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ZONG ( Su b Kah Do) .

VISION

“Making

communication
exciting”

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THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

MISSION

“To be the leading mobile operator


of Pakistan by continuously
innovating and offering exceptional
quality services to be good corporate
citizen and envoy of friendship
between china and Pakistan core
value. Responsibility makes
perfection”

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``

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Introduction

• 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.

• ABOUT China Mobile Pakistan (CMPak)


China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The
pioneering overseas set up of China Mobile came through acquisition of a
license from Millicom to operate a GSM network in Pakistan.

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 45
tariff options to choose from.

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

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 the way people communicate.

• HISTORY
Recently china mobile company in Pakistan after replacing the code 0304
with 0314 now introduced its new brand in called “ZONG”. With an
introductory slogan “Say everything” or “Sub Keh Do” & started its
advertising campaign at popular print & electronic media outlets.
Paktel started its commercial operations in Pakistan in November 1990 as the
pioneer of cellular telephony with an AMPS network which was converted to
TDMA (Digital) in 2003. Soon after GSM quickly gained popularity all over the
world and became the technology of choice leaving AMPS/TDMA far behind.
Paktel’s principal shareholder was Millicom Pakistan, which held 98.86%
equity of Paktel. But however on Feb 13th 2007 Millicom announced that it
had completed the sale of its 88.86 per cent shareholding in Paktel Limited
to China Mobile Communications Corporation which finalized Millicom’s exit
from Pakistan. Soon after, china mobile company bought all the assets of
Paktel, the new management seems busy, to tie up promotional strategies,
with the intention to win the telecom market slowly & silently. Well that is
just a prediction I have made because in Pakistan Chinese products mostly
are famous due to their cheap prices. & more the 90% population in Pakistan
is price conscious due to their lower or medium income level, so lets see
weather ZONG is facilitating mobile users specially youngsters by providing
lowest calling, SMS, MMS as well as GPRS rates or not.

• MISSION STATEMENT ANALYSIS

MISSION STATEMENT ANALYSIS


45
Customer No
Product and services Yes
Market No
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

Technology Yes
Survival, growth, profit Yes
Self concept Yes
Public image Yes
Employees No
Psychology Yes

• PRODUCTS AND SERVICES

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!

ZONG Super Free Number


That's right you can literally talk your heart out 24 hours a day everyday to
that special someone - all for FREE!

Break Time Offer


For the first time in Pakistan, ZONG offers you the benefit of calling your 45
friends and family freely during daytime.

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Aik Second Package


Make call for just 4 paisa’s per second!

Unlimited SMS Package


ZONG offers unlimited message package only for 3RS per day.

Postpaid Packages

45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Line Rent (Rs)

100
300
600
1200

2000

On-Net Calls Airtime


0.5
0.45
0.375
0.3
0.1

Off-Net Calls Airtime


0.5
0.45
0.375
0.3
0.2

FNF
0.4
0.3
0.2
NA
N/A

Spouse Number
N/A
N/A
N/A
Free
N/A 45

Free SMS (On & Off-Net)


20 THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

Interconnect Charges
Other Mobile Operators
PTCL

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
• Free minutes will be calculated on per minutes basis
• We will offer 5 FnF (on-net only) numbers on 100, 300 & 600 package
• FnF addition charges will be Rs 15 for each addition
• For FnF Addition / Modification dial 1313 from your Mobile
• Spouse number will only be applicable on Rs 1200 price plan with zero
charges
• Spouse number can be added / changed once in a month
• Free minutes calculation for Rs 1200 price plan will be exclusive of
Spouse number as the charging on Spouse number will be zero
• Free Minutes on 1200 package are exclusive of Spouse number 45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

• 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 ZONG’s 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.

• Customer service centers

“The beacon of ZONG’s 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 ZONG’s 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 ZONG’s arms
across the country to welcome everyone to experience the comfort when a
true promise is fulfilled.”

