44
INTRODUCTION Chapter: 1 1.1 COMPANY PROFILE Pakistan Telecom Mobile Ltd, operating under the brand name of ‘Ufone’ a wholly-owned subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. Since the outset it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. The growth of cellular sector in Pakistan can also be attributable to good governance and conducive policies of the government of Pakistan In connection with that in April 2006 Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Corporation Ltd – part of the $2.6bn deal to buy a 26% stake. The successful privatization of PTCL, and consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan. As mobile users in the country have reached 88 million at a very rapid pace, Ufone has a subscriber base of nearly 17.5 million and a market -1-

Internship part 2

Embed Size (px)

Citation preview

Page 1: Internship part 2

INTRODUCTION Chapter: 1

1.1 COMPANY PROFILE

Pakistan Telecom Mobile Ltd, operating under the brand name of ‘Ufone’ a wholly-owned

subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service

provider. Since the outset it has expanded its coverage and customer base at a rapid pace

and established itself as one of the leading cellular service providers in Pakistan. Ufone is

now considered to be one of the most active, aggressive and innovative players in the

mobile sector of Pakistan. The growth of cellular sector in Pakistan can also be attributable

to good governance and conducive policies of the government of Pakistan In connection

with that in April 2006 Emirates Telecommunication Corporation, which is commonly

known as Etisalat, has assumed management control of Pakistan Telecommunication

Corporation Ltd – part of the $2.6bn deal to buy a 26% stake. The successful privatization

of PTCL, and consequently Ufone, is hailed as ushering in a new era for

telecommunications in Pakistan. As mobile users in the country have reached 88 million at

a very rapid pace, Ufone has a subscriber base of nearly 17.5 million and a market share of

nearly 21%. Ufone has seen a subscriber growth of over 10 million since July 2007 onto its

network. Subsequently the growth in subscriber base caused a healthy trend in its revenues

and margins. Ufone has always played a pivotal role in the development of cellular market

in Pakistan. For most part it has been a step ahead in introducing innovative products to the

market. Ufone was pioneer in launching the GPRS services and Multi-media Messaging

Service (MMS) in Pakistan, including the lead in introducing GPRS international roaming

and prepaid international roaming for these services in the Pakistani market. Currently

Ufone has expanded its product portfolio to include Black Berry handsets and providing

one of the largest EDGE networks in the country today. Ufone understands the need to

communicate effectively and efficiently at all levels of society, which is why various

products are catering for the needs of the Pakistan corporate market. It offers services such

as mobile office, Virtual Private Network (VPN), and a lot more to revolutionized

-1-

Page 2: Internship part 2

communication. Ufone provides International Roaming facility with more than 215

international operators across 124 countries. Ufone has GPRS roaming agreements with

more than 100 international operators and also provides prepaid roaming facility to more

than 15 destinations across the country.

1.2. Organizational Structure

The organizational Structure at Ufone is Lean or Horizontal structure. One of the

organizational functions of Ufone in relation to its hierarchy is, the company is having

Decentralized structure. The flow of communication becomes easy and simple in such

structure. It is divided into different departments and every department has its head and all

are interconnected.

-2-

Page 3: Internship part 2

The concept of Departmentalization is effectively in practice at Ufone. There are different

departments which are working within their functional units to contribute towards the

success of organization and to achieve the overall goal of the Organization. Ufone has 8

departments that are working efficiently and all are interacting with each other to make it a

much better company by satisfying its customers demand. The structure of Ufone

comprises of Board of directors who are being reported by CEO, Chief Executive Officer.

CEO is a great supervision to the 8 Major operations of the company. These operations are

divided into departments that are:

1.2.1. Finance Department

The head of finance department is designated as CFO – Chief Financial Officer or Vice

president of financial head. There are further 4 subheads in Finance Department:

CNC

The department is responsible for Credit exposure for Ufone postpaid connection. The

department maintains the record of all postpaid subscribers in order to ensure the

subscribers validity.

