Final File of Project 2003

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Strategic Management & Planning Tools & Strategic Management & Planning Tools & Techniques Techniques 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 PTCL’s 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 Ufone’s 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 Pakistan’s 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. 1

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Transcript of Final File of Project 2003

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Strategic Management & Planning Tools & Techniques Strategic Management & Planning Tools & Techniques

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 PTCL’s 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 Ufone’s 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 Pakistan’s 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, it’s all about U.

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MANAGEMENT PROFILESMANAGEMENT PROFILES

  Mr. Abdul AzizPresident & CEO

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.

 

  Mr. Mohammad Nadeem KhanChief Financial Officer

A Fellow Chartered Accountant Mr. Nadeem Khan has around 12 years experience in the telecommunication industry both locally and internationally. He holds a diversified portfolio as international auditor at MIC, Luxemburg and served in the capacity of Financial Controller in Millicom Cambodia before joining Ufone as Chief Financial officer (CFO) in 2003.

 

  Mr. Naveed Khalid ButtChief Officer (Customer Operations & Regulatory Affairs)

With over 15 years of commercial & technical experience in the

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telecommunication industry, Naveed Butt has worked on senior management positions with various cellular operators in Pakistan.

An engineer by profession, Naveed has done his B.E. in Electronics from U.E.T, Lahore. Presently he is heading the Customer Operations and Regulatory Affairs departments at Ufone since June 2004.

 

Mr. Jafar KhalidChief Technical Officer

Mr. Jafar Khalid is heading the Technical Department. He has over 12 years of diversified experience in the telecom sector. He has a proven background in managing large-scale cellular projects, leading network planning, operations and implementation initiatives, establishing and improving organizational processes, and aligning technical activities with business strategies.

Before his appointment as CTO, he served as the Project Director & GM Network Planning in Ufone, and has held various senior technical management positions with his last employer Mobilink.

 

 

Mr. Faisal KhaliqChief Information Officer

Mr. Faisal Khaliq is the Chief Information Officer of Ufone since June 2008. Faisal has a Masters Degree in Computer Sciences from the University of Texas at Austin. He is also a Project Management Professional (PMP) with 12 years of experience in the IT industry.

Prior to joining Ufone, Faisal was the Managing Director for Teradatas Global Consulting Center in Pakistan which is one of the largest offshore operations its kind for a multinational in Pakistan.

 

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Mr.Younas Iqbal SheikhChief Officer (Sales & Distribution)

Mr.Younas Iqbal Sheikh heads Sales & Distribution at Ufone (PTML) and has a rich working experience of 20 years most of which is in Telecom Sector serving companies like Siemens, InstaPhone, Worldcall, Mobilink ,Wi-tribe (Qtel) & Ufone (PTML). In his career he has played a key role in the areas of Sales & Distribution, Customer Services, Operations and Marketing, throughout his career he was given challenging responsibilities, for instance heading 2 countries with a team of thousands and portfolio of Billions.

He performed major successful overhauling with self-initiatives for Process-Re-engineering in the areas of; Sales, Channel Development, Customer Services, Business Operations and was a major contributor in developing complete business launch plan for Wi-Max services business in Pakistan for Wi-tribe Pakistan (Qtel).

 

Mr. Akbar KhanGeneral Manager Marketing

Akbar Khan heads the Marketing Division at Ufone. He has been part of the Pakistan telecom industry in key roles since 1998. Before joining Ufone last year, Akbar was Head of Brands at Mobilink and before that he was Head of Marketing at Paktel Limited. Akbar has done is MBA degree from IBA Karachi.

 

  Mr. Moqeem Ul HaqueGeneral Manager Corporate Strategic Planning & PMO

Moqeem ul Haque is associate member of the Institute of Chartered accountants of Pakistan. He brings in thirteen years of extensive experience of working in the cellular industry. He was among one of the pioneers in Warid telecom. Moqeem has also served in Mobilink.

