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INTRODUCTION
Mobilink GSM (PMCL), a subsidiary of Orascom Telecom is the market leader in providing state-of-the-art communications solutions in Pakistan.
Orascom Telecom Holding S.A.E (OTH), the parent company based in Egypt was
established in 1998, and has grown to become the largest and most diversified GSM
network operator in the Middle East, Africa, and Pakistan. With over ten licenses
covering the region, Orascom Telecom has positioned itself as a leading
telecommunications conglomerate in emerging markets of this region. Orascom enter
in the Pakistani market through the licensing where they have to pay the Royalty fee.
Mobilink covers approximately 85 percent of Pakistan's urban population and it can
proudly boast of being the first cellular service provider in Pakistan to operate on a
100% digital GSM technology. It 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, Mobilink offers both
postpaid (Indigo) and the prepaid (JAZZ) solutions to its customers.
In addition to providing advanced voice communication services, Mobilink also offers a
number of value added services to its valued subscribers. Keeping in mind its
customers' convenience, Mobilink has also bundled mobile handsets, sold either
independently or bundled in Get Set Go Pack.
Mobilink GSM started operations in the year 1994,as a third entrant in the market,
while Paktel and Instaphone were already operating since 1991 and had acquired
substantial market penetration. Despite the re-launch of Ufone, the main competitor,
Mobilink has maintained its momentum of growth. All this has been possible due to
inter-departmental synergy and strengthening of Mobilink’s brands. Till early 2001,
they had a market share of 43%. OT took over management control of the company in
April 2001 and changed the overall market dynamics through its aggressive marketing
strategy and expertise. In less than two years time Mobilink grew by almost 400% with
market leadership of 60% market share (year end 2003).At the time when it entered
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the market it was a small player in the cellular market of Pakistan it is now the market
leader both in terms of growth as well as having the largest subscriber base in
Pakistan.
MANAGEMENT Mobilink has a very competitive management. The names of
the Top Management are given below.
Zouhair Abdul Khaliq, President and CEO Ehab Rochdy, Chief Finance OfficerTariq Rashid, Chief Information OfficerRashid khan, Chief Commercial OfficerMarwan Hayek, Chief Technical OfficerAli Raza Mehdi, Vice President Administration & Human Resources
MISSION STATEMENTHere are Mission statements of both organizations i.e. parent company and subsidry.
Orascom Telecom
“Our mission is to be the premiere telecom operator in the Middle East, Africa, and Indian sub-continent, providing the best quality services to our customers, value to our shareholders, and a dynamic working environment for our employees.”
Mobilink GSM
“To provide unparallel services while making sure to satisfy all stake holders”
PRODUCTS AND SERVICES
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Mobilink being the market leader enjoys major share of the overall market with both
Indigo and Jazz dominating the postpaid and prepaid segments respectively Mobilink
deals with postpaid Indigo and prepaid (Jazz) packages.
JAZZ
Addressing the press conference, Graham Burke,
president Pakistan Mobilink Corporation Limited
said that with the prepaid card a customer could
control its cost with the freedom to use.
This is when Jazz was first launched in Pakistan,
and with the passage of time became very popular,
especially among the young lot.
Jazz, is based on an intelligent network which is the
most advanced and expensive platform, presently
available in cellular telephone technology.
Scores of facilities available in the package will cater to the communication needs of
thousands of people in the country who cannot afford a post paid mobile phone
connection.
Jazz is an amazing prepaid service that allows customer freedom from monthly bills
and gives him/her complete control over his/her cellular expenditure. Customer
decides in advance when and how much he/she wants to spend. Jazz is simple, easy
and loads of fun.
Jazz is extremely affordable, with features like:
No daily charges
Low outgoing rates
180 days validity of Jazz Scratch Cards
Simply reactivate deactivated Jazz connection
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Jazz-Aur SunaoJazz tariffs have been reduced from Rs. 4.75 per minute to Rs. 3.50 per minute on all
calls from Jazz to any other Mobilink numbers. This tariff reduction will serve as an
unparalleled advantage to the largest mobile community in Pakistan, who will now
have to pay less to call within the Mobilink family, 24 hours a day.
