World-call Pakistan

World-call Report

11/23/2013

Submitted to:Ms Fatima Saman Qaisar Submitted by:Imran Jawa 10-4964Sharjeel Ahmad10-4920Moazzam Butt10-4962Sidra Mahmood10-4939Ayza Asma10-4982

ContentsIntroduction:4Location of office:4Organization structure:5Vision Statement:6Mission Statement:6Components of Mission Statement:6Market:6Market share:7Survival, growth & profitability:7Philosophy:7Technology & Self-Concept:8External and internal assessment:8PESTLE8Political:8Economical:8Social:8Technological:8Legal:9Environmental:9Porters Five Forces Model:9Threat of new entrant:9Bargaining power of supplier:10Bargaining power of customer:10Threat of substitute:10SWOT Analysis:11Strengths11Weakness11Opportunities11Threats12EFE matrix:13IFE matrix:14CPM:15BCG Matrix:16Strategies:16Internal Strategies:16Integration strategy:17Market penetration:17Product development:18Market development:18Diversification strategy:19Conclusion20Bibliography20

Introduction:World Call is the subsidiary of a well-known telecom and multimedia company Omantel. The Oman Telecommunication Company considered amongst most reliable and unique telecom and multimedia service provider in Pakistan. Omantel is the major and largest provider of any telephone call (local or international), Text messages or internet services. World Call launched its business in June 1996 with payphone operations. They were one of the largest fixed line payphone operators at that and considered to be the pioneers in the respective area. World Call perception of a changing business environment placed them at the lead of a demand increase throughout the country. With the expansion in telecom they have continued to innovate over the years and invested heavily in new technologies and businesses. Their new venture stood first in a communication revolution. In 1998, prepaid calling cards were launched by World Call under the brand name "Hello". In the following years World Call provided its dial-up internet services through WorldCall.com. In 2000, World Call in Multimedia segment established a Hybrid Fiber Coaxial (HFC) network in Lahore thus becoming the first Multi-service operator in the country, providing cable television and Broad Band services. In 2003 World Call also launched a state of the art HFC network operation in Karachi under World Call Broadband Limited capable of three features at the same time (cable TV, high speed internet/data and telephony). World Call Telecom Limited got Wireless Local Loop (WLL) license in the post deregulation auction to provide WLL telephony in all 14 telecom regions of Pakistan primarily in the 1900 MHz band. It has partnered with Samsung for a CDMA 2000. World Call started services from Lahore in June 2005 which is now available in over 40 cities. World Call also acquired an LDI license and service commenced at the end of 2004. WTL enjoys significant edge over competition due to unused fiber optic capabilities available in the telecommunication sector. World Call also enjoys leadership position with consistent growth in its market share for broadband connectivity and cable television. A fundamental shift in technology and industry, innovation and dedication led them to growth in diversified businesses with a range of services designed to serve the needs of the local market. From Cable Broadband to Wireless Broadband, from Cable TV to Digital TV, further more their inducing more and more fiber optic to provide their corporate customer with maximum speed. World Call has achieved the milestone. Few of the services offered by world call are Cable BroadbandWireless BroadbandCable TVDigital TVLocation of office:WorldCall Telecom Limited 67-C III, Gulberg III, Lahore, PakistanTel: (92 42) 5872633-38 Fax: (92 42) 5755231

Organization structure:

Vision Statement:We at World Call are committed to achieving dynamic growth and service excellence by being at the cutting edge of technological innovation. We strive to consistently meet and surpass customers', employees' and stake-holders' expectations by offering state-of-the-art telecom solutions with national & international footprints. We feel pride in making efforts to position World Call and Pakistan in the forefront of international arenaMission Statement:In the telecom market of Pakistan, World Call to have an overwhelming impact on the basis of following benchmarks:Create new standards of product offering in basic and value added telephony by being more cost effective, easily accessible and dependable, thus ensuring real value for money to all segments of market.Be a leader within indigenous operators in terms of market share, gross revenues and ARPU within five years and maintain the same positioning thereafter.Achieve utmost customer satisfaction by setting up high standards of technical quality and service delivery.Ensuring the most profitable and sustainable patterns of ROI (Return on Investment) for the stake-holders.

