Name: Javeria Waseem

Registration# 30756

Degree: MMS (ADV)

Course: Strategic Marketing Management

Day & Timing: Saturday 06:30PM to 09:30PM

Faculty: Ali Javed

Assignment# 01

Date: 14th Oct, 2017

 Business Analysis & Strategies 2017

1. Pick local companies and evaluate the business on the following strategies.

- Porters Five Forces

- PESTEL Analysis

- SWOT Analysis

Porters Five Forces

Mobilink
Mobilink was awarded a license for mobile communication system and services in
July 1992, and commenced its operation in 1994, becoming the first company in
Pakistan to setup and operate a digital mobile network based on GSM 900
technology. Mobilink markets its prepaid services using the Jazz trade name and its
post-paid services using the brand name Indigo. In addition to the basic voice
services, Mobilink also provide its subscribers other services like voice mail,
closed user group, SMS, call waiting/holding, mobile banking, etc.

Critical Analysis
We critically analyze the business of Mobilink by considering Porter five forces
model.

1. Intensity of Competition among Rivals

Mobilink has strong rivals in telecommunication sector of Pakistan like Telenor
and U-fone. In 1994 it had only two competitors Paktel and Instaphone. All these
companies are providing similar services with the same capabilities. Although it
has enhanced its investment in last few years and working hard to expand its
network in far-flung areas and to offer qualitative products yet the presence of
strong competitors is a major threat for its successful survival. So, competitive
rivalry intensity is high.

2. Bargaining Power of Buyer

Although subscribers are not concentrated, not purchase in bulk but still can easily
switch for better quality, coverage and rates. In this context subscribers position is
strong. Company by all means will consider the wishes of its users. Mobilinks
subscribers has increased in each year although the rate of growth has shown
declining trend due to the presence of competitors services. Because of high level
coverage and marketing activities, it has won the market. Since subscribers
switching cost is low so they can easily move to the new service provider. So
Buyer power is high.

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 Business Analysis & Strategies 2017

3. Threats from Substitutes

Presence and easy availability of substituted products is a great threat for the
successful survival of any organization since it can enforce the company to cut the
price of its product. For Mobilinks product substituted products are fixed line and
wireless. These two products are offering by many companies like Pakistan
Telecommunication Company Limited (PTCL) etc. For substituted products
Mobilink has major threat from PTCL that has fixed line and wireless local loop
subscribers. Importability of these substitutes has reduced their attraction so threat
of substitute is Low to Medium.

4. Potential Entry of New Competitors

Since current telecom companies are too much strong not only from technology
and experience view point but also involve in heavy capital investment so chances
of success for new entrants are very limited or simply no. U-fone, Warid and
Telenor one by one entered in the Market and threatened Mobilinks market
position. But now the market is fully saturated and there is no room for new
investors. So the company has no danger of further new entry, so the threat is Low.

5. Bargaining Power of Suppliers

Mobilink takes no services from employment agencies for its human resource. It
gives advertisement in newspapers or use employees references for new
appointments. For Mobilink various physical goods suppliers Orascom Telecom
has followed the strategy of backward integration so its subsidiaries has no danger
or uncertainty from suppliers so supply power is none or Low.

We can analyze the position of Mobilink by rating each competitive force as high,
medium or low in strength.
Intensity
Forces High Medium Low
Competitive Rivalry
Buyer Power
Threat of Substitutes
Threat of New Entrant
Supplier Power

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 Business Analysis & Strategies 2017

PESTEL Analysis
Pakistan Cables
Pakistan Cables is the premier cable manufacturer and market leader in Pakistan.
Since its inception in 1953, Pakistan Cables has maintained quality standards par
excellence by manufacturing 99.99% pure Copper wire - a hallmark that we are
trusted not to compromise on. Being affiliated with General Cables, a FORTUNE
500 company, Pakistan Cables is the only cable manufacturer to be affiliated with
an International cable manufacturing.