Budgeting and Planning

The department is working over the budgets, the planning of budget and its reports to the

authorities. This head provides the annual budget to be spent. The function of this head is

also to forecast any opportunities or threats towards the organization. The reporting of the

budget is being done on the monthly basis to the head of financial officer to keep the record

of the budgets.

Relationship with banks are also being maintained in order to get help in the need time.

-3-

Page 4: Internship part 2

Accounts

The accounting head is responsible for the book keeping of the records. The internal audits

are done to ensure the stream lined working of the processes as well as external audit by the

Accountancy firms.

Revenue Assurance

There are Revenue Assurance policies & procedures being made by the personnel. This

assurance head also Liaise with other departments, obtain, analyze and reconcile reports to

ensure prevention of revenue leakage. The sub-head also ensure error free billing

operations, deployment of key revenue assurance applications/solutions, fraud

management.

1.2.2. Marketing Department

The head of marketing department is designated as CMO- Chief Marketing Officer or Vice

President of Marketing Head. The department has further 3 subheads working in

specialized manner according to the skills and abilities of the employees.

Brands

There are basically two products of the Ufone which serves as the brands of the company.

This sub-head is responsible for the execution of the Brand Activities. Ufone is performing

the promotional activities in Brands sub-head, including advertising over Electronic media

and print media. The promotional strategies are made by the sub-head to get the

implementation.

-4-

Page 5: Internship part 2

Marketing Strategy and Analysis

The sub-head is working in order to formularize the marketing strategy according to the

market requirement and consumer preferences. The analysis about the market trend is done

and the strategies are made in relevance. Moreover, competitors are biggest source of

reacting towards the marketing activities. Ufone is having a proactive marketing concept in

context of competition.

VAS – Value Added Services

VAS sub-head is responsible for proficient functioning of conveniences provided to the

customers, these VAS are Virtual Private Network, Call Management, Missed Call

Notification, Phonebook Saver and a host of Infotainment and Entertainment services.

-5-

Page 6: Internship part 2

1.2.3. Information Technology Department

While being a part of information technology and telecommunications, Ufone is having a

major department of Information technology. The head of information technology is termed

as CIO- Chief Information officers. IT department is working with the division of further 2

sub-heads.

Billing

The billing department is responsible for aggregating CDRs and preparation of the postpaid

billing for customer from system.

IT Development

Any kind of IT development required by the company in billing or CRM (Customer

Relationship Management) module is done by IT development team.

1.2.4. Customer Operations Department

Ufone provides customer care through Customer Care Center located in all key cities,

across the country. Ufone’s customer care representatives are more helpful. They will not

only resolve Consumers issues but also guide them into customizing Ufone, according to

their needs. Customers care is offered to through

Call Centre

Cal centre representatives are providing services, 24 hours a day. The customers can contact

the Ufone Call Center to get answers to all their queries. Some of them include:

Bill enquiry (credit limit, expiry date etc.)

-6-

Page 7: Internship part 2

Reporting of lost phone

Number blocking in case of lost or stolen SIMs

Connection status (active / inactive)

Tariff

Products information

Ufone Sales & Service Center information

Nearest dealer information

Ufone coverage areas

Emergency number information

International roaming information

Value added services information

Missed call alerts

Call forwarding

Conference call

FNF Activation / Changes

Post Pay Reward Redemption

Business Centre

The business centre of Ufone are offering various services to their customers, they are

basically company owned centre, the business centre offers the SIM issuance and other

customer related issues, retention of customers and handling requests for Mobile number

portability.

Govt. Relations

PTA – Pakistan Telecom Authority is the regulatory authority in Pakistan concerning the

network operators as well as telecommunication practices. Ufone is also abiding the rules

that

are being made by PTA. The relationship with PTA is also being maintained as PTA is

Govt. regulation.

-7-

Page 8: Internship part 2

1.2.5. Engineering Department

The engineering department is Backbone of the company. The head of the department is

termed as CTO - Chief Technical Officers or Vice president. The Engineering department is

divided into 4 sub-heads

BSS – Business Support System

The subhead is responsible for Radio Planning and network optimization.

