Marketing Project Report

Competitive Analysis of Ufone & Jazz

12/12/2019
Group Activity

Submitted by:
Waleed Abdullah (01-111192-241)
Hasham Bin Naeem (01-111192-033)
Hassan Ali Zeb (01-111192-078)

Submitted To: Ma’am Izza Shahzad

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Contents
CHAPTER 1 .................................................................................................................................................... 5
Introduction to Ufone ................................................................................................................................... 5
History of Ufone ............................................................................................................................................ 5
Vision of Ufone.............................................................................................................................................. 5
Mission Statement ........................................................................................................................................ 6
Objectives of Ufone ...................................................................................................................................... 6
Product mix of ufone .................................................................................................................................... 7
Chapter 2....................................................................................................................................................... 9
Marketing Strategies ..................................................................................................................................... 9

.................................................................... 9
SWOT Analysis of Ufone ............................................................................................................................... 9
 STRENGTHS ........................................................................................................................................... 9
WEAKNESSES:.............................................................................................................................................. 10
OPPORTUNITIES: ......................................................................................................................................... 10
THREATS:..................................................................................................................................................... 10
BCG MATRIX ................................................................................................................................................ 11
Ufone, in cash cow stage ............................................................................................................................ 11
Relative Market Growth Rate ..................................................................................................................... 11
Desired Strategies of Ufone ........................................................................................................................ 11
BCG MATRIX Figure ..................................................................................................................................... 12
4P’s Of Marketing for Ufone ....................................................................................................................... 13
Product ........................................................................................................................................................ 13
Price ............................................................................................................................................................ 13
Pricing Strategy ........................................................................................................................................... 14
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Promotion ................................................................................................................................................... 14
Advertising Message ................................................................................................................................... 14
Product mix of ufone .................................................................................................................................. 15
Chapter 3..................................................................................................................................................... 16
(MARKETING STRATEGIES OF UFONE) ........................................................................................................ 16
Market segmentation ................................................................................................................................. 16
Target markets ............................................................................................................................................ 16
Target marketing strategies ........................................................................................................................ 16
Positioning .................................................................................................................................................. 16
Ufone`s positioning strategy ....................................................................................................................... 17
Differentiation............................................................................................................................................. 17
Differentiation strategy .............................................................................................................................. 17
Chapter 4..................................................................................................................................................... 18
(Micro Environment & Macro Environment) .............................................................................................. 18
Micro Environment: .................................................................................................................................... 18
Factors of Micro Environment .................................................................................................................... 18
Company: .................................................................................................................................................... 19
Competitors: ............................................................................................................................................... 19
Suppliers: .................................................................................................................................................... 19
Publics: .................................................................................................................................................... 19
Marketing Intermediaries: .......................................................................................................................... 20
Macro Environment .................................................................................................................................... 20
Demographic ............................................................................................................................................... 20
Technological .............................................................................................................................................. 20
Economic ..................................................................................................................................................... 20
Political ........................................................................................................................................................ 20
Natural ........................................................................................................................................................ 21
Cultural........................................................................................................................................................ 21
Chapter 5..................................................................................................................................................... 21
(Competitor Analysis) ................................................................................................................................. 21
JAZZ ............................................................................................................................................................. 21
Background: ................................................................................................................................................ 21
Mission: ....................................................................................................................................................... 22
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Vision........................................................................................................................................................... 22
Objectives ................................................................................................................................................... 22
BCG GROWTH RATE MATRIX OF JAZZ/MOBILINK ....................................................................................... 23
Mobilink Market Share ............................................................................................................................... 24
SWOT ANALYSIS .......................................................................................................................................... 24
SWOT Analysis of Mobilink/Jazz ................................................................................................................. 24
Strengths: .................................................................................................................................................... 25
Weakness: ................................................................................................................................................... 25
OPPORTUNITIES: ......................................................................................................................................... 25
THREATS: ..................................................................................................................................................... 26
Chapter 6..................................................................................................................................................... 28
(Analysis) ..................................................................................................................................................... 28
Ufone Corporate strategy ........................................................................................................................... 28
Mobilink Corporate Strategy....................................................................................................................... 28
Brand history ............................................................................................................................................... 28
Target market ............................................................................................................................................. 28
Marketing Strategy ..................................................................................................................................... 29
Segmentation Strategy ............................................................................................................................... 29
Targeting Strategy ....................................................................................................................................... 29
Marketing Program .................................................................................................................................... 29
Price Strategies of Ufone ............................................................................................................................ 32
Price strategies of Mobilink ........................................................................................................................ 32
Promotional Strategy of Ufone ................................................................................................................... 34
Promotional Strategy of Mobilink............................................................................................................... 34
Placement and distribution......................................................................................................................... 35
Product Life cycle of Ufone ......................................................................................................................... 36
Product Life cycle Of Mobilink .................................................................................................................... 36
Consumer Buying Behavior ......................................................................................................................... 37
Macro Environment .................................................................................................................................... 37
Factors of Macro Environment ................................................................................................................... 37
Demographic: .............................................................................................................................................. 37
Technological: ............................................................................................................................................. 37
Economic:.................................................................................................................................................... 37
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Political:....................................................................................................................................................... 38
Natural: ....................................................................................................................................................... 38
Cultural:....................................................................................................................................................... 38
Chapter 7..................................................................................................................................................... 39
Recommendations ...................................................................................................................................... 39
Chapter 8..................................................................................................................................................... 41
Chapter 9..................................................................................................................................................... 46
(References) ............................................................................................................................................ 46
Chapter 10................................................................................................................................................... 47
(Appendix) ............................................................................................................................................... 47
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CHAPTER 1