Jazz Member get Member The Jazz Member get Member promo is the first of its
kind where Mobilink will be giving it’s customers an
opportunity to become the brand’s ambassadors and at
the same time earn some free airtime. The essence of
the campaign is that an Existing Jazz customer can refer
up to 4 new customers and earn Rs.400 in airtime. The new Jazz customer will also
get Rs. 100 free airtime.
INDIGO
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STRATEGIC MANAGEMENTArt and science of formulating, implementing, and evaluating cross-functional
decisions that enable an organization to achieve its objective.
STAGES OF STRATEGIC MANAGEMENTThere are three stages involved in strategic management process.
STRATEGY FORMULATION
STRATEGY IMPLEMENTATION
STRATEGY EVALUATION
STRATEGY FORMULATION
Strategy formulation includes developing a business mission, identifying an
organization external opportunities and threats, determining internal strength and
weaknesses, establishing long-term objective, generating alternative strategies, and
choosing particular strategies to pursue.
Strategists must decide which alternative strategies will benefit the firm most.
Strategy-formulation decision commits an organization to specific products, markets,
resources, and technologies over an extended period of time. Strategies determine
long-term competitive advantages. Top managers have the best perspective to
understand fully the ramifications of formulation decision; they have the authority to
commit the resources necessary for implementation.
STRATEGY IMPLEMENTATIONStrategy implementation requires a firm to establish annual objectives, devise policies,
motivate employees, and allocate resources so that formulated strategies can be
executed; strategy implementation includes developing a strategy-supportive culture,
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creating an effective organizational structure, redirecting marketing efforts, preparing
budgets, developing and utilizing information system, and linking employee
compensation to organizational performance.
Strategy implementation often is called action stage of strategic management.
Strategy implementation requires personal discipline, commitment, and sacrifice,
success full strategy implementation hinges upon managers’ ability to motivate
employee.
Interpersonal skills are especially critical to success full strategy implementation.
Every division and department must decide on answers to questions such as “What
must we do to implement over part of the organization’s strategy?” and “How best can
we get the job done?
STRATEGY EVALUATIONStrategy evaluation is the final stage in strategic management, because external and
internal factors are constantly changing. Three fundamental strategy-evaluation
activities are
Reviewing external and internal factor that are bases for current strategies
Measuring performance
Taking corrective action
Strategy evaluation is needed because success today is no guarantee of success
tomorrow success always creates new and different problems; complacent
organization experience demise.
Strategy formulation, implementation, and evaluation activities occur at three
hierarchical levels in large organization: corporate, divisional or strategic business
unit, and functional. By fostering communication and interaction among managers and
employees across hierarchical levels, Strategic management helps a firm function as
a competitive team. Nevertheless, managers and employees at these two levels
should be actively involved in strategic management activities.
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COMPONENTES OF A MISSION STATEMENT Mission statement can and do very in length, content, format, and specificity. Most
practitioners and academicians of strategic management consider an effective
statement to exhibit nine characteristics or components. Because a mission statement
is often the most visible and public part of the strategic-management process, it is
important that is includes all of these essential components. Components and
corresponding question that a mission statement should answer are given here,
CUSTOMERS Who are the firm’s customers?
PRODUCTS OR SERVICES What are the firm’s major products or services?
MARKETS Geographically, where does the firm compete?
TECHNOLOGY Is the firm technology current?
CONCERN FOR SURVIVAL, GROWTH, AND PROFITABILITY Is the firm committed to growth and financial soundness?
PHILOSOPHY What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
SELF-CONCEPT What are the firm’s distinctive competence or major competitive advantage?
CONCERN FOR PUBLIC IMAGE Is the firm responsive to social, community, and environmental concerns?
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CONCERN FOR EMPLOYEES Are employees a valuable asset of the firm?