45

Zone Address

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

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
LAHORE
Boulevard. 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
Shop # 5, Ali heights, Auto Bhan Road, near CitiBank,
HYDERABAD
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 Business Complex, Supply Bazar, Manshera Road-
ABBOTABAD
Abbotabad
MARDAN Zong Plaza, Mall Road, Mardan Cantt
SARGODHA Parhar Plaza, Railway Road Sargodha
Baghdad UL Jadeed Road DIG Chowk Near Al Haq House
BAHAWALPUR
Bahawalpur
RAWALPINDI -
Plot # B130, B block- Satellite town- Rawalpindi
SATELLITE
TOWN
SUKKUR Shop # 421-422.C Minara Road Sukkur

Careers

ZONG is committed on attracting and retaining the best human resource


from all over Pakistan. Its also provides a working environment which
satisfies the professional and personal needs of its employees.

45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

• ZONG Mobile Internet

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 we’d want is
to stick to the age old conventional messaging techniques.

• ZONG Mobile Internet Hourly Package


Another spectacular service from ZONG that will keep you entertained 24/7.
After rocking the market with our services and all the amazing call rates, we
are back with an outstanding feature for all packages; ZONG hourly based
Internet package.

• ZONG Internet USB Card

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!

45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

• ZONG Mobile

Zong has come up with another interesting


Promotion…. you get a phone, almost free but
With a year’s payment in advance. This is
equivalent
to the US model where customers have to sign
a contract to get a discounted phone.
In Zong’s case they just get the money in
advance
(great for them) and hope that users will stay
with
Them after 12 months.

• External Assessment:
• PEST Analysis of Pakistan in Telecom Industry

In order to survive and remain profitable in today’s 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. 45
• Deregulation:
The telecom sector of Pakistan has successfully liberalized in an
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

efficient, transparent and fastest deregulation of telecom in the region.


The Government of Pakistan gave the status of Industry to Pakistan
Telecommunication Sector.

• Changes in Tax Laws:


Tax rates have been increased day by day government tax rate of call
is 15% and recently government increased it by 6 % more.

Economic Factors:
• Gross Domestic Product:

Telecom sector of Pakistan has a share of almost 2 percent in National


GDP.

• Average Revenue per User (ARPU):

The average revenue per user is falling. It does not affect value able on
Zong. Because Zong started in same condition.

• Decline in Money Value:

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:
45
• Technological Development:
Companies are investing in their infrastructure to not only expand but

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ZONG ( Su b Kah Do) .

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 low price.
Technological Trends:
The well-recognized technology trends that are influencing the evolution of
the network indicate that:
o The cost of a call is becoming even more insensitive to the distance;
o The modularity of the network is increasing;
o The networking is shifting from circuit-switched to packet-routing;
o The voice communication is now independent of the network;
o The geographic boundaries are irrelevant for emerging technology;
o The intelligence and function are moving away from the central office.

In these conditions competition is very strong among competitors. Zong is


improving itself in technology.

• Five Forces Porter Model

45

Five forces looks at five key areas namely threat of new entry, power of

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

buyers, power of suppliers, threat of substitutes, and competitive rivalry.

Threat of New Entry


• As government of Pakistan is showing liberalism in case of
telecommunication sector and opened its policies to award new licensees to
new mobile service providers so threat of new entry is high.

• As set-up cost is in billions of dollars so in this case threat of new entry is


low, but there are companies who are working to achieve licenses and
approaching PTA to know terms and conditions for this.

• As for this business companies need a well established distributions and


franchises network so threat of new entrant is high in this case.

Bargaining Power of Buyers


• Power of buyer is high in telecommunication sector. There are six market
players and players are offering different packages at different prices and a
situation of price war is running. Buyers have a power to buy any package
which is suited to them.

• Cost of switching from one company package to other company package is


low. Hence, power of buyers is high.

Bargaining Power of Suppliers


• The power of suppliers is low in case of telecommunication sector.

• 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.

Threat of Substitute Products


• Government also gave so many land lines and wireless local loop licenses 45

to different companies like PTCL wireless local loop, GO CDMA, WORLD CALL
etc. these services in future will be like mobile phone services like they are
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

planning to offer services a lot but currently they are offering SMS and CLI
services to their customers.

Rivalry among Competing Firms in Industry


• Currently there are six market players but in future they will be eight and
nine or even more.

• Thuraya satellite service is offering subscribers freedom of mobility and


uninterrupted service. Thuraya's satellite technology supplements of
existing mobile service providers, overcoming the challenges of large
geographical areas and insurmountable terrain.

