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Making
communication
exciting
`` 1
Introduction
THE UNIVERSITY OF LAHORE
ABOUT ZONG
Zong is the first International brand of China Mobile being launched in Pakistan. The company is
often cited as China Mobile (Pakistan). It is meant to empower and liberate the people of
Pakistan in every nook and corner of the country. It will become a part of their hearts, their
minds and bring about a change in their lives that every one desired but few thought would be
possible. The core essence of ZONG is to allow people to communicate at will. Without worrying
about tariffs, network coverage, capacity issues or congestion. ZONG will be supported by
ground breaking communications, trend setting customer service and an unmatched product
offering which will redefine rules of the game and establish ZONG as a serious contender for the
number one spot. ZONG would offer its customers with entertaining & innovative value added
services and will empower them by giving a wide variety of products, services & content to
choose from. We are privileged to be the pioneering country introducing this brand with others
to follow. And God willing, together we will also make ZONG a success story for others to try
and replicate.
So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an
additional US$ 800 million will be invested till the end of year 2008.
With ambitious plans to cater to the fastest growing Pakistani market and to win over the ever
demanding Pakistani customer, it will be offering unprecedented coverage, voice and data
services as well as a wide range of tariff options to choose from.
CMPak's edge comes from the experience and expertise of running the world's largest telecom
service and the commitment they make to setting quality and customer relations standards.
CMPak is geared to offer neatly packaged VAS products that will benefit the individuals,
corporate as well as small businesses. Led by a team of professionals from the field of cellular
Communication, CMPak is determined to make its mark in the Pakistani market and to change 1
the way people communicate.
Market No
Technology Yes
Psychology Yes
Packages
PREPAID
ZONG 65
Ladies and Gentlemen, we bring you ZONG 65, the new pre-paid package of ZONG that delivers
100% on economy and guarantees lowest call rates to any network in Pakistan
12 Aanay Package
Talk for an entire hour - any hour, for only Rs.4.99 and for the first time in Pakistan you can
change the hour everyday!
50 Paisa/Call (8 Aanay)
People claim of simplicity and yet give you half the truth. Only ZONG gives you the full truth at
half the price. Now make calls to any other mobile network for 8 Aanay.
Free Package
For the first time in Pakistan you can make free calls for life!
Other Mobile
Interconnect Charges PTCL
Operators
Per/ min 1 0.52
Per /30 Sec 0.5 0.26
Details
30 Sec billing
Air-time rate for both On-Net & off-Net calls are same
Off-Net Calls i.e. Calls to other mobile operators & PTCL will be subjected to Interconnect
charges given above 1
Free minutes will be calculated on per minutes basis
Spouse number will only be applicable on Rs 1200 price plan with zero charges
Free minutes calculation for Rs 1200 price plan will be exclusive of Spouse number as
the charging on Spouse number will be zero
Spouse number can be added by calling our help line or visit our Customer services
centre
Rs 2000 LR package will have 6800 free minutes in total, 6000 minutes will be On-Net
with a daily cap of 200 Minutes (Fair usage policy)
The first 200 minutes of the day will be charged at Rs 0 after which charging will be done
at On-Net Airtime rates i.e. 0.1 per 30 sec
Mobile Number Portability MNP
Mobile Number Portability (MNP) enables customers to retain their mobile telephone numbers
(including the three digit prefix) when changing from one mobile operator to another mobile
operator.
Benefits
You will be able to take advantage of ZONGs attractive tariffs and service offerings
without even changing your mobile number.
You will save the inconvenience of informing all your contacts as is faced in the changing
your number.
You will experience cost saving by avoiding stationary cost (letterheads and business cards)
printing since your number will remain the same.
The beacon of ZONGs impression and torch bearers of a new era in customer interaction,
taking customer service into a portal of customer excitement. These are the doors to ZONGs
THE UNIVERSITY OF LAHORE
first and foremost realization of its promise to excite customers with a new trend in service.
Setting the tone and ambiance which is second only to your home, these are ZONGs arms
across the country to welcome everyone to experience the comfort when a true promise is
fulfilled.
Zone Address
1. S.A 16, 17 & 18, Plot # FL 17, Block 5, KDA Scheme 5, Clifton Karachi
KARACHI
2. Gulshan-e-Iqbal Opposite Batul Mukaram Masjid Karachi
Big City, Shop No G 59 & 60. 3-E-2, Liberty Roundabout. Main Boulevard.