Introduction to Ufone

Ufone is a Pakistani GSM cellular service provider. It was the third mobile operator to enter
Pakistani market. It started its operations under the brand name of Ufone, in Islamabad on January
29, 2001. PTML is a wholly owned subsidiary of Pakistan Telecommunication Company Limited.
Following PTCL's privatization, Ufone became a part of the Etisalat in 2006.
Ufone is the smallest GSM mobile service provider and least number mobile service in terms of
subscriber base of 22 million. It has a market share of 14%, least among all four mobile operators.
Ufone has appointed Rashid Khan as its CEO who was the CEO of Mobilink (now Jazz) from
2008 to 2014.

History of Ufone
Ufone was the third mobile operator to enter Pakistani market. It started its operations under the
brand name of Ufone, in Islamabad on January 29, 2001. PTML is a wholly owned subsidiary of
Pakistan Telecommunication Company Limited. Following PTCL's privatization, Ufone became
a part of the Etisalat in 2006.

Vision of Ufone
To be the leading telecommunication service provider in Pakistan by offering innovate
communication solutions for customers while exceeding shareholder value & employee
expectation.
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Mission Statement
Ufone, it's all about U. we are where you want to be, we aim to provide you with wide coverage,
superior connectivity clean signals and voice clarity. Wherever you are, ufone keeps you
connected.

Objectives of Ufone

Objectives include:

 Enhancing, Efficiency & Quality

 Reducing costs & wastages in ufone functions & activities
Ufone is giving many facilities going through different valuable processes and proceed.
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Product mix of ufone

Pre Pay Post Pay Mobile phones

Packages Postpaid stuff Ufone smart U5a

Bundles Value added services Ufone smart U5

Prepaid roaming Customer care Ufone Handset

International MMS Payment choices

U share0 Supplementary connection

Recharge Boundless roaming

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Chapter 2

Marketing Strategies

SWOT Analysis of Ufone

Every Organization has some Strengths, Weakness, Opportunities and Threats. Strengths and Weakness are
the Internal Factors and Opportunities and threats are External Factors.

