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Contents
Contents..................................................................................................................... 2 INTRODUCTION:..........................................................................................................3 INTRODUCTION OF STRATEGIC FORMULATION:..........................................................4 Strategic Formulation:.............................................................................................5 STRATEGY FORMULATION...........................................................................................6 VISION..................................................................................................................... 6 STRATEGIES AT MOBILINK..........................................................................................7 The Importance of Business Strategy.......................................................................12 SWOT ANALYSIS:......................................................................................................13 Strengths:.............................................................................................................. 13 Weakness:.............................................................................................................13 Threats:................................................................................................................. 14 PEST ANALYSIS:.....................................................................................................15 CONCLUSION:...........................................................................................................16 RECOMM ENDATION:................................................................................................17 REFERENCES:............................................................................................................18 BIBILOGRAPHY:......................................................................................................... 19

INTRODUCTION:

Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, is the market leader in providing state-of-the-art communications solutions to over 3.4 million people in Pakistan. They can proudly boast of being the first cellular service provider in Pakistan to operate on a 100% digital GSM technology. Mobilink GSM started operations in the year 1994; from then on it has shown enormous growth. Mobilink provides the most extensive network coverage footprint across Pakistan through an integrated technology infrastructure in more than 5,000 cities, towns, villages, and countless remote destinations, including International Roaming in 110 countries through 300 partner operators.

www.mobilink.com

INTRODUCTION OF STRATEGIC FORMULATION:

It is useful to consider strategy formulation as part of a strategic management process that comprises three phases: diagnosis, formulation, and implementation. Strategic management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates. There are four primary steps. 1. Reviewing the current key objectives & strategies of the organization, this usually would have been identified &evaluated as part of the diagnosis. 2. Identifying a rich range of strategic alternatives to address the three levels of strategy formulation outlined below, including but not limited to dealing with the critical issues. 3. Doing a balanced evaluation of advantages and& disadvantages of the alternatives relative to their feasibility plus expected effects on the issues and contributions to the success of the organization. 4. Deciding on the alternatives that should be implemented or recommended.

Formulation Goals are what a business unit wants to achieve.

a. Perform a SWOT analysis. b. Formulate goals with specificity as to time &when it will be and magnitude or quantity.

An organization will normally have a mixture of goals.

c. Order your goals from broad to specific categories.

d. Confirm that your goals relate realistically to the results of the SWOT analysis performed.
e. Examine your goals to make sure they are not at cross purposes with one another. f. This process is often called Management by Objective.

Strategy Formulation is How a business unit will achieve what it wants. Michael Porter, HBS professor and worldwide competitive strategy expert breaks types of strategy into three categories:
An Overall Cost Leadership Strategy. A Differentiation Strategy. A Focus Strategy.

Strategic Formulation:
Strategic formulation means a strategy formulate to execute the business activities. Strategy formulation is also concerned with setting long term goals and objectives, generating alternative strategies to achieve that long term goals and choosing particular strategy to pursue. Strategy formulation includes developing Vision and Mission Strength and weakness Opportunities and threats The considerations for the best strategy formulation should be as follows: Allocation of resources Business to enter or retain Business to divest or liquidate Joint ventures or mergers Whether to expand or not Moving into foreign markets Trying to avoid take over

www.gleresource.com

STRATEGY FORMULATION
VISION

To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations

and Objectives:

Total Customer Satisfaction: Customers are at the heart of our success. They have placed their trust and confidence in us. In return, we strive to anticipate their needs and deliver service, quality and value beyond their expectations.

Business Excellence: We strive for excellence in all that we do. We aspire to the highest standards and raise the bar for ourselves every day. This commitment to delivering world-class quality translates into unmatched service and value for our customers and all stakeholders.

