26758753 strategy-report-on-mobilink

Business Policy and Strategy 1

Rabia Iram

Business Policy and Strategy

2nd Assignment

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad

Presented to: Sir. Nadeem AkramAllama Iqbal Open University, Islamabad


Acknowledgment

By the Grace of Almighty, the most Merciful, the most Beneficial, I'm today

submitting my 2nd Assignment report, at the end of my pragmatic experience and

I'm glad to have it with MOBILINK, where you come first, only if you're the

customer. Thirst of learning is inside you, and whatever the environment, if you're

willing to learn, you do. At Mobilink, I had a new, challenging, yet a perfect

environment to learn. My parents' prayers and their teachings were always with

me and hereby I will like to take this opportunity to show my gratitude to all those

who made my internship an adventurous outwit.

. .

Here I am, from more professional and rather corporate environment of

Mobilink Franchise Okara. I never knew what it all going to be. As I enter the

branch, it took me a minute to realize that the person sitting in the half fortified

walls is the manager. Maybe I was expecting him in a glass sheeted room. At a

glance, I grasped the interesting personality of the manager and today at the end

of my internship; he’s one of the persons I’ll always remember. Sir I learnt from

you is always going to be respected, no matter whatever business field I choose.

Those tips are always in my memory bag.

Despite of the most hectic schedule, my teacher helped me so much. I'm

really grateful to you for clarifying my concepts and making me learn from your

experience. Whatever I learnt from you will definitely help me in my upcoming

study and the professional life ahead. Thank you so much for being so co-

operative and so helpful every time. I hope I have been up to your expectations.

Rabia Iram



Table of ContentsTable of Contents

Title Page No.

Acknowledgment 2

Table of Contents 3

INTRODUCTION 4-6

Management 6-7

Planning 7-13

MOBILINK 14

About Mobilink 14-18

STRATEGY FORMULATION 18-23

SWOT Analysis 23

Conclusion 24

Recommendation 25-26

References 26



INTRODUCTION

It is useful to consider strategy formulation as part of a strategic management

process that comprises three phases: diagnosis, formulation, and

implementation. Strategic management is an ongoing process to develop and

revise future-oriented strategies that allow an organization to achieve its

objectives, considering its capabilities, constraints, and the environment in which it

operates.

There are four primary steps in this phase:

* Reviewing the current key objectives and strategies of the organization,

which usually would have been identified and evaluated as part of the

diagnosis

* Identifying a rich range of strategic alternatives to address the three levels

of strategy formulation outlined below, including but not limited to dealing

with the critical issues

* Doing a balanced evaluation of advantages and disadvantages of the

alternatives relative to their feasibility plus expected effects on the issues

and contributions to the success of the organization

* Deciding on the alternatives that should be implemented or

recommended.

Formulation of Goals: Goals are “what” a business unit wants to achieve.

• First perform a SWOT analysis

• Next, formulate goals with specificity as to time (by when it will be

performed) and magnitude or quantity (by how much it will be changed). An

organization will normally have a mixture of goals.

• Order your goals from broad to specific categories: for example from

increasing net earnings by 20%-dansk- to increase revenues by 15% and

reduce expenses by 12 % in certain areas.



• Confirm that your goals relate realistically to the results of the SWOT

analysis performed.

• Examine your goals to make sure they are not at cross purposes with one

another. For example, short term versus long term goals; sales goals

versus profit goals; high growth versus low risk; development of new

products versus deepening existing markets.

• This process is often called Management by Objective or MBO

Strategy Formulation: Strategy is “How” a business unit will achieve what it

wants. Michael Porter, HBS professor and worldwide competitive strategy expert

breaks types of strategy into three categories:

• An Overall Cost Leadership Strategy

• A Differentiation Strategy

• A Focus Strategy

Strategic Formulation:

Strategic formulation means a strategy formulate to execute the business

activities. Strategy formulation includes developing:-

� Vision and Mission (The target of the business)

� Strength and weakness (Strong points of business and also weaknesses)

� Opportunities and threats (These are related with external environment for

the business)

Strategy formulation is also concerned with setting long term goals and

objectives, generating alternative strategies to achieve that long term goals and

choosing particular strategy to pursue.