 STRENGTHS:

 They have coverage over 2336 areas of Pakistan

 Low international rates

 As government is backing them they can get as many fund as required by them to
introduce the new technology

 Good quality service

 Pakistan's second GSM network

 Established customer base including lower middle class

 Less rate than competitors

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 Only company present in all four provinces

 Highly motivated and trained work force

 Offering products like mobile office, mobile Internet and MM

WEAKNESSES:

 Unable to meet customers demand

 Less coverage in remote areas
 Not targeting the rural areas at the moment
 No proper planning to cater the excessive demand
 Poor quality network in hilly areas

OPPORTUNITIES:

 They can start their services in other cities of Pakistan

 As they are the subsidiary of Pakistan telecommunication limited, they can acquire as
much fund needed to improve their technology
 They can also target corporate sector
 New Technology

THREATS:

 Legal environment, government interference

 PTCL has been given license for cellular operations
 Mobilink is also going to introduce some new technology and committed to invest more in Pakistan
 Mobilink and Telenor phone have more coverage in different cities of Pakistan then
Ufone
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 High taxes are imposed on the cellular industry in Pakistan

BCG MATRIX

Ufone, in cash cow stage

Market share value;

 Market share value is high as compared to competitors.

Relative Market Growth Rate

 Relative market growth rate is low.

Desired Strategies of Ufone

 Further investment
 Follow customer needs & taste
 Strong customer relationship
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BCG MATRIX Figure

STAR ?
High
Market Growth

CASH COWS DOGS

High Low
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4P’s Of Marketing for Ufone

1- Product
2- Price
3- Place
4- Promotion

Product
 Ufone prepaid connection is a complete communication solution.
 Short Messaging Service (SMS) and International SMS.
 Caller Line Identification (CLI)
 Call Waiting.
 Voice Mail.
 Phonebook Saver.
 GPRS enabled
- MMS
- WAP
- Internet access
 Prepaid
 Content Download

Price
 In price, ufone is providing different packages to its customers loke other networks.
The detail of packages area as follows;
 30 sec package
 Youth non stop offer
 Uwon
 Tension free basic package
 Lady’s package
 Uwon super call
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 Life plus
 Ucircle life plus

Pricing Strategy
 Ufone follows market penetration pricing strategy to meet the customer needs and ever
changing price competition.
 Price has always been the core differentiation of Ufone. Ufone is the one who is offering
least call rates off network.
 Ufone’s price strategy in postpaid is very affective and suitable.
 Ufone always gives its customers almost lowest rates prevailing in marketing.
 They give packages to each class and facilitate with most suitable packages.

Promotion
 Advertising strategy consists of two major elements:
- Advertising Message
- Advertising Media
- Ufone has the following strategies regarding the message and media of advertising:

Advertising Message
- Message content

- The very first content of Ufone’s advertising message was humor.

- And then in its blooming stage it shifted its message content to youthful excitement.

- Message Format
- The format of Ufone’s advertisements has always been very colorful and eye
catching
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Product mix of ufone

Pre Pay Post Pay Mobile phones

Packages Postpaid stuff Ufone smart U5a

Bundles Value added services Ufone smart U5

Prepaid roaming Customer care Ufone Handset

International MMS Payment choices

U share0 Supplementary connection

Recharge Boundless roaming

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Chapter 3

(MARKETING STRATEGIES OF UFONE)

Market segmentation
Cellular service market is a diverse set of people. Ufone as well as other cellular service companies
segment their market on four bases:

 Economy: Upper class, Middle class, socio-economic class, lower class

 Age: Teenagers, youngsters, middle age, aged people
 Gender: Male & Female
 Occupation: Corporate class, business class, working class etc.

Target markets
Cellular phones are the technology of new era, the 21st century. These cellular phones are the focus
of youngsters. All the cellular companies are targeting the youth one-way or other. Ufone is no
longer a follower in this race its main focus is “THE YOUTH” of Pakistan, which is its target
market.

Target marketing strategies

Ufone has always been targeting Youth market by using youth endorsers or ambassadors. It always
bring such packages and offers that precisely meet the needs of our young people. No doubt, it has
also launched packages, brands, and offers for working people, business class, women and aged
ones. Ufone seeks to target masses in the long run.