Components of Mission Statement:Market:This component actually shows that at which region a firm geographically competes. World Call is competing in telephony industry against its competitors in different cities of Pakistan. World Call is actually a big distributor of cable net, wireless net, LDI (Long distant Interference) etc. in major cities of Pakistan like Lahore, Karachi, Islamabad. They target these areas especially within the region.

Market share:

Total Subscribers: 5.72MnTotal Subscribers: 1.08Mn

Survival, growth & profitability:Is the firm really committed to its growth, position and financial soundness? Of course, World Call is doing its best to achieve maximum market share of the industry by producing new standards of products which are more cost effective, easily accessible and reliable. They have a mission to become a leader in the respective industry by generating more revenue and maintain the position in the market.

Philosophy:Philosophy actually relates to the aspirations, beliefs, values and ethical priorities of the firm. World Call has the Philosophy to achieve utmost customer satisfaction by providing them with high quality products & services in the telecom market of Pakistan.

Technology & Self-Concept:To what extent a firm use the current technology in its operations should be the major concern of any techno firm. World Call is using optical fibers in Broad Band providing at corporate level. Therefore serves as an edge to its competitors which are mostly not using this technology. Moreover, they are using LDI (Long distant interference) under their segment VOICE which is actually spectrum of technology for making long distant calls and act as traffic controller to the telephonic signals.

External and internal assessment:PESTLEPolitical: Political environment of Pakistan is very unstable protective measures are necessary . Foreign investment is also decreasing due to political instability. Government has imposed unexpected tax rates in Tele communication industry.Economical: Inflation is one of the economical factor which is effecting whole economy Debt of Pakistan is increasing day by day Unemployment rate is increasing Social: Better telecommunication is now became an essential life style for people. People are interested in more than just Plain Old Cable/TV technologies like Digital Cable TV, Video-On-Demand, and Personal Video Recorders not just plain old TV due to frequent use of internet. Internet becomes an integral part of people social-lives. Online gaming is growing rapidly and the ever increasing gaming competition all over the world Technological: World call is the fast growing industry in Pakistan. Wireless broadband technologies have changed the way of communication by making it faster and reliable. The expertise of IT and Telecom industry has greatly reduce cost and time on the usage of products and services. For example, new VoIP technologies arechanging the cost structure of the LDI business.Legal: Bribery and corruption is everywhere and because of this in legal authorities make telecommunication to suffer a lot. Strict rules and regulation from PTA Restriction regarding broadcasting of certain content (e.g Star plus, fashion TV ) Environmental: Towers of telecommunication destroy the view for tourism especially Natural obstruction in wireless telecommunication is also an environmental factor.Porters Five Forces Model:In todays competitive world every business has a fierce competition within the industry. A competitive business could have a fear either from its suppliers, buyers, consumers etc. Porters five forces best describes the market competition

Threat of new entrant:Telecom industry is high resource concentrated business especially in Pakistan. For the setup of telecom industry you need:High level of investment because other than Variable Cost it also needs a large amount of Fixed Cost Certification from the government, you need to have a license from PTA for the setup of telecom industry If you have enough resources and certification from the government then the most important thing to consider is the survival and to attract market the shares as big players have already taken over the industry. So we can say that the threat of new entrant in the telecom industry is low for the reasons i.e. high cost is needed, certification from Government is needed and lastly because of the fierce competition it is very difficult to beat the big players.

Bargaining power of supplier:Usually there exist a long term multi-million dollar agreement between Telecom Company and the firm to whom they are providing services. There exist an intense competition between suppliers of telecom as every firm want to have the contract and to strength their relationship with the consumer firms.Major players in the manufacturing of Telecom products like fiber optic cables, network equipment, and softwares etc include Cisco, Ericsson, ZTE, Samsung, Nortel and Motorola. There exist a fierce completion between these players and they dont have any such opportunity to differentiate themselves, so we can say that on the basis of:Fierce competitionLittle or no opportunity to differentiate Bargaining power between the existing suppliers is low and they have to smoothly consult with the telecom companies.Bargaining power of customer:In the telecom industry consumers have a variety of choices as many firms are providing the same services.Major players in the market that are providing the similar services as that of World Call are:PTCLWateenWi-Tribe

On the basis of wide range of companies, customers have a high bargaining power as they can easily switch to other companies. Moreover the switching cost is also very low thats why consumers have a high bargaining power in the telecom industry.