The considerations for the best strategy formulation should be as follows:

Allocation of resources�

Business to enter or retain�

Business to divest or liquidate�

Joint ventures or mergers�



Whether to expand or not�

Moving into foreign markets�

Trying to avoid take over�

Management

The functions of management consist of five basic activities: planning, organizing,

motivating, staffing, and controlling. An overview of these activities is provided in

Table.

Planning:

Planning is the:

Start of the process�

Bridge between present and future�

Increases likelihood of achieving desired results�



The only thing certain about the future of any organization is change, and

planning is the essential bridge between the present and the future that increases

the likelihood of achieving desired results. Planning is the process by which one

determines whether to attempt a task, works out the most effective way of

reaching desired objectives, and prepares to overcome unexpected difficulties

with adequate resources. Planning is the start of the process by which an

individual or business may turn empty dreams into achievements.

Planning enables one to avoid the trap of working extremely hard but achieving

little.

Planning is an up-front investment in success. Planning helps a firm achieve

maximum effect from a given effort. Planning enables a firm to take into account

relevant factors and focus on the critical ones. Planning helps ensure that the firm

can be prepared for all reasonable eventualities and for all changes that will be

needed. Planning enables a firm to gather the resources needed and carry out

tasks in the most efficient way possible. Planning enables a firm to conserve its

own resources, avoid wasting ecological resources, make a fair profit, and be

seen as an effective, useful firm. Planning enables a firm to identify precisely what



is to be achieved and to detail precisely who, what, when, where, and why needed

to achieve desired objectives.

Planning enables a firm to assess whether the effort, costs and implications

associated with achieving desired objectives are warranted. Planning is the

cornerstone of effective strategy formulation. But even though it is considered the

foundation of management, it is commonly the task that managers neglect most.

Planning is essential for successful strategy implementation and strategy

evaluation, largely because organizing, motivating, staffing, and controlling

activities depend upon good planning.

The process of planning must involve managers and employees throughout an

organization. The time horizon for planning decreases from two to five years for

top-level to less than six months for lower-level managers. The important point is

that all managers do planning and should involve subordinates in the process to

facilitate employee understanding and commitment.

Planning can have a positive impact on organizational and individual

performance. Planning allows an organization to identify and take advantage of

external opportunities and minimize the impact of external threats. Planning is

more than extrapolating from the past and present into the future. It also includes

developing a mission, forecasting future events and trends, establishing

objectives, and choosing strategies to pursue.

CORPORATE LEVEL STRATEGY

This comprises the overall strategy elements for the corporation as a whole, the

grand strategy, if you please. Corporate strategy involves four kinds of initiatives:

* Making the necessary moves to establish positions in different businesses

and achieve an appropriate amount and kind of diversification. A key part

of corporate strategy is making decisions on how many, what types, and

which specific lines of business the company should be in. This may

involve deciding to increase or decrease the amount and breadth of



diversification. It may involve closing out some LOB's (lines of business),

adding others, and/or changing emphasis among LOB's.

* Initiating actions to boost the combined performance of the businesses

the company has diversified into: This may involve vigorously pursuing

rapid-growth strategies in the most promising LOB's, keeping the other

core businesses healthy, initiating turnaround efforts in weak-performing

LOB's with promise, and dropping LOB's that are no longer attractive or

don't fit into the corporation's overall plans. It also may involve supplying

financial, managerial, and other resources, or acquiring and/or merging

other companies with an existing LOB.

* Pursuing ways to capture valuable cross-business strategic fits and turn

them into competitive advantages -- especially transferring and sharing

related technology, procurement leverage, operating facilities, distribution

channels, and/or customers.

* Establishing investment priorities and moving more corporate resources

into the most attractive LOB's.

