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MANAGEMENT
MGT 603
FINAL PROJECT
Muhammad irfan
0334-7325705
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.
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
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.
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.
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
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
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
Weaknesses
3. Stagnant Profitability
As compared to financial assets, Ufone is not close to expected profitability
Threats
1. Govt. Interference
Govt. Interference will always be treated as
a threat in terms of taxes.
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.
THREAT
1. Govt. Interference .10 2 .20
1.00 2.95
2.5 INTERNAL FACTOR EVALUATION
THE IFE
WEIGHTED SCORE
Human Resource
Management
- Staff Family
Planning
- Staff Pension
Funds
- Staff Training
Marketing
Department
- Global Expansion
Govt. Interference
PTCL cellular
license
Pension Payouts.
Increased Health
Care Costs
1.0
2.8 BCG
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
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