NSS – Network Switching Subsystem

The Network Switching Subsystem, at Ufone refers to as the GSM core network, usually

refers to the circuit-switched core network, which is being used by ufone GSM services

such as voice calls, SMS, and Circuit Switched Data calls.

There is also an overlay architecture on the GSM core network to provide packet-switched

data services and is known as the GPRS core network. This allows mobile phones to have

access to services such as WAP, MMS, and Internet access. All mobile phones

manufactured today have both circuit and packet based services, so Ufone as a network

Operator that is having a GPRS network in addition to the standard GSM core network.

IN – Intelligence Network

The Intelligent network’s main purpose is to take care of charging of prepaid customers and

has the balance updates of each of the customer.

-8-

Page 9: Internship part 2

1.2.6. Sales Department

The sales department at Ufone is headed by Vice president Sales. The department is being

divided into 3 main sub-heads.

Corporate Sales

The division of the sales department is handling the sales for executives or corporate

clients. These clients are having postpaid products with billing system.

Franchises & Retail Outlets

This division is handling franchises and retail outlets with a network of more than 365

franchises and 25 company-owned customer service centers along with a distribution

network of 150,000 outlets nationwide.

Sales operations

Sales operations at the company have been set up to provide the customers, quality services

all under one roof so consumers can walk in to any Ufone Sales & Service Center for

services like:

Mobile Number Portability

Connection purchase

Bill payment

SIM Activation

Number blocking in case of lost or stolen SIMs

Transfer of subscription

Changing access levels

Number change

Address change

-9-

Page 10: Internship part 2

SIM replacement

Product / package change

Activation of VAS

Connection closure

Handset & other mobile accessories

PIN / PUK code number inquiry

GPRS

IR activation

Missed Call Notification

Call Forwarding

Conference Call

FNF Activation / Changes

Post Pay Reward Redemption

1.2.7. Human Resource Department

Human Resource department is being headed by the HR executive designated as Chief of

Human resource department. The department is working for the personnel in the

organization. There are 3 main sub-heads in the department

Recruitment and Compensation Benefits

Ufone has this policy of not mentioning the name of the company in a job advertisement.

Usually hiring takes place through outsourcing with a help of a third party. Final selection

takes place after the candidate has been interviewed by the Manager of the department who

requires the new employee and then the HR Manager. A very effective way to retain an

employee is to give him compensation and benefits. At Ufone following benefits are given:

Medical Facility to employee and his/her parents and Paid Vacations, Gratuity, Provident

fund etc.

-10-

Page 11: Internship part 2

Training

Training & Development involves improving the knowledge, skills and abilities of the

individuals. A continuous training is conducted inside Ufone to improve the performance of

the employee. There are two types of trainings conducted at Ufone: In-house Training and

External Training.

HR Operations

HR operations at Ufone include the working over all Human resource Functions that are

Orientation

Human Resource Planning

HR hiring / recruitment

Selection Process

Compensation and benefits

Training and Development

Human Resource Information system

Strategic Planning Department

This department directly reports to Chief Executive officer.

Ufone views strategy as an overall approach and plan. This department monitors the

executions of strategic plans and goals across the business. So, Strategic Planning at

company is the overall Planning that facilitates the good management of a process. Ufone

strategic planning is providing the big picture of company’s operations and long term goals.

Forecasting the opportunities

Building Synergies

Long-term Planning

-11-

Page 12: Internship part 2

1.3. Products or Services Offered

Ufone understands the value of words and the need to communicate effectively and

efficiently at all levels of society, which is why company’s primary focus is on U. Ufone

offers, Prepay & Postpay services in the Telecom sector.

1.3.1. Ufone Prepay

Ufone prepay is the product segmented for the youngsters. They are segmented on the basis

of their age and status. They recharge through the prepaid cards whenever they feel

comfortable to load the cards.

