STRATEGIC

MANAG E M E N T
MGT 603

FINAL PROJECT

MC070400829 NOORUDDIN
TEACHER: M SHAFIQ
 ACKNOWLEDGEMENT

As a student of course.strategic management – MGT 603 and all the preaching and guidance of
my course teacher Mr. M. Shafiq. I hereby present my final project as required on firm operating
in Pakistan belonging to telecom sector. i.e Ufone one of the leading cellular service provider
alongwith value added service and business strategies.

I also hereby present all the facts and figures which I gather about Ufone from newspapers,
websites and from Ufone’s annual report. Due to my job and other secular activities I couldn’t be
able to approach the firm directly, however with the help of my friends those close to Ufone. I
prepared this project for consideration of approval of my learning and understanding about the
said subject.

MC070400829
Signature
EXECUTIVE SUMMARY

Ufone (official name: PTML) is a PTCL company, PTML (Ufone) - a wholly-owned subsidiary
has improved its financial performance commenced its operations on 29th January 2001 as a
GSM 900 service provider. Since the outset, it has expanded its coverage and customer base at
a rapid pace and established itself as one of the leading cellular service providers in Pakistan.

During the last year Ufone successfully completed the launching of sites under Phase V in
existing as well as new cities and towns by investing more than US$ 525 million. This has
increased the asset base of Ufone from rupees 20 billion to 27 billion. To further enhance the
subscriber base and strategically position the company in the growing telecom market, Ufone has
finalized a network expansion for Phase VI contract amounting to about US$ 170 Million. Ufone
currently, has network coverage in more than 4,745 locations throughout the country.

Ufone's operational performance has been very encouraging despite stiff

competition in Pakistan telecom market which has led to reduction of prices
to bare minimum level. Ufone managed to improve its revenue and after tax
profit by 87% and 54% respectively, as compared to the last year through
aggressive policies and exercising strict control over expenses.
TABLE OF CONTENTS

Introduction………………………………………………..1.0
Details of Project……………………………..1.1
Purpose of Project……………………………1.2

Findings……………………………………………………2.0
External & Internal Analysis……………….2.1
SWOT Analysis…………………………….2.3
EFE Matrix…………………………………2.4
IFE Matrix…………………………………2.5
Nine – Cell Diagram…………………….2.6
BCG Matrix………………………………2.8
Details of Product …….2.8.1
BCG Matrix……………2.8.2
QSPM…………………………………….2.9

Conclusion……………………………………………….3.0

Recommendation………………………………………4.0

References………………………………………………5.0
1.0 INTRODUCTION

1.1 DETAILS OF THE PROJECT

Ufone is a Cellular Service Provider founded in 2001 It is also a subsidiary firm of PTCL As of 2008,
Ufone employs more than 1,730 people. It manufactures it’s the GSM company providing services to all
four continents urban and rural areas., As of 2008, Ufone is the second largest telecommunication
company in Pakistan. In recent years the company has endured significant improvement in services to
almost 4,745 locations throughout the country.

The major competitors of Ufone are domestic companies like

MOBILIINK
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, Islamabad

TELENOR
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.

PAKTEL/ CHINA MOBILE/CMPAK

Paktel was the first ever company granted license to carry out cellular phone services in
Pakistan, set up by Cable & Wireless. It carried out AMPS services until 2004, when the
company launched GSM services as well. Its main competitor emerged in late 1990s as
Instaphone and soon began to dominate the market. On 4th May 2007, Paktel was renamed to
CMPak. And then, on 16th May 2007, China Mobile announced that it had upped its stake in
CMPak to 100%. Moreover, PTA (Pakistan Telecommunication Authority) has announced that it
may resolve the frequency issue with China Mobile, as it was one of the main reason for pullout
by Millicom International Cellular S.A.
WARID
Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing
telephony services in Bangladesh, Pakistan and Uganda.

