stratgic management final ayaz1111

8/9/2019 Stratgic Management Final Ayaz1111

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TABLE OF CONTENT

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S.# Description Page #

1. Abstract 2

2. Acknowledgement 4

3. Introduction 5

4. Vision & Mission 6

6. Internal Factor Evaluation Matrix (IFE) 7

7. External Factor Evaluation Matrix (EFE) 9

8. Competitive Profile Matrix (CPM) 11

9. Value Chain 13

10. Suggestion 15

11. Conclusion 16


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ABSTRACT:

This is an Assignment of Strategic Management concepts and tools, External factor evaluation

(EFE), Internal Factor Evaluation (IFE), and Value Chain; in this Assignment we have

chosen wi-Tribe a premium wireless Broadband service provider in Pakistan.

Wi-tribe is a leading wireless broadband provider focusing on emerging markets in

Asia and Africa. The Qtel Group is one of the fastest growing wireless broadband

services providers with a presence in 16 markets in the Middle East, North Africa, and

Asia. A.A. Turki Group of Companies (ATCO) is one of the leading companies in the

Kingdom of Saudi Arabia.

Executive Summary:

WiMAX is a Worldwide Interoperability of Microwave Access. WiMAX is described in IEEE

802.16e Wireless Metropolitan Area Network (MAN) standard which has recently been introduced

in Pakistan by Wi-tribe. It is expected that WiMAX compliant systems will provide wireless

alternative to conventional DSL and Cable Internet. Wi-tribe is using Motorola's WiMAX

technology to provide wireless fixed broadband data services for residential and corporate use. The

company is using WIMAX as a cost effective and fast-to-deploy broadband solution, as part of its

strategy to create a world-class communications network in Pakistan. It brings you the ability to

connect anywhere anytime, clients and business partners seamlessly. Wi-tribe WiMAX faces

appreciation by the customers due to their better technology and services as compare to its

competitors. Now its a challenge for wi-tribe to maintain their quality network. People were

unaware of the technology that Wateen launched. The operation and installation services were not

provided properly and people were dissatisfied due to lack of knowledge about product, operation

and ineffective advantages they expected to get. The product price was high as they had high

security charges.

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ACKNOWLEDGEMENTS

We acknowledge expressing heartiest gratitude to my honorable teacher Sir. Amir

Salman, Department of Business Administration school Karachi University, for

assigning me such a perfect Strategic Management report to work and practice in real.

It gives me the opportunity to practically work on the Wi-Tribe Company focusing on

the various aspects & analysis.

We are also thankful to wi-tribe team, they helped a lot in our assignment, Special

thanks to MS. MARIUM ARIF (SENIOR EXECUTIVE MARKETING) AND

MR. SHAHEER BIN VIQAR ZUBERI(CUSTOMER SALES EXECUTIVE)

In wi-tribe, they guided and helped us to prepare and develop the content of this

report. They also performed as a focal point of gathering data of the company. We

are also grateful to all Team.

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INTRODUCTION:

Wi-Tribe, Pakistans largest wireless broadband company in the

private sector has become the detrimental catalyst that has rampantly

moved forward the country into a digital revolution with its ability to

seamlessly connect and enable smarter, faster, cost-effective and flexible

communication solutions to reach its valued customers. Wi-tribe is the

Qatar Telecom latest venture in Pakistan, after taken 75% stakes of Burraq

Telecom, Wi-Tribe main focus on providing Quality services thats why

they call the premium wireless broadband services. Wi-Tribe has been set

up to become the leading "Plug and play" providing services based on

quality, reliability and affordability in the communication and media sector.

Wi-tribe is committed to bring Next Generation services to your doorstep.

