ZONG (Sub Kah Do)
.
VISION
“Making
communication
exciting”
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THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
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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 (Sub Kah Do)
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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 tariff options to choose from.
CMPak's edge comes from the experience and expertise of running the world's largest telecom
service and the commitment they make to setting quality and customer relations standards.
CMPak is geared to offer neatly packaged VAS products that will benefit the individuals,
corporate as well as small businesses. Led by a team of professionals from the field of cellular
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ZONG (Sub Kah Do)
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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
Customer
Product and services
Market
Technology
Survival, growth, profit
Self concept
Public image
Employees
Psychology
No
Yes
No
Yes
Yes
Yes
Yes
No
Yes
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THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
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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 friends and family
freely during daytime.
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.
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ZONG (Sub Kah Do)
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Postpaid Packages
Line Rent (Rs)
100
300
600
1200
2000
On-Net Calls Airtime
Off-Net Calls Airtime
FNF
Spouse Number
Free SMS (On & Off-Net)
SMS Rate
GPRS
0.5
0.5
0.4
N/A
20
1
15
0.45
0.45
0.3
N/A
60
1
15
0.375
0.375
0.2
N/A
100
1
15
0.3
0.3
NA
Free
150
1
15
0.1
0.2
N/A
N/A
300
1
15
Free Minutes Break Up
On-Net
Off-Net-PTCL
Off-Net-Other Mobile Operator
Refundable Security Deposit
100
60
20
20
600
300
180
60
60
1000
600
360
120
120
1500
1,200
720
240
240
2500
6,800
6,000
400
400
4000
Interconnect Charges
Per/ min
Per /30 Sec
Other
Mobile
PTCL
Operators
1
0.52
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
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ZONG (Sub 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.”
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THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
Zone
KARACHI
LAHORE
ISLAMABAD
RAWALPINDI
FAISALABAD
MULTAN
QUETTA
PESHAWAR
HYDERABAD
JHELUM
SAHIWAL
DG KHAN
GUJRAT
GUJRANWALA
SIALKOT
ABBOTABAD
MARDAN
SARGODHA
BAHAWALPUR
RAWALPINDI SATELLITE
TOWN
SUKKUR
.
Address
1. S.A 16, 17 & 18, Plot # FL 17, Block 5, KDA Scheme 5, Clifton Karachi
2. Gulshan-e-Iqbal Opposite Batul Mukaram Masjid Karachi
Big City, Shop No G 59 & 60. 3-E-2, Liberty Roundabout. Main Boulevard.
Gulberg III
68-E Jinnah Avenue, Blue Area Islamabad
Plot # 7, 8 ,9 Bank Road Rawalpindi
Lucky Plaza, 213 Main Susan Road. Faisalabad
Multan Arcade Main Katchery Road Multan
Fayyaz Lab, Jinnah Road- Quetta
Burjaman Centre, University Road, Peshawar
Shop # 5, Ali heights, Auto Bhan Road, near CitiBank, Hyderabad
Old Al-Bilal Hotel, Cantt chowk ,GT Road, Jhelum
511/BVII, Jail Road, Civil Lines. Sahiwal
Azmat Road DG Khan
Euro Heights GT Road Gujrat
Near Traffic Police Office, GT Road, Gujranwala
Shop No. 17, Aziz Shaheed Rd. Sialkot
Abbotabad Business Complex, Supply Bazar, Manshera Road- Abbotabad
Zong Plaza, Mall Road, Mardan Cantt
Parhar Plaza, Railway Road Sargodha
Baghdad UL Jadeed Road DIG Chowk Near Al Haq House Bahawalpur
Plot # B130, B block- Satellite town- Rawalpindi
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.
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THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
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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!
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ZONG (Sub Kah Do)
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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.
Deregulation:
The telecom sector of Pakistan has successfully liberalized in an efficient, transparent
and fastest deregulation of telecom in the region. The Government of Pakistan gave the
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status of Industry to Pakistan Telecommunication Sector.
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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:
Technological Development:
Companies are investing in their infrastructure to not only expand but also to upgrade
their existing structure. As the competition is strong Zong is focusing on its value added
services
Technological Advancement:
Currently all companies are providing Multi-media Messaging Services (MMS), General
Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference
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ZONG (Sub Kah Do)
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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
Five forces looks at five key areas namely threat of new entry, power of 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.