1.3.2. Ufone Postpay

Ufone Postpay is created for the executives and business class people, who require making

callswithin the country or internationally for the business purposes. Business executives

enjoy the benefits and value added services connected with Postpay product of Ufone

1.3.3. Ufone for Everyone

The telecom market’s growing rate in Pakistan is higher than any Asian country. Ufone

offers lower rates and better network then other already established cellular companies. All

living standards have been captured by Ufone, like Students, Labor and Businessmen, etc.

Ufone aims to provide with wider coverage, superior connectivity, clear signals & voice

quality to their valued customers.

-12-

Page 13: Internship part 2

1.3.4. U-Circle

Prepay provides an easy way to call Friends & Family. Ufone is making it easy for its

consumers to call friends & family with U Circle. Now the consumers can talk more for

less with the most economical rates to call their Ufone Circle.

1.3.5. U Share

Ufone Prepay customers can now share their balance with each other through a simple SMS

in 3 easy steps.

1.3.6. Mobile Number Portability

Ufone welcomes consumers to bring their mobile number to the best service. Through

Mobile Number Portability (MNP), mobile phone subscribers can retain their mobile phone

numbers when they change mobile operators. Therefore a 0300-xxxxxx or 0345-xxxxxxx

can be a Ufone customer in the MNP regime.

-13-

Page 14: Internship part 2

Learning & Experience Chapter: 2

2.1. Internship Duration & Rationale for Selection

I did my internship at Ufone in Customer retention and loyalty Department. This

department is connected with the customer care Department. The major responsibilities of

the department are as following:

Retain the loyal ufone customers.

Helping the customer care department by providing them feedback taken from the

customers and market.

Develops the organization’s long range (strategic) and short range (operating) plans for

enhancing the services and increasing the customer base.

Identification & development of new oppurtunities and strategies to build brand loyalty.

Overview the implementation of the Strategic plan & other initiatives through the PMO

division.

Major Tasks

The work I have done in the PMO department was related with analyzing the strategies of

the company. The department – Strategic Planning And PMO is concerned with planning

for the strategies, the future perspectives and managing the business operations.

2.2. Details of Training - Tasks performed

2.2.1. Reports and Presentations

The activities I performed in the department were concerned with making reports and

presentations. I had been assigned a task to make a report on the

-14-

Page 15: Internship part 2

Tariffs comparison of the network operators in telecom industry.

Pricing comparison of the network operators in telecom industry.

Coverage Comparison of the industry while making different strategies in order to gain

maximum market share, it is immensely important to examine the existing situation of the

company to head towards the lead. So the internees were given such projects to provide the

picture of market state according to their understanding. The reports were not only to

provide a minor help to the supervisors but also to aware the internees about the state of

telecom industry in various aspects. The reports were not much complex and complicated.

It was required to provide a 4 or 5 pages report within 5 days.

2.2.2. Tariffs comparison of Industry

My first report to the supervisors was, drawing the comparison between the network

operators on the basis of their tariffs. Each network operator is providing a unique and

attractive form of tariffs differentiated from each other. So I gathered the information from

the websites of the network operators. I have also gained a great help from the annual

reports of Pakistan Telecom Authority.

Ufone 21%

Mobilink 31%

Zong 7%

Telenore 22%

Instaphone 0%Warid 19%

-15-

Page 16: Internship part 2

UFONE

Ufone has introduced ULoan where it has offered a facility to customers to avail a loan in

order to make an important call if and when they run out of credit. Uloan facility is

available only for voice calls. The loan amount will be deducted from the next recharge e.g.

UTop Up & Card Recharge. Only customers with a balance less than Rs .2.50+tax can avail

the ULoan service. Recently, Ufone has enhanced Uloan amount to Rs. 5.00+tax. It has

launched “Paanch ka Pandrah package”. In this promotion, each 5 minutes call gave the

next 10 minutes absolutely free. In this offer, there are no daily charges and customer will

be charged @ Rs. 1.125/30 seconds for Ufone to Ufone and 1.25/30 second for all other

fixed and mobile networks. Ufone has recently launched another promotion in which its

prepaid subscribers can now call five friends and family numbers absolutely free from

midnight to 7 am by just paying a nominal daily charge of Rs.1.99 (excluding 15% GST).