MOBILINK’S MISSION STAEMENT ALONG WITH IT’S COMPONENTS
“To provide unparallel services while making sure to satisfy all stake holders”
THE NATURE OF AN EXTERNAL AUDIT THE NATURE OF AN EX
The purpose of an external audits us to develop a finite list of opportunities that could
benefit and threats that should be avoid. Firms should be able to respond either
offensively or defensively to the factor by formulating strategic that take advantage of
external opportunities or that minimize the impact of potential threats.
KEY EXTERNAL FORCESExternal forces can be divided into five board categories
Economic forces
Social, cultural, demographic, and environmental forces
Political, governmental, and legal forces
Technological forces
Competitive forces.
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THE PROCESS OF PERFORMING AN EXTERNAL AUDIT To perform an external audit, a company first gathers competitive intelligence and
information about social, cultural, demographic, environmental, economic, political,
legal, governmental, and technological trends. Individuals can be asked to monitor
various sources of information such as key magazines, trade journals, and
newspaper. These persons can submit periodic scanning reports as a commit of
managers charged with performing the external audit.
Once information is gathered, it should be assimilated and evaluated. A meeting or
series of meeting of up to 20 managers needed to collective identify the most
important opportunities and threats facing the firm. A prioritized list of these factors
could be obtained. Critical success factors can very over time and by industry.
Critical success factors should be
Important to achieving long-term and annual objective
Measurable
Relatively few in number
Applicable to all competing firms
Hierarchical in the sense that some will pertain to the overall company and
others will be more narrowly focused on functional or divisional areas.
ECONOMIC FORCES Economic factors have a direct impact on the attractiveness of various strategic. For
example, if interest rates rise, then fund needed for capital expansion become more
costly or unavailable, also, interest rates rise, discretionary income declines, and the
demand for discretionary goods falls. As stock prices increases, the desirability of
equity as a source of capital for market development increases. Also, as the market
rises, consumer and business wealth expand.
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SOCIAL, CULTURAL, DEMOGRAPHIC, AND
ENVIRONMENTAL FORCESSocial, cultural, demographic, and environmental changes have a major impact upon
virtually all products, services, markets, and customers, small, large, for-profit and
nonprofit organizations in all industries are being staggered and challenged by the
opportunities and threats arising from changes in social, cultural, demographic, and
environmental variables.
POLITICAL, GOVERNMENTAL AND LEGAL FORCES Federal, state, local, and foreign governments are major regulators, deregulators,
subsidizers, employers, and customers of organizations. Political, governmental, and
legal factors therefore can represent key opportunities or threats for both small and
large organization. For industries and firms that depend heavily on government
contracts or subsidies, political forecasts can be the most important part of an external
audit. Changes in patent laws, antitrust legislation, tax rates, and lobbying activities
can affect firms significantly.
TECHNOLOGICAL FORCESRevolutionary technological changes and discoveries such as superconductivity,
computer engineering, thinking computers, robotics, unsafe factories, miracle drugs,
space communication, space manufacturing, lasers, cloning, satellite, networks, fiber
optics, biometrics, and electronic funds transfer are having a dramatic impact on
organization. Superconductivity advancement alone, Which increase the power of
electrical products by lowering resistance to current, are revolutionizing business
operations, especially in the transportation, utility, health care, electrical, and
computers industries.
KEY EXTERNAL FORCES AFFECTING MOBILINK
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Economic Environment The income level of our people varies greatly, so Mobilink GSM has paid attention to
the income levels of the people of Pakistan and introduced different packages for
each. On a larger scale, the economic environment is unstable and money is
distributed unevenly among the masses.
Technological Environment Mobilink GSM is aware of its technological environment. Currently, a lot of attention is
being given to information and cellular technology by the government. Therefore the
technical environment of Pakistan does not really pose a threat for Mobilink. With the
increasing usage of the Internet, Mobilink is focusing on the integration of the Internet
with its cellular offering, which will result in increased efficiency and effectiveness of
cellular communication.
People have also become more health conscious. Recently, an issue has arisen that
radiation from mobile handsets damages the brain. This poses a threat for the mobile
industry.
Political environmentThe political environment has, does and will effect Mobilink’s functioning in Pakistan.