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• 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 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 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.
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Competitive Analysis
Major competitors of ZONG include




Mobilink
Ufone
Telenor
Warid
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
5000 cities, towns, and villages
across Pakistan
Key people
Zouhair A Khaliq, President and CEO
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ZONG (Sub Kah Do)
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Industry
Telecommunication
Products
postpaid Indigo , prepaid JAZZ,
Mobilink PCO
Owner
Naguib Sawiris
Parent
Orascom Telecom
Slogan
Reshaping lives
Website
www.mobilinkgsm.com
Egypt
Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a
telecommunication service provider in Pakistan. According to PTA statistics, Mobilink has 30.88
million customers by January 2008. Mobilink's Head office is located in Kulsum Plaza, Blue Area,
and Islamabad.
Mobilink started operations in 1994 as the first GSM
cellular Mobile service in Pakistan by MOTOROLA Inc, later
it was sold to Orascom, an Egypt-based multi-national
company. Mobilink's corporate postpaid package is sold
under the brand name "Indigo" and prepaid by the name of
"Jazz".
Mobilink is the largest cellular service provider in Pakistan
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Pakistan Telecommunication Mobile Ltd. (PTML),
Ufone
Type
Private
Genre
Subsidiary
Founded
January 29, 2001
Founder
Pakistan Telecommunication
Company Ltd
Headquarters
Islamabad, Pakistan
13-B, F-7 Markaz
Area served
2336 cities of Pakistan, GT Road,
Super Highway & Motorway
Key people
Abdul Aziz, CEO
Industry
Telecommunication
Products
Pre Pay, Post Pay
Revenue
▼ Rs.5.1 billion PKR (first quarter
2006-07).
Parent
PTCL
Slogan
It’s all about U! (Tum He Tou Ho)
Pakistan
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Website
www.ufone.com
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
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Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile companies
in Pakistan and is a subsidiary of Pakistan Telecommunication Company.
The company commenced its operations under the brand name of Ufone from Islamabad on
January 29 2001. Ufone expanded its coverage and has added new cities and highways to its
coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat.
During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by
Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone
continued on the path to success. The Company further expanded its coverage and has added
new cities and highways. Ufone has network coverage in more than 750 cities, towns and
across all major highways of the country.
Warid Telecom
Type
Private
Founded
2004
Headquarters
301-Dhabi Tower, Hamdan
Street, Post Box 44222, Abu
Dhabi, United Arab Emirates
Key people
Sheikh Nahayan Mabarak Al
Nahayan, Chairman
Mr. Bashir A. Tahir, CEO Abu
Dhabi Group & Warid
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International
Industry
Telecommunication
Products
Telephony
Slogan
We Care
Website
www.waridtel.com
(Pakistan)
www.waridtel.com.bd
(Bangladesh)
Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing
telephony services in Bangladesh, Pakistan and Uganda.
Warid is expected to launch in Congo soon.
In December 2005, Warid Telecom International LLC obtained a
15 year GSM license to operate as the sixth mobile phone
operator in Bangladesh for 50 million US dollars.
Warid Bangladesh launched their operations on the 10th of May,
2007 and uses the code 16 proceeded by the code number of
Bangladesh +880. Warid Bangladesh has acquired a million
subscribers within 70 days of launch.
The company started rolling out network from mid-2006. In less than a year, amidst much
speculation, Warid Bangladesh launched their commercial operation with 26 districts – the
largest ever launch in terms of network coverage and BTS Stations. Unlike its operations in
other countries Warid Bangladesh uses the slogan be heard instead of we care.
Currently Warid Bangladesh provides both post-paid and pre-paid connection plans. The postpaid plan is branded and marketed across the country under the name Zahi Post-paid, which
means leader or royalty. The pre-paid segment is branded and marketed and ZEM PREPAID
According to Pakistan Telecommunication Authority, currently Warid Telecom has more than 10
millions subscribers in Pakistan and is ranked as the fourth largest operator in Pakistan. Warid
Pakistan claims it has the largest "post-paid" subscriber base in Pakistan.
