Strategic Management

GROUP MEMBERS1. JAWAD ALI RAY2. SULTAN MEHBOOB3. M. SULEMAN

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CONTENTS

ContentsACKNOWLEDGEMENT.............................................................................................4

Introduction...............................................................................................................5

Mission Statement.................6

Vision statement........................................................................................................6

Organizational Behavior of Warid.....7

Market Share of Warid Telecom.........7

Organizational structure...................7

SWOT Analysis...........................................................................................................8

Strength..................................................................................................................8

Weakness................................................................................................................8

Opportunities..........................................................................................................9

Threats:................................................................................................................... 9

Direct competitors...................................................................................................10

Marketing strategies................................................................................................10

Short term objective:............................................................................................11

Long term objectives:...........................................................................................11

Warid strategic partner...........................................................................................12

Internal Factor Evaluation (IFE)..............................................................................13

External Factor Evaluation (EFE)............................................................................14

Competitive Profile Matrix.......................................................................................15

SWOT Analysis............................................................................................................16

Boston Consulting Group Matrix (BCG)...................................................................17

Possible strategies to adopt:.................................................................................17

Internal-External Matrix..........................................................................................18

Grow & Build (I, II, IV)..........................................................................................18

Grand Strategy Matrix.............................................................................................19

Conclusion................................................................................................................... 20

Recommendations..........................................................................................................20

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ACKNOWLEDGEMENT

First of all we are thankful to Allah

Almighty for giving us strength

and Courage for performing this

project. Then we are thankful to

our teacher Mr. Noman Malik for

helping us a lot in the project. We

are also thankful to all the

employees of Warid who cooperate

with us and provide us information

to complete our project.

THANKS!

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IntroductionWarid Telecom International is an Abu Dhabi based mobile telecommunication

firm providing telephony services Bangladesh, Cango, Pakistan and Uganda.

Warid is expected to launch in Georgia soon. In 2004, Warid Telecom

International LLC, purchased a license for operating a nationwide mobile

telephony network, and long distance international (LDI) for $291 million US

dollars and was the first venture of Warid Telecom International LLC.

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Mission Statement

“Warid Telecom stated mission is to be the leader innovation and services”

Vision statement

“Our aim is to be perceived not only as a telecommunication operator of voice services,

but also as a universal provider of comprehensive communications services for both

residential and business customers Warid's corporate identity seeks to reflect the changes

in telecom sector in relation to helping customers keep pace with rapidly changing

technology in the field of communication, through maximum network coverage and clear

connectivity that we have committed to provide”

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Organizational Behavior of Warid

Warid Telecom is a commercial organization and only profit is not its objective.

Warid Telecom is a large organization having a large number of employees at

middle level, lower level and non managerial level

Market Share of Warid Telecom The market share of Warid telecom is 20% and other five companies have share of 80%

Warid is attaining its customer day by day.

Organizational structure Warid is a tall organization because of more vertical organizational levels the

hierarchy level of Warid telecom can show it easily

Warid telecom is operating its managerial activities with the help of centralized

approach because the higher level staff doesn’t allow the lower level staff to take

decisions.

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SWOT Analysis

Strength:

Large post paid generation.

Having modern network capabilities in respect of infrastructure.

It has technical partnering involving “SingTel”, Nokia and Wateen.

Financial strength of share holder and their telecom expertise.

Customers are loyal.

Weakness:

Need to expand network coverage

The product line is to narrow

Low promotional activities

Need to spend on advertisement

Need to increase brand awareness in the mind of people

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Opportunities:

Market growth and industry expansion

Over 60% population in rural areas still underserved.

Bring innovation and VAS and data service to increase revenue

Threats:

Political instability

Price competition

High taxation rate

Larger network competitors coverage

Decreasing call rates

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Direct competitors

Direct competition of Warid service are those telecom companies which provide their

services in Pakistan those companies are.

Mobilink

Telenor

Zong

Ufone

Marketing strategies

launching of customer relationship programs

Make popular the easy load.

Introducing new packages in Post Paid category

Offer competitive rates in the market

Increase in market reach through effective advertisements.

Introduce new high-tech technologies for improved network.

Launch sports program for youth.

Provide better security for SIM

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Short term objective:

Improve quality

Satisfy customers

Increase outlets

Provide all the advertised features

Long term objectives:

Work with government to cut prices

Network in whole Pakistan

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Warid strategic partner

The partnership between Nokia and Warid Telecom aims to encourage the placement of

the latest technologies in the hands of the masses and to support Warid Telecom in

providing increased value to its customers across a variety of price segments. Under this

agreement, Nokia will supply mobile phones to Warid which will be bundled and sold to

the operator's Subscriber Identity Module (SIM) customers in Pakistan. This will help

increase the affordability and penetration of mobile phones across all levels of Pakistan's

population. In addition, these Nokia phones will feature the latest mobile

communications technology, providing support to Warid's efforts to take mobile

telephony in Pakistan to new levels of quality and availability. Coupled with Nokia's

market-leading portfolio of phones, Warid's GSM services will bring a new era of mobile

communications that aims to both corporate and private consumers through increased

communication and connectivity option.