Positioning
Positioning is the process of creating an image of company`s brand in the mind of market.
Companies position themselves emotionally, functionally or on the basis of brand quality. Ufone
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is still a market challenger in comparison to market leader MOBILINK. It is still to reach to the
top most position of cellular companies. Therefore, Ufone positions itself based on its services.

Ufone`s positioning strategy

Ufone changed the mobile phones from luxury only affordable by the elite, to a necessary
affordable by the common man. Since its inception, Ufone has position its brand for “MASSES”
on the basis of services it is providing and its lower call rates. It makes them believe that it satisfies
the needs of everyone ( of all classes, & genders ). It tells them that Ufone is there when anybody
needs it. The brand name UFONE itself is a positioning statement.

Differentiation
In these days of intense competition marketers find it hard to differentiate their services from those
of competitors. Now customers care only about price. An unsatisfied customer will immediately
go for brand switching. Thus leaving a customer unsatisfied is out of question for marketers.

Differentiation strategy
Ufone has always strategized the demands of its customers. In doing so it has been successful in
differentiating itself in terms of:

 Price
 Quality service
 Technology
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Chapter 4

(Micro Environment & Macro Environment)

Micro Environment:

The factors or elements in a firm's immediate environment which affect its performance and
decision-making; these elements include the firm's suppliers, competitors, marketing
intermediaries, customers and publics.

Factors of Micro Environment

 Company
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 Competitors
 Suppliers
 Publics
 Marketing intermediaries

Company:

Company’s internal forces are going to increase the sales of ufone if the forces are strong within
the departments.

 Top management
 Finance
 R&D
 Procurement
 Production operations

Competitors:

Competitors play an important role as the existence of the competitors will force ufone to come up
with new tariffs and ideas to increase the sales. Thus sales of ufone will increase. Ufone can come
up with per second billing to compete with the competitors as their call rates are pretty low. This
will result in an increase in sale of prepaid connections.

Suppliers:

Suppliers can be of vital importance. For example, suppliers don’t supply the black sims (a new
package of ufone for its customers), then this new package plan is going to fail so it’s up to
suppliers, if they supply the new black sims on time, only then the new package plan is going to
work and people will get attached to it.

Publics:

Public play an important role in increasing the sales as well. Media is the main public used by
ufone for increasing the awareness of different packages and plans of the connections. For
example, the ad of utopup was made by the media and plus there are many other examples. Other
public having an influence on the sales of ufone can be government, for example, the government
doesn’t allow ufone to place a booster in let’s say in Waziristan, so it’s having a negative impact
on the sales of ufone
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Marketing Intermediaries:

Marketing intermediaries in the case of ufone are going to be franchise. Now it’s the duty of the
franchise to tell the customer’s about the new packages and plans and any supplementary
connections, packages for the post-paid customers, is going to flourish only if the intermediaries
tell the customers about it. If they don’t tell the customers about it, the sales of ufone are going to
decline and the new package in going to get flopped.

Macro Environment
A macro environment is the condition that exists in the economy as a whole, rather than in a
particular sector or region. In general, the macro environment includes trends in gross domestic
product (GDP), inflation, employment, spending, and monetary and fiscal policy.

Some factors of macro environment are given below:

 Demographic
 Technological
 Economic
 Political
 Natural
 Cultural

Demographic
Demographics are the physical characteristics of a population such as age, gender, martial status,
family size, education, geographical location and occupation.

Technological
Technology is another macro-environment factor. With better technology, the product of ufone
can be developed on a quicker pace, therefore, it will increase the sales of ufone in the long run.

Economic
Per second billing and labor of our society can be targeted. This will also increase the sales of
ufone.

Political
Political influence plays a vital role in survival and existence of a business, especially in country
like Pakistan, where political circumstances are not static nor stable, commencing business and
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sales while managing with the current political situations is in itself an achievement with
complying with the laws. Such as tax, advertisement policies and etc.

Natural
Population will play an important role if sales of ufone are concerned. Ufone has launched its
abn-amro/ufone card as well to target the elite corporate class of our society. Those cards are
sold at corporate levels.

Cultural
To cater the family, ufone has already launched u-circle, so they don’t need to do anything in this
field.