COMPETITIVE (BUSINESS LEVEL) STRATEGY

In this second aspect of a company's strategy, the focus is on how to compete

successfully in each of the lines of business the company has chosen to engage

in. The central thrust is how to build and improve the company's competitive

position for each of its lines of business. A company has competitive advantage

whenever it can attract customers and defend against competitive forces better

than its rivals. Companies want to develop competitive advantages that have

some sustainability (although the typical term "sustainable competitive advantage"

is usually only true dynamically, as a firm works to continue it). Successful

competitive strategies usually involve building uniquely strong or distinctive

competencies in one or several areas crucial to success and using them to

maintain a competitive edge over rivals. Some examples of distinctive

competencies are superior technology and/or product features, better Presented to: Sir. Nadeem Akram



manufacturing technology and skills, superior sales and distribution capabilities,

and better customer service and convenience.

Competitive strategy is about being different. It means deliberately

choosing to perform activities differently or to perform different

activities than rivals to deliver a unique mix of value. (Michael E. Porter)

The essence of strategy lies in creating tomorrow's competitive

advantages faster than competitors mimic the ones you possess

today. (Gary Hamel & C. K. Prahalad)

We will consider competitive strategy by using Porter's four generic strategies

(Porter 1980, 1985) as the fundamental choices, and then adding various

competitive tactics.

Porter's Four Generic Competitive Strategies:

He argues that a business needs to make two fundamental decisions in

establishing its competitive advantage: (a) whether to compete primarily on price

(he says "cost," which is necessary to sustain competitive prices, but price is what

the customer responds to) or to compete through providing some distinctive points

of differentiation that justify higher prices, and (b) how broad a market target it will

aim at (its competitive scope). These two choices define the following four

generic competitive strategies. which he argues cover the fundamental range of

choices. A fifth strategy alternative (best-cost provider) is added by some

sources, although not by Porter, and is included below:

1. Overall Price (Cost) Leadership: appealing to a broad cross-section of the

market by providing products or services at the lowest price. This requires being

the overall low-cost provider of the products or services (e.g., Costco, among

retail stores, and Hyundai, among automobile manufacturers). Implementing this

strategy successfully requires continual, exceptional efforts to reduce costs -- Presented to: Sir. Nadeem Akram



without excluding product features and services that buyers consider essential. It

also requires achieving cost advantages in ways that are hard for competitors to

copy or match. Some conditions that tend to make this strategy an attractive

choice are:

* The industry's product is much the same from seller to seller

* The marketplace is dominated by price competition, with highly price-

sensitive buyers

* There are few ways to achieve product differentiation that have much

value to buyers

* Most buyers use product in same ways -- common user requirements

* Switching costs for buyers are low

* Buyers are large and have significant bargaining power

2. Differentiation: appealing to a broad cross-section of the market through

offering differentiating features that make customers willing to pay premium

prices, e.g., superior technology, quality, prestige, special features, service,

convenience (examples are Nordstrom and Lexus). Success with this type of

strategy requires differentiation features that are hard or expensive for

competitors to duplicate. Sustainable differentiation usually comes from

advantages in core competencies, unique company resources or capabilities, and

superior management of value chain activities. Some conditions that tend to favor

differentiation strategies are:

* There are multiple ways to differentiate the product/service that buyers

think have substantial value

* Buyers have different needs or uses of the product/service

* Product innovations and technological change are rapid and competition

emphasizes the latest product features

* Not many rivals are following a similar differentiation strategy

3. Price (Cost) Focus: a market niche strategy, concentrating on a narrow

customer segment and competing with lowest prices, which, again, requires Presented to: Sir. Nadeem Akram



having lower cost structure than competitors (e.g., a single, small shop on a side-

street in a town, in which they will order electronic equipment at low prices, or the

cheapest automobile made in the former Bulgaria). Some conditions that tend to

favor focus (either price or differentiation focus) are:

* The business is new and/or has modest resources

* The company lacks the capability to go after a wider part of the total

market

* Buyers' needs or uses of the item are diverse; there are many different

niches and segments in the industry

* Buyer segments differ widely in size, growth rate, profitability, and

intensity in the five competitive forces, making some segments more

attractive than others

* Industry leaders don't see the niche as crucial to their own success

* Few or no other rivals are attempting to specialize in the same target

segment

4. Differentiation Focus: a second market niche strategy, concentrating on a

narrow customer segment and competing through differentiating features (e.g., a

high-fashion women's clothing boutique in Paris, or Ferrari).