Trust & Integrity: At Mobilink, we take pride in practicing the highest ethical standards in an open and honest environment, and by honoring our commitments. We take personal responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People: Our relationships drive our business. We respect and esteem our employees and all stakeholders. We believe in teamwork, empowerment and honor. Corporate Social Responsibility As the market leader, we recognize and fulfill our responsibility towards our country and the environment we operate in. We contribute to worthy causes and are dedicated to the development and progress of the society. www.scribd.com

STRATEGIES AT MOBILINK
The findings mentioned reflect three types of major strategies employed by the organization at various levels. Corporate level strategy Business level strategy Functional level strategy
1. Corporate Level Strategy:

As their corporate level strategy, they have entered into partnerships with different organizations. On the basis of findings; it appears that for the past few years, Mobilink had a focus on internal growth. All this is evident from the fact that since the deregulation of the mobile service industry of Pakistan, Mobilink has undertaken various efforts to ensure that it changes its stance from concentrating on its existing market to growing its market presence. The main reason for this change is mainly to keep up with the competition and to retain and increase its market share. This transition is obvious in Mobilinks repositioning itself and hitting the market with a new face with the catchphrase Reshaping communication With the threat of new entrants into the industry after the deregulation, Mobilinks strategy took a new turn. To keep abreast with the company, Mobilink took the following steps during the last 2 years.
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Expanded its international roaming Service scope in 14 more countries including Vietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria, South Africa, Ethiopia, Uganda, Sudan, Bahrain, Caribbean Islands. Bilateral roaming agreements signed with 100 countries around the world to have true roaming service operational in 151 operators of the world.

o Promotional campaigns launched.

o

Jazz bundle offers.

o International summer promotion.

o o o

JAZZ-AUR-SUNAO, LIFE MEIN JAZZ LAO Indigo packages. Exclusive deals.

o Roam the World. Joint Promotional Agreements with Various Organizations

JAZZ-HYUNDAI BUNDLE OFFER. Jazz member Get Member. Mobilinks Nokia 9500 offer. MOBILINK-AVIS partnership: Mobilink and UBL launch online bill payment facility for Indigo subscribers. MOB- Motorola V3 launch. Mobilink CITIBANK Joint Promotion. Handset Kiosk inside Mobilink Service Center.

2. Business Level Strategy:

As their business level strategy it has focused on Differentiation strategy ever since it started. Mobilink has always made successful attempts to distinguish their products or services from other in the industry. They make their product unique through: Advertising
1. Highly creative people in the marketing dept. 2. Billboards, TV commercials, bringing in famous personalities from media to endorse

their packages.
3. Distinctive Product Features. 4. Value added services. 5. Online billing. 6. GPRS enabled.

7. Mobilink also started 3 friend and family number with a charge of 2.25/min still expensive as compared to Warid but giving incentive to subscriber there is an additional cost of RS 25 to add friends and family number. 8. International roaming.
9. Exceptional Service.

10. There are certain areas of Pakistan where PTCL connections are not available; the PTCL cables have not reached yet, but Mobilink has its service in those areas.
11. Providing services in 413 cities.

12. Best customer service in the cellular market.

13. Only cellular service in Pakistan to provide coverage on the M2 motorway.

14. New Technology.

15. Introduced GSM tech- bye to AMPS? GPRS system MOBILINK GSM Short Message Service Center allows Vehicle Tracking and Fleet Management services that are being provided by Tracker (Pvt.) Ltd., under the brand name of C-Track, a company licensed by Pakistan Telecom Authority (PTA). Tracker currently operates from Karachi but can provide these facilities at all those locations where GSM coverage is available. Their differentiation strategy is usually targeted at people who are not particularly concerned with price, so it can be quite profitable e.g. indigo and blackberry are relatively expansive packages; blackberry is mainly targeted for the business class who can afford it. In this way, the revenue generation remains high. Mobilink offers tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen. To achieve this objective, mob offers both postpaid (Indigo, relatively expensive) and the prepaid (JAZZ, relatively inexpensive) solutions to their customers. Low Cost Strategy Mobilink does not follow a low cost strategy. Mobilink is a giant in Pakistani mobile industry Tel. Since it first started its operations, it has been focusing its products on the upper strata of the society. That is why its rates are higher than its competitors, Ufone, Warid, Telenor, etc.
16. Functional Level Strategy:

Sales and Marketing

1. They target the customer groups they offer tariff plans that are exclusively designed to

cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen.