• Competitive Analysis
Major competitors of ZONG include

 Mobilink
 Ufone
 Telenor
 Warid

45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Mobilink GSM

Pakistan Mobile Communications Ltd


(PMCL)

Type

Private Limited Company

Genre

Subsidiary

Founded

1994

Founder

Motorola USA

Headquarters

Islamabad, Pakistan
42 Kulsum Plaza, Blue Area

Area served 45

5000 cities, towns, and villages across


Pakistan
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

A Comprehensive Strategy-Formulation Framework


Important strategy-formulation techniques can be integrated into a three-
stage decision-making framework, as shown below. The tools presented in
this framework are applicable to all sizes and types of organizations and can
help strategists identify, evaluate, and select strategies.

Stage-1 (Formulation Framework)

1. External factor evaluation


2. Competitive matrix profile
3. Internal factor evaluation

Stage-2 (Matching Stage)

1. TWOS Matrix (Threats-Opportunities-Weaknesses-Strengths)


2. SPACE Matrix (Strategic Position and Action Evaluation)
3. BCG Matrix (Boston Consulting Group)
4. IE Matrix (Internal and external)
5. GS Matrix (Grand Strategy)

Stage-3 (Decision Stage)

1. QSPM (Quantitative Strategic Planning Matrix)

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ZONG ( Su b Kah Do) .

• Stage-1 (Formulation Framework)

Industry Analysis: The External Factor Evaluation (EFE)


Matrix

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:

• List key external factors (10-20)

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

• Assign weight to each (0 to 1.0)

Sum of all weights = 1.0


Now you have to arrange them according to their weight age that which
factor is most important. It should be weight age in % ages. The sum of the
total of all the factors should always be one.

• Assign 1-4 rating to each factor

Firm’s current strategies response to the factor: how well firms response to
these factors.

• Multiply each factor’s weight by its rating


45
Produces a weighted score
How the firm will respond to these factors external factors. Such criteria are
known as rating.

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

• Sum the weighted scores for each

Determines the total weighted score for the organization.


Highest possible weighted score for the organization is 4.0; the lowest, 1.0.
Average = 2.5

• EXTERNAL FACTOR EVALUATION (EFE) MATRIX

EXTERNAL FACTOR EVALUATION (EFE) MATRIX


Key External Factors Weight Rating Weighted
Score

Opportunities

1 Globalization 0.10 3 0.30

2 Marketing 0.15 4 0.60

3 Acquisition 0.08 2 0.16

4 New Product 0.07 3 0.21


Development

5 Northern Areas 0.10 3 0.30

6 Pak China Borders 0.13 3 0.39

Threats

1 Old Stable Companies 0.12 4 0.48

2 Attractive Packages By 0.10 3 0.30


Others

3 Price War 0.06 3 0.18 45


4 Government 0.09 3 0.27

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Interference

TOTAL 1.00 3.19

• Total weighted score for the ZONG external factor is 3.19 which is
above average

The Competitive Profile Matrix (CPM)

The Competitive Profile Matrix (CPM) identifies a firm's major competitors


and their particular strengths and weaknesses in relation to a sample firm's
strategic position.
The weights and total weighted scores in both a CPM and EFE have the same
meaning. However, the factors in a CPM include both internal and external
issues; therefore, the ratings refer to strengths and weaknesses, where 4 5
major strength, 3 5 minor strength, 2 5 minor weakness, and 1 5 major
weakness.
There are some important differences between the EFE and CPM. First of all,
the critical success factors in a CPM are broader; they do not include specific
or factual data and even may focus on internal issues. The critical success
factors in a CPM also are not grouped into opportunities and threats as they
are in an EFE.
In a CPM the ratings and total weighted scores for rival firms can be
compared to the sample firm. This comparative analysis provides important
internal strategic information. Zong’s Competitive Profile Matrix is provided
in Table. In this matrix market share, growth rate and financial strength are
the most important critical success factors, as indicated by a weight of 0.60.
in market share Mobilink is leading but in the growth factor zong is leading
with the weighted point of 0.40

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THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

• Competitive Profile Matrix (CPM)

Competitive Profile Matrix (CPM)

Critical Success Weig Ratin Weight Ratin Weight Ratin Weight Ratin Weight
Factors (CSF) ht g ed g ed g ed g ed
Score Score Score Score