As well as Wi-Tribe is the Qatar Telecom latest communication investment

in Pakistan. Wi-Tribe current goals are to be set up as the leading

"Welcome to the tribe". With the collaboration of Motorola, they plan on

deploying a WiMAX (Wireless High Speed Connection) country-wide

network across Pakistan. This network will become one of the largest of its

kind in the world. Wi-Tribe also envisions the provisioning of LDI services

for Pakistani viewers. The commercial launch of Wi-Tribe WiMAX

(Wireless High Speed Connection) services began with 3 major cities. Wi-

Tribe uses MOTOwi4 WiMAX (Wireless High Speed Connection) by

Motorola.

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Other partners include Cisco, and Intel. Wi-Tribe is giving CPEi 750 to its

indoor usage while CPEo400 for outdoor usage to its customers.

Vision & Mission:

Vision

To be a leading broadband provider by establishing a large market presence

and creating value and profitability for shareholders.

Mission

wi-tribe aims to be the preferred supplier of wireless broadband services to

consumers. wi-tribe will aim to provide solutions that are aligned with the

changing social and business needs of the customers and achieve this goal

through innovation and state of the art customer service

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IFE MATRIX LIST KEY INTERNAL FACTORS

STRENGTHS & WEAKNESSES:

Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating

major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basisfor identifying and evaluating relationships among those areas. The Internal Factor Evaluation

matrixor short IFE matrix is used in strategy formulation.

The IFE Matrix together with the EFE matrix is a strategy-formulation tool that can be utilized to

evaluate how a company is performingin regards to identified internal strengths and weaknesses

of a company

List key internal factors as identified in the internal audit process. Use a total of from ten to

twenty internal factors, including both strengths and weaknesses. List strengths first and then

weaknesses. Be as specific as possible, using percentages, ratios, and comparative numbers.

Assign a weight that ranges from 0.0 (not important) to 1.0 (all important) to each factor.

The weight assigned to a given factor indicates the relative importance of the factor to being

successful in the firms industry. Regardless of whether a key factor is an internal strength or

weakness, factors considered to have the greatest effect on organizational performance

should be assigned the highest weights. The sum of all weights must equal 1.0.

Assign a I to 4 rating to each factor to indicate whether that factor represents a major

weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a

major strength (rating = 4). Note that strengths must receive a 4 or 3 rating and weaknesses

must receive a 1 or 2 rating. Ratings are thus company based, whereas the weights in Step 2

are industry based.

Multiply each factors weight by its rating to determine a weighted score for each variable.

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Sum the weighted scores for each variable to determine the total weighted score for the

organization.

INTERNAL FACTOR EVALUATION (IFE) MATRIX

Key Internal Factors Weight Rating Weighted Score

Strengths

1

.

Strong customer Care services 0.15 3 0.45

2

.

Focus on long term planning 0.10 4 0.40

3

.

Advertising 0.09 3 0.27

4

.

Own network dedicated BTS for WiMAX 0.12 4 0.48

5

.

Resources Assets And People 0.06 3 0.18

6

.

Network Coverage 0.10 3 0.30

7

.

Ethical System of billing 0.08 3 0.24

Weaknesses

1

.

Some Departments are not established 0.13 1 0.13

2

.

Low Market Share 0.08 1 0.08

3

.

Low acceptability 0.09 2 0.18

TOTAL 1.00 2.71

EXPLANATION

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The total weighted score of strength and weakness in INTERNAL FACTOR

EVALUTION MATRIX (IFE MATRIX) is 2.71 which is above average its mean

Wi tribe is increasing its strength and overcoming on its weakness.

EFE MATRIX LIST KEY EXTERNAL FACTORSOPPORTUNITIES & THREATS:

External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for

assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize

the opportunities and threats that a business is facing.

TheEFE matrix is very similar to the IFE matrix. The major difference between the EFE matrix and

the IFE matrix is the type of factors that are included in the model. While the IFE matrix deals with

internalfactors, the EFE matrix is concerned solely with externalfactors.

External factors assessed in the EFE matrix are the ones that are subjected to the will of social,

economic, political, legal, and other external forces.