This is because the government of Pakistan does not allow purely foreign ventures (of
all industries) here and that is why Mobilink GSM, a venture of the Orascom Telecom
group, had to settle with a partnership with local organizations here. Other than this
policy of the Government of Pakistan, it’s a risk for foreign companies to invest in
Pakistan because of the unstable economy and changing governments.
Demographic Cultural and Social EnvironmentThe population of Pakistan is increasing rapidly. Growing population means growing
human communication needs to satisfy and this means increasing market
opportunities for Mobilink GSM. The main target customers for JAZZ are young people
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from ages 19 above and 30 below. These people include students and yuppies (young
urban professionals).
Connectivity is the need of the hour. People are moving in an age of connectivity.
Information technology is shaping up our society’s perceptions, preferences and
behaviors. Our cultural environment is highly affected by this advancement. Today
every body wants to be up-to-date. Mobile communication is quenching this thirst and
Mobilink GSM is the market leader in its territory.
The mobile phone has become so much of a part of our culture that a professional
and a non-professional alike, cannot do without one. Instead of our culture shaping
the wants of its people, the want is starting to shape our culture. Therefore it would be
wrong to say that the Pakistani cultural environment is hostile to changes, especially
to this technological change.
The religious environmental pressures/trends are critical areas, which need to look
into while promoting sales of a particular product as these aspects are generally
ignored, which can eventually undermine the success of sales and promotion efforts.
Mobilink also has been a victim of such problems.
Mobilink also had a few problems while its promotional activities. As happened with
the bill board of jazz, portraying the famous Pakistani model/actress, Zara sheikh,
trying to promote Jazz. One of such boards was burnt to ashes by activists of a
religious group as according to them she portrayed in an improper dress.
Mobilink should have taken in account these religious values, as ours is a
conservative society, that’s why Mobilink should see what are the barriers which may
create hurdles in advertising and promotion plan.
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COMPETITIVE ANALYSIS
BARRIERS TO ENTRYBARRIERS TO ENTRY Absolute cost advantages Absolute cost advantages
Proprietary learning curve Proprietary learning curve
Access to inputs Access to inputs
Government policy Government policy
Economies of scaleEconomies of scale
Capital requirements Capital requirements
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Porter's Five Forces Model
BuyersSuppliers
Substitute products
Potential entrants
Industry competitors
Rivalry amongexisting firms
Threat ofnew entrants
Bargaining powerof suppliers
Bargaining powerof buyers
Threat ofsubstitutes
Brand identity Brand identity
Switching costsSwitching costs
Access to distribution Access to distribution
Expected retaliation Expected retaliation
Proprietary products Proprietary products
THREATS OF SUBSTITUTESTHREATS OF SUBSTITUTES Switching costsSwitching costs
Buyer propensity to substitute Buyer propensity to substitute
Relative price performance of substitute Relative price performance of substitute
BUYER POWERBUYER POWER Bargaining leverage Bargaining leverage
Buyer volume Buyer volume
Buyer information Buyer information
Brand identity Brand identity
Price sensitivity Price sensitivity
Threat of backward integration Threat of backward integration
Product differentiation Product differentiation
Buyer concentration vs. industry Buyer concentration vs. industry
Substitutes available Substitutes available
Buyers' incentives Buyers' incentives
SUPPLIER POWERSUPPLIER POWER Supplier concentration Supplier concentration
Importance of volume to supplier Importance of volume to supplier
Differentiation of inputs Differentiation of inputs
Impact of inputs on cost or differentiation Impact of inputs on cost or differentiation
Switching costs of firms in the industry Switching costs of firms in the industry
Presence of substitute inputs Presence of substitute inputs
Threat of forward integration Threat of forward integration
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Cost relative to total purchases in industryCost relative to total purchases in industry
DEGREE OF RIVALRYDEGREE OF RIVALRY Exit barriers Exit barriers
Industry growthIndustry growth
Industry concentration ratio Industry concentration ratio
Fixed costs/Value added Fixed costs/Value added
Product differentiation Product differentiation
Buyers' incentivesBuyers' incentives
PORTER'S FIVE FORCES MODEL IN MOBILE INDUSTRY
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BuyersSuppliers
Substitute products
Potential entrants
Industry competitors
Rivalry among Mobilink and
Entry of Telenor and Warid
Bargaining powerof suppliers
Many substitutes available
Increasing bargaining powerof buyers
INDUDTRYS ANALYSIS
THE EXTERNAL EVALUATION (EFE) MATRIXAn external factor evaluation (EFE) matrix allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political,
Governmental, legal, technological, and competitive information. There are five steps
in developing an EFE Matrix
List key external factors as identified in the external audit-process. Include a
total of from 10 to 20 factors, including both opportunities and threats affecting
the firm and its industry. List the opportunities first and then the threats. Be as
specific as possible, using percentage, ratios, and comparative numbers
whenever possible.
Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very
important). The weight indicates the relative importance of that factor to being
successful in the firms industry. Opportunities often receive higher weights then
threats, but threats too can receive high receive weights if they are especially
severe or threatening. Appropriate weights can be determined by comparing
successful with unsuccessful competitors or by discussing the factor and
reaching a group consensus. The sum of all weight assigned to factors must
equal 1.0.
Assign a 1-to-4 rating to each critical success factors to indicate how effectively
the firms current strategies respond to the factor, where 4 = the response is
superior, 3 = the response is above average is average, and 1 = the response
is poor, Rating are based on effectiveness of the firms strategies. Ratings are
thus company-based, whereas the weights in step 2 are industry-based.
Multiply each factors weight by its rating to determined a weighted score.
Sum the weighted scores for each variable to determined the total weighted
scores for the organization.
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Regardless of the number of key opportunities and threats included in an EFE
Matrix, the highest possible total weighted score for an organization is 4.0 and
the lowest possible total weighted score is 1.0. The average total weighted
score is 2.5. A total weighted score of 4.0 indicates that an organization is
responding in an outstanding way to existing opportunities and threats in its
industry. In others words, the firms strategies effectively take advantage of
existing opportunities and minimize the potential adverse effect of external
threats. A total score of 1.0 indicate that firm’s strategies are not capitalizing on
opportunities or avoiding external.
THE EXTERNAL EVALUATION (EFE) MATRIX OF MOBILINK Key external factors have been identified in the external audit-process,
including both opportunities and threats affecting the firm and its industry.
Each factor has been assigned a weight that ranges from 0.0 (not important) to
1.0 (very important). The weight indicates the relative importance of that factor
to being successful in the firms industry. The sum of all weights assigned to
factors is equal to1.0.
1-to-4 rating has been assigned to each critical success factors to indicate how
effectively the firms current strategies respond to the factor, where 4 = the
response is superior, 3 = the response is above average is average, and 1 =
the response is poor, Rating are based on effectiveness of the firms strategies.
Each factors weight has been multiplied by its rating to determined a weighted
score.
Total weighted scores for the organization has been reached by summing all
weighted scores.
A total weighted score of indicates that Mobilink is responding in an
outstanding way to existing opportunities and threats in its industry. In others
words, the firms strategies effectively take advantage of existing opportunities
and minimize the potential adverse effect of external threats.
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KEY EXTERNAL FORCES WEIGHTS RATINGS
WEIGHTED
SCORES
OPPORTINITIES
Mobile market is far below saturation.
Pakistan’s government trying to boost the
IT industry; it has a lot of scope here.
Area of operations can be expanded
Mobile phone has become a part of our
culture
Facilities with respect of recharging of
connection.
Growing population and growing needs
for communication
4
3
2
1.00
3
THREATS
New potential entry.
PTCL being government owned
organization-having monopoly in
telecommunication sector.
Increased bargaining power of customer.
Value added services provided by
competitors.
Uneven distribution of wealth
Unstable economy and changing
governments
Ignoring religious values while promoting
sales through advertisement
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3
3
TOTAL 1.00
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THE COMPETITIVE PROFILE MATRIXThe competitive profile matrix (CPM) identifies a firm’s major competitor and their
particular strengths and weakness 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 CPM include both internal and external issues; the
rating refers to strength and 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.