Mr. Moqeem heads the corporate strategic planning function as well as supervises the special projects of the organization.

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STANDARDSTANDARD

STRATEGIC MANAGEMENTSTRATEGIC MANAGEMENT

Decision and actions of managers that determine the long-run performance of an organization.

BUSINESS MODELBUSINESS MODEL

How an organization wants to be profitable. Focus on two things:

1. Does customer values product?2. Means and ways of profit generation.

IMPORTANCEIMPORTANCE

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1. Results in higher organizational performance.2. Managers examine & adapt to business environment changes.3. Coordinates diverse organizational units, helping to focus on organizational goals.4. Involved in managerial decision making process.

PROCESSPROCESS

1. Identifying the organizational current mission, goals, and strategies.2. External analysis.3. Internal analysis.4. Formulate strategies.5. Implement strategies.6. Evaluate results.

COMPONENTS OF MISSION STATEMENTCOMPONENTS OF MISSION STATEMENT

1. Customers.2. Markets.3. Concern for survival, growth, and profitability.4. Philosophy.5. Concern for public image.6. Products or services.7. Technology.8. Self-concept.9. Concern for employees.

TYPES OF ORGANIZATIONAL STRATEGIESTYPES OF ORGANIZATIONAL STRATEGIES

1. Corporate Strategies.i. Growth Strategy.

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a.Concentration.b. Vertical integration.

Backward integration. Forward integration.

c.Horizontal integration.d. Related diversification.e.Unrelated diversification.

ii. Stability Strategy.iii. Renewal Strategy.

2. Business or Competitive Strategies.i. Competitive advantage.

ii. Quality as a competitive advantage.iii. Sustainable competitive advantage.

3. Functional Strategies.

FIVE COMPETITIVE FORCESFIVE COMPETITIVE FORCES

1. Threat of New Entrants.2. Threats of Substitutes.3. Bargaining Power of Buyers.4. Bargaining Power of Suppliers.5. Current Rivalry.

STRATEGIC FLEXIBILITYSTRATEGIC FLEXIBILITY

1. Know what’s 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.

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4. Have multiple alternatives when making strategic decisions.

PLANNING TOOLS & TECHNIQUESPLANNING TOOLS & TECHNIQUES

1.1. ENVIRONMENTAL SCANNINGENVIRONMENTAL SCANNING

i. Customer Retentionii. Customer Defection

2.2. COMPETITOR INTELLIGENCECOMPETITOR INTELLIGENCE

i. Know About Your Customerii. Customer Surveys Can Be Used Predict Customer Churns

iii. Passive Retentioniv. Active & Scientific Retentionv. Effective Communication

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vi. Achievement Drivevii. Daily Planning & Personal Management

Ufone CompanyUfone Company

STRATEGIC MANAGEMENTSTRATEGIC 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.

ANALYSIS WITH COMPETITORSANALYSIS WITH COMPETITORS

The major competitors of Ufone are domestic companies like.

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MOBILINKMOBILINK

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 2009. Mobilink’s Head Office is located in Kulsum Plaze, Blue Area Islamabad.

TELENORTELENOR

Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo, 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.

PAKTEL/ CHINA MOBILE/CMPAKPAKTEL/ CHINA MOBILE/CMPAK

Paktel was the first ever company granted license to carry out cellular phone services in PAKISTAN, set up by Cable & wireless. It carried out AMPS services until 2004, when the company launched GSM services as well. Its main competitor emerged in late 1990s as Instaphone and soon began to dominate the market. On 4 th May 2007, Paktel was renamed to CmPak, and then, on 16th May 2007, China Mobile announced that it had upped its stake in CMPak to 100%. Moreover, PTA (Pakistan Telecommunication Authority) has announced that it may resolve the frequency issue with China Mobile, as it was one of the main reason for pullout by Millicom International Cellular S.A.

WARIDWARID

Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing telephony services in PAKISTAN, Bangladesh, and Uganda.

ZONGZONG

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.