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strength weight Rating Weighted

score

QUALITY SERVICE 0.15 3 0.45

Voice clarity 0.20 2 0.40

Attractive packages 0.20 1 0.20

Availability in all big cities 0.17 2 0.34

weakness

Internal Factor Evaluation (IFE)High level of taxation 0.15 2 0.30

Expensive call rates 0.25 3 0.50

Management 0.17 3 0.51

Limited packages 0.20 1 0.20

Limited coverage 0.25 2 0.50

Total 1.00 3.4

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External Factor Evaluation (EFE)Opportunities Weight Rating Weighted

score

3G license accustomed to be issued 0.12 3 0.36

Coverage to the rural areas 0.10 3 0.30

Moving to other countries 0.15 2 0.30

Dual sim 0.15 2 0.30

Threats

Political Instability 0.10 3 0.30

Inflationary pressures 0.10 2 0.20

Implementation of custom appointment on

handsets

0.12 3 0.36

Competitors price 0.15 4 0.60

Total 1.00 2.72

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TELENOR WaridSr. No. Critical Success

FactorsWeigh

tRanking Weighted

ScoreRanking Weighted

Score1 Low cost .10 2 .20 4 .40

2 Multi national .10 3 .30 2 .20

3 Product Quality .25 2 .50 3 .754 service quality .20 3 .60 3 .605 management

system.15 3 .45 3 .45

6 network coverage .05 4 .20 3 .15

7 good will .15 2 .30 3 .45

Total 1 2.55 3

Competitive Profile Matrix

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SWOT AnalysisStrengths - S Weaknesses – W

1. Large post paid generation.

2. Having modern network capabilities in respect of infrastructure.

3. It has technical partnering involving “SingTel”, Nokia and Wateen.

4. Financial strength of share holder and their telecom expertise.

5. Customers are loyal

1. Need to expand 2. The product line is to narrow

3. Low promotional activities

4. Need to spend on advertisement

5. Need to increase brand awareness in the mind of people

Opportunities – O SO Strategies WO Strategies1. Dual sim 2. Moving to other countries 3. Coverage to the rural areas 4. 3G license accustomed to

be issued5. Market growth and industry

expension

1. Moving to other countries is possible if have modern network capabilities in respect of infrastructure.

2. Coverage to the rural areas can be made having financial strength of share holder and their telecom expertise.

3. 3G license accustomed to be issued if Customers are loyal.

4. Market growth and industry expension relates to financial strength of share holder and their telecom expertise.

5. Dual sim possible when it has technical partnering involving “SingTel”, Nokia and Wateen.

1.Overall expansion can be made if market growth and industries is grown.

2.The product line can be expand by coverage to the rural areas

3.Low promotional activities can improve 3G license accustomed is issued

4.Need to spend on advertisement should be done if market growth and industry expension is made.

5. By introducing dual sim need of increase brand awareness in the mind of people can be achieved.

Threats – T ST Strategies WT Strategies1. Political Instability2. Inflationary pressures 3. Implementation of custom

appointment on handsets 4. Competitors price

1. Political Instability can be over come due to financial strength of share holder and their telecom expertise.

2. Inflationary pressures can be deal with by large post paid generation.

3. Implementation of custom appointment on handsets possible by duel sim generation.4. Can be saved from competitor’s price if Customers

1. By expending market warid can escape from competitor’s price.

2. By expanding the product line warid can be escape from inflationary pressure.

3. By increasing promotional activities warid can overcome political instability.

4. By spending on advertisement Implementation of custom appointment on handsets is possible.

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are loyal.

Boston Consulting Group Matrix (BCG)

Division Revenue Profit Growth rate

Relative Market share

Prepaid 73% 70% 15 .80

postpaid 17% 30% 09 .70

Possible strategies to adopt: Forward integration Backward integration Horizontal integration Market development Product development Market penetration

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Internal-External Matrix

IFE

EFEStrong 3.0-4.0 Average 2.0-2.99 Weak 1.0-1.99

High 3-3.99 I II III

Medium 2-2.99IV

V VI

Low 1-1.99 VII VIII IX

Grow & Build (I, II, IV)We are flowing in the first quadrant as per our EFE matrix and IFE matrix.

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Rapid Market Growth

Quadrant IIMarket developmentMarket penetrationProduct developmentHorizontal integrationDivestitureLiquidation

Quadrant IMarket developmentMarket penetrationProduct developmentForward, backward and horizontal integrationConcentric diversification

Strong Competitive Position

Slow Market Growth

Weak Competitive

Position

Quadrant IIIRetrenchmentConcentric diversificationHorizontal diversificationConglomerate diversificationDivestitureLiquidation

Quadrant IVConcentric diversificationHorizontal diversificationConglomerate diversificationJoint venture

Grand Strategy Matrix

We are falling in the first quadrant. Possible strategies which can be adopted are written above.

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ConclusionSo far looking at the Warid strategies, I have come to conclusion that to survive in the

long run Warid is doing strategic partnership with Nokia and Ericson. It’s like that they

can’t manage their network by their own. It seems they can’t do research of market so

they are taking help from international companies that are already functioning in the

Pakistan. Warid is increasing its customer base, but not considering quality of their

network. So it will create problems for them in the future. Customer complaints are not

fulfilled by the Warid. There is no rapid response to the need of the customers. Warid is

not very successful globally. It is functioning in Bangladesh and Uganda, these are

developing countries. And Warid is not very successful in both of the country. Warid is

now unable to continue its cost leadership strategy.

Recommendations

People are unaware of Warid because of lack of advertisement. So they must adopt

the strategies to enhance it through T.V ads, newspaper, and bill boards to aware

about their product.

Makes their managerial level stable and make them aware of their packages.

Marketing strategies are unsuccessful and not meet customer wants.

Website doesn’t provide the basic information about Warid Telecom.

Warid have to offer the best SMS and MMS packages, best call rates and services

to retain their customers.

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