Ufone also launched unlimited SMS (up to 5,000 SMS) offer to its subscribers at Rs.150 to

all networks with 30 days validity. Through this promotion, Ufone subscribers can share

their thoughts, exchange jokes and chit chat with their friends. Ufone, in line with other

operators, has launched another package “Uwon” in which its subscribers can call to any

other Ufone number at Rs.1.00 per minute. Off-net tariffs of Uwon package are Rs.1.60 per

minute.

Prepaid

Ufone generating maximum of its revenue from its prepaid user. Mainly product t is

prepaid under the head of prepaid their lot of packages according to market need and

demand, Most of the packages are offered in general competition offering but ufone also

have customized option for their user. Management of prepaid is done under product

manager prepaid.

-16-

Page 17: Internship part 2

Postpaid

Postpaid is second most important product category of ufone brand under this category

ufone also offer customized packages and general offers for their user details of these

packages are available in attached broachers.

VAS

VAS value added services is third and most important product category of ufone , in

reference to VAS Ufone VAS department is aim to offer all kind of VAS to its user, now in

Pakistan cellular market ufone is leading VAS provider in the market, according to VAS

policy innovation is continue.

VAS

List of the VAS offer by ufone:

SMS (short message services)

IR international Roaming

MCN (missed call notification)

U share (balance share)

Voice bucket

U tunes (caller back tune)

Awaz SMS

Urnumber

Uloan (advanced credit)

UChat

Ufone Al Jazeera News

Visa Info services

Song dedication

-17-

Page 18: Internship part 2

Ufone call block services

SMS cricket

Ufone video news

Quran on mobile

Ufone master mind (knowledge dictionary )

Ufone prize bond

UHealth

Ukisan

Ufone walkie Talkie

Ufone song catcher

Ufone Dosti

Ufone business SMS

Ufone Ur EDGE

Ufone Edge USB

Ufone and Dell offer

Ufone call collect

Ufone travel guide

Ufone valentine

SMS bundle offer

Ufone pollen count

Ufone TV guide

Ufone conference call

UTrack Maps

Ufone Urdu SMS

MOBILINK

Mobilink, an SMP operator has reduced its tariffs for different packages. Recently,

Mobilink has also introduced Jazz One package in which its subscribers can call at very

-18-

Page 19: Internship part 2

attractive rates. Mobilink has reduced offnet tariffs of Jazz Budget, Jazz Octane and Jazz

Ladies First packages in February 2008. For Jazz Octane package, on-net tariff has been

reduced from Rs. 2.50 to Rs. 2.40 per minute whereas off-net tariff is reduced from Rs.2.99

to Rs. 2.50 per minute. Similarly, off-net tariff for Jazz Ladies First package has also been

reduced from Rs. 2.99 to Rs. 2.50 per minute respectively. Moreover, Mobilink introduced

“Apna Jazz Connection ON Karein” promotion which was specifically made for those who

did not get the chance to experience lowered Jazz tariffs. Mobilink posted an unconditional

Rs. 30 worth of balance for those who did not used Jazz connection since For SMS ,

Mobilink has offered three different SMS packages (only from Mobilink to Mobilink) to its

prepaid customers where it has offered unlimited SMSes for one month for Rs. 100, 500

SMS in 15 days for Rs. 50 and 100 SMSes for Rs. 15 in 7 days. Mobilink also introduced

Club Red promot ion for its subscribers who wanted red carpet treatment. Under this offer,

Jazz subscribers who crossed the monthly usage threshold of Rs. 1,000 got 50% discount on

all calls to Mobilink numbers for the remaining days of the month. China Mobile launched

three prepaid packages in April 2008.