Market Share 0.15 4 0.60 3 0.45 1 0.15 3 0.45

Growth Rate 0.10 1 0.10 3 0.30 4 0.40 3 0.30

Financial 0.08 3 0.24 3 0.24 4 0.32 3 0.24


Strength

Management 0.12 4 0.48 3 0.36 3 0.36 3 0.36

Coverage 0.10 4 0.40 3 0.30 2 0.20 2 0.20

CCS 0.13 4 0.52 3 0.39 3 0.39 2 0.26

Advertising 0.06 2 0.12 3 0.18 3 0.18 4 0.24 45


Brand Name 0.10 4 0.40 2 0.20 3 0.30 3 0.30

Packages 0.09 2 0.18 3 0.27 3 0.27 4 0.36

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Price 0.07 2 0.14 3 0.21 3 0.21 3 0.21


Competitivenes
s

TOTAL 1.00 3.18 2.90 2.78 2.92

The ratings values are as follows:


1 = major weakness,
2 = minor weakness,
3 = minor strength,
4 =major strength.

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.

The Internal Factor Evaluation (IFE) Matrix

A summary step in conducting an internal strategic-management audit is to


construct an Internal Factor Evaluation (IFE) Matrix. This strategy-formulation
tool summarizes and evaluates the major strengths and weaknesses in
the functional areas of a business, and it also provides a basis for identifying
and evaluating relationships among those areas. Intuitive judgments are
required in developing an IFE Matrix, so the appearance of a scientific
approach should not be interpreted to mean this is an all powerful technique.
A thorough understanding of the factors included is more important than the
actual numbers. Similar to the EFE Matrix and Competitive Profile Matrix, an
IFE Matrix can be developed in five steps:

List key internal factors (10-20)

o Strengths & weaknesses


Assign weight to each (0 to 1.0)

o Sum of all weights = 1.0


Assign 1-4 rating to each factor

o Firm’s current strategies response to the factor


Multiply each factor’s weight by its rating
45
o Produces a weighted score
Sum the weighted scores for each

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

o Determines the total weighted score for the organization


Highest possible weighted score for the organization is 4.0; the lowest, 1.0.
Average = 2.5

• INTERNAL FACTOR EVALUATION (IFE)


MATRIX
INTERNAL FACTOR EVALUATION (IFE) MATRIX
Key Internal Factors Weight Rating Weighted
Score

Strengths

1 Investment 0.09 4 0.36

2 High Growth Rate 0.11 4 0.44

3 Advertising 0.12 3 0.36

4 Net Work Portability 0.12 3 0.36

5 Zong Mobile 0.07 3 0.21

6 Resources Assets And 0.08 3 0.24


People

7 Location And 0.10 3 0.30


Geographical
Coverage 45

8 Government Dealing 0.09 3 0.27

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Weaknesses

1 Bad Image Of Paktel 0.06 2 0.12

2 Coverage 0.07 1 0.07

3 Low Market Share 0.05 2 0.10

4 Weak MIS 0.04 2 0.08

TOTAL 1.00 2.91

• Total weighted score for the Zong’s internal factors is 2.91 which is
above average

• Stage-2 (Matching Stage)

• Threats-Opportunities-Weaknesses-Strengths
(TOWS) Matrix
The Threats-Opportunities-Weaknesses-Strengths (TOWS) is also named as
SWOT analysis. A TWOS Analysis is a strategic planning tool used to evaluate
the Threats, Opportunities and Strengths, Weaknesses, involved in a project
or in a business venture or in any other situation requiring a decision. This is
an important tool in order to formulate strategy. This Matrix is an important
matching tool that helps managers develops four types of strategies: SO
Strategies (strength opportunities), WO Strategies (weakness- opportunities),
ST Strategies (strength-threats), and WT Strategies (weakness-threats).The
most difficult part of TOWS matrix is to match internal and external factor.
Once the objective has been identified, TOWS are discovered and listed.
TOWS are defined precisely as follows:
Strengths are attributes of the organization that are helpful to the
achievement of the objective.
Weaknesses are attributes of the organization that are harmful to the
achievement of the objective.
Opportunities are external conditions that are helpful to the achievement 45
of the objective.
Threats are external conditions that are harmful to the achievement of the
objective.
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

Steps for developing strategies:

There are eight steps involved in constructing a TOWS Matrix:


1. Rank external opportunities
2. Rank external threats
3. Rank internal strength
4. Rank internal weaknesses.
5. Match internal strengths with external opportunities and mention the
result in the SO Strategies cell.
6. Match internal weaknesses with external opportunities and mention the
result in the WO Strategies cell..
7. Match internal strengths with external threats and mention the result in
the ST Strategies cell.
8. Match internal weaknesses with external threats and mention the result in
the WT strategies cell.

