Points Described By

Mission vision introduction and history

By Ammara Latif
External assessment
By Qaiser Abbas
Internal assessment
By Faisal Nadeem
Input stage
By Shafqat Ali
matching stage
By Abduljabbar
Decision stage
By Nadir Ali
External Assessment:
PEST Analysis of Pakistan in Telecom Industry

Political Factors
Political Instability:
Deregulation:
Changes in Tax Laws:

Economic Factors:
Gross Domestic Product:
Average Revenue per User (ARPU):
Decline in Money Value:
Outflow of Capital:

Technological Factors:
Technological Development:
Technological Advancement:
Five Forces Porter Model
Five forces looks at five key areas namely
Threat Of New Entry, Power Of Buyers, Power
Of Suppliers, Threat Of Substitutes, And
Competitive Rivalry.
Five Forces Porter Model

Threat of New Entry

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitute Products

Rivalry among Competing Firms in

Industry
Competitive Analysis

Major competitors of ZONG include

Mobilink
Ufone
Telenor
Warid
Type
Private Limited Company
Founded
1994
Founder
Motorola USA
Headquarters
Islamabad, Pakistan
Area served
5000 cities, towns, and villages
across Pakistan
Products
postpaid Indigo , prepaid JAZZ,
Mobilink PCO
Parent
Orascom Telecom Egypt
Slogan
Reshaping lives
Website
www.mobilinkgsm.com
Type Private
Founded January 29, 2001
Pakistan
Founder Telecommunication
Company Ltd

Headquarters Islamabad, Pakistan

2336 cities of Pakistan, GT

Area served Road, Super Highway &
Motorway

Products Pre Pay, Post Pay

Parent PTCL Pakistan

Slogan
It’s all about U! (Tum He
Tou Ho)

Website www.ufone.com
 Telenor

Type Public
Founded 1855

Headquarters Fornebu, Norway

Industry Telecommunication

Telephony and
Products
broadband

Employees 31,750
Slogan Here to help

Website www.telenor.com
Market share of telecom industry
•Opportunities of Zong
Expand Globally

Publicity and Marketing

Publicity and Marketing

New product development

Opportunity in northern
areas

Pak China Border

•Threats of Zong

Old stable companies

Better Packages by Other

Cellular

Price Wars

Government Interference
Internal Assessment:
Management

Marketing Department

Finance Department

Value Chain

Research And Development Department

Human Resources Department

•Strength of Zong
Investment:

Network portability

Zong mobile

Resources, Assets and People

Location and Geographical Coverage

Government Dealings
•Weaknesses of Zong

Coverage

Bad image of paktel

Bad MIS
A Comprehensive Strategy-Formulation Framework
Stage-1 (Formulation Framework)

1. External factor evaluation

2. Competitive matrix profile
3. Internal factor evaluation

Stage-2 (Matching Stage)

1. TWOS Matrix
2. SPACE Matrix
3. BCG Matrix
4. IE Matrix
5. GS Matrix

Stage-3 (Decision Stage)

1. QSPM
 EXTERNAL FACTOR EVALUATION (EFE) MATRIX
Key External Factors Weight Rating Weighted
Score
Opportunities
1 Globalization 0.10 3 0.30

2 Marketing 0.15 4 0.60

3 Acquisition 0.08 2 0.16

4 New Product Development 0.07 3 0.21

5 Northern Areas 0.10 3 0.30

6 Pak China Borders 0.13 3 0.39

Threats
1 Old Stable Companies 0.12 4 0.48

2 Attractive Packages By Others 0.10 3 0.30

3 Price War 0.06 3 0.18

4 Government Interference 0.09 3 0.27

TOTAL 1.00 3.19

Interpretation

Total weighted score of opportunities

and threats in EFE matrix is
3.19 Which is above average.
it means Zong is availing its
opportunity and maximizing
its threats
 INTERNAL FACTOR EVALUATION (IFE) MATRIX
Key Internal Factors Weight Rating Weighted
Score
Strengths
1 Investment 0.09 4 0.36

2 High Growth Rate 0.11 4 0.44

3 Advertising 0.12 3 0.36

4 Net Work Portability 0.12 3 0.36

5 Zong Mobile 0.07 3 0.21

6 Resources Assets And People 0.08 3 0.24

7 Location And Geographical 0.10 3 0.30

Coverage

8 Government Dealing 0.09 3 0.27

Weaknesses
1 Bad Image Of Paktel 0.06 2 0.12

2 Coverage 0.07 1 0.07

3 Low Market Share 0.05 2 0.10

4 Weak MIS 0.04 2 0.08

TOTAL 1.00 2.91

Interpretation
Total weighted score of strengths
and weaknesses in IFE matrix is
2.91 Which is above average.
it means Zong is increasing its
strengths and overcoming on
its weakness.
 Competitive Profile Matrix (CPM)
V

Critical Weig Rating Weight Ratin Weight Ratin Weighte Ratin Weight
Success ht ed g ed g d Score g ed
Factors (CSF) Score Score Score