CM PAK

CM Pak is offering one free number in which subscriber can make free on-net calls (from

12 am to 7 am) for a lifetime. Up to 10 family members can be added in free package.

Happy Hours has been offered in 12 Aanay Package which can be modified once everyday.

Charges for modification of Happy Hours are Rs. 5. It has also introduced 8 Aanay ( 50

paisas) offer in which its subscriber can call to other networks at Rs. 1.40 (for the first

minute) and Rs. 1.00 per minute (from second minute onwards). CM Pak offered 1,000

SMS per day with charge of Rs. 3.00 to its prepaid customers irrespective of the network.

TELENOR

Telenor launched a value-added service (VAS) by the name of 'Telenor Auto Advance'.

This unique service allowed Telenor prepaid customers to continue the call even after their

balance exhausts. The service was activated free of charge for all Telenor prepaid

customers. Telenor Auto Advance Service can be extremely useful in emergency situations

-19-

Page 20: Internship part 2

where one call can make the difference. Subscribers on the move, far from a recharge

location or simply out of cash can benefit from this service. Under the service, when a

subscriber reaches the end of his balance, the call will continue without disconnection and

the balance will be adjusted in next recharge. Telenor Auto Advance is only available for

voice calls at the moment. Recently, Telenor also launched Ask Telenor and Tele Doctor

1911. Telenor launched free unlimited onnet calls offer (from 11 am to 2 pm) for limited

time period. Service activation charges for the said promotion were Rs. 49 (exclude tax).

Telenor received overwhelming response on this promotion. Recently Telenor has launched

SMS Fulltime offer for its prepaid customers in which its subscribers can send up to 10,000

On-net SMS with charge of Rs. 99/-. Telenor's Djuice subscribers can now make free calls

(from 1am to 6am) at 5 friends and family numbers with daily charge of Rs. 3.99. It may be

noted that call setup charge of Rs. 0.05 per call is also applicable for these free calls.

WARID

Recently, Warid Telecom has launched Pakistan Package wherein its subscribers can avail

50 free on-net minutes and 500 SMS/MMS for Rs. 15.00 per day. Warid also launched

SMS craze in which its subscribers can send 2000 free SMS/MMS (on-net as well off-net)

at Rs. 150/-. Sunday craze is another promotion by Warid in which subscribers can make

unlimited free calls on Sundays from 8 am to 12 pm at a weekly subscription of Rs. 15/-. In

infinite craze, Warid subscribers can make free calls from 12 am to 7 am to one Warid

number and unlimited SMS/MMS from 12 am to 7 am across Pakistan with daily charge of

Rs. 10/-. In the period of last few months. Warid has also offered number of value added

service to its prepaid customers that counts, Zem Talky, Zem

committee.

2.2.3. Pricing comparison of network Operators

The second report I had submitted was to compare the pricing of the different network

operators on the basis of Calls rates, Value Added services, Quality provided over Voice

-20-

Page 21: Internship part 2

calls and SMS. I have made a Pricing Strategy Matrix also, in order to position all network

operators.

The following table shows Prepay calling rates per minute at peak time for different mobile

operators We can see that Ufone has priced its calling rates of same, other and fixed line

networks, somewhere between the highest and the lowest rates in the industry. However, as

far as the rates for the international calls are concerned they are the lowest in the industry.

Pricing Versus Quality

Below is the summary of the Quality of Service Survey conducted by PTA.

Voice Call

Ufone has a very high voice call service quality

Calls

Same Network Off

Network

Fixed Line

Network International

Ufone

Prepay 2.50 2.50 2.50 19.54

Public Demand 1.98 1.98 1.98

Mobilink

Jazz Budget 1.80 1.98 1.98 23

Jazz Easy 2.10 2.50 2.50 23

Jazz Octane 2.40 2.50 2.50 23

Jazz Ladies 2.50 2.50 2.50 23

-21-

Page 22: Internship part 2

Telenor

Djuice 2.82 3.44 3.44 Not available

Talk Shawk 2.3 2.3 2.3 Not available

Network Accessibility(%) Service Accessibility(%) Call Completion Ratio(%)

Mobilink 99.8 98.9 97.2

Ufone 99.4 97.2 95.9

Telenor 99.1 98.2 93.3

In terms of network and service accessibility. However, it needs to improve its call

completion ratio.