LAHORE
Gulberg III
ISLAMABAD 68-E Jinnah Avenue, Blue Area Islamabad
RAWALPINDI Plot # 7, 8 ,9 Bank Road Rawalpindi
FAISALABAD Lucky Plaza, 213 Main Susan Road. Faisalabad
MULTAN Multan Arcade Main Katchery Road Multan
QUETTA Fayyaz Lab, Jinnah Road- Quetta
PESHAWAR Burjaman Centre, University Road, Peshawar
HYDERABAD Shop # 5, Ali heights, Auto Bhan Road, near CitiBank, Hyderabad
JHELUM Old Al-Bilal Hotel, Cantt chowk ,GT Road, Jhelum
SAHIWAL 511/BVII, Jail Road, Civil Lines. Sahiwal
DG KHAN Azmat Road DG Khan
GUJRAT Euro Heights GT Road Gujrat
GUJRANWALA Near Traffic Police Office, GT Road, Gujranwala
SIALKOT Shop No. 17, Aziz Shaheed Rd. Sialkot
ABBOTABAD Abbotabad Business Complex, Supply Bazar, Manshera Road- Abbotabad
MARDAN Zong Plaza, Mall Road, Mardan Cantt
SARGODHA Parhar Plaza, Railway Road Sargodha
BAHAWALPUR Baghdad UL Jadeed Road DIG Chowk Near Al Haq House Bahawalpur
RAWALPINDI -
Plot # B130, B block- Satellite town- Rawalpindi
SATELLITE TOWN
SUKKUR Shop # 421-422.C Minara Road Sukkur
Careers
GPRS Coverage
Fastest growing coverage in Pakistan.
ZONG Unlimited
@ Rs. 400+Tax/month
ZONG Free
@ Rs. 10+Tax/M
MMS
The epoch of multimedia content is upon us and the last thing wed want is to stick to the age
old conventional messaging techniques.
The ZONG Internet USB Card is a device (with a SIM inside it) which can be inserted in your
laptop/desktop PC (in the USB Slot) to provide you with access to the internet. It works on the
EDGE/GPRS network and gives you wireless Internet connectivity, anytime anywhere!
External Assessment:
PEST Analysis of Pakistan in Telecom Industry
In order to survive and remain profitable in todays competitive marketplace, Zong need to be
able to react and adapt to changes in the external environment and ideally be proactive in
impacting these forces. External environment factors can be classified into five general
categories: competitive, social/cultural, legal, economic, political, and technological.
Political Factors
Political Instability:
Pakistan is facing political instability causing danger for the telecom industry. But the
political factor does not effect on Zong so high because Zong related from china and
relationship of china and Pakistan is very strong.
Deregulation:
1
The telecom sector of Pakistan has successfully liberalized in an efficient, transparent
and fastest deregulation of telecom in the region. The Government of Pakistan gave the
Economic Factors:
Gross Domestic Product:
Telecom sector of Pakistan has a share of almost 2 percent in National GDP.
The average revenue per user is falling. It does not affect value able on Zong. Because
Zong started in same condition.
The decline in Rupee value against the US Dollar, the decrease in the interconnect
charges and lower priced tariffs have resulted in an overall decrease of ARPU in US Dollar
terms.
Outflow of Capital:
The ongoing economic turmoil along with the worsening of security conditions in
Pakistan has caused an increased outflow of capital from the country.
Technological Factors:
Technological Development:
Companies are investing in their infrastructure to not only expand but also to upgrade
their existing structure. As the competition is strong Zong is focusing on its value added
services
Technological Advancement:
Currently all companies are providing Multi-media Messaging Services (MMS), General
Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference
Calling, Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at 1
low price.
Technological Trends:
In these conditions competition is very strong among competitors. Zong is improving itself in
technology.
Five forces looks at five key areas namely threat of new entry, power of buyers, power of
suppliers, threat of substitutes, and competitive rivalry.
As set-up cost is in billions of dollars so in this case threat of new entry is low, but there are 1
companies who are working to achieve licenses and approaching PTA to know terms and
conditions for this.
Cost of switching from one company package to other company package is low. Hence, power
of buyers is high.