Chapter 5

(Competitor Analysis)

JAZZ

Background:
Mobilink started operations in 1990 as the first GSM cellular mobile service in Pakistan with a
joint venture by Saif Group and Motorola Inc., who later sold it to Orascom Telecom, an Egypt-
based multinational company and then they also further sold it to Vimpelcom Group, a Russian
Company.
The Orascom group, who formally owned Mobilink, has a major share in TWA (Trans world)
which operates an undersea fiber-optic cable from Karachi, Pakistan, to Fujairah, UAE. As of June
2010, Mobilink had issued two listed bonds valued at PKR 30.2 billion and PKR 60 billion.
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Mission:
“Being a responsible corporate citizen of Pakistan, we believe we have an inherent duty to
propagate innovative work practices in the country and be an example for others. Bringing
Safety to the forefront of business shows our dedication to the people who work with us and our
duty of care to all those associated with the organization”.

Vision
“To be the leading telecommunication services provider in Pakistan. As for the customers, centres
there are about 2000 to 25000 customer service center all over the Pakistan. There are about 5000
employees working in Mobilink on permanent and temporary basis, in other words Mobilink can
say

“WE SPEAK YOUR LANGUAGE…..EVERYWHERE”

Objectives
 To expand the business.
 To provide better service to people in the field of telecommunication.
 Retaining as the role of the leading telecommunication company.
 Attract maximum customer needs.
 Seek employee involvement, continuous improvement and enhanced performance goals.
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BCG GROWTH RATE MATRIX OF JAZZ/MOBILINK

STAR ?
MARKET GROWTH

High

CASH COWS DOGS

Low
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HIGH LOW

Mobilink Market Share

Mobilink claim all its product as Star with the highest market growth rate and highest market share.

SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses,
opportunities and threats involved in a project or business venture. It involves the specifying the
objectives of business ventures or projects and identifying the internal and external factors that are
favorable and unfavorable to achieving that objective. This technique is credited to Albert
Humphrey who led a convention at Stanford University in the 1960’s using data from Fortune 500
companies.

 Strengths: Attributes of the person or company that is helpful to achieving the objectives.
 Weaknesses: Attributes of the person or company that is harmful to achieving the
objectives.
 Opportunities: External conditions that is helpful to achieving the objectives.
 Threats: External conditions which could do damage to the objectives.

SWOT Analysis of Mobilink/Jazz

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Basically Mobilink hire from reference so SWOT analysis is based on this source. What they lose
due to this source and what are the advantages of this source are discussed below;

Strengths:
 Considered very strong and reliable.
 Captured most of the potential customers (28 million ad growing).
 Covering over 10,000 cities, towns and villages across the Pakistan.
 First operator to introduce IR for the people of Pakistan.
 Only cellular service in Pakistan to provide coverage on the M2 motorway.
 Highest market share not only in terms of number of subscribers but also in terms
of revenue.
 Mobilink has signed bilateral roaming agreements with 50 operators around the
world to have true roaming service operational in over 42 countries of the world.
 In order to facilitate its international roaming subscribers traveling to USA and
Canada, are available at all Mobilink’s Customer Service Centers.
 Mobilink’s short message service center allows Vehicle Tracking and Fleet (VTF)
Management services.
 Large number of corporate customers.
 Economy of scale.
 Mobilink and Muslim Commercial Band have made a combined effort to maximize
the ease and the satisfaction of their respective customer by offering them all
banking services from their very own mobile handset.
 Only company offering corporate packages.

Weakness:
 Currently providing not good quality service because of changing their network
from 900 MHz to 1800 MHz
 Fewer advertisements now days.
 Most expensive telecom company both in call rates and SMS.
 Engineering department of Mobilink is not that well competent as compared to
its new competitors.

OPPORTUNITIES:
 Can expand its network in the uncovered areas.
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 Services in the future can be;

1- Telephone
2- Wireless
3- Calling cards
 Mobile Phone Banking
 Before start of new companies can target as many new customers as they can.
 Can lower prices to make business difficult for new companies.