CPM MATRIX FOR MOBILINKThe competitive profile matrix (CPM) of Mobilink identifies it’s major competitor and
their particular strengths and weakness in relation to firm’s strategic position. The
factors in CPM include both internal and external issues; the rating refers to strength
and weakness of three firms Mobilnk, Paktel and Ufone.Here critical success factors in
a CPM are broader. Advertisement and price competitiveness are most critical
success factors in he industry as indicated by weights. Mobilinks product quality is
superior as indicate by rating of 4.Ufone is tha weakest firm receiving a weighted
score of 3.55. Paktel is an average firm with weighted score of 3.75 while Mobilnk is
highly competitive firm as evidenced by weighted score of 3.6.
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THE COMPETITIVE PROFILE (CPM) MATRIX
PAKTEL MOBILINK UFONE CRITICAL
SUCCESS
FACTORS
WEIGHTS RATING SCORE RATING SCORE RATING SCORE
Advertisement
Product quality
Price
competitiveness
Management
Financial position
Customer loyalty
Global expansion
Market share
0.2
0.20
0.10
0.10
0.15
0.10
0.10
0.05
4
2
3
4
3
2
1
2
0.8
0.4
0.3
0.4
0.45
0.2
0.1
0.1
3
4
2
4
4
4
4
4
0.6
0.8
0.2
0.4
0.6
0.4
0.4
0.2
2
2
4
3
4
2
1
3
0.4
0.4
0.4
0.3
0.6
0.2
0.1
0.15
TOTAL 1.00 2.75 3.6 2.55
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BCG MATRIX
Boston Matrix is a well-known tool for the marketing manager. The large US
consulting group developed it. It has two controlling aspect namely relative market
share (meaning relative to your competition) and market growth. It is based on the
observation that a company business unit can be classified into four categories based
on relative market share and market growth. Market growth serves as proxy for
industry attractiveness and relative market share serves as proxy for competitive
advantages.
This is simplistic in many ways and the matrix has some understandable limitations
that will be considered later. Each cell has its own name as follows.
PROBLEM CHILDREN/QUESTION MARK
These are firms with a low share of a high growth market. They consume resources
and generate little in return. They absorb most money as you attempt to increase
market share. A question mark has the potential to gain market share and become a
star, and eventually a cash cow when market share slows down. If question mark
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does not succeed in becoming market leader then perhaps after years of cash
consumption it will degenerate into dog when market share declines. Question marks
must be analyzed carefully in order to determine whether they are worth investment
required to gain market share.
STARS
These are firms that are in high growth markets with a relatively high share of that
market. Stars tend to generate high amounts of income. If a star maintains its market
share it will become a cash cow, when the market growth rate declines.
CASH COWS
These are firms with a high share of a slow growth market. Cash Cows generate more
than is invested in them. Such business units should be milked extracting the profits
and investing a little cash as possible. Cash cow provides the cash to turn dogs into
market leader, to cover administrative cost of the company, to fund research and
development, to service the corporate debts, to pay dividends to shareholders.
Because cash cow generates relatively stable cash flows its value can be determined
with reasonable accuracy by calculating present value of its cash streams using a
discounted cash flow analysis.
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DOGS
These are organizations with a low share of a low growth market. These are the
canine version of 'real turkeys!'. They do not generate cash for the company, they tend
to absorb it. Such businesses are candidate of divestiture.
Problems with the Boston Matrix
This matrix was widely used but now it has faded it’s popularity as new and more
comprehensive models have been developed. Here are some problems of this matrix.
1. There is an assumption that higher rates of profit are directly related to high
rates of market share. This may not always be the case. When Boeing launch a
new jet, it may gain a high market share quickly but it still has to cover very high
development costs.
2. It is normally applied to Strategic Business Units (SBUs). These are areas of
the business rather than products.
3. There is another assumption that SBUs will cooperate. This is not always the
case.