Cooperative Strategies:

Another group of "competitive" tactics involve cooperation among

companies. These could be grouped under the heading of various types of

strategic alliances, which have been discussed to some extent under Corporate

Level growth strategies. These involve an agreement or alliance between two or

more businesses formed to achieve strategically significant objectives that are

mutually beneficial. Some are very short-term; others are longer-term and may be

the first stage of an eventual merger between the companies.

Some of the reasons for strategic alliances are to: obtain/share technology,

share manufacturing capabilities and facilities, share access to specific markets,

reduce financial/political/market risks, and achieve other competitive advantages Presented to: Sir. Nadeem Akram



not otherwise available. There could be considered a continuum of types of

strategic alliances, ranging from: (a) mutual service consortiums (e.g., similar

companies in similar industries pool their resources to develop something that is

too expensive alone), (b) licensing arrangements, (c) joint ventures (an

independent business entity formed by two or more companies to accomplish

certain things, with allocated ownership, operational responsibilities, and financial

risks and rewards), (d) value-chain partnerships (e.g., just-in-time supplier

relationships, and out-sourcing of major value-chain functions).

FUNCTIONAL STRATEGIES

Functional strategies are relatively short-term activities that each functional area

within a company will carry out to implement the broader, longer-term corporate

level and business level strategies. Each functional area has a number of

strategy choices that interact with and must be consistent with the overall

company strategies.

Three basic characteristics distinguish functional strategies from corporate

level and business level strategies: shorter time horizon, greater specificity, and

primary involvement of operating managers.

A few examples follow of functional strategy topics for the major functional

areas of marketing, finance, production/operations, research and development,

and human resources management. Each area needs to deal with sourcing

strategy, i.e., what should be done in-house and what should be outsourced?



M OBILINK

Introduction:

Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was

established in 1998 and has grown to become a major player in the

telecommunication market in the world. OTH is considered among the largest and

most diversified network operator in the Middle East, Africa and Pakistan.

About Mobilink:

Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, is the market leader in

providing state-of-the-art communications solutions to over 3.4 million people in Pakistan.

They can proudly boast of being the first cellular service provider in Pakistan to operate

on a 100% digital GSM technology. Mobilink GSM started operations in the year 1994,

from then on it has shown enormous growth.

Mobilink Coverage:

Mobilink provides the most extensive network coverage footprint across

Pakistan through an integrated technology infrastructure in more than 5,000

cities, towns, villages, and countless remote destinations, including

International Roaming in 110 countries through 300 partner operators.

Market Share:



In April 2001, when the OTH (Orascom

Telecom Holding) took over management

control of the company, the market share

was only 40% but as of March, 2006;

Mobilink served over 14 million subscribers,

representing a market share of approximately

56.2% of total mobile subscribers in Pakistan.

However, during the past two years the market share of Mobilink has gone down

to 41% (As of March, 2007).

Competition Status:

Competition faced by the company is

from al the operators in telecom that

includes all the face SGM (Global

System of mobile) operators, CDMA

operators and LDI operators and land

line operators. All these telecom

companies Human Resource

Departments are in constant need of

new employees. So there is stiff competition in the telecom market for Mobilink.

Comparison with competitors in the market is shown as in the table.Presented to: Sir. Nadeem Akram



Number of subscribes:

The number of subscribes of Mobilink has been fast increasing since year

2000,the number of

subscribes of

Mobilink has almost

doubled in the last

one year from 5

million approx to 10

million approx this

figure has almost increased by 50 times as it was in year 2000. This in fact is a

milestone for Mobilink. Currently the company has a customer base of over 24

million and its growing.