THREATS:
 New market players are coming in near future
 New companies can offer packages for corporate customers in better way.
 Wireless local loop service provides too targeting areas which are less
developed.
 Current price war may reach at the position where only brand names survive
 Due to expensive quality of service now a days customers can shift to other
companies
 Employee retention is also issue because Mobilink fired 1000 employees in
October 2008.
 Loss of loyal customer.
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Chapter 6

(Analysis)

Ufone Corporate strategy

 Figures various market incentives to provide maximum variety to its customers
 To increase long-term quality service and network coverage
 Provides newer technology to employees
 Exploits the market by keeping its prices as low as possible

Mobilink Corporate Strategy

 Wants to become a part of your family
 Main focus is quality and uncompromised network service
 Customer care is utmost priority
 Solid commitment to sustainable business practices
 Maximizing customer satisfaction

Brand history
 Ufone
o January 2001
o 3.23 Million Subscribers
o Parent company Etisalat

 Mobilink Jazz
o 31.6 Million Subscribers
o International roaming to over 140 countries

Target market
 Ufone
o Mainly youth

 Mobilink
o Diversified
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o Caters to every age group

Marketing Strategy
 Ufone
o Essence of humour
o Lively and energetic approach

 Mobilink
o Shows rich culture of country
o Creates an emotional connect

Segmentation Strategy
 Demographic
 Behavioral
 Geographic

Targeting Strategy
 Ufone
o Undifferentiated (Mass Marketing)
o Differentiated and Concentrated Marketing is being currently relied upon
o Micro Marketing (Location Based Offers)
o Marketing at an individual’s level

 Mobilink
o Differentiated Marketing is a focus
o Diversified Target Market
o Local Marketing techniques are being put into effect since the last year

Marketing Program
 Positioning of ufone
A brand with life and joy
 Positioning of Mobilink
A brand with elegance and efficiency
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Price Strategies of Ufone

 Price penetration for new complete packages
 Dynamic pricing for almost every offer
 Geographic pricing for example “Karachi offer”
 Psychological pricing especially for bundle offers like internet and mms

Price strategies of Mobilink

 Higher prices than competitors
 Mobilink used to have price skimming when there was no competition/less competition
 Static Pricing for almost every offer
 Geographic pricing especially for bundle offers like internet and mms
 Bundle Pricing for SMS packages and family packages
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Promotional Strategy of Ufone

 Tv commercials
 Radio
 Pole boards
 Billboards
 Posters
 ATL and BTL activities

Promotional Strategy of Mobilink

 Tv commercials (simple and focus on corporate level)
 Radio
 Pole boards
 Bill boards
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o Promoting jazz jazba

 Posters

Placement and distribution

 Ufone
o Multiple Channels for reaching its customers
o Ufone Top Up launched in 2005
o Ufone uses Hybrid Channels for Sales
o Selling through retail shops and franchises

 Mobilink
o Multiple Channels for reaching its customers
o Sim cards sold through outlets and service centers
o Mobilink also uses establish new sim issuance policy
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Product Life cycle of Ufone

 Ufone showed heavy growth between 2005-2008
 Ufone reached its maturity by 2011
“Pakistani market for cellular networks has a lot more to achieve and much left to exploit
and thus saturation is still a stage to come.”

Product Life cycle Of Mobilink

 Mobilink showed heavy growth between 2009-2010
 Mobilink reached its maturity by 2012
37

Consumer Buying Behavior

 Ufone
o Habitual with current consumers
o Variety seeking with new subscribers
 Mobilink
o Habitual with current consumers
o Complex behavior with new subscribers

Macro Environment

The major uncontrollable, external forces (economic, demographic, technological, natural, social
and cultural, legal and political) which influence a firm's decision making and have an impact upon
its performance.

Factors of Macro Environment

 Demographic
 Technological
 Economic
 Political
 Natural
 Cultural

Demographic:

Demographics are the physical characteristics of a population such as age, gender, martial status,
family size, education, geographic location and occupation.