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Telenor
Type
Public
Founded
1855
Headquarters
Fornebu, Norway
Key people
CEO: Jon Fredrik
Baksaas, Chairman:
Thorleif Enger
Industry
Telecommunication
Products
Telephony and
broadband
Revenue
▲ 91.1 billion NOK
(2006)
Operating
income
▲ 18.3 billion NOK
(2006)
Net income
▲ 15.9 billion NOK
(2006)
Employees
31,750
Slogan
Here to help
Website
www.telenor.com
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Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway,
with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an international
wireless carrier with operations in Scandinavia, Eastern Europe and Asia. In addition, it has
extensive broadband and TV distribution operations in four Nordic Countries.
At year-end 2005, Telenor held controlling interests in mobile operations in Norway, Denmark,
Sweden, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh and Pakistan. In
October 2006, Telenor entered into an agreement with Vodafone Group for the acquisition of
subsidiary Vodafone Sweden for a consideration of NOK 8,170 million, including assumption of
debt.
Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March
2005 and holds one of six mobile licenses in Pakistan. Its also the fastest growing cellular
network of Pakistan. Currently Telenor holds the second largest GSM and the largest GPRS and
EDGE coverage in Pakistan. It has also achieved the second largest retailer network in Pakistan
within the 2 years of its operations and it has started operations in Azad Kashmir and the
Northern Areas of Pakistan. Telenor has reached its breakeven in the first quarter of 2007 and
beat largest mobile operator Mobilink in sales. Telenor proactively participated in earthquake
disaster relief, and is carrying out a campaign for the welfare of flood victims in Balochistan.
Current CEO of Telenor Pakistan is Tore Johnsen.
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Cellular Service Providers of Pakistan
Cellular Service Provider
Mobilink
Ufone
Telenor
Warid
Zong
Market Share
31.6%
21.5%
21.6%
18.8%
6.1%
Source: (Pakistan Telecom Authority,2008)
Opportunities of Zong
Expand Globally
ZONG can expand the globally and can develop it strategy in other countries.
Publicity and Marketing
With the right marketing strategy they can acquire much more.
Acquire / merger
As warid is going in loss and in the condition of liquidation its big opportunity for Zong to
acquire warid telecom.
New product development:
Zong can introduce new products such as dish TV.
Opportunity in northern areas
Zong can have a clear edge over the competition in the Northern Areas especially, as China
Mobile has huge experience of network operation in similar high mountainous areas in China
itself.
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ZONG (Sub Kah Do)
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Pak China Border
Zong can cover the border of China, with the Karakoram highway (old Silk Route) and can play a
vital role in freight transportation.
Threats of Zong
Old stable companies
Mobilink and Ufone are well-establish as compare to Zong in Pakistan.
Better Packages by Other Cellular
Companies like Telenor offer better packages for corporate customers. Telenor Postpaid
connection “Persona” is a good example of it.
Wireless local loop (WLL) service providers are also targeting areas which are less developed
Price Wars
Current price war among cellular service providers may reach at a position where only brand
names survive.
Government Interference
Government Interference will always be treated as a threat in terms of taxes
Internal Assessment:
Management
Through its published manual on the code of business conduct at Zong. The company
addresses individual responsibility. Its value of integrity, respect, imagination and passion and
its commitment to serving its customer, it has several sections an ethics and how Zong
encourages employees to respect explicit ethics violations or questionable ethics conduct and
give guidance on how to handle such situations. This manual also guides management on how
to handles issues of discrimination, harassment, ethics violations reports.