• TOWS MATRIX OF ZONG


Strengths–S Weaknesses – W

S1. Capital W1. Coverage


S2. Network W2. Bad Image Of
Portability Paktel
S3. Resources W3. Low Market Share
S4. Location W4. Weak MIS
S5. Government W5. Old Staff
Dealings
S6. High Growth Rate
S7. Advertising

45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Opportunities – O SO-Strategies WO-Strategies

O1. Globalization
O2. Marketing S1,O1 Expand
S3,O7 Penetration W3,O3 Acquisition
O3. Acquiring
O4. Covering Pak S1,O3 Acquisition
China Border
O5. Covering Northern
Areas
O6. New Product
O7. Penetration

Threats – T ST-Strategies WT-Strategies

T1. Old Stable S1,T3 Cost Leadership


Companies
S3,T2 Penetration W3,T2 Downsizing
T2. Attractive
Packages By
Competitors
T3. Price War
T4. Government
Interference

STRATEGIES FROM TOWS MATRIX

SO-Strategies

Matching the strength 1 and opportunity 4 Zong can expand their business.

From S1 and O7 they can use the strategy of penetration.

From S1 and O3 they can use the strategy of acquisition.

ST-Strategies

Matching the strength 1 and threat3 Zong can use the strategy of cost
leadership. 45

Matching the strength 3 and threat 2 Zong can use the strategy of
penetration.
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

WO-Strategies

Matching the weakness 3 and opportunity 3 Zong can use the strategy of
acquisition.

WT-Strategies

Matching the weakness 3 and threat 2 Zong can use the strategy of
downsizing.

• The Strategic Position and Action


Evaluation (SPACE) Matrix
The Strategic Position and Action Evaluation (SPACE) Matrix is another
important Stage 2 matching tool of formulation framework. It explains that
what is our strategic position and what possible action can be taken. It is not
closed matrix. It is prepared on graph. It is closed matrix. This follow counter
clock wise direction. It contains four-quadrant named aggressive,
conservative, defensive, or competitive strategies. The axes of the SPACE
Matrix represent two internal dimensions financial strength [FS] and
competitive advantage [CA]) and two external dimensions (environmental
stability [ES] and industry strength [IS]).
These four factors are the most important determinants of an organization's
overall strategic position.

• A SPACE Matrix for a Zong


Financial Strength (FS)
RAITNGS

1. Revenues 5.0

45
2. Return on investment 4.0

3. Working capital 5.0

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

14

Competitive Advantage (CA)

1. Resources Assets -2.0

2. High growth rate -1.0

3. Advertising -2.0

4. Competition capacity utilization -3.0

-8.0

Environmental stability (ES)

1. Technological changes -3.0

2. Rate of inflation -4.0

3. Demand variability -2.0

4. Barriers to entry into market -1.0

-10

Industry Strength (IS)

1. Deregulation increase completion in telecom industry


3.0

2. Financial stability 5.0

3. Resources utilization
4.0

4. Profit potential 4.0

16
45
Conclusion

FS average is 14/3 = 4.67

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

CA average is -8/4 = -2.0


ES average is -10/4 = -2.5
IS average is 16/4 = 4.0

Directional Vector Coordinates: x-axis: 4.67+ (-2.5) = 2.17


Directional Vector Coordinates: y-axis: 4.0+ (-2) = 2

The Zong should peruse Aggressive strategies

• SPACE MATRIX FOR ZONG

Conservati (2, Aggressiv


ve 2.17) e

Defensive Competiti
ve

• BCG GROWTH-SHARE MATRIX


Companies that are large enough to be organized into strategic business
units face the challenge of allocating resources among those units. In the
early 1970's the Boston Consulting Group developed a model for managing a
portfolio of different business units. The BCG growth-share matrix displays 45
the various business units on a graph of the market growth rate vs. market
share relative to competitors.

