Total Attractiveness Total

Scores (AS) Attractiveness Scores (AS) Attractiveness
Scores (TAS) Scores (TAS)


1 Globalization 0.10 3 0.30 2 0.20

2 Marketing 0.15 4 0.60 3 0.45

3 Acquisition 0.08 2 0.16 2 0.16

4 New Product 0.07 3 0.21 3 0.21


5 Northern Areas 0.10 3 0.30 2 0.20

6 Pak China Borders 0.13 3 0.39 2 0.26


1 Old Stable 0.12 4 0.48 3 0.36


2 Attractive Packages 0.10 3 0.30 3 0.30

By Others

3 Price War 0.06 3 0.18 2 0.12

4 Government 0.09 3 0.27 2 0.18

Interference 1

TOTAL 1.00

1 Investment 0.09 4 0.36 4 0.36

2 High Growth Rate 0.11 4 0.44 3 0.33

3 Advertising 0.12 3 0.36 3 0.36

4 Net Work Portability 0.12 3 0.36 3 0.36

5 Zong Mobile 0.07 3 0.21 3 0.21

6 Resources Assets 0.08 3 0.24 3 0.24

And People

7 Location And 0.10 3 0.30 3 0.30


8 Government Dealing 0.09 3 0.27 3 0.27


1 Bad Image Of Paktel 0.06 2 0.12 1 0.06

2 Coverage 0.07 1 0.07 1 0.07

3 Low Market Share 0.05 2 0.10 2 0.10

4 Weak MIS 0.04 2 0.08 1 0.04

SUM TOTAL 1.00 6.10 5.14


We select the two strategies market penetration and market development. There total
attractive score is 6.10 and 5.01 respectively. The strategy market penetration has big score.


Zong has strong financial position and growing fast. That is the reason we didnt found much
discrepancies. As seeing the growth rate of Zong it may be possible that Zong can be the
leading mobile operator in Pakistan. There are some minor discrepancies but they are
adjustable with little effort.

Zong Telecom should be increasing their network coverage and foot prints in every
corner of the country to capture the market.
Zong should adopt the strategies of market penetration market development and
related diversification, but the most effective strategy would be market penetration.

In the SBU of Zong mobile Zong should use the strategy of hold and maintain.

Zong should hire the skilled management.

Zong should not waste their opportunities and get more help as possible.

Rana Armughan
Zong Garden Town Ali Block Lahore
Rao Farhan Ali Khan
Zong Kchehri Chowk Multan

The end