But the fact is that numbers of suppliers are few in the market but they are competing in the
market to make agreements with mobile service providers.
1
Competitive Analysis
Major competitors of ZONG include
THE UNIVERSITY OF LAHORE
Mobilink
Ufone
Telenor
Warid
Mobilink GSM
Genre Subsidiary
Founded 1994
Islamabad, Pakistan
Headquarters
42 Kulsum Plaza, Blue Area
Industry Telecommunication
Website www.mobilinkgsm.com
Type Private
1
Genre Subsidiary
Islamabad, Pakistan
Headquarters
13-B, F-7 Markaz
Industry Telecommunication
Website www.ufone.com
Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile companies in
Pakistan and is a subsidiary of Pakistan Telecommunication Company.
The company commenced its operations under the brand name of Ufone from Islamabad on
January 29 2001. Ufone expanded its coverage and has added new cities and highways to its
coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat.
During the year, as a consequence of PTCLs privatization, 26% of its shares were acquired by
Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone
continued on the path to success. The Company further expanded its coverage and has added 1
new cities and highways. Ufone has network coverage in more than 750 cities, towns and across
all major highways of the country.
Type Private
Founded 2004
Industry Telecommunication
Products Telephony
Slogan We Care
www.waridtel.com (Pakistan)
Website www.waridtel.com.bd
(Bangladesh)
Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing
telephony services in Bangladesh, Pakistan and Uganda.
The company started rolling out network from mid-2006. In less than a year, amidst much
speculation, Warid Bangladesh launched their commercial operation with 26 districts the
largest ever launch in terms of network coverage and BTS Stations. Unlike its operations in other
countries Warid Bangladesh uses the slogan be heard instead of we care.
Currently Warid Bangladesh provides both post-paid and pre-paid connection plans. The post-
paid plan is branded and marketed across the country under the name Zahi Post-paid, which
means leader or royalty. The pre-paid segment is branded and marketed and ZEM PREPAID
According to Pakistan Telecommunication Authority, currently Warid Telecom has more than 10
millions subscribers in Pakistan and is ranked as the fourth largest operator in Pakistan. Warid
Pakistan claims it has the largest "post-paid" subscriber base in Pakistan.
Telenor
Type Public
Founded 1855
Industry Telecommunication
Telephony and
Products
broadband
Employees 31,750
Website www.telenor.com
Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway,
with headquarters located at Fornebu, close to Oslo. Today, 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.
At year-end 2005, Telenor held controlling interests in mobile operations in Norway, Denmark,
Sweden, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh and Pakistan. In
October 2006, Telenor entered into an agreement with Vodafone Group for the acquisition of
subsidiary Vodafone Sweden for a consideration of NOK 8,170 million, including assumption of
debt.
Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March
2005 and holds one of six mobile licenses in Pakistan. Its also the fastest growing cellular
network of Pakistan. Currently Telenor holds the second largest GSM and the largest GPRS and
EDGE coverage in Pakistan. It has also achieved the second largest retailer network in Pakistan
within the 2 years of its operations and it has started operations in Azad Kashmir and the
Northern Areas of Pakistan. Telenor has reached its breakeven in the first quarter of 2007 and
beat largest mobile operator Mobilink in sales. Telenor proactively participated in earthquake
disaster relief, and is carrying out a campaign for the welfare of flood victims in Balochistan.
Current CEO of Telenor Pakistan is Tore Johnsen.
Opportunities of Zong
Expand Globally 1
ZONG can expand the globally and can develop it strategy in other countries.
Threats of Zong
Old stable companies
Mobilink and Ufone are well-establish as compare to Zong in Pakistan.
Price Wars
Current price war among cellular service providers may reach at a position where only brand
names survive.
Government Interference
Government Interference will always be treated as a threat in terms of taxes
Internal Assessment:
1
Management
THE UNIVERSITY OF LAHORE
Through its published manual on the code of business conduct at Zong. The company addresses
individual responsibility. Its value of integrity, respect, imagination and passion and its
commitment to serving its customer, it has several sections an ethics and how Zong encourages
employees to respect explicit ethics violations or questionable ethics conduct and give guidance
on how to handle such situations. This manual also guides management on how to handles
issues of discrimination, harassment, ethics violations reports.