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

BCG Growth-Share Matrix

On the vertical axis, market growth rate provides a measure of market


attractiveness. On the horizontal axis, relative market share serves as a
measure of company strength in the market.

The growth-share matrix defines four types of SBUs:

CASH COW - (LOW GROWTH, HIGH MARKET SHARE)

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.

STAR - (HIGH GROWTH, HIGH MARKET SHARE)

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.

QUESTION MARK - (HIGH GROWTH, LOW MARKET SHARE)


45
A business unit that has a small market shares in a high growth market.
These business units

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Require resources to grow market share, but whether they will succeed and
become stars is unknown.

DOG - (LOW GROWTH, LOW MARKET SHARE)

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.

Zong SBU
 Post paid
 Prepaid
 Zong mobile
 Zong USB

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 2ND quadrant of dog.

45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Zong Mobile
Strategic Business Unit Of ZONG Telecom
Zong has come up with another interesting promotion …. You get a phone,
almost free but with a year’s 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.

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 people’s 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 45

in this mobile.

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

 Zong is depending on ZTE.(Zheng Telecommunication Electronics) ZTE


is the vender of zong. Zong purchase mobile from ZTE.

Internal Factor Evaluation

Internal Factor Evaluation Of Zong Mobile


Strengths Weights Rates Score
Benchmark Leader 0.26 4 1.04
Cheep Rates 0.35 4 1.4
People's Appreciation 0.09 3 0.27
Weakness
Resale Value 0.18 2 0.36

Restriction Of Other Networks 0.05 2 0.1


Dependent On ZTE 0.07 1 0.07
Total 1 3.24

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. 45

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Threats of ZONG mobile


 Other competitors can introduce like this mobile in market.

 It is very simple mobile which has no extra features but the other
companies have stylish and attracting mobiles in market.

Opportunities for ZONG mobile

 It can improve its features like other cell companies. And can attract
the people.

 Zong can manufacture the mobile its own. Because it depends on


others

External Factor Evaluation Of Zong Mobile

External Factor Evaluation Of Zong Mobile

Opportunity Weights Rates Score

Improving Features 0.35 2 0.7

Manufacture Mobile 0.15 1 0.15

Threats

Threats Of Competitors 0.35 2 0.7

Threats Of Cell Companies 0.15 1 0.15

Total 1 1.7

Total weighted score by Zong in external factor evaluation is 1.7 which is


below average.
45
• The Internal-External (IE) Matrix

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

This is also an important matrix of matching stage of strategy formulation.


This matrix already explains earlier. It relate to internal (IFE) and external
factor evaluation (EFE). The findings form internal and external position and
weighted score plot on it. It contains nine cells. Its characteristics is a s follow
• Positions an organization’s various divisions in a nine-cell display.
• Similar to BCG Matrix except the IE Matrix:
o Requires more information about the divisions
o Strategic implications of each matrix are different
• Based on two key dimensions
o The IFE total weighted scores on the x-axis
o The EFE total weighted scores on the y-axis
• Divided into three major regions
o Grow and build – Cells I, II, or IV
o Hold and maintain – Cells III, V, or VII
o Harvest or divest – Cells VI, VIII, or IX

Internal External Evaluation Matrix

Total weight of IFE


4 3.4 3 2
1
i. 1 i. 2 ii. 3

3 iii. 4 iv. 5 v. 6

Total
weight
Of EFE
2
vi. 7 vii. 8 viii. 9
45

1
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

Steps for the development of IE matrix

• Based on two key dimensions IFE and EFE.


• Plot IFE total weighted scores on the x-axis and the EFE total
weighted scores on the y axis
• On the x-axis of the IE Matrix, an IFE total weighted score of 1.0 to
1.99 represents a weak
• Internal position; a score of 2.0 to 2.99 is considered average; and a
score of 3.0 to 4.0 is strong.
• On the y-axis, an EFE total weighted score of 1.0 to 1.99 is
considered low; a score of 2.0 to 2.99 is
• Medium; and a score of 3.0 to 4.0 are high.
• IE Matrix divided into three major regions.
• Grow and build – Cells I, II, or IV
• Hold and maintain – Cells III, V, or VII
• Harvest or divest – Cells VI, VIII, or IX
The SBU of Zong (mobile) lies in 3, 5, 7 quadrant. So the strategy of these
quadrants (hold and maintained) will be apply here.