Developing an EFE matrix is an intuitive process which works conceptually very much the same

way like creating the IFE matrix. The EFE matrix process uses the same five steps as the IFE matrix.

List factors: The first step is to gather a list of external factors. Divide factors into two

groups: opportunities and threats.

Assign weights: Assign a weight to each factor. The value of each weight should be between

0 and 1. Zero means the factor is not important. One means that the factor is the most

influential and critical one. The total value of all weights together should equal 1.

Rate factors: Assign a rating to each factor. Rating should be between 1 and 4. Rating

indicates how effective the firms current strategies respond to the factor. 1 = the response is

poor. 2 = the response is below average. 3 = above average. 4 = superior. Weights are

industry-specific. Ratings are company-specific.

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Multiply weights by ratings: Multiply each factor weight with its rating. This will calculate

the weighted score for each factor.

Total all weighted scores: Add all weighted scores for each factor. This will calculate the

total weighted score for the company.

The sum of all weighted score is equal to the total weighted score; final value of total weighted score

should be between ranges 1.0 (low) to 4.0(high). The average weighted score for EFE matrix is 2.5

any company total weighted score fall below 2.5 consider as weak. The company total weighted

score higher then 2.5 are considering as strong in position.

EXTERNAL FACTOR EVALUATION (EFE) MATRIX

Key External Factors Weight Rating Weighted Score

Opportunities

1. Underserved DSL kind network

infrastructure or no broadband access at all.

0.11 3 0.33

2. To cover untapped market 0.12 4 0.48

5. Develop new value added services 0.07 2 0.14

6. Making alliance with GSM operator to

share Base Station to expend converge

0.08 2 0.16

8. Prepaid packages 0.07 1 0.07THREAT

1 Old Stable Companies 0.10 3 0.30

2 Low penetration of population and low

ARPU.

0.09 3 0.27

3 Price War 0.11 4 0.44

4 Government Interference 0.06 2 0.12

5 Poor law and order situation in country 0.09 3 0.27

6 Less market share 0.10 2 0.20

1.00 2.78

Interpretation

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Total weighted score of opportunities and threats in EFE matrix is 2.78 which is above

average, It means Wi-tribe is availing its opportunity and avoiding its threats.

Competitive profile matrix

Competitive profile matrix is an essential strategic management tool to compare the firm with the

major players of the industry. Competitive profile matrix shows the clear picture to the firm about

their strong points and weak points relative to their competitors. The CPM score is measured on

basis of critical success factors, each factor is measured in same scale mean the weight remain same

for every firm only rating varies. The best thing about CPM that it includes your firm and also

facilitates to add other competitors make easier the comparative analysis.

IFE matrix only internal factors are evaluated and in EFE matrix external factors are evaluated but

CPM include both internal and external factors to evaluate overall position of the firm with

respective to their major

Find out critical success factor. (Internal & External )

Assign weight to each factor depend up how important the specific factor for the organization

success. The weight range from 0.0 to 1.0 lower number shows no or minimum importance

and high weight show more importance of factor to the company.

Assign rating to each factor depends upon how well organization respond to that factor.

Assign a 1-4 rating to each critical success factor to indicate how effectively the firms

current strategies respond to the factor. (1 = response is poor, 4 = response is extremely

good)

Multiply each factors weight by its rating to determine a weighted score.

Sum the weighted scores

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Interpretation

The average weighted score in competitive profile matrix of wi-tribe which isabove average which means that wi-tribe is performing well to the criticalsuccess factors in its industry. The weighted average score of wateen is more

than wi-tribe due to its early presence; Infinity and Qubee have totaled the score of

2.14 and 1.39 respectively.