Threat of substitute: A large number of substitutes are available in the market, providing almost same kind of services at a competitive price. So the threat of substitute in the telecom industry is very high and people can easily switch towards the substitute product if they are not satisfied with the current product or service.Substitutes include Broadband, Wireless broadband, Digital TV, Mobile phones, Satellite, and Instant Messaging etc.Thus in current situation World Call needs to continually focus on its strategies especially the product development to overcome the threat of substitute and to be competitive in the market.Rivalry among the existing competitors:In Pakistan, there is a huge growth opportunity in Telecom sector and intense competition could be created as more rivals are gradually entering the industry. World Call already has intense competitors and they are still competing on technological base to gain competitive advantages.With the emergence of new firms in the industry, rivalry has led to increase competition across the country. World Call is strives to get competitive advantage throughPrice cutModified products and service deliveryA separate agency for advertising its products and services as wellSWOT Analysis:

Strengths Corporate Broad band (Fiber optic ) Well developed technical infrastructure exist Diversified business (Cable Tv and Broad brand ) Multi offering bundles Significant player in super-regional HFC- cable based offerings (Cable TV) Footprint in major cities Brand name (pioneer in Broad Band ) Reliable wireless broadband

Weakness No critical size in voice traffic to secure favorable terms (LDI) Weak marketing Weak brand positioning Less focus on short-term profitability Infrastructure varies from location to locations

Opportunities Cross sell to affluent customer base in major cities 3G technology will enhance their Corporate services Demand increased for backhaul network Cross-sell in major cities Increased demand for LDI and Broadband Privatization of government telecom projects PTA delayed 3G licenses

Threats Price wars spread to all business areas Local Cable TV networks Economy Instability Dish TV networks 3G is a threat for Wireless Government policies (PTA licensing and rules)

Key External Factors Weight Rating Score

Opportunities:-

Demand increased for backhaul network 0.04 2 0.08

Cross-sell in major cities 0.1 2 0.2

Increased demand for LDI and Broadband 0.05 3 0.15

Privatization of government telecom projects0.09 2 0.18

PTA delayed 3G licenses0.15 3 0.45

Threats:-

Economy instability 0.1 3 0.3

Local cable TV operators0.1 2 0.2

Dish TV network0.11 1 0.11

Government policies 0.08 3 0.24

3G threat for wireless0.12 3 0.36

Heavy Price competition 0.06 2 0.12

TOTAL 1 2.39

EFE matrix:

IFE matrix:

Key Internal FactorsWeight Rating Score

Strengths:-

Technical infrastructure 0.09 3 0.27

HFC-cable0.12 4 0.48

Product range 0.10 3 0.30

Working in major cities 0.1 3 0.30

Reputation 0.08 3 0.24

Balanced sales 0.08 3 0.24

Reliable wireless broadband0.1 3 0.30

Weaknesses:-

Weak marketing 0.062 0.12

Lacking a proper long-term strategy0.08 2 0.16

Weak brand positioning0.05 1 0.05

Infrastructure varies from location to locations0.08 3 0.24

ERP implementation taking too long0.06 2 0.12

TOTAL 1 2.82

WorldCallPTCLWateenWi-Tribe

Weight Rating Score Rating Score Rating Score Rating Score

Market Share 0.12 2 0.24 1 0.12 1 0.12 2 0.24

Physical 0.08 3 0.24 4 0.32 2 0.16 3 0.24

Advertising 0.11 1 0.11 4 0.44 3 0.33 1 0.11

Pricing 0.13 2 0.26 2 0.26 2 0.26 3 0.39

Connection Speed0.03 4 0.12 4 0.12 2 0.06 2 0.06

Quality 0.09 3 0.27 1 0.09 2 0.27 3 0.27

Mobility0.08 3 0.24 3 0.24 3 0.24 3 0.24

Goodwill 0.09 3 0.27 4 0.36 3 0.27 2 0.18

Customer Care 0.12 3 0.36 3 0.36 2 0.36 2 0.24

Financial Position0.15 3 0.45 4 0.6 2 0.3 3 0.45

Total 1 2.56 2.99 2.16 2.42

CPM:

BCG Matrix:

Strategies:

Internal Strategies:To be competitive in the market World Call has been using different strategies bases on its internal and external analysis. Mostly their strategies are recognized at the corporate level. Their strategies are based on where they are, where they want to be and how they could achieve them. Moreover their strategies are also based on the industrial analysis, on analysis of their competitors performance analysis.After making industrial and market analysis World Call analyze which strategy they should adopt on the basis that either they need to expand or diversify their product.Currently World Call are undertaking following strategies:

Integration strategy:Forward integration: Forward integration is to take control on your distributors in order to increase your profit margins. World Call is taking control over distributors trough franchising as they are operating in 40 cities through their own outlets. The major benefit of franchising is the cost reduction to business by providing their products & services directly to customers.

Intensive strategy:Market penetration:Product penetration is about to increase your market share by increasing the sales of your current products. It is to increase your market share by: Increasing the usage rate Attracting non-users of the products by providing packages or samples Attracting competitors usersAs with the passage of the time the competition has been increasing, World Call understand this very well and to cater with this competing environment they are increasing sales of their current products by attracting customers to them by providing them with different packages. The company has used a very clever strategy by introducing bundle packages. Through their bundle packages they are increasing their market share by attracting the competitors users

. These bundles include:Discount up to 400Cable TV +Cable Broad Band

Discount up to 825Cable broad Band + wireless Broad Band

Discount up to 1225Cable TV + Cable Broad Band + Wireless Broad Band

Moreover they are also increasing their market shares by providing: First payment discount Early payment discount

Product development:Product development is about to introduce new products or to modify your existing products. It is basically to increase your market share and to be competitive in the market. They are extensively using this strategy by continually modifying their existing products or introducing new products. From beginning till now they are introducing different products from time to time like:

They are planning for more modification by introducing the 3G technology. Furthermore world call is working on providing their customers with best quality graphic on cable TV and for that reason they are developing and modifying their system to produce channels with HD graphic.Market development:Market development is to introduce your product in the new market. It is to introduce your product in the new region and thus increasing your market share. World Call is extensively using this strategy, as with the existing competition they are providing their different services in different regions. They started off in Karachi and then followed by Multan, Lahore, Faisalabad and many more. So we can say that they are providing services to customers in near about 40 cities through their wireless/cable net and TV cable.

Diversification strategy:Diversification is the strategy to acquire another business to increase your profit margins, to be competitive or to bear the losses of one sector by the other.Diversifications are of two types:Related diversificationUnrelated diversificationRelated diversification is to acquire a business of the same industry in which you are already operating, that business must be similar to you in term of product, technology or market.World Call is comprehensively using these both strategies. In related diversification they are developing and providing a variety of products and services based in the same industry a range of products include:

In unrelated diversification they are introducing TV cable services for their customers. So above mentioned are some of the strategies used by World call to be competitive in the market.

ConclusionWorld Call is a well-known telecom company in Pakistan with huge infrastructure which is backed by strong parent company Omantel. World Call is competing in industry effectively. After going through keen analysis and research we have recommended strategies used by World Call and industry analysis with other companies as well. World Call is no doubt a pioneer in the Broadband sector and serves well to its customers.

Bibliographyhttp://www.worldcall.com.pk/. http://www.worldcall.com.pk/WTL/Worldcall-2012_Final.pdf. http://www.worldcall.net.pk/wirelessbroadband.html#.

National university of computer and emerging sciencesRelative Market ShareIndustry Growth0%100%Low GrowthHigh GrwothWireless PhoneCorporateServicesBasic Cable TVAdvertisement Revenue DerivedDigital TV (VOD)Broadband internetSTARQUESTION MARKDOGCASH COW50%EVDO Wireless BroadbandLDI