Technological:

Technology is another macro-environmental factor. With better technology, the product of ufone
can be developed on a quicker pace, therefore, it will increase the sales of ufone in the long run.

Economic:

Per second billing introduced and labor of our society can be targeted. This will also increase the
sales of ufone.
38

Political:

Political influence plays a vital role in survival and existence of a business, especially in a country
like Pakistan, where political situations is in itself an achievement with companying with the laws
such as tax, advertisement policies and etc.

Natural:

Population will play important role if sales of ufone are concerned. Ufone has launched its abno-
amro/ufone card as well to get target the elite corporate class of our society. Those card are sold
at corporate levels.

Cultural:

To cater the family, ufine has already launched u-circle, so they don’t need to do anything in this
field
39

Chapter 7

Recommendations

Ufone:

1. Ufone could develop some new and innovative services to attract customers to increase
their revenues as well as it customers.

2. It should introduced International SMS packages.

3. They should also introduce some International call packages to Middle Eastern countries.

4. Relationship with customers should be fare.

5. It should increase the quality of 4G network.

6. It should provide better call and data rates.

7. To overcome the problem of helpline busy, we would suggest Ufone, to increase the
number of service operators to cater to its customers promptly, without them having to wait.

8. Advertising alone will not do the trick, the quality of its services that it provides need to
run parallel with advertising.

9. Companies need to evoke those feelings in advertisements that clients will experience once
they have made the purchase and have the product in their hands.

10. Ufone needs to work on its network problem. Network connectivity and Coverage should
be enhanced by installing more cell sites both in existing and newly covered areas. For this,
different IT and Software solution companies should be hired to speed up all this and catch up on
competition.
40

Jazz:

1. Adopting innovative technology.

2. Global expansion in emerging markets.

3. Concentrate on providing reliable and better services.

4. Better 4G services at every location especially northern areas.

5. Customer relationship should be fare.

6. Better call rates and data rates.

7. They should introduce international packages.

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Chapter 8

In this paper we have reviewed the basic approaches to determining whether a market is

competitive. In general there are many approaches and the best practice for one country might

not be the best practice for another country because of differences in data availability,

institutional practices, and the like.

42

In general, the first step in determining market power is to define the market. This is done

by identifying all of the possible ways that customers might try to avoid paying a price increase

for the products in question. If customers cannot avoid the price increase except by simply not

purchasing the products in question – in other words, there are no reasonable substitutes

available and no suppliers are in a position to create substitutes – then products constitute
a

market.

The second step is to gauge whether there might be a reason for concern. This is typically

done by looking at measures of market concentration, such as the HHI. If the measures are low,

for example if the HHI is less than 1000, then most analysts would consider the market to
be

competitive and no further analysis would be done. If the market appeared to be highly

concentrated, this would not be proof that the firm(s) has market power, but rather would

indicate that further review needs to be done.

29

This further review includes examining how the firms are behaving, whether there are

structural issues, and the market outcomes. Firm behaviors to be considered include indications

that firms are not competing, but rather are strategically interacting. Such indicators include

price-cost margins (such as the Lerner Index), market segmentation (in terms of firms choosing

to service different markets), and communications among firms. Structural issues include

barriers to entry and barriers to exit. Market outcomes include profitability. Profits that persist in

being higher than what is typical for the economy might indicate the exercise of market power.

To expand on this last statement, it is important to note that it is the exercise of market

power, not the existence of market power that is of concern. When a firm exercises market

power, it limits supply, which results in high prices for consumer and a loss of consumption. The
43

exercise of market power might also result in lower quality, higher costs, and less innovation, but

the exercise of market power does not necessarily result in these things.

In this paper we have reviewed the basic approaches to determining whether a market is

competitive. In general there are many approaches and the best practice for one country might

not be the best practice for another country because of differences in data availability,

institutional practices, and the like.

In general, the first step in determining market power is to define the market. This is done

by identifying all of the possible ways that customers might try to avoid paying a price increase

for the products in question. If customers cannot avoid the price increase except by simply not

purchasing the products in question – in other words, there are no reasonable substitutes

available and no suppliers are in a position to create substitutes – then products constitute
a

market.