FINDINGSFINDINGS

INTERNAL & EXTERNAL ANALYSIS

INTERNAL ENVIORNMENT

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1. Human Resource Management.2. Marketing Department.3. Commercial Department.4. Sales Department.5. Finance Department.6. Payroll Department.7. Information Technology Department.8. Engineering Department.9. Administration.10. Auditing Department.11. Customer Care.

EXTERNAL ENVIORNMENTEXTERNAL ENVIORNMENT

1. Economic Conditions2. Social Conditions3. Culture4. Demographics5. Environmental6. Competitive7. Technological8. Consumer Attitude9. Globalization

SWOT ANALYSISSWOT ANALYSIS

STRENGTHSSTRENGTHS

1. Second Large Market ShareAlthough 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 ExperienceAs explained above even with Ufone’s 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 ServiceProvide verities of value added services as compare to other cellular networks.

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4. Representing PTCL NameAs it is the subsidiary of PTCL.

5. Coverage of GT Road 60%Now Ufone is covering PAKISTAN business highway up to 73%.

6. Aggressive AdvertisingWith 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.

WEAKNESSESWEAKNESSES

1. Un-Organized Organizational StructureCentralized structure failed to provide proper guidance over instruction and policies.

2. Overly Dependent on PTCLSubsidiary of PTCL, it is dependent on PTCL.

OPPORTUNITIESOPPORTUNITIES

1. Targetting Corporate SectorIt 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 industry’s leader in innovation and technology.

2. Continuing to Expand GloballyUfone have the ability to expand globally, but due to current economic condition all its operation is on halt.

3. Publicity and MarketingWith the right marketing strategy they can acquire much more.

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4. Introducing More Value Added ServiceThis 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.

THREATSTHREATS

1. Government InterferenceGovernment Interference will always be treated as a threat in terms of taxes.

2. PTCL Cellular LicenseUfone 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 SituationAt times due to un-avoidable circumstances businesses are not in a position to progress and maintain their services.

EXTERNAL FACTORS EVALUATIONEXTERNAL FACTORS EVALUATION

KEY EXTERNAL FACTORKEY EXTERNAL FACTOR

OPPORTUNITIESOPPORTUNITIES Weight Rating Score

1. Can target Corporate 0.20 4 0.802. Continuing to Expand Globally 0.20 4 0.803. Publicity and Marketing 0.05 3 0.154. Develop New Value Added Service 0.10 3 0.30

THREATTHREAT

1. Government Interference 0.10 2 0.202. PTCL Cellular License 0.05 2 0.10

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3. Pension Payouts 0.15 2 0.304. Increased Health Care Costs 0.15 2 0.30

1.00 2.95

EXTERNAL FACTORS EVALUATIONEXTERNAL FACTORS EVALUATION

KEY INTERNAL FACTORKEY INTERNAL FACTOR

INTERNAL STRENGTHINTERNAL STRENGTH Weight Rating Score

Human Resource Management 0.10 4 0.40

Staff Remuneration Staff Personal Finance

Marketing Department

Marketing Planning 0.05 4 0.20 Prices

Commercial Department

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Promotion 0.10 4 0.20 Advertisement

Sales Department

Target Market 0.15 3 0.15 Skilled Staff

Finance Department

Earnings Per Share 0.05 3 0.15 Royalties

Payroll Department

Staff Salaries 0.05 3 0.15 Staff Bonuses

Information Technology Department

Hardware 0.05 3 0.15 Network Operations

Engineering Department

Tier 3 Level Engineers 0.05 3 0.15 Highly Skilled

Administration

Day to Day Expenses 0.05 3 0.15 Correspondence

Auditing Department

Financial Lookup 0.05 4 0.20 Cost and Management

Customer Care

Tier 1 Level Support 0.15 3 0.15

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Customer Support

INTERNAL WEAKNESSESINTERNAL WEAKNESSES

Human Resource Management

Staff Family Planning 0.05 2 0.10 Staff Pension Funds Staff Training

Marketing Department

Global Expansion 0.10 2 0.10

1.00 1.85

BCG: (BOSTON CONSULTING GROUP)BCG: (BOSTON CONSULTING GROUP)

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 & Postpaid 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, Labor, and Businessmen, etc.