ZONG

Zong is the first International brand of China Mobile being launched in Pakistan. It is meant to
empower and liberate the people of Pakistan in every nook and corner of the country

1.1 PURPOSE OF THE PROJECT

The purpose of this project is to enhance the ability of understanding the important
factors, matrix, strategy of business. And also to encourage to know more about the
telecommunication sector in Pakistan.

Ufone is one of my favorite cellular company. I have being using Ufone since
2004. Over the past few years Ufone developed dynamically. Ufone is the purpose
of my project and my communication medium in life.
2.0 FINDINGS

2.1 INTERNAL & EXTERNAL ANALYSIS

INTERNAL ENVIORNMENT
Human Resource Management
Marketing Department
Commercial Department
Sales Department
Finance Department
Payroll Department
Information Technology Department
Engineering Department
Administration
Auditing Department
Customer Care

EXTERNAL ENVIORNMENT
Economic Conditions
Social Conditions
Culture
Demographics
Environmental
Competitive
Technological
Consumer Attitude
Globalization
2.3 SWOT ANALYSIS

Strengths

1. Second Large Market Share

Although Ufones market share has dropped due to current economic and political
circumstancesit but is still very much competitive at 20 percent.

2. Worldwide Cheap call Experience

As explained above even with Ufone’s recent decline they still have the market share and the
experience to bounce back. They have been a nationwide company for nearly ten years now and
have established themselves as the national leader for most of them.

3. Variety of Value Added Service

Provide variites of value added services as compared to other cellular networks

4. Representing PTCL name

As it is the subsidiary of PTCL.

5. Coverage on GT Road 60%

Now covering Pakistan business highway upto
73%

Weaknesses

1. Behind on Excessive Demand

This is Ufone's biggest weakness is not
attempting to meet the demands

2. Poor Organizational Structure

Centralized structure failed to provide proper guidance over instruction and policies

3. Stagnant Profitability
As compared to financial assets, Ufone is not close to expected profitability

4. Overly Dependent on PTCL.

Subsidiary of PTCL, it is dependent on PTCL
Opportunities

1. Can target Corporate

It is obvious that GM was behind its competition with regards to the research and development
of hybrid vehicles. However hybrid technology is still very much new giving GM the
opportunity to once again become the automotive industry's leader in innovation and technology.

2. Continuing to Expand Globally.

Ufone have the ability to expand globally. But due to current economic condition all its operation
are on halt

3. Publicity and Marketing

With the right marketing strategy they can acquire much more.

4. Develop New Value Added Service

This is an opportunity that will never be satisfied, meaning that Ufone should always be
attempting to keep improvising new valued
added services, and as we know, what is in
today will be out tomorrow.

Threats

1. Govt. Interference
Govt. Interference will always be treated as
a threat in terms of taxes.

2. PTCL cellular license

Ufone is nothing just a cellular license to PTCL. PTCL should provide more financial support to
enhance profitability of its subsidiary company.

3. Pension Payouts.
Part of this threat is their own doing and the other is simply unavoidable. Ufone is responsible
for providing generous pension benefits to its employees, which at the time seemed like a great
idea, however they are now experiencing problems as more and more people begin to collect.

4. Increased Health Care Costs

Ufone, like many large companies with quality employee health care benefits, is experiencing a
large financial hit that only gets worse as time continues as compare to other cellular firms.
2.4 EXTERNAL FACTOR EVALUATION