Market Share 0.15 4 0.60 3 0.45 1 0.15 3 0.45

Growth Rate 0.10 1 0.10 3 0.30 4 0.40 3 0.30

Financial Strength 0.08 3 0.24 3 0.24 4 0.32 3 0.24

Management 0.12 4 0.48 3 0.36 3 0.36 3 0.36

Coverage 0.10 4 0.40 3 0.30 2 0.20 2 0.20

CCS 0.13 4 0.52 3 0.39 3 0.39 2 0.26

Advertising 0.06 2 0.12 3 0.18 3 0.18 4 0.24

Brand Name 0.10 4 0.40 2 0.20 3 0.30 3 0.30

Packages 0.09 2 0.18 3 0.27 3 0.27 4 0.36

Price 0.07 2 0.14 3 0.21 3 0.21 3 0.21

Competitiveness

TOTAL 1.00 3.18 2.90 2.78 2.92

interpretation

As indicated by the total weighted score

of 2.78, Zong is weakest. because it is at its
initial position as compare to competitors.
With the point of 3.18 Mobilink is leading.
Telenor and ufone have total the score
Of 2.90 and 2.92 respectively.
 •TOWS MATRIX OF ZONG
Strengths–S Weaknesses – W
S1. Capital W1. Coverage
S2. Network Portability W2. Bad Image Of Paktel
S3. Resources W3. Low Market Share
S4. Location W4. Weak MIS
S5. Government Dealings W5. Old Staf
S6. High Growth Rate
S7. Advertising

Opportunities – O SO-Strategies WO-Strategies

O1. Globalization
O2. Marketing S1,O1 Expand W3,O3 Acquisition
O3. Acquiring S3,O7 Penetration
O4. Covering Pak China Border S1,O3 Acquisition
O5. Covering Northern
Areas
O6. New Product
O7. Penetration
Threats – T ST-Strategies WT-Strategies
T1. Old Stable Companies S1,T3 Cost Leadership W3,T2 Downsizing
T2. Attractive Packages By
Competitors S3,T2 Penetration
T3. Price War
T4. Government Interference
  SPACE Matrix of Zong

Financial Strength (FS) RAITNGS

Revenues 5.0
Return on investment 4.0

Working capital 5.0

14.0

Competitive Advantage (CA)

Resources Assets -2.0

High growth rate -1.0

Advertising -2.0

Competition capacity utilization -3.0

-8.0
Environmental stability (ES) RAITNGS
Technological changes -3.0

Rate of inflation -4.0

Demand variability -2.0

Barriers to entry into market -1.0

-10.0

Industry Strength (IS)

Deregulation increase completion in telecom industry 3.0

Financial stability 5.0

Resources utilization 4.0

Profit potential 4.0

16.0
Conclusion

FS average is 14/3 = 4.67

CA average is -8/4 = -2.0
ES average is -10/4 = -2.5
IS average is 16/4 = 4.0

Directional Vector Coordinates: x-axis: 4.67+ (-2.5)=2.17

Directional Vector Coordinates: y-axis: 4.0+ (-2) = 2

The Zong should peruse Aggressive strategies

SPACE MATRIX FOR ZONG

Conservative (2, 2.17) Aggressive

Defensive Competitive
BCG GROWTH-SHARE MATRIX
 Internal External Evaluation Matrix

Total weight of IFE

i. 1 i. 2 i. 3

Total weight i. 4 i. 5 i. 6

Of EFE

i. 7 i. 8 i. 9
GRAND STRATEGY MATRIX FOR ZONG

Rapid
Market
Growth

Quadrant II Quadrant I

Weak Strong
Competitive Competitive
Position Position11

Quadrant III Slow

Quadrant IV
Market
Growth
 Quantitative Strategic Planning Matrix (QSPM)
SELECTIVE STRATEGIES MARKET PENETRATION COST LEADERSHIP
Key External Factors Weight Attractiveness Total Attractiveness Total
Scores (AS) Attractiveness Scores (AS) Attractiveness
Scores (TAS) Scores (TAS)

Opportunities
1 Globalization 0.10 3 0.30 2 0.20
2 Marketing 0.15 4 0.60 3 0.45
3 Acquisition 0.08 2 0.16 2 0.16
4 New Product 0.07 3 0.21 3 0.21
Development

5 Northern Areas 0.10 3 0.30 2 0.20

6 Pak China Borders 0.13 3 0.39 2 0.26

Threats
1 Old Stable 0.12 4 0.48 3 0.36
Companies
2 Attractive 0.10 3 0.30 3 0.30
Packages By
Others
3 Price War 0.06 3 0.18 2 0.12
4 Government 0.09 3 0.27 2 0.18
Interference
TOTAL 1.00
Strengths
1 Investment 0.09 4 0.36 4 0.36

2 High Growth Rate 0.11 4 0.44 3 0.33

3 Advertising 0.12 3 0.36 3 0.36

4 Net Work 0.12 3 0.36 3 0.36

Portability
5 Zong Mobile 0.07 3 0.21 3 0.21

6 Resources Assets 0.08 3 0.24 3 0.24

And People

7 Location And 0.10 3 0.30 3 0.30

Geographical
Coverage

8 Government 0.09 3 0.27 3 0.27

Dealing
Weaknesses
1 Bad Image Of 0.06 2 0.12 1 0.06
Paktel
2 Coverage 0.07 1 0.07 1 0.07

3 Low Market Share 0.05 2 0.10 2 0.10

4 Weak MIS 0.04 2 0.08 1 0.04

SUM TOTAL 1.00 6.10 5.14

ATTRACTIVENESS
SCORE
•CONCLUSION

Zong has strong financial position and growing fast.

That is the reason we didn’t found much
discrepancies. As seeing the growth rate of Zong
it may possible that Zong can be the leading
mobile operator in Pakistan. There are some
minor discrepancies but they can adjustable
with little effort.
•Recommendation
Zong Telecom should be increase their network
coverage and foot prints in every corner of the
country to capture the market.

Zong should adopt the strategies of market penetration

Cost leadership and related diversification
but the most effective strategy would be market penetration.

In the SBU of Zong mobile Zong should use the

strategy of hold and maintain.

Zong should hire the skilled management.

Zong should not waste their opportunities and get more

help as possible.
•References
www.zong.com.

www.google.com

www.pta.com.pk

Rana Armughan
Zong Garden Town Ali Block Lahore

Farhan Ali Khan

Zong Kchehri Chowk Multan