4. The main problem is that it oversimplifies a complex set of decision. Be careful.
Use the Matrix as a planning tool and always rely on your gut feeling.
BCG MATRIX IN MOBILE INDUSTRY
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Here are four firms, which are differently identified, in mobile industry.
STARPaktel GSM can be recognized as star in mobile industry. Firstly it was a question
mark but it has now moved to become a star as it has made heavy sales from it’s
launch till now. So having highest sales volume it is a star.
CASH COW
Mobilink is no doubt is a cash cow in mobile industry. It is generating more than is
invested in it. It is having greatest market share in mobile industry, which is a major
feature of cash cow.
STAR QUESTION MARK
CASH COW DOG
DOG
Paktel Aims is a dog in mobile industry. It is having a low share market.
QUESTION MARK
Warid an upcoming Mobile service providing company is question mark for the mobile
industry. It’s success and failure both are not sure.
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TOWS MATRIX FOR MOBILINK
STRENGTHS WEAKNESSES
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TOWS Matrix
Threats:1.2.3.
Opportunities:1.2.3.
ST StrategiesTake advantage of
Strengths toAvoid threats
SO StrategiesUse strengths to take advantage of opportunities
Strengths:1.2.3.
WT Strategies Defensive strategies to minimize weaknesses andavoid threats
WO StrategiesUse Opportunities to overcome weaknesses
Weaknesses:1.2.3.
From Internal Analysis
(IFAS)
From External Analysis (EFAS)
1.Powerful brand image.2.Abundant financial resources as it doesn’t face government constraints3.Known as market leader.4.80% urban coverage5.First company to introduce the concept of franchise in Pakistan.
1.Usually has a busy network.2.Don’t think about the customers complaints
OPPORTINITIES
1.Mobile market is far below saturation.2.Pakistan’s government trying to boost the IT industry; it has a lot of scope here.3.Area of operations can be expanded4.Mobile phone has become a part of our culture5.Facilities with respect of recharging of connection.6.Growing population and growing needs for communication
SO STRATEGIES
Forward integration
WO STRATEGIES
THREATS
1.New potential entry.2.PTCL being government owned organization-having monopoly in telecommunication sector.3.Increased bargaining power of customer.4.Value added services provided by competitors. 5.Uneven distribution of wealth6.Unstable economy and changing governments7.Ignoring religious values while promoting sales through advertisement
ST STRATEGIES
Market penetrationMarket developmentProduct development
WT STRATEGIES
Joint venture
SO STRATEGIES
Forward integration
From External Analysis (EFAS)
From Inter-nal Analysi-s (IFAS)
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Mobilink has a very effective and efficient distribution system, which comprises of the
following sources:
Franchisers/dealers.
Service centers.
Connects.
Shops
Franchisers/dealersThey deal with giving connections, billing and also the customer services. They have a
certain deal with Mobilink in which these franchisers purchase these connections from
Mobilink at a price and hen these franchisers/dealers further sell them. After selling
these connections, the franchisers get commission from Mobilink.Thus they earn a
profit.
Service centersThese service centers provide the connections and you can also buy hand sets in
these centers.
Connects These only provide the connections of Mobilink.
ST STRATEGIES
Market penetration
Mobilink promotions are through the following sources:
News papers
Television
Billboards
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Pamphlets
Public relation programs
Word of mouth
Sales promotion
Newspapers and Television
Mobilink has high advertising budget and it works with
renowned and costly directors actors and models in its
television ads and also in newspapers. For example Mobilink
used Shann, Zara Sheikh, Eiman Ali and Samina Perzada in it’s
advertisements for reference sales.
Sales promotionNow a day Mobilink is offering
Product developmentMarket penetrationWO STRATEGIESJoint ventureGovernment of Pakistan does not allow purely foreign ventures (of all industries) here
and that is why Mobilink GSM, a venture of the Orascom Telecom group, had to settle
with a partnership with local organizations here. Other than this policy of the
Government of Pakistan, it’s a risk for foreign companies to invest in Pakistan
because of the unstable economy and changing governments.
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