Critical Analysis
We critically analyze the business of Pakistan Cables by using PESTEL Analysis.

Political Factors
Pakistan oldest and most reputable cable manufacturer. Joint venture with
BICC (British Insulated Calendar's Cables)
Karachi Stock Exchange Member since 1955
Pakistan Cables is part of the Chinoy Group of Companies.
Pakistan Cables is the only cable company in Pakistan with multinational
affiliation with General Cables and product quality to match the best in the
world.

Economical Factors
1953 Pakistan cable was established and started manufacturing of general
wiring cables with natural rubber insulation
1960 introduced general wiring cables with PVC insulation for the first time in
Pakistan
1968 established factory for low voltage armored cables up to 3.3KV for the
first time in Pakistan, installed Aluminum rod extrusion plant
1974 field communication cables used by Pakistan armed
1979 Launched F Sections
1982~1983 Corporate Excellence Award from Management Association of
Pakistan
1984 Established Anodizing Plant for Manufacturing of doors & windows
Section introduced for the first time in Pakistan MV XLPE Cables for Supply
to KESC.
1996 set up state of the art plant to manufacture High conductivity oxygen free
copper rod
1997 was amongst the first 5 companies in Pakistan and was the first cable
manufacturer to receive ISO 9002 certification

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 Business Analysis & Strategies 2017

1998 Achievement Award for outstanding performance by President of

Pakistan
2000 Became the first and only cable and aluminum manufacturer in Pakistan
to be certify for ISO 9001:2000 version
2001 Introduced LV XLPE cable fully typed tested by KEMA Holland for the
first time in Pakistan
2003 Introduces Powder coated Aluminum Profiles, Received Top 25
Companies award from Karachi stock Exchange, Commemorated 50th
Anniversary
2006 Achieved net sale of over PKR.3 billion received top companies award
from Karachi stock exchange Received Brands of the year Award for Wire and
cables & Copper Rod
2007 & 2008 Brands of the year award in the following categories
o Electrical wires and cables
o Copper Rod
o Aluminum Profiles
2009 Made operational a 2 Mw gas-fired tri generation Power generation plant,
set up a new Plant for the Manufacturer of automobile cables, completed
downstream expansion by inaugurating new PVC Compounding Plant
2010 General cable Corporation a fortune 500 company and world leader in
cable manufacturing made an investment to take a 25% equity stake in Pakistan
Cables
2011 Received ISO 14001:2004 certification, OHSAS 18001:2007 certification
2012 achieved net sale of over 5 billion received best corporate report award
from joint committee of ICAP and ICMAP for the year 2010
2013 celebrate 60 brilliant years Pakistan cables won KSE top 25 companies
award for the 6th time

Sociological Factor
Promotes Name of the Pakistan in Electrical goods Made in Pakistan
Meets international standard, Provide Job opportunities for People to work in
International Standard firm
Awareness of Electrical Standard to reduce Electrical Cost using Adds, TV,
Commercial Like Safety Par no Compromise, Appliance Friendly, Life
Time Investment, Pakistan Cables TVC - Citrus Talent
Cable and Tables Book for Engineers
Technical Detail Charts of cable, size and Ampere to use in House and
Industries.
Safety Precautions Tables

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 Business Analysis & Strategies 2017

Technological Factor
User Friendly website available in English, Urdu version
Research and Development Department for new ideas and Innovation

Legal Factor
Pakistan Cables is ISO 9001:2008 (Quality Management System)
ISO 14001:2004 (Environmental Management System)
OHSAS 18001:2007 (Occupational health and safety management system
certified and is the only cable manufacturer in Pakistan to have its cables type
tested by the world renown KEMA Laboratory in Netherlands.
KEMA is a Global consulting and Certification Company