Marketing Department
THE UNIVERSITY OF LAHORE
Marketing is particularly important today in telecommunication industry, especially as
consumers are becoming more sensitive to price. Customers are bombarded daily with endless
solicitations and Zong and its competitors are doing what can to diversify their services and
their names being remembered as the one customers turn to when they want to sign up for
services or switch to different provider many customers are finding out that Zong bundled
services are often better across the board than its competitors promotional services, which
sometimes last for only one on the services. Marketing department select the packages for
customers Zong packages are more attractive for the customers as compare to the competitors
Finance Department
Zong has strong financial position since its inception. China mobile acquires Paktel in $27.5
billion and it has been invested $1500 million in Pakistan for Zong and want to invest more. Zong
has been collected $ 36,575,000 in 2008. The improvement in net earnings resulting from strong
internal sales growth from both postpaid prepaid segments.
Value Chain
Zong purchases equipment from four companies ZTE, Ericson, Alcetle, and Hawaii. These are the
venders and operator of Zong. Zong distributors are franchises, customer care service centers
and different outlets. Zong has 22 CCSC and 100000 different outlets in Pakistan.
R&D of ZONG is working hard. Its select the site where it is feasible and check the access, now
ZONG is covering all over the Pakistan rapidly
The fundamental objective of human resource function is to ensure that every aspect for the
organization, employment motivation and management of people is integrated with the
strategic objective of business and contribute to the successful achievement of those objectives.
Zong has two major sources of people inside sources and outside sources
1
Inside Sources
In Zong management continuously hire fresh blood from the market through the following
sources.
Employee Referral
Business Colleges
Advertising
Online Application Bank/Unsolicited application
Strength of Zong
Zong strength lies in the establishment of a strong, fundamental and coherent long-term
business plan, designed to sustain economic challenges in the country.
Investment:
It has invested heavily in infrastructure, technology, human resources and customer services
which have given impetus for a broad-based future planning strategy. It further is investing US $
800 million in Pakistan to develop its infrastructure. Therefore it has the competitive advantage
of making huge investments in Pakistan which no-one else had made before regarding telecom.
Network portability
Over 500,000 people have been switched to Zong from other networks
Zong mobile
Zong has come up with another interesting promotion. you get a phone, almost free but with
a years payment in advance.
Zong is also covering the all cities of Pakistan and in 2008 Zong completed its record sites
1000 in Pakistan its great achievement.
Now Zong is covering the northern areas of Pakistan rapidly.
Government Dealings
Pays a huge amount in taxes to the government of Pakistan. So its a big source of
revenue to the government as well.
It conducts its business by abiding by the rules and regulations setup by the government
and cooperates with the government in every aspect.
Weaknesses of Zong
Coverage
Zong is establishing but it is new in market therefore it coverage is weak in rural areas of
Pakistan.
Bad image
Bad image of associate with Paktel. And still now having old staff of Paktel.
Bad MIS
Zong does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim specially pre pay. Zong have to take serious
steps to properly list its customers to ensure that there is no misuse.
An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate
economic, social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive information. The EFE matrix consists of five steps process.
Five-Step process:
Opportunities & threats. You have to prepare a list of all external factors which will affect the
EFE matrix. These factors should be two points to be kept in mind these are opportunities and
threats
Firms current strategies response to the factor: how well firms response to these factors.
Opportunities
Threats
Total weighted score for the ZONG external factor is 3.19 which is above average
As indicated by the total weighted score of 2.78, Zong is weakest. because it is at its initial
position as compare to competitors. With the point of 3.18 Mobilink is leading. Only eight
critical success factors are included for simplicity; this is too few in actuality.
Strengths
Weaknesses
Total weighted score for the Zongs internal factors is 2.91 which is above average
StrengthsS Weaknesses W
O1. Globalization
O2. Marketing S1,O1 Expand
S3,O7 Penetration W3,O3 Acquisition
O3. Acquiring
O4. Covering Pak China S1,O3 Acquisition
Border
O5. Covering Northern
Areas
O6. New Product
O7. Penetration
SO-Strategies
Matching the strength 1 and opportunity 4 Zong can expand their business.
ST-Strategies
Matching the strength 1 and threat3 Zong can use the strategy of cost leadership.