Grand Strategy Matrix


This is also an important matrix of strategy formulation frame work. Grand
strategy matrix it is popular tool for formulating alternative strategies. In this
matrix all organization divides into four quadrants.
Any organization should be placed in any one of four quadrants. Appropriate
strategies for an
Organization to consider is listed in sequential order of attractiveness in each
quadrant of the matrix. It is based two major dimensions
1. Market growth
2. Competitive position
All quadrants contain all possible strategies there are four quadrants in grand
matrix that further contain various set strategies.

Quardrant-1
Market development
Market penetration
Product development 45
Forward integration
Backward integration
Horizontal integration
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .

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

GRAND STRATEGY MATRIX FOR ZONG

Rapid
Market
Growth

Quadrant II Quadrant I

Weak Strong
Competit Competit
ive ive
Position Position
45
Quadrant III Quadrant IV

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

Slow
Market
Growth

ZONG lies in first quadrant so the all strategies of 1st quadrant can
be apply on zong

Stage-3 (Decision Stage)

The Quantitative Strategic Planning Matrix (QSPM)


The last stage of strategy formulation is decision stage. In this stage it is
decided that which way is most appropriate or which alternative strategy
should be select.

Steps in preparation of QSPM

1. List of the firm's key external opportunities/threats and internal


strengths/weaknesses in the left column of the QSPM.
2. Assign weights to each key external and internal factor
3. Examine the Stage 2 (matching) matrices and identify alternative
strategies that the organization should consider implementing
4. Determine the Attractiveness Scores (AS)
5. Compute the Total Attractiveness Scores
6. Compute the Sum Total Attractiveness Score

Quantitative Strategic Planning Matrix (QSPM)

SELECTIVE STRATEGIES MARKET PENETRATION MARKET DEVELOPMENT


45
Key External Weight Attractivene Total Attractiven Total
Factors ss Scores Attractivene ess Scores Attractiven
(AS) ss Scores ess Scores

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

(TAS) (AS) (TAS)

Opportunities

1 Globalization 0.10 3 0.30 2 0.20

2 Marketing 0.15 4 0.60 3 0.45

3 Acquisition 0.08 2 0.16 2 0.16

4 New Product 0.07 3 0.21 3 0.21

Development

5 Northern Areas 0.10 3 0.30 2 0.20

6 Pak China 0.13 3 0.39 2 0.26


Borders

Threats

1 Old Stable 0.12 4 0.48 3 0.36


Companies

2 Attractive 0.10 3 0.30 3 0.30


Packages By
Others

3 Price War 0.06 3 0.18 2 0.12

4 Government 0.09 3 0.27 2 0.18


Interference

TOTAL 1.00

Strengths

1 Investment 0.09 4 0.36 4 0.36

2 High Growth 0.11 4 0.44 3 0.33


Rate

3 Advertising 0.12 3 0.36 3 0.36

4 Net Work 0.12 3 0.36 3 0.36


Portability

5 Zong Mobile 0.07 3 0.21 3 0.21


45
6 Resources 0.08 3 0.24 3 0.24
Assets And

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

People

7 Location And 0.10 3 0.30 3 0.30


Geographical
Coverage

8 Government 0.09 3 0.27 3 0.27


Dealing

Weaknesses

1 Bad Image Of 0.06 2 0.12 1 0.06


Paktel

2 Coverage 0.07 1 0.07 1 0.07

3 Low Market 0.05 2 0.10 2 0.10


Share

4 Weak MIS 0.04 2 0.08 1 0.04

SUM TOTAL 1.00 6.10 5.14


ATTRACTIVENESS
SCORE

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
didn’t 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.

• Recommendation
• Zong Telecom should be increasing their network coverage and foot
45
prints in every corner of the country to capture the market.

THE UNIVERSITY OF LAHORE


ZONG ( Su b Kah Do) .

• 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.

• Zong should hire the skilled management.


• Zong should not waste their opportunities and get more help as
possible.

• 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

45

THE UNIVERSITY OF LAHORE