Professional Documents
Culture Documents
COMPANY PROFILE
PAKISTAN Telecom Mobile Limited (PTML) is a wholly owned subsidiary of
PAKISTAN Telecommunication Corporation Limited (PTCL) that started its operations in
January 2001 under the brand name Ufone. As a result of PTCLs privatization, Ufone became
a part of the Emirates Telecommunication Corporation Group (Etisalat) in 2006.
Since its inception, Ufone has focused on the people of Pakistan, empowering them with the
most relevant communication modes and services that enable them to do a lot more than just
talk, at a price that suits them the most. Along with the claim of lowest call rates, clear sound and
best network, Ufone offers its customers simplified tariffs with no hidden charges. With a strong
and uniquely humorous communication direction that has now become Ufones signature across
all advertising media, Ufone gives its customers many reasons to smile.
This customer focus and best offering has allowed Ufone to build a subscriber base of over 20
million in less than a decade. Ufone has network coverage in 10,000 locations and across all
major highways of Pakistan. Ufone currently caters for International Roaming to more than 260
live operators in more than 150 countries. Ufone also offers Pakistans largest GPRS &
BlackBerry Roaming coverage available with more than 150 Live Operators across 105
countries. More recently, Ufone has become a focused and intensive leader in VAS, constantly
introducing innovative services, which have been the first of its kind in the Pakistani cellular
industry.
As the world of telecommunications advances, Ufone promises its customers to stay ahead,
developing and evolving, to go beyond their expectations, because at Ufone, its all about U.
MANAGEMENT PROFILES
Mr. Abdul Aziz has rejoined Ufone as President & CEO in December
2007. A fellow Chartered Accountant, he has over fourteen years of
experience in the Telecom Industry both local and International
including Europe, Asia and Africa.
During his career he has held various senior level positions with
companies including Millicom International, S.A., Ufone GSM and Celtel
International. Mr Aziz, being first CFO/Cosec was a key member of the
Core Team which launched Ufone in 2001.
STANDARD
STRATEGIC MANAGEMENT
Decision and actions of managers that determine the long-run performance of an organization.
BUSINESS MODEL
How an organization wants to be profitable. Focus on two things:
1. Does customer values product?
2. Means and ways of profit generation.
IMPORTANCE
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1.
2.
3.
4.
PROCESS
1.
2.
3.
4.
5.
6.
Customers.
Markets.
Concern for survival, growth, and profitability.
Philosophy.
Concern for public image.
Products or services.
Technology.
Self-concept.
Concern for employees.
ii.
iii.
Forward integration.
c.Horizontal integration.
d.
Related diversification.
e.Unrelated diversification.
Stability Strategy.
Renewal Strategy.
STRATEGIC FLEXIBILITY
1. Know whats happening with strategies currently being used by monitoring and
measuring results.
2. Encourage employees to be open about disclosing and sharing negative information.
3. Ger new ideas and perspective from outside the organization.
4. Have multiple alternatives when making strategic decisions.
Customer Retention
Customer Defection
2. COMPETITOR INTELLIGENCE
i.
ii.
iii.
iv.
v.
vi.
vii.
Ufone Company
STRATEGIC MANAGEMENT
Ufone is Cellular Service Provider founder in 2001. It is also a subsidiary firm of PTCL. As of
2009, Ufone employs more than 1,730 people. It is the GSM company providing services to all
four urban and rural areas. As of 2009, 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.
WARID
Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing
telephony services in PAKISTAN, Bangladesh, 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.
FINDINGS
INTERNAL & EXTERNAL ANALYSIS
INTERNAL ENVIORNMENT
1.
2.
3.
4.
5.
6.
7.
8.
9. Administration.
10. Auditing Department.
11. Customer Care.
EXTERNAL ENVIORNMENT
1.
2.
3.
4.
5.
6.
7.
8.
9.
Economic Conditions
Social Conditions
Culture
Demographics
Environmental
Competitive
Technological
Consumer Attitude
Globalization
SWOT ANALYSIS
STRENGTHS
1. Second Large Market Share
Although Ufone market share has dropped due to current economic and political
circumstances but it is still very much competitive at 20 percent.
2. Worldwide Cheap Call Experience
As explained above even with Ufones 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 verities of value added services as compare to other cellular networks.
4. Representing PTCL Name
As it is the subsidiary of PTCL.
5. Coverage of GT Road 60%
Now Ufone is covering PAKISTAN business highway up to 73%.
6. Aggressive Advertising
With aggressive advertisement they are attracting viewers through which they are able to
gain new clients and same way being able to retain their customer utilizing the product
and value added services.