Environmental Factor
Health and Safety Policy
Conserve / Sustain / Save Energy: Pakistan Cables is certified for OHSAS
18001:2007 (Occupational Health & Safety Management System) and ISO
14001:2004 (Environmental Management System). Pakistan Cables is the only
cable manufacturer in Pakistan to achieve these certifications. 99.99 % pure
copper is used in manufacturing cables that results in lower line losses and
hence conservation of energy.
Reuse and Recycle: Pakistan Cables encourages its customers to return the
wooden cables drums for reusing that also contributes towards reducing
wastage and de-forestation.
Energy Conservation: As the Company has its own Power Plant, with waste
heat recovery and vapor absorption chillers, it is able to more efficiently utilize
gas and electricity, thus ensuring energy conservation

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 Business Analysis & Strategies 2017

SWOT Analysis
PTCL
Pakistan Telecommunication Company Limited (PTCL) is the largest integrated
Information Communication Technology (ICT) Company of Pakistan. With a
humble start from a telephone and telegraph department in 1947, it has evolved to
offer latest digital and telecommunication technologies today. With the largest
fixed line network of the country, PTCL offers products and services like high
speed Broadband internet, CharJi wireless internet, Smart TV (IPTV) service,
over-the-top (OTT) applications like Smart Link App, Smart TV App and Touch
App, and world class digital content like Netflix, iflix and icflix. PTCLs enterprise
grade platforms like Smart Cloud, Tier-3 Certified Data Centers, Managed
Services and Satellite Services are meeting the connectivity needs of organizations
and enabling businesses to operate more efficiently. It acts as the communication
backbone for the country with largest fiber cable network that spans from Khyber
to Karachi and submarine cables connecting Pakistan to the world.

Critical Analysis
We critically analyze the business of PTCL by using SWOT Analysis.

Strength
PTCL have largest infrastructure throughout the country or we can say that
PTCL own the basic infrastructure of telecom in country.
PTCL is the cheapest broadband provider through the world.
As the past serving and current Significant Market Player (SMP), PTCL, no
doubt, has got the largest operational network and infrastructure within ICT
(Information & Communication Technologies) section.
PTCL don't lack in numbers and potential, if we talk about human resources or
in other word ptcl have good HR.
Data center is another strength of PTCL
Ptcl financial and strategic position becomes stronger when Etisalat has joined
them as investment arm as compare to other competing firms.
PTCL is enjoying monopoly in fixed line telephone or landline.
PTCL (Ufone) is market challenger in GSM segment. Overall they have the
one of the largest consumer power on average in the whole Pakistan telecom or
cellular companies.
PTCL having over 2 million lines, PTCL is the largest WLL provider and 1134
base stations cover 720 cities still increasing the capacity.
PTCL market share more than 94% share in fixed line or land line segment.

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 Business Analysis & Strategies 2017

Weakness
PTCL customer service is still not good and this is one of their main
weaknesses and due to this there is very less number of brand loyal customer.
The monopolistic culture of PTCL won't let then to improve their service.
PTCL have over employment and low productivity as well.
PTCL HR department is not up to set standards on the bases of appraisal
system of their employees.
PTCL waste huge amount of resources.
Their staff won't get any benefit for their higher qualification and since 12 year
their promotions are stopped.
Under utilization of resources e.g they have complaint management system but
still customer complaints are not rectified on time.
PTCL corporate culture is similar to the government offices.
PTCL is not properly marketing their new services and product

Opportunity
PTCL have huge opportunity to increase their profit ability by improving
customer services.
They can improve the broadband market share by training their technical staff
and replacing copper wire with Optical fibers.
PTCL can save a lot of resources if they bring so betterment in their planning
process.
PTCL can easily raise their market share by improving their marketing tactic.
PTCL must grab bright opportunities like WI-MAX.
PTCL must have to come up with video call.
PTCL must have to grab the opportunity of 3G technology.

Threat
PTCL is facing huge threat of migration from landline to mobile phone.
Increasing involvement of rivals in social activities can badly affect PTCL
Image and market share.
Brilliant customer service of rivals is a huge threat for PTCL.
Increasing rate of cyber crime is also threat for PTCL high speed internet
devices like EVO, EVO nitro.
Continuously improving quality of Naya Tell is also threat for PTCL.