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2. The marketing department immediately identifies and responds to the customer needs

3. Comes up with interesting marketing strategies which include advertising, Commitment to Total Customer Satisfaction: Customers are at the heart of my success. They have placed their trust and confidence in us. In return, I strive to anticipate their needs & deliver service, quality and value beyond their expectations. Passion for Business Excellence: I strive for excellence in all that I do. I aspire to the highest standards and raise the bar for myself every day. This commitment to delivering world-class quality translates into unmatched service and value for my customers and all stakeholders. Trust & Integrity: At Mobilink, I take pride in practicing the highest ethical standards in an open and honest environment, and by honeying my commitments. I take personal responsibility for my actions, and treat everyone fairly, and with trust and respect. Respect for People: My relationships drive my business. I respect and esteem my employees and all stakeholders. I believe in teamwork, empowerment and harmony. Responsible Corporate Citizen: As the market leader, I recognize and fulfill my responsibility towards my country and the environment I operate in. www.ehow.com

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The Importance of Business Strategy

The subject of Business Strategy is one that holds ambiguity &vast debate, partly because of a lack of education or information, but perhaps more significantly because of its extensive depth & multiple perspectives. It is sometimes difficult to know where to start in strategizing a company and its outcome can often quite simply leads to success or failure. Every organization has a strategy. Some have multiple strategies, and some may even have a strategy and not know about it. Either way, having a well-defined and planned business strategy nursed by effective communication can create immense success and profitability. An early perception of business strategy which proved to be very popular amongst the multinational corporations out was a strategic view prescribed by "Michael Porter." His view incorporates three areas of an attempt to gain and sustain competitive advantage. These are segmentation strategy, differentiation strategy and cost leadership. Michael Porters strategies are often viewed in relation to the overall scale of a given target market and the competences to which an organization operates in. Companies have been known to pick just one of these strategies, and exploit them using their resources. This being said, while most organizations try to focus on one strategy, there are some that focus on all three. Another view to take is the resource based view. This view describes the strategic resources available to the firm in question. It is believed under this view that competitive advantage can be gained through the exploitation of these resources over a long period of time for it to become sustainable. When a firm uses this view to create their business strategy, it is firstly vital to identify the resources. This is usually done by comparing them to the VRIN criteria. V Valuable R Rare I In-imitable N Non-substitutable Exactly as they sound, a resource must be rare and unique, create value, and not be easy to imitate or substitute. Once discovered, these resources must be cared for in a sustainable manor to create and increase organizational performance. It is important that an organization that wishes to succeed above competition in the market must at least attempt to define their strategy using these views, amongst many others, by creating sustainable, competitive advantage. www.wikipedia.org , www.planware.org, www.tutor2u.net.
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SWOT ANALYSIS:
These are the SWOT analysis of the company.

Strengths:
1. Strong Brand Image 2. Potential customers 3. Highest Coverage 4. First to introduce IR 5. M2 Motorway coverage 6. Biletral roaming with 50 operators 7. Motorola Time port Tri band (TT) handsets 8. Tracking and Fleet (VTF) Management services.

Weakness:
1. Currently providing not good quality service because of changing their
2. Network from 900 MHz to 1800 MHz

3. 4. 5. 6.

Fewer advertisements now days. Most expensive telecom company both in call rates and SMS Weak customer retention Engineering department of Mobilink is not well competent

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Opportunities:

1. Can expand its networks in the uncovered areas 2. 3. 4. Services in the future can be Telephone Wireless

5. Calling Cards 6. Can target maximum corporate Customers

7. Lower prices

Threats:
1. 2. New market players Competitors can offer packages for corporate customers in better way.

3. Wireless local loop service providers 4. 5. 6. Brand names survival. Corporate customers can shift to other companies Employee retention

7. Loss of loyal customer

www.oppapers.com

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PEST ANALYSIS:
The country forces affecting the environment e.g. political, economics, socio-cultural, and & technological forces. 1. Political Factors: a. Political instability affects Mobilink policies. With the change in government, Mobilink cannot foresee the changes might occur I regulations and restrictions imposed.
b. Orascom telecom, as a foreigner company, faces a continuous threat of terrorism while

operation in Pakistan. 2. Economics Factor: a. Due to the current world wide recession, Mobilink closed its hiring and applied a policy of retaining the existing employees. b. Revenues of telecom industry increased from Rs.115 B to Rs.235 B in the last three years and expected to increase @ 20 to 25 %. So Mobilink has an opportunity to capture more market share. 3. Socio-cultural Factor: a. Orascom has a basic strategy that it applies concerning the cultural issues is rephrasing of its brand name for each country separately because people have perception of using connection of his own local company name. 4. Technological Factors: a. Companies have technology with which they can compete in the Pakistan and now companies are investing in their infrastructure to not only expand but also to upgrade their existing structure. b. Mobilink shifts its whole network from 900 MHz to 1800 MHz to be able to offering Value-Added Services like 3Gs. www.quickmba.com