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WEAKNESSES
1. Un-Organized Organizational Structure
Centralized structure failed to provide proper guidance over instruction and policies.
2. Overly Dependent on PTCL
Subsidiary of PTCL, it is dependent on PTCL.
OPPORTUNITIES
1. Targetting Corporate Sector
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 industrys 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 is on halt.
3. Publicity and Marketing
With the right marketing strategy they can acquire much more.
4. Introducing More 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. Government Interference
Government Interference will always be treated as a threat in terms of taxes.
2. PTCL Cellular License
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Ufone is nothing just a cellular to PTCL. PTCL should provide more financial support to
enhance profitability of its subsidiary company.
3. Un-Avoidable Law & Order Situation
At times due to un-avoidable circumstances businesses are not in a position to progress
and maintain their services.
Weight
Rating
Score
0.20
0.20
0.05
0.10
4
4
3
3
0.80
0.80
0.15
0.30
0.10
0.05
0.15
0.15
1.00
2
2
2
2
0.20
0.10
0.30
0.30
2.95
THREAT
1.
2.
3.
4.
Government Interference
PTCL Cellular License
Pension Payouts
Increased Health Care Costs
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Weight
Rating
Score
0.10
0.40
0.05
0.20
0.10
0.20
0.15
0.15
0.05
0.15
0.05
0.15
Staff Remuneration
Staff Personal Finance
Marketing Department
Marketing Planning
Prices
Commercial Department
Promotion
Advertisement
Sales Department
Target Market
Skilled Staff
Finance Department
Payroll Department
Staff Salaries
14
Staff Bonuses
Hardware
Network
Operations
0.05
0.15
0.05
0.15
0.05
0.15
0.05
0.20
0.15
0.15
0.05
0.10
Engineering Department
Administration
Auditing Department
Financial Lookup
Cost and Management
Customer Care
INTERNAL WEAKNESSES
Marketing Department
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Global Expansion
0.10
1.00
0.10
1.85
Outgoing Calls
Per 30 secs
SMS
Per 160 Characters
WITHIN UFONE
COMMUNITY
TO OTHER NETWORKS
& PTCL
99 Paisas
99 Paisas
50 Paisas/sms
Re. 1/sms
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PAANCH KA PANDRAH
Ufone to Ufone*
*Call for 5 minutes and the next 10 are free (loop)
Ufone to PTCL
U-circle
0.25/sms
Weight
Strategy 1
0.15
0.15
0.10
0.15
0.05
0.05
0.05
0.05
0.05
0.05
0.15
0.60
0.60
0.20
0.15
0.15
0.15
0.15
0.15
0.15
0.20
0.15
0.20
0.20
0.80
0.80
Economic Conditions
Social Conditions
Culture
Demographics
Environmental
Competitive
Technological
Consumer Attitude
Globalization
0.05
0.10
0.10
0.05
0.15
0.10
0.05
0.20
0.40
0.40
0.20
0.60
0.40
0.20
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Acquisition of customers can cost 5 times more than retaining current customers.
The average customer loses 10% of its customers each year.
A 5% reduction to the customer defection rate can increase profits by 25% to 85%.
The customer profit rate increases over the life of a retained customer.
2. CUSTOMER DEFECTION
DEFECTS
A defect is defined as any part of a product or service that
Does not meet customer specifications or requirements, or
Causes customer dissatisfaction, or
Does not fulfill the functional or physical requirements.
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By knowing the defection rate firm can project about the future prediction of profit and know
about the reasons of defection and reasons of satisfaction of customer. Its easy to know about
the reason of defection then knowing about the desires of customers. Relationship marketing and
conquest marketing are two approaches that can be used to reduce customer defection rate. The
risk of customers defecting to competitors is extraordinarily high. While no magic bullet exists to
dramatically lower this defection risk, three steps can take to reduce the defection risk of their
customers. Responsiveness and responsibility can also be the ways to reduce the defection of the
customers.
COMPETITOR INTELLIGENCE
Following are the ways being used by Ufone to retain the customers.
1. KNOW ABOUT YOUR CUSTOMER
Can you develop effective retention strategies without knowing this vital information?
Will it be possible to do so?
The single most important thing in customer retention is to understand your customers well
enough: customers' expectations, satisfaction, demographic & geographic & psychographic
customer tendencies, etc. If you understand more about customers and know more about which
customer groups are defecting to rival providers, more effective retention strategies can be
developed. This is the key to the successful retention marketing!
How it helps?
Ufone knows its customer very well geographically, psychologically etc. And they are providing
desired products and packages. This is providing them a way to know whether there is any need
for U Night package or not
2. CUSTOMER SURVERYS CAN BE USED TO PREDICT CUSTOMER CHURNS
Customer surveys are very important means for identifying potential problems in your services.