SMS

Ufone has one of the highest sms service accessibility.

Pricing for Value added Services

The table below shows pricing for value added services of different mobile operators. These

prices are inclusive of 21% GST. The prices highlighted in blue depict the lowest and the

prices in red depict the maximum for each category in the market.

Service Accessibility (%)

Mobilink 100

Ufone 99.9

Telenor 100

-22-

Page 23: Internship part 2

VAS Mobilink Ufone Telenor

To Same Network 1.00 0.50 1.00

To Other Network 1.50 1.00 1.00

International SMS 5.00 1.50 5.00

MMS Activation

Charges (Rs.) Not Available Free Free

MMS Per Incoming /

Outgoing Message 6.00 5.00 5.00

GPRS Per MB 18.00 15.00 15.00

Pricing Strategies Matrix

I have placed the major network operators in the Pricing Stratgy Matrix on the basis of the

pricing information. Also about Ufone calls rates, sms rates and quality we can conclude

that:

Ufone has priced its sms rates low and provides a high sms service quality to penetrate

the market.

Due to high quality of service Ufone has priced its call rates at cost plus premium price.

-23-

Page 24: Internship part 2

2.3. SWOT Analysis

The factors that are most important to the organization’s future are referred to as strategic

factors, and summarized with the acronym S.W.O.T., standing for strengths, weaknesses,

opportunities, and threats. After identifying strategic factors, management evaluates their

interaction and determines the appropriateness of the corporate mission. The first step in the

formulation of strategy is statement of mission, which leads to determination of objectives,

strategies, and policies. Organizations implement these strategies and policies through

programs, budgets, and procedures. Finally performance evaluation and feedback ensure

adequate control of organizational activities.

I. STRENGTHS

GSM technology

Wide network.

Lowest calling rates, free nights and SMS packages.

Provides lines as well as prepaid cards and cover both markets very efficiently.

Offering zero connection charges for new connections.

Also providing efficient international roaming services.

Has a comprehensive promotional strategy.

Unified network of franchises.

VPN Virtual Private Network.

It takes its good will in the market as its great strength.

Offers a collaborative and mutually supportive work environment that encourages people to

grow.

Before offering any job, Ufone conduct a comprehensive need analysis through its Human

resource information system.

Ufone has also been able to build a very strong brand identity that others have taken much

more time to achieve. This brand identity makes a lot of options easier for them to avail. In

-24-

Page 25: Internship part 2

order to create awareness of a new package or service all they have to do is hang a banner

in the colors; orange and blue, and they can be sure people will take notice of it as a

message from Ufone.

The economy of Ufone is also one of their major strengths and that was evident from the

masses that they drew just on the basis on their low prices.

Customer service is available 24 hours. Just call Ufone Call Center by dialing 333 from

your Ufone or 111 333 100 from any other number. 

II. WEAKNESSES

As Ufone has a wide network so there are problems in handling such a wide network.

Sometimes the network is busy and overloaded which results in poor connectivity.

Customer services provided by Ufone are not according to the requirements of their

customers.

In Retail Sales department, typing speed of ARDs is too slow that takes too much time to

enter their data.

The Human Recourse department is very slow in performing its job.

Being a part of telecom industry, it is difficult for Ufone to control the employee turnover

rate

III. OPPORTUNITIES

They can further improve its network in order to make more loyal customers.

They can introduce more new features in prepaid connections with advancement in

technology.

With the globalization of the world Ufone can further increase its market.

-25-

Page 26: Internship part 2

They should call in at different universities and offer jobs there for students to give them

employment in the organization. They can post their job advertisements on university

bulletin boards and also ask the fresh graduates for walk in interviews.