Market Share

Mobilink had a great advantage for years as being the only GSM mobile operator

in Pakistan, however with the entrance of Ufone in 2001 and later on by Telenor,

Warid and Zong, the competition in the mobile sector is heating up. However the

subscriber base Mobilink has remained steady and growing as seen in the table

below:

Table 1: Number of Mobilink Subscribers from 2005-July 20081

Although the number of subscribers has increased over the years, the same

cannot be said about the market share of Mobilink, which has gradually

decreased over the year. However, although the market shares of Mobilink might

have decreased over the years, but it still remains the market leader in the mobile

sector. The market shares of Mobilink are as follows:

Table 2: Market Shares of Mobilink from 2005-20072

1

2


Year 2005 2006 2007 July-2008Subscribers 7,469,085 17,205,555 26,466,451 32,056,336% Change - 130.3 53.8 21.1


ACHIEVEMENTS:

ISO 9002 Quality Management System Certification for Billing,

Engineering Departments and CS Contact Center Biggest Call Center in Pakistan,

which is there to assist the customers 24 hours.

Bilateral-roaming agreements signed with 100 countries around the world to�

have true roaming service operational in 151 operators of the world.

Mobilink GSM Short Message Service Center allows Vehicle Tracking and Fleet

Management services that are being provided by Tracker (Pvt.) Ltd. under the

brand name of C-Track, a company licensed by Pakistan Telecom authority

(PTA). Tracker currently operates from Karachi but can provide these facilities at

all those locations where GSM coverage is available

Mobilink's Values:


Years 2005 2006 2007Market Share 51.4% 46.3% 39.8%Change - (5.1%) (6.5%)


Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trust and

confidence in us. In return, we strive to anticipate their needs and deliver service,

quality and value beyond their expectations.

Business Excellence:

We strive for excellence in all that we do. We aspire to the highest standards and

raise the bar for ourselves everyday. This commitment to delivering world-class

quality translates into unmatched service and value for our customers and all

stakeholders.

Trust & Integrity

At Mobilink, we take pride in practicing the highest ethical standards in an open

and honest environment, and by honoring our commitments. We take personal

responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and

all stakeholders. We believe in teamwork, empowerment and honor.

Corporate Social Responsibility:

As the market leader, we recognize and fulfill our responsibility towards our country and

the environment we operate in. We contribute to worthy causes and are dedicated to the

development and progress of the society

STRATEGY FORMULATION



VISION

Mission and Objectives:

Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trust and

confidence in us. In return, we strive to anticipate their needs and deliver service,


Business Excellence:

We strive for excellence in all that we do. We aspire to the highest standards and

raise the bar for ourselves everyday. This commitment to delivering world-class

quality translates into unmatched service and value for our customers and all

stakeholders.

Trust & Integrity:

At Mobilink, we take pride in practicing the highest ethical standards in an open

and honest environment, and by honoring our commitments. We take personal

responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and

all stakeholders. We believe in teamwork, empowerment and honor.

Corporate Social Responsibility

As the market leader, we recognize and fulfill our responsibility towards our


To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations


country and the environment we operate in. We contribute to worthy causes and

are dedicated to the development and progress of the society

STRATEGIES AT MOBILINK

The findings mentioned reflect three types of major strategies employed by the

organization at various levels. Namely they are:

1). Corporate level strategy

2). Business level strategy

3). Functional level strategy

Corporate Level Strategy:

As their corporate level strategy, they have entered into partnerships with

different organizations.

On the basis of findings, it appears that for the past few years (1999-2003),

Mobilink had a focus on internal growth. All this is evident from the fact that since

the deregulation of the mobile service industry of Pakistan, Mobilink has

undertaken various efforts to ensure that it changes its stance from concentrating

on its existing market to growing its market presence. The main reason for this

change is mainly to keep up with the competition and to retain and increase its

market share. This transition is obvious in Mobilink’s repositioning itself and hitting

the market with a new face with the catchphrase “Reshaping communication”

With the threat of new entrants into the industry after the deregulation, Mobilink’s

strategy took a new turn. To keep abreast with the company, Mobilink took the

following steps during the last 2 years:

Expanded its international roaming Service scope in 14 more countries�

including Vietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria,

South Africa, Ethiopia, Uganda, Sudan, Bahrain, Caribbean Islands. Bilateral

roaming agreements signed with 100 countries around the world to have true

roaming service operational in 151 operators of the world.