KEY EXTERNAL FACTOR

OPPORTUNITIES Weight Rating w.score

1. Can target Corporate .20 4 .80

2. Continuing to Expand Globally. .20 4 .80

3. Publicity and Marketing .05 3 .15

4. Develop New Value Added Service .10 3 .30

THREAT
1. Govt. Interference .10 2 .20

2. PTCL cellular license .05 2 .10

3. Pension Payouts. .15 2 .30

4. Increased Health Care Costs .15 2 .30

1.00 2.95
2.5 INTERNAL FACTOR EVALUATION

KEY INTERNAL FACTOR

INTERNAL STRENGTH Weight Rating w.score
Human Resource Management .10 4 .40
- Staff Remuneration
- Staff Personal Finance
Marketing Department
- Marketing Planning .05 4 .20
- Prices
Commercial Department
- Promotion .10 4 .20
- Advertisement
Sales Department
- Target Market .15 3 .15
- Skilled Staff
Finance Department
- Earning Per Share .05 3 .15
- Royalties
Payroll Department
- Staff Salaries .05 3 .15
- Staff Bonuses
Information Technology Department
- Hardware .05 3 .15
- Network
- Operations
Engineering Department
- Tier 3 level engineers .05 3 .15
- Highly skilled
Administration
- Day to day expenses .05 3 .15
- Correspondance
Auditing Department
- Financial Lookup .05 4 .20
- Cost and Management
Customer Care
- Tier 1 Level Support .15 3 .15
- Customer Support
INTERNAL WEAKNESSES
Human Resource Management .05 2 .10
- Staff Family Planning
- Staff Pension Funds
- Staff Training
Marketing Department .10 2 .10
- Global Expansion
1.00 1.85
2.6 Nine – Cell Diagram

THE IFE
WEIGHTED SCORE

4.0 3.0 2.0 1.0

 Human Resource Management
- Staff Remuneration
- Staff Personal Finance
Marketing Department
- Marketing Planning
- Prices
Commercial Department
- Promotion
- Advertisement
Auditing Department
- Financial Lookup
- Cost and Management

Can target Corporate

Continuing to Expand
3.0 Globally
- Sales Department
- Target Market
- Skilled Staff
Finance Department
- Earning Per Share
- Royalties
Payroll Department
- Staff Salaries
- Staff Bonuses
Information Technology
Department
- Hardware
- Network
- Operations
Engineering Department
THE - Tier 3 level
EFE engineers
WEIGH - Highly skilled
TED Administration
SCORE - Day to day
expenses
- Correspondence
-
Customer Care
- Tier 1 Level
Support
Customer Support

Publicity and Marketing

Develop New Value Added

2.8 BCG

2.8.1 DETAILS OF PRODUCTS

Ufone understands the value of words and the need to communicate effectively and efficiently at
all levels of society, which is why company’s primary focus is on U. Ufone offers, Prepay &
Postpay services in the Telecom sector.

The telecom market’s growing rate in Pakistan is higher than any Asian
country. Ufone offers lower rates and better network then other already
established cellular companies. All living standards have been captured by
Ufone, like Students, Labour and Businessmen, etc.

Ufone aims to provide with wider coverage, superior connectivity, clear signals & voice quality
to their valued customers

2.8.2 MATRIX
RELATIVE MARKET SHARE

MARKET
GROWTH POST PAYS
RATE
STARS QUESTION MARK

PREPAY
CASH COWS DOGS
2.9 QSPM

Weight Strategy. 1 Strategy. 2 Strategy. 3

KEY EXTERNAL FACTOR
Human Resource Management .15 .60
Marketing Department .15 .60
Commercial Department .10 .20
Sales Department .15 .15
Finance Department .05 .15
Payroll Department .05 .15
Information Technology Department .05 .15
Engineering Department .05 .15
Administration .05 .15
Auditing Department .05 .20
Customer Care .15 .15

KEY EXTERNAL FACTOR

Economic Conditions .20 .80
Social Conditions .20 .80
Culture .05 .20
Demographics .10 .40
Environmental .10 .40
Competitive .05 .20
Technological .15 .60
Consumer Attitude .10 .40
Globalization .05 .20

3.0 Conclusion

In View of the following data Ufone is one of the telecom sector who need to produce more
output by implementing new technologies, new tariffs, new consumer satisfaction value added
service. Further, it is still the second largest cellular service provider in the country

4.0 Recomendations

Should encourage new products like, Ufone PCO, Broadband services etc from its existing two
services.
Suggested Strategies

1. Market Development
2. Market Penetration
3. Product Development
4. Restructuring
5. Retrenchment
6. Liquidation

5.0 References

• Pakistan Telecommunication Website

• PTCL Annual Report
• Ufone Website
• Friends
• Teachers Handout,