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Management Line Of Zong
MANAGEMENT LINE OF ZONG
Management line
Name
Location
From
CEO
Qin Lee
Islambad
China
CTO
Xu Haiyong
Islambad
China
CFO
Xin Jee
Islambad
China
COO
Zafar Usmani
Islambad
Pakistan
CHRO
Wai Giang Fu
Islambad
China
Direct Rollout
Khurram Alive
Islambad
Pakistan
Director Operations
Syrus Sikander
Islambad
Pakistan
Director Finances
Amir Mahmood
Islambad
Pakistan
Director PMO
Liu Lidong
Islambad
China
Director sales
Mannan Shabbir
Islambad
Pakistan
Director NPS
Mohammed Bilal
Islambad
Pakistan
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Line Manager And Heads
LINE MANAGER AND HEADS
Category
Levels
Management
Officers
1A+1B+1C
Line managers+ Regional
Head
Officers
2A+2B+2C
Line managers+ Regional
Head
Executives
3A+3B+3C
Line managers+ Regional
Head
Managers
4A+4B+4C
Line managers+ Regional
Head+SMT
Directors
5A+5B+5C
SMT
Chief
6A+6B+6C
SMT+CEO
Marketing Department
Marketing is particularly important today in telecommunication industry, especially as
consumers are becoming more sensitive to price. Customers are bombarded daily with endless
solicitations and Zong and its competitors are doing what can to diversify their services and
their names being remembered as the one customers turn to when they want to sign up for
services or switch to different provider many customers are finding out that Zong bundled
services are often better across the board than its competitors promotional services, which
sometimes last for only one on the services. Marketing department select the packages for
customers Zong packages are more attractive for the customers as compare to the competitors
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ZONG (Sub Kah Do)
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Finance Department
Zong has strong financial position since its inception. China mobile acquires Paktel in $27.5
billion and it has been invested $1500 million in Pakistan for Zong and want to invest more.
Zong has been collected $ 36,575,000 in 2008. The improvement in net earnings resulting from
strong internal sales growth from both postpaid prepaid segments.
Value Chain
Zong purchases equipment from four companies ZTE, Ericson, Alcetle, and Hawaii. These are
the venders and operator of Zong. Zong distributors are franchises, customer care service
centers and different outlets. Zong has 22 CCSC and 100000 different outlets in Pakistan.
Research And Development Department (R&D)
R&D of ZONG is working hard. Its select the site where it is feasible and check the access, now
ZONG is covering all over the Pakistan rapidly
Human Resources Department
The fundamental objective of human resource function is to ensure that every aspect for the
organization, employment motivation and management of people is integrated with the
strategic objective of business and contribute to the successful achievement of those
objectives. Zong has two major sources of people inside sources and outside sources
Inside Sources
The manager of department having vacancy in mind speaks with personal manager and
together they give consideration to specific job.
Out Sources And Recruitment Method
In Zong management continuously hire fresh blood from the market through the following
sources.
THE UNIVERSITY OF LAHORE
25
ZONG (Sub Kah Do)




.
Employee Referral
Business Colleges
Advertising
Online Application Bank/Unsolicited application
Strength of Zong
Zong strength lies in the establishment of a strong, fundamental and coherent long-term
business plan, designed to sustain economic challenges in the country.
Investment:
It has invested heavily in infrastructure, technology, human resources and customer services
which have given impetus for a broad-based future planning strategy. It further is investing US $
800 million in Pakistan to develop its infrastructure. Therefore it has the competitive advantage
of making huge investments in Pakistan which no-one else had made before regarding telecom.
Network portability
Over 500,000 people have been switched to Zong from other networks
Zong mobile
Zong has come up with another interesting promotion…. you get a phone, almost free but with
a year’s payment in advance.
Resources, Assets and People
 Being a multinational company Zong has huge resources in terms of capital. It has
billions of capital to invest in various projects. Its offices are luxuriously equipped with
every facility.
 Zong while choosing people for jobs follow the strategy of “choosing the best among all”
therefore majority of its staff people are highly qualified from renowned universities of
Pakistan. A certain percent is foreign qualified as well
 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.
26
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
Location and Geographical Coverage
 Zong is also covering the all cities of Pakistan and in 2008 Zong completed its record
sites 1000 in Pakistan its great achievement.
 Now Zong is covering the northern areas of Pakistan rapidly.
Government Dealings
 Pays a huge amount in taxes to the government of Pakistan. So it’s a big source of
revenue to the government as well.
 It conducts its business by abiding by the rules and regulations setup by the government
and cooperates with the government in every aspect.
Weaknesses of Zong
Coverage
Zong is establishing but it is new in market therefore it coverage is weak in rural areas of
Pakistan.
Bad image
Bad image of associate with Paktel. And still now having old staff of Paktel.
Bad MIS
Zong does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim specially pre pay. Zong have to take serious
steps to properly list its customers to ensure that there is no misuse.