PROMOTIONAL CAMPAIGNS LAUNCHED �

JAZZ BUNDLE OFFERS: These bundles include a handset, a JAZZ�

connection and airtime worth Rs. 200



INTERNATIONAL SUMMER PROMOTION: Discounted international tour�

packages to Sri Lanka, Malaysia and Maldives

“JAZZ-AUR-SUNAO”, “LIFE MEIN JAZZ LAO” (a change in the marketing�

strategy)

Indigo packages deliver nation wide cellular freedom at local Call rates�

Exclusive deals to 6 northern area destination including Chitral, Galliat, Hunza,�

Kaghan , Skardu and Swat.

Roam the World: year long promotion including travel to the Holy Land in�

Ramadan, avail amazing offers at the Dubai Shopping Festival, be a part if the

FIFA World Cup in Germany or visit Paris, Milan, London and NY.

Joint Promotional Agreements with Various Organizations

JAZZ-HYUNDAI BUNDLE OFFER: Jazz connection and a latest Hyundai L-�

120 phone set for only Rs. 2750

Jazz member Get Member: Opportunity for customers to become the brand’s�

ambassador and at the same time earns Rs. 400 in airtime. The new Jazz

customer will also get Rs.100 free airtime.

Mobilink’s Nokia 9500 offer�

MOBILINK-AVIS partnership: Mobilink joined hands with AVIS, a global brand�

and the world’s leading car Rental Company to offer discounted car rental rates

(locally as well as internationally) to all Mobilink post-paid customers.

Foreigners visiting Pakistan using the Mobilink network for cellular services swore

able to receive a 20% discount on Avis-Car rental Service.

Mobilink and UBL launch online bill payment facility for Indigo subscribers�

MOB- Motorola V3 launch�

Mobilink –CITIBANK Joint Promotion (free INDIGO and Call n Control�

connections to all Citibank Credit Card members)

Handset Kiosk inside Mobilink Service Center: a ‘hand-set Kiosk’ set up at�

Mobilink service center at Awami Markaz, Karachi. The kiosk was set up in

collaboration with Mobile Zone. It gave customers the added convenience of

purchasing quality hand sets of leading manufacturers such as Nokia Samsung or



Sony Ericson right from Mobilink Service Center. On every purchase the

customers would get some free gifts to add more value to their purchase.

Business Level Strategy

As their business level strategy it has focused on Differentiation strategy ever

since it started. Mobilink has always made successful attempts to distinguish their

products or services from other in the industry. They make their product unique

through:

Advertising

Highly creative people in the marketing dept�

Billboards, TV commercials, bringing in famous personalities from media to�

endorse their packages

Functional Level Strategy

Sales and Marketing

Differentiation Advantage:�

Because they target the customer groups they offer tariff plans that are�

exclusively designed to cater to the communication needs of a diverse group of

people, taking into account occasional users to businessmen. To achieve this

objective, they offer both postpaid (Indigo) and the prepaid (JAZZ) solutions to

their customers

The marketing department immediately identifies and responds to the customer�

needs

Comes up with interesting marketing strategies which include advertising, �

Commitment to Total Customer Satisfaction:

Customers are at the heart of my success. They have placed their trust and

confidence in us. In return, I strive to anticipate their needs and deliver service,


Passion for Business Excellence:

I strive for excellence in all that I do. I aspire to the highest standards and raise

the bar for myself everyday. This commitment to delivering world-class quality

translates into unmatched service and value for my customers and all

stakeholders.Presented to: Sir. Nadeem Akram



Trust & Integrity:

At Mobilink, I take pride in practicing the highest ethical standards in an open and

honest environment, and by honeying my commitments. I take personal

responsibility for my actions, and treat everyone fairly, and with trust and respect.

Respect for People:

My relationships drive my business. I respect and esteem my employees and all

stakeholders. I believe in teamwork, empowerment and harmony.