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CONCLUSION:

Telecom sector is growing at an outstanding pace where all Stakeholders are getting due benefit out of it. PTA is fully abreast of the rapidly developing technological advancements at the global Telecom scene. The aim of the Pakistani regulator is to foresee and be proactive in providing conductive environment for the operators in Order to facilitate them and introduce state of the art telecom facilities in the country. Telecom sector is contributing about 2% in GDP directly and if we include its indirect contribution in other sectors. This share comes to about 5%. It is expected that fixed as well as Wireless sectors will grow considerably in next future years. Value added products and content development are rather barely explored markets and offer a great deal to an aggressive investor. 3G services in major cities would take a slow start but will catch on fairly well and will be a major contributor in satisfying consumers needs provided these are offered at affordable cost with easy access, availability, reliability and with abundant content. Even though Mobilink has been a market leader, for so many years, providing the most technological advanced products and services, it has for a number of years been facing strong competition from Telenor and Ufone, which has resulted in a decrease of its market share. This has led Mobilink to a policy of diversification, by introducing products like Mobilink PCO and WIMAX services. Although Mobilink has diversified, it still is providing competitive products and services for its core products-Jazz and Indigo.

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RECOMM ENDATION:

1. Moblink should focus on adopting new technology; mobile

wallet & gift cards product development & mobilizing the brand.

2. Global expansion in emerging market, market development.

3. Concentrate on consumer retention & gaining market share,

market and product development & penetration.

4. Backward integration over venders for reduction in

infrastructure maintenance cost & other expense.

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REFERENCES:

1. Mobilink (mobilinkgsm.com) 2. Pakistan Telecommunication Authority (pta.gov.pk) 3. Porter, Michael E. (1980). Competitive Strategy: Techniques for analyzing industries

and competitors. New York: Free Press.

4. Porter, Michael 1985). Competitive advantage: Creating and sustaining superior

performance. New York: Free Press.

5. www.scribd.com 6. www.wikipedia.org 7. www.docstoc.com 8. www.mobilinkgsm.com 9. www.quickmba.com 10. www.books.google.co.uk 11. www.authorstream.com

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BIBILOGRAPHY:
1. Strategic Management: Concepts and Cases, 9th Edition (1996). Arthur Thompson, Jr., and A. J. Strickland III. Irwin. 2. The Strategy Concept and Process, 2nd Edition (1996). Arnoldo C. Hax and Nicolas S. Majluf. Prentice-Hall. 3. The New Strategists (1995). Stephen J. Wall and Shannon Rye Wall. Free Press. 4. Concepts of Strategic Management, 5th Edition (1995). Fred David. PrenticeHall. 5. Strategic Planning for Public and Nonprofit Organizations (1995). John M. Bryson. Jossey-Bass. 6. The Management Compass: Steering the Corporation Using Hoshin Planning (1995). Michele Bechtell. American Management Association. 7. Applied Strategic Planning: How to Develop A Plan that Really Works (1993). Leonard Goodstein, Timothy Nolan, and J. William Pfeiffer. McGraw-Hill. 8. Strategic Planning Plus: An Organizational Guide (1991). Roger Kaufman. Scott Foresman. 9. Planning Strategies That Work (1987). Arnoldo C. Hax. Oxford University Press. 10.Strategic Planning and Management Handbook (1987). William King and David Cleland. Van Nostrand Reinhold. 11.Implementing Strategy (1984). Lawrence G. Hrebiniak and William F. Joyce. Macmillan Publishing Company. 12.The Concept of Corporate Strategy (1980). Kenneth Andrews. Richard Irwin. 13.Top Management Strategy (1980). Benjamin Tregoe and John Zimmerman. Simon & Schuster.

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14.Competitive Strategy: Techniques for Analyzing Industries and Competitors (1980). Michael Porter. Free Press. 15.Strategic Planning: What Every Manager Should Know (1979). George Steiner. Free Press. 16.Strategy (1967), 2nd Edition. B. H. Liddell Hart. Frederick A. Praeger, Publishers. 17.Corporate Strategy (1965). H. Igor Ansoff. McGraw-Hill.

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