Ufone aims are to provide with wider coverage, superior connectivity, clear signals & voice quality to their valued customers.

MATRIXMATRIX

1.1. PREPAIDPREPAIDi. STARS

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2.2. POST PAIDPOST PAIDi. CASH COWS

ii. DOGS

PUBLIC DEMAND TARIFF

PREPAY PUBLIC DEMAND TARIFF WITHIN UFONE

COMMUNITYTO OTHER

NETWORKS & PTCL

 Outgoing Calls Per 30 secs

99 Paisas 99 Paisas

 SMS Per 160 Characters

50 Paisas/sms Re. 1/sms

 

PAANCH KA PANDRAH

Ufone to Ufone**Call for 5 minutes and the next 10 are free (loop)

Rs. 1.125 / 30 sec

Ufone to Other Mobile Operators Rs. 1.25 / 30 sec

Ufone to PTCL Rs. 1.25 / 30 sec

U-circle Same as Ufone to Ufone*

SMS (any network in Pakistan) 0.25/sms

KEY INTERNAL FACTORKEY INTERNAL FACTOR Weight Strategy 1

1. Human Resource Management 0.15 0.602. Marketing Department 0.15 0.603. Commercial Department 0.10 0.204. Sales Department 0.15 0.155. Finance Department 0.05 0.156. Payroll Department 0.05 0.15

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7. Information Technology Dept. 0.05 0.158. Engineering Department 0.05 0.159. Administration 0.05 0.1510. Auditing Department 0.05 0.2011. Customer Care 0.15 0.15

KEY EXTERNAL FACTORKEY EXTERNAL FACTOR

1. Economic Conditions 0.20 0.802. Social Conditions 0.20 0.803. Culture 0.05 0.204. Demographics 0.10 0.405. Environmental 0.10 0.406. Competitive 0.05 0.207. Technological 0.15 0.608. Consumer Attitude 0.10 0.409. Globalization 0.05 0.20

PLANNING TOOLS & TECHNIQUESPLANNING TOOLS & TECHNIQUES

ENVIRONMENTAL SCANNINGENVIRONMENTAL SCANNING

1. CUSTOMER RETENTION

Customer retention is very important because acquiring a new customer is far more expensive than keeping an existing one. This is even truer if the market operating is saturated or saturating as in mobile telecommunication industry. Retention is important to most businesses because the cost of acquiring new customers is much greater than the cost of keeping good relationship with

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current customers. Best determinant of profit is to sale but retention rate. Retention must be greater than the defection rate.

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.

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. It’s 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 INTELLIGENCECOMPETITOR 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?

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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 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.

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Categorization of Firms by Customer Retention Processes Used

4. ACTIVE & SCIENTIFIC RETENTION

Active and scientific retention both focus on identifying customers who may lapse in the future and using tactics to retain them. However, when segmenting to identify the right customers to retain, active retention uses managerial judgments while scientific retention uses sophisticated mathematical models. Furthermore, this research found that variables are pre selected when managerial judgments is used (as occurred in passive and active retention) and that the

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behavioral base and variables was used to segment customers regardless of the approach adopted. The managerial implications for this study are that firms should use a combination of 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

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demonstrated that sales professionals are successful not because of any special or unique selling 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.

CONCLUSIONCONCLUSION

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.

ANALYSISANALYSIS

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

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policies. Should innovate more VAS (value added services) in the Telecom sector which Ufone is 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 SUMMARYEXECUTIVE 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.

Ufone’s 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 STRATEGIESSUGGESTED STRATEGIES

1. Market Development.2. Market Penetration.3. Product Development.4. Restructuring.5. Refreshment.6. Liquidation.

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