The second step is to gauge whether there might be a reason for concern. This is typically

done by looking at measures of market concentration, such as the HHI. If the measures are low,

for example if the HHI is less than 1000, then most analysts would consider the market to
be

competitive and no further analysis would be done. If the market appeared to be highly

concentrated, this would not be proof that the firm(s) has market power, but rather would

indicate that further review needs to be done.

29

This further review includes examining how the firms are behaving, whether there are

structural issues, and the market outcomes. Firm behaviors to be considered include indications

that firms are not competing, but rather are strategically interacting. Such indicators include

price-cost margins (such as the Lerner Index), market segmentation (in terms of firms choosing
44

to service different markets), and communications among firms. Structural issues include

barriers to entry and barriers to exit. Market outcomes include profitability. Profits that persist in

being higher than what is typical for the economy might indicate the exercise of market power.

To expand on this last statement, it is important to note that it is the exercise of market

power, not the existence of market power that is of concern. When a firm exercises market

power, it limits supply, which results in high prices for consumer and a loss of consumption. The

exercise of market power might also result in lower quality, higher costs, and less innovation, but

the exercise of market power does not necessarily result in these things.

In this paper we have reviewed the basic approaches to determining whether a market is

competitive. In general there are many approaches and the best practice for one country might

not be the best practice for another country because of differences in data availability,

institutional practices, and the like.

In general, the first step in determining market power is to define the market. This is done

by identifying all of the possible ways that customers might try to avoid paying a price increase

for the products in question. If customers cannot avoid the price increase except by simply not

purchasing the products in question – in other words, there are no reasonable substitutes

available and no suppliers are in a position to create substitutes – then products constitute
a

market.

The second step is to gauge whether there might be a reason for concern. This is typically

done by looking at measures of market concentration, such as the HHI. If the measures are low,

for example if the HHI is less than 1000, then most analysts would consider the market to
be

competitive and no further analysis would be done. If the market appeared to be highly

concentrated, this would not be proof that the firm(s) has market power, but rather would

indicate that further review needs to be done.

45

29

This further review includes examining how the firms are behaving, whether there are

structural issues, and the market outcomes. Firm behaviors to be considered include indications

that firms are not competing, but rather are strategically interacting. Such indicators include

price-cost margins (such as the Lerner Index), market segmentation (in terms of firms choosing

to service different markets), and communications among firms. Structural issues include

barriers to entry and barriers to exit. Market outcomes include profitability. Profits that persist in

being higher than what is typical for the economy might indicate the exercise of market power.

To expand on this last statement, it is important to note that it is the exercise of market

power, not the existence of market power that is of concern. When a firm exercises market

power, it limits supply, which results in high prices for consumer and a loss of consumption. The

exercise of market power might also result in lower quality, higher costs, and less innovation, but

the exercise of market power does not necessarily result in these things.

In this report we have reviewed the basic approaches of two rival telecom companies
Mobilink/Jazz and Ufone to determining whether a market competitive. In general there are many
approaches and the best practice for one country might not be the best for another country because
of differences in data availability, institutional practices, and the like.

In general, the first step in determining market power is to define the market. This is done by
identifying all of the possible ways that customer might try to avoid paying a price increase for the
products in question. If customers cannot avoid the price increase except by simply not purchasing
the products. In other words, there are no reasonable substitutes available and so suppliers are in
position to create substitutes

To expand on this last statement, it is important to note that it is the exercise of market power, not
the existence of market power that is of concern. When a firm exercises market power, it limits
supply, which results in high prices for consumer and a loss of consumption. The exercise of
market power might also result in lower quality, higher costs, and less innovation, but the exercise
of market power does not necessarily result in these things.
46

Chapter 9
(References)

https://www.slideshare.net/ataulhassnain/ufone-marketing-presenation

https://www.slideshare.net/riznike/mobilink-presentation

https://mobilinkbank.com/vision-mission-core-values

https://www.slideshare.net/shaikhisabelle/ufone-34299623
47

Chapter 10
(Appendix)