With a lot of demand for mobile services and in particular GSM technology the demand

graph is continuously on the rise. As Ufone is present in only a limited geographical

boundary so it still has a lot of markets to tap and increase their business.

IV. THREATS

Competitors are always a great threat for any profit seeking organization. Ufone also

considers its competitors as a threat for the company.

Changing technology is also a threat for Ufone because things are changing so frequently in

the market with the change in technology just as Telenor have offered Mobile TV.

Due to the latest entrants to the telecom industry, Ufone has been facing employee retention

problems. In coming years, Ufone will find difficulty in getting sufficient pool of potential

candidates as people will be more attracted towards the new multinationals in the telecom

industry like Al-Warid, Zong.

Though they have a very faithful dealer network but due to the recent business blockage of

the dealers because of the stoppage of subscriptions by Ufone may cause this loyalty to

shift.

-26-

Page 27: Internship part 2

2.4. Recommendations

Ufone should improve its customer services to avoid complaints of the subscribers.

Ufone should further reduce its prices to capture more market share.

They should further improve its network in order to provide more efficient services.

Due to the extensive competition in the industry Ufone has to enhance its training programs

in order to make their employees more proficient and competent.

They should call in at different universities and offer jobs there for students to give them

employment in the organization. They can post their job advertisements on university

bulletin boards and also ask the fresh graduates for walk in interviews.

They should give more incentive to their employees to make them motivated, as some

employees turnover rate is high.

The Human Resource department needs to be improved as they have a major problem that

is low job performance. As I have been interacting with them few times and they were very

slow in responding.

The biggest need is that they start work on their network expansion as soon as possible.

They should try to attain a balance between their post paid and pre paid customers. This

also holds true for their normal users and corporate users.

New features and services must be well communicated to the end consumer. For instance as

they have started a Web2Sms service but have not notified their customers through any

means. They could have alerted their customer of their new website through their info

services.

They should also focus on their differentiation policy and try to keep a balance between

their cost leadership and differentiation strategies.

These recommendations could be very helpful for the company to gain more market share

and increase its customers list. As first of all I have pointed on the customer services that

they should be more polite and gentle while talking to the customers. While working at the

retail sales department and customer services department I myself have attended customers

-27-

Page 28: Internship part 2

that were upset from the customer service provided by the representatives, this unusual

behavior could make Ufone lose its loyal customers too.

Coming to the rates charged by Ufone, I have my self performed competitors analysis while

working there and have come to a result that Warid telecom one of its Competitors are

giving much better call rates and are attracting many of the customers to switch their

service.

-28-

Page 29: Internship part 2

CONCLUSION

Telecom industry is most growing industry of Pakistan still huge investment required for

coverage. The market also has strong competition after the entrance of China Mobile

Company as player. Competitors are hiring professionals to entertain the consumer which is

resulting technological implementation and value added services. Ufone is a place where

one can live his dreams and pursue a career that reflects his skills and passions. People in

Ufone give flexibility for change, the opportunity to learn, and providing career options

with endless possibilities The managers at Ufone believes that all employees have a right to

offer input and be involved in helping their organization grow.

All departments are working together and they wants to create a work environment in

which employees can improve their minds, continuously learn, gain professional growth

and feel inspired by similarly motivated individuals. The Ufone takes pride in providing the

best possible working environment. They take a constant interest in ones progress by

conducting evaluations and offering the support and resources one needs. I reveal some

complications in “Findings”. It has been analyzed that people are concerned about call rates

they do not prefer any particular company. Consumer searches good service with lowest

call rates, although companies are minimizing call rates this will result more growth in the

market and to meet the customer needs by satisfying them.

-29-

Page 30: Internship part 2

REFERENCES

The information has been gathered through the various sources including

Ufone – Department of Strategic Planning

Pakistan Telecommunication Authority – Annual Reports 2007-2009

www.ufone.com

www.telecompk.net

www.pta.gov.pk .

www.propakistani.com

www.financialdaily.com

-30-