Responsible Corporate Citizen:

As the market leader, I recognize and fulfil my responsibility towards my country

and the environment I operate in.

SWOT Analysis

Strengths:

• Strong Brand Image

• Potential customers

• Highest Coverage

• First to introduce IR

• M2 Motorway coverage

• Biletral roaming with 50 operators

• Motorola Time port Tri band (TT) handsets

• Tracking and Fleet (VTF) Management services.

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

• Weak customer retention

• Engineering department of Mobilink is not well competent



Opportunities

• Can expand its networks in the uncovered areas

• Services in the future can be

• Telephone

• Wireless

• Calling Cards

• Can target maximum corporate Customers

• Lower prices

Threats:

• New market players

• Competitors can offer packages for corporate customers in better way.

• Wireless local loop service providers

• Brand names survival.

• Corporate customers can shift to other companies

• Employee retention

• Loss of loyal customer

Conclusion

The mobile industry has seen phenomenal growth over the year, showing growth

rate of more than 80% in 2007. This growth is not new to the industry, as previous

years have shown substantial growth as well. This growth is a direct result of the

increased competition in the mobile industry, resulting into better services at

reduced rate. Furthermore, this has favorably affected our economy as a whole,

generating revenues for the government, through direct and indirect taxation and

creating employment opportunities for the people. The mobile industry of Pakistan

is considered by a majority of prospective employees as the best industry for a

job.



Mobilink has been in operation since 1994, and since then has become the

market leader by providing its customers with the state of the art products and

services. Mobilink has for years enjoyed a good market share of the total industry;

its current market share is 36%3.

Even though Mobilink has been a market leader, for so many years, providing the

most technological advanced products and services, it has for a number of years

been facing strong competition from Telenor and Ufone, which has resulted in a

decrease of its market share. This has led Mobilink to a policy of diversification, by

introducing products like Mobilink PCO and WIMAX services. Although Mobilink

has diversified, it still is providing competitive products and services for its core

products-Jazz and Indigo.

Finally, internships are an important part of the academic program, as they

provide us with the practical experience during our academic career. I am very

grateful that I received an internship at Mobilink as it was a great learning

experience on how a multinational company works and further improved my skills

of team working and critical decision making.

Recommendation

The problem that I identified was the lack of job rotation within department and not

enacting on job advancement rules and procedures. Some of the

recommendations to this problem are as follows:

Firstly I would recommend that the department officially start job rotation. The

major benefit of which would include even more motivated employees, with

enhanced skills.

One of the major arguments against job rotation is that without it, employees will

perform only one task and will become specialized in that particular job.

Furthermore, the argument also suggests, that with job rotation, only general

information is imparted to employees, not essentially helpful in doing complex

tasks. However, in today’s business environment, multitasking is becoming more

3



and more essential and thus rotation becomes essential in making employees

multitask.

Furthermore, the organization structure of the treasury department makes it easy

for job rotation, as all sub departments major functions are interlinked to each

other and mostly all departments currently have more than one associate

employee, except cash management.

Secondly I would also suggest that specific job related training should also be

imparted to the employees, this would have an additional benefit of further

improving their current skills and knowledge, while attaining new through job

rotation. Also professional counseling programs should also be started to provide

employees with the information, regarding future prospects at Mobilink and in the

mobile industry.

Lastly, I would suggest, that Mobilink adheres to its job advancement procedures

because for an employee that has worked with Mobilink for more than 2-3 years,

they should be awarded with the fruits of job advancement, as I believe that the

criteria of job advancements currently used is a standard in most MNC’s and job

advancements are a part of career growth. Furthermore, job advancement s will

create future leaders for Mobilink.

Selected References:

• Mobilink (mobilinkgsm.com)

• Pakistan Telecommunication Authority (pta.gov.pk)

• Porter, Michael E. (1980). Competitive Strategy: Techniques for

analyzing industries and competitors. New York: Free Press.

• Porter, Michael E. (1985). Competitive advantage: Creating and sustaining

superior performance. New York: Free Press.


Documents

26758753 strategy-report-on-mobilink