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Competitive Profile Matrix (CPM)

Critical Success

Factors (CSF)

Weight Rating Weighted

Score

Rating Weighted

Score

Rating Weighted

Score

Rating Weighted

Score

Market Share 0.12 4 0.48 2 0.24 1 0.12 1 0.12

Quality Service 0.09 2 0.18 2 0.18 3 0.27 1 0.09

Growth Rate 0.07 2 0.14 1 0.07 2 0.14 1 0.07

Customerloyalty

0.10 2 0.20 2 0.20 3 0.30 2 0.20

Management 0.09 4 0.36 3 0.18 3 0.27 2 0.18

Coverage 0.10 4 0.40 3 0.30 2 0.20 1 0.10

Customer Care

Services

0.11 1 0.11 3 0.33 4 0.44 2 0.22

Advertising 0.06 3 0.18 2 0.12 2 0.12 1 0.06

Brand Name 0.10 4 0.40 2 0.20 1 0.10 1 0.10

Packages 0.09 3 0.27 1 0.18 2 0.18 2 0.18

Value Added

Services

0.07 3 0.21 2 0.14 1 0.07 1 0.07

TOTAL 1.00 2.93 2.14 2.21 1.39


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VALUE CHAIN

The big integrated network operators today have to focus on cost leadership and

differentiation strategies at the same time.

Wi-Tribe has to concentrate both on:

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An innovation and differentiation strategy for the service provisioning part of the

value chain.

Uniqueness perceived by the customer

Service innovation & differentiation (brand, sales, products, customercare)

A costleadership strategy for the network specific part of the value chain

Low cost position

Overall Cost Leadership (Efficient scale facilities, cost reduction, cost

control)

Telcos will come under pressure by new service providers and the backward and

forward integration of manufacturers and Content&Application Providers.

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SUGGESTION

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The vision of Wi-Tribe is to provide the premium wireless broadband service provider, now they are

making their network to strong their foot prints in the Pakistani market, if they share their BTS

equipment with other wireless companies company reduce its operating cost.

Wi-Tribe is focusing on youth, according to youth requirement they have provide some student

packages in which they provide some sort of discounts to School, College, University Students.

If wi-tribe trained their staff in the supervision of Dragonwave Solutions wi-tribe gets the benefit of

pooling their human resource Skills and the dependency level to other companies is also decreased.

Pre-paid packages option.

There are several other suggestions which are given below :

Improve e-business promotions and e-marketing through more easy to use web portal

Evaluate its existing systems efficiency and effectiveness in dealing with customer needs.

Focus on external IT facilities (SERVICES)as well as internal IT

infrastructure(INTEGRATION)

Effective design and implementation of IT facilities

Reduce cost & time through integrated systems

Hardware and software advancement and inhouse capability of innovation.(INNOVATIIVE

STRATEGY)

Lead an international culture of technology and info-communication

CONCLUSIONS

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This report summarize that wi-tribe is launched in Pakistan in 30 june, 09 with the slogan of

premium wireless broadband service provider in Pakistan, they achieve 12000 customer

across the country and around 500 operation cell sites now established in Pakistan with in 3 Months,

wi-tribe launch at time when there was recession going on.

They believe in the long term planning they establish their own BTS station Dedicated to Wi-MAX,

with personalized customer care service, they are also working on CSR projects, they are focusing

on their network because Mobilink infinity and Wateen already extended their network very rapidly

they seems to be a threat, As seeing the growth rate of wi-tribe it may possible that wi-tribe can be

the leading Wireless Broadband operator in Pakistan. Wi-tribe creates awareness about the WiMax

and their advantages to the consumer, and they can also run their campaign in which they show the

advantages of wireless internet. The key strength of wi-tribe is their network and customer support

services they have to more focus on it, if not it will become the biggest threat to the company. They

take advantage of Mobilink infinity because infinity services is only limited in Karachi, Wi-tribe

have to focus on the other untapped area major markets are Lahore, Multan, Bahawalpur, Quetta,

they markets have more potential wi-tribe have cover those area also.

If wi-tribe continues providing the facilities to consumers hopefully it will increase its Market share

and as well as show firm financial position in future.

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stratgic management final ayaz1111

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