27
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
A Comprehensive Strategy-Formulation Framework
Important strategy-formulation techniques can be integrated into a three-stage decisionmaking 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
2. SPACE Matrix
3. BCG Matrix
4. IE Matrix
5. GS Matrix
(Threats-Opportunities-Weaknesses-Strengths)
(Strategic Position and Action Evaluation)
(Boston Consulting Group)
(Internal and external)
(Grand Strategy)
Stage-3 (Decision Stage)
1. QSPM
(Quantitative Strategic Planning Matrix)
28
THE UNIVERSITY OF LAHORE
ZONG (Sub 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
Produces a weighted score
How the firm will respond to these factors external factors. Such criteria are known as rating.
• 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
29
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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 Development
0.07
3
0.21
5
Northern Areas
0.10
3
0.30
6
Pak China Borders
0.13
3
0.39
1
Old Stable Companies
0.12
4
0.48
2
Attractive Packages By
Others
0.10
3
0.30
3
Price War
0.06
3
0.18
4
Government Interference
0.09
3
0.27
Threats
TOTAL
1.00
3.19
Total weighted score for the ZONG external factor is 3.19 which is above average
30
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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
31
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
Competitive Profile Matrix (CPM)
Competitive Profile Matrix (CPM)
Critical Success
Factors (CSF)
Weight
Rating
Weighted
Score
Rating
Weighted
Score
Rating
Weighted
Score
Rating
Weighted
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 Strength
0.08
3
0.24
3
0.24
4
0.32
3
0.24
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
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
Price
Competitiveness
0.07
2
0.14
3
0.21
3
0.21
3
0.21
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.
32
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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
o Produces a weighted score
Sum the weighted scores for each
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
33
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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
People
0.08
3
0.24
7
Location And Geographical
Coverage
0.10
3
0.30
8
Government Dealing
0.09
3
0.27
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
THE UNIVERSITY OF LAHORE
34
ZONG (Sub Kah Do)
.
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 (strengththreats), 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 of the objective.
Threats are external conditions that are harmful to the achievement of the objective.
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.
35
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
TOWS MATRIX OF ZONG
Strengths–S
S1.
S2.
S3.
S4.
S5.
S6.
S7.
Opportunities – O
O1. Globalization
O2. Marketing
O3. Acquiring
O4. Covering Pak China
Border
O5. Covering Northern
Areas
O6. New Product
O7. Penetration
Threats – T
T1. Old Stable Companies
T2. Attractive Packages By
Competitors
T3. Price War
T4. Government
Interference
Capital
Network Portability
Resources
Location
Government Dealings
High Growth Rate
Advertising
SO-Strategies
S1,O1 Expand
S3,O7 Penetration
S1,O3 Acquisition
ST-Strategies
Weaknesses – W
W1. Coverage
W2. Bad Image Of Paktel
W3. Low Market Share
W4. Weak MIS
W5. Old Staff
WO-Strategies
W3,O3 Acquisition
WT-Strategies
S1,T3 Cost Leadership
S3,T2 Penetration
W3,T2 Downsizing
36
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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.
Matching the strength 3 and threat 2 Zong can use the strategy of penetration.
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.
37
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
A SPACE Matrix for a Zong
Financial Strength (FS)
1. Revenues
2. Return on investment
3. Working capital
RAITNGS
5.0
4.0
5.0
14
Competitive Advantage (CA)
1.
2.
3.
4.
Resources Assets
High growth rate
Advertising
Competition capacity utilization
-2.0
-1.0
-2.0
-3.0
-8.0
Environmental stability (ES)
1.
2.
3.
4.
Technological changes
Rate of inflation
Demand variability
Barriers to entry into market
-3.0
-4.0
-2.0
-1.0
-10
Industry Strength (IS)
1.
2.
3.
4.
Deregulation increase completion in telecom industry
Financial stability
Resources utilization
Profit potential
3.0
5.0
4.0
4.0
16
Conclusion
FS average is
CA average is
ES average is
IS average is
14/3 = 4.67
-8/4
= -2.0
-10/4 = -2.5
16/4 = 4.0
38
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
Directional Vector Coordinates: x-axis:
Directional Vector Coordinates: y-axis:
.