Matching the strength 3 and threat 2 Zong can use the strategy of penetration. 1
WO-Strategies
WT-Strategies
Matching the weakness 3 and threat 2 Zong can use the strategy of downsizing.
1. Revenues 5.0
16
Conclusion
Defensive Competitive
A business unit that has a large market shares in a mature, slow growing industry. Cash cows
Require little investment and generate cash that can be used to invest in other business units.
A business unit that has a large market shares in a fast growing industry. Stars may generate
Cash, but because the market is growing rapidly they require investment to maintain their lead.
If successful, a star will become a cash cow when its industry matures.
A business unit that has a small market shares in a high growth market. These business units
Require resources to grow market share, but whether they will succeed and become stars is
unknown.
A business unit that has a small market shares in a mature industry. A dog may not require
Substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has
some other strategic purpose, it should be liquidated if there is little prospect for it to gain
market share.
1
Zong SBU
Post paid
Zong postpaid has low market share of 0.25% and high growth rate of16% so in BCG matrix it
lies in 1ST quadrant of question marks.
Zong prepaid has high market share of 0.7% and high growth rate of15% so in BCG matrix it lies
in 4TH quadrant of stars.
Zong mobile has low market share of 0.4% and high growth rate of11% so in BCG matrix it lies in
1ST quadrant of question marks.
Zong USB has low market share of 0.25% and no growth rate. So in BCG matrix it lies in 2 ND
quadrant of dog.
Zong Mobile
Strategic Business Unit Of ZONG Telecom
Zong has come up with another interesting promotion . You get a phone, almost free but with 1
a years payment in advance. This is equivalent to the US model where customers have to sign a
contract to get a discounted phone. In Zong case they just get the money in advance (great for
them) and hope that users will stay with them after 12 months.
THE UNIVERSITY OF LAHORE
Strengths of ZONG mobile
Zong is the first company who introduced mobile
With the brand name of ZONG. Zong is benchmark
leader in this SBU.
It is available at very cheap price. Anyone can get it
paying Rs 1900 with Rs 1900 balance.
Large number of people appreciates and gets the mobile
immediately.
Weakness
Mobile is totally made by china and peoples perception about china mobile is not good.
So its resale value is low.
Zong mobile is only made for zong network. Other networks cannot operate
in this mobile.
Zong is depending on ZTE.(Zheng Telecommunication Electronics) ZTE is the vender of
zong. Zong purchase mobile from ZTE.
Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5
Total weighted score for the Zong mobile is 3.24 which is above average in its overall internal
strength.
Total weighted score by Zong in internal factor evaluation is 3.24 which is above average.
Threats
Total 1 1.7
Total weighted score by Zong in external factor evaluation is 1.7 which is below average.
3
iii. 4 iv. 5 v. 6
Total weight
Of EFE
2
Quardrant-1
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification
Quardrant-2
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
Quardrant-3
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Liquidation
Quardrant-4
Concentric diversification
Horizontal diversification
1
GRAND STRATEGY MATRIX FOR ZONG
Quadrant II Quadrant I
Weak Strong
Competitive Competitive
Position Position
Slow Market
Growth
ZONG lies in first quadrant so the all strategies of 1st quadrant can be apply on zong
Opportunities
Development
Threats
TOTAL 1.00
Strengths
THE UNIVERSITY OF LAHORE
1 Investment 0.09 4 0.36 4 0.36
Weaknesses
We select the two strategies market penetration and market development. There total
attractive score is 6.10 and 5.01 respectively. The strategy market penetration has big score.
CONCLUSION
Zong has strong financial position and growing fast. That is the reason we didnt found much
discrepancies. As seeing the growth rate of Zong it may be possible that Zong can be the
leading mobile operator in Pakistan. There are some minor discrepancies but they are
adjustable with little effort.
1
Recommendation
THE UNIVERSITY OF LAHORE
Zong Telecom should be increasing their network coverage and foot prints in every
corner of the country to capture the market.
Zong should adopt the strategies of market penetration market development and
related diversification, but the most effective strategy would be market penetration.
In the SBU of Zong mobile Zong should use the strategy of hold and maintain.
References
www.zong.com.
www.google.com
www.pta.com.pk
Rana Armughan
Zong Garden Town Ali Block Lahore
Rao Farhan Ali Khan
Zong Kchehri Chowk Multan
The end