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 Business Analysis & Strategies 2017

2. Provide local cases by briefly describing how they applied these following
strategies to overcome barriers to business.

- Integration Strategies: Vertical & Horizontal

- Defensive Strategies: Retrenchment, Divestiture & Liquidation

- Diversification Strategies: Related and Unrelated

- Intensive Strategies: Product Development, Market Development & Market

Penetration

Integration Strategies
Vertical Integration
Forward Integration
Forward Integration is a form of management control that involves companies in
the same supply chain belonging to one owner.
Example: Junaid Jamshed introduced J. stores.
Poonam Rice approached Imtiaz Super Market.
Mobilink has their franchises to purchase SIM.
KFC only use K&Ns Chicken so K&N has permanent buyer.

Backward Integration
Backward integration refers to a company buying or internally producing parts of
its supply chain.
Example: Adamjee Group introduced Adamjee Insurance for its own insurance.
K&Ns own their supplies like farm, chickens etc.
PSO & K-Electric also own their supply power or power plant.

Horizontal Integration
Horizontal integration is a strategy where a company creates or acquires
production units for outputs which are alike.
Example: Mobilink recently did its merger with Warid to reduce their competitive
rivalry.
ARY owned 50% shares of BOL previously to overcome upcoming rivalry.
Mobilink has also done joint venture with Allied Bank for MobiCash.

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 Business Analysis & Strategies 2017

Defensive Strategies
Retrenchment
A strategy used by corporations to reduce the diversity or the overall size of the
operations of the company.
Example: In times of crisis, difficult decisions must be made and, given the
severity of the energy sectors difficulties, KESC sacked of 4,000 employees.
Pakistan Steel & PIA has also done the same strategy to overcome their losses.

Divestiture
Divestiture is when a company, government or other organization sells, shuts down
or otherwise eliminates a division or operating unit.
Example: ARY network sold ARY Zouq because it wasnt doing good business.
WAPDA sold out KESC to Dubai Firm which named it as K-Electric.

Liquidation
Liquidation is the process by which a company (or part of a company) is brought to
an end, and the assets and property of the company are redistributed.
Example: Polka liquidated itself to Walls Ice cream in 1995 because it wasnt
doing good business after Walls launch.
Glaxo Pakistan sold Glaxose D to UniLever Foods Pakistan in 1999.
CNBC sold CNBC Pakistan & now its running as JAAG News in Pakistan.

Diversification Strategies
Related Diversification
A process that takes place when a business expands its activities into product lines
that are similar to those it currently offers.
Example: PTCL introduced its broadband internet.
Samaa TV launched Samaa FM.
Mobilink launch of MobiCash Mobile Account.

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 Business Analysis & Strategies 2017

Unrelated Diversification
Unrelated Diversification is a form of diversification when the business adds new
or unrelated product lines and penetrates new markets.
Example: Besides of Engro fertilizer, it went into various diverse Products e.g.
Power Sector, Food etc.
Indus Pencil Industries (Pvt.) Ltd. diversify from stationery to snacks business.
ARY Jewellers launched TV Network in Pakistan.
National Foods introduced tourism by the name of National ka Pakistan.

Intensive Strategies
Market Penetration
A market penetration strategy involves focusing on selling your existing products
or services into your existing markets to gain a higher market share.
Example: Tarang increased their advertising budget by introducing Tarang
Houseful campaign.
Hum TV has done rebranding to penetrate more effectively in Market.

Market Development
A market development strategy involves selling your existing products into new
markets.
Example: Shan Masala explored new markets of Europe.
PSO started exporting Oil in Afghanistan Market.

Product Development
Product development is the process of designing, creating and marketing new
products or services to benefit customers.
Example: Geo introduced GEO Kahani for Turkish Drama followers increased
over years after Urdu1.
Recently Hum TV is launching Hum News for Male viewership.

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