4.67+ (-2.5) = 2.17
4.0+ (-2) = 2
The Zong should peruse Aggressive strategies
SPACE MATRIX FOR ZONG
Conservative
Defensive
(2, 2.17)
Aggressive
Competitive
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 growthshare matrix displays the various business units on a graph of the market growth rate vs.
market share relative to competitors.
THE UNIVERSITY OF LAHORE
39
ZONG (Sub 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)
A business unit that has a small market shares in a high growth market. These business units
Require resources to grow market share, but whether they will succeed and become stars is
unknown.
DOG - (LOW GROWTH, LOW MARKET SHARE)
40
A business unit that has a small market shares in a mature industry. A dog may not require
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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.
41
THE UNIVERSITY OF LAHORE
ZONG (Sub 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
in this mobile.
 Zong is depending on ZTE.(Zheng Telecommunication Electronics) ZTE is the vender of
zong. Zong purchase mobile from ZTE.
42
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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
Resale Value
0.18
2
0.36
Restriction Of Other Networks
0.05
2
0.1
Dependent On ZTE
0.07
1
0.07
Weakness
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.
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
THE UNIVERSITY OF LAHORE
43
ZONG (Sub Kah Do)
.
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 Of Competitors
0.35
2
0.7
Threats Of Cell Companies
0.15
1
0.15
Total
1
Threats
1.7
Total weighted score by Zong in external factor evaluation is 1.7 which is below average.
The Internal-External (IE) Matrix
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
44
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
Internal External Evaluation Matrix
Total weight of IFE
4
3.4
3
2
1
i.
1
i.
2
ii.
3
iii.
4
iv.
5
v.
6
vi.
7
vii.
8
viii.
9
3
Total weight
Of EFE
2
1
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
THE UNIVERSITY OF LAHORE
45
ZONG (Sub Kah Do)
.
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
Forward integration
Backward integration
Horizontal integration
Concentric diversification
Quardrant-2
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
Quardrant-3
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Liquidation
46
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
Quardrant-4
Concentric diversification
Horizontal diversification
GRAND STRATEGY MATRIX FOR ZONG
Rapid Market
Growth
Quadrant II
Quadrant I
Weak
Competitive
Position
Strong
Competitive
Position
Quadrant III
Quadrant IV
Slow Market
Growth
ZONG lies in first quadrant so the all strategies of 1st quadrant can be apply on zong
47
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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
Key External Factors
MARKET PENETRATION
MARKET DEVELOPMENT
Weight
Attractiveness
Scores (AS)
Total
Attractiveness
Scores (TAS)
Attractiveness
Scores (AS)
Total
Attractiveness
Scores (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
0.10
3
0.30
2
0.20
Development
5
Northern Areas
48
6
Pak China Borders
0.13
3
0.39
2
0.26
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
Threats
1
Old Stable
Companies
0.12
4
0.48
3
0.36
2
Attractive Packages
By Others
0.10
3
0.30
3
0.30
3
Price War
0.06
3
0.18
2
0.12
4
Government
Interference
0.09
3
0.27
2
0.18
TOTAL
1.00
Strengths
1
Investment
0.09
4
0.36
4
0.36
2
High Growth Rate
0.11
4
0.44
3
0.33
3
Advertising
0.12
3
0.36
3
0.36
4
Net Work Portability
0.12
3
0.36
3
0.36
5
Zong Mobile
0.07
3
0.21
3
0.21
6
Resources Assets
And People
0.08
3
0.24
3
0.24
7
Location And
Geographical
Coverage
0.10
3
0.30
3
0.30
8
Government Dealing
0.09
3
0.27
3
0.27
Weaknesses
1
Bad Image Of Paktel
0.06
2
0.12
1
0.06
2
Coverage
0.07
1
0.07
1
0.07
3
Low Market Share
0.05
2
0.10
2
0.10
4
Weak MIS
0.04
2
0.08
1
0.04
49
SUM TOTAL
ATTRACTIVENESS SCORE
1.00
6.10
5.14
THE UNIVERSITY OF LAHORE
ZONG (Sub Kah Do)
.
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 prints in every
corner of the country to capture the market.
Zong should adopt the strategies of market penetration market development and
related diversification, but the most effective strategy would be market penetration.
In the SBU of Zong mobile Zong should use the strategy of hold and maintain.
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
50
The end
THE UNIVERSITY OF LAHORE