Most common reasons for customer defection include inadequate service quality and high cost.
Ask customers to rate your services along with their demographic and psychographic profiles.
When it is matched (or combined) with customer churn status, it can reveal surprising
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information! Analyzing surveys can reveal customer groups who are not happy with your
services. Actions can be taken to prevent customer defections.
How it helps?
Ufone gets information about their customer defection reason, if someone wants to change their
product from pre paid to post paid. They often conduct a survey or predict Customer Church to
know about their services and suggestions.
3. PASSIVE RETENTION
Passive retention involves building loyalty with customers through communication and rewards,
with segmentation being based on managerial judgments.
How it helps?
Ufone knows and greatly communicate to their customer and design rewards program for
satisfying their customer and to retain them. They often go to different areas and doffer a concert
and gave people gifts for participating.
Categorization of Firms by Customer Retention Processes Used
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both passive and active strategy and where possible, firms should try to use mathematical
modeling for their retention strategies.
How it helps?
They use MIS programs and self survey and other tools to know about the customer and develop
strategies according to the requirement. They have segmented customer into different categories
and have package accordingly.
5. EFFECTIVE COMMUNICATIONS
Developing effective and consistent two-way communication skills is the first component in
establishing and maintaining a selling edge and developing long-term customer or client
relationships. It is accomplished through practice and constant exchange of thoughts, feelings,
and reactions with those customers, clients or prospects that have a distinct need and ability to
acquire the products or services that you provide. A prospect's or customer's thoughts and
feelings can easily be discerned by talking to him--asking open-ended questions and really
listening to what he has to say about his family, background, employment, goals, hobbies, and
interests. Then you can use what you have learned to create a long-term, mutually profitable
working relationship.
How it helps?
This develops a close relationship and Ufone uses it through print media.
6. ACHIEVEMENT DRIVE
The right attitude--a strong, overpowering will to succeed (success motivation) is the second key
to achieving consistent sales. Studies show that top sales people from every field of endeavor
have more desire to achieve than the vast majority of their peers. They also gain personal
satisfaction in helping other people make sound buying decisions. This gives them the energy,
stamina, enthusiasm, and compelling motivation to attain the edge that produces higher rates of
sales and high quality customer service levels. Our research reveals that success motivation can
be learned and heightened with a positive attitude about you, your products, and services through
creative mental imagery, and by developing specific, written sales and promotional goals.
7. DAILY PLANNING & PERSONAL MANAGEMENT
The mere possession of selling techniques does little to insure success. It is the person's attitude
and work habits that are important. The third concept to be mastered, if you are to achieve
success in selling, lies in your ability to schedule your time wisely and work effectively during
the periods you allocate to your sales promotional activities. Major studies have conclusively
demonstrated that sales professionals are successful not because of any special or unique selling
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techniques they use or a sales personality, but they succeed because of the positive disciplined
approach they bring to their work.
How it helps?
Thos tells frequency of use and is gathering by usage of product. This makes them up-to-date.
CONCLUSION
In the view of following data Ufone is one of the telecom sector who need to produce more
output by implementing new technologies, new tariffs, and new consumer satisfaction value
added service. Further, it is still the second largest cellular service provider in the country.
ANALYSIS
Ufone is focusing on its products and services with its customer satisfaction. The important point
is SWOT analysis which Ufone is performing. Value added services and competitive rates have
been the factors of the company success. Up to some extent the company lacks its market in
Postpay services. Centralized structure failed to provide proper guidance over instruction and
policies. Should innovate more VAS (value added services) in the Telecom sector which Ufone is
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already doing and trying to make attractive strategies for new customers. Government policies
law and order situation in the country is at times is alarming. Postpay services fall in Stars and
Question Mark according to BCG matrix. Whereas Prepay services fall in Cash Cow and Dogs in
consideration with growth rate and market share. Customer retention is focused very much by
offering different promotions to the customers who are dormant with respect to utilization of the
services, in the words of the company it is known as BBFD (Bring Back Customer From
Dormancy). Customer requesting for porting-out from the network are given best options to
remain with the network special offers at times are given when needed to the customer
requesting to port-out form the network & also maintaining proper follow-up with the customers.
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 20 th 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.
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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 Rs. 20 billion to Rs.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.
Ufones operational performance has been very encouraging despite stiff competition is
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
SUGGESTED STRATEGIES
1.
2.
3.
4.
5.
6.
Market Development.
Market Penetration.
Product Development.
Restructuring.
Refreshment.
Liquidation.
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