Professional Documents
Culture Documents
VISION
“Making
communication
exciting”
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MISSION
45
``
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.
So far CMPak has invested more than US$ 700 million in the telecom sector
in Pakistan and an additional US$ 800 million will be invested till the end of
year 2008.
With ambitious plans to cater to the fastest growing Pakistani market and to
win over the ever demanding Pakistani customer, it will be offering
unprecedented coverage, voice and data services as well as a wide range of 45
tariff options to choose from.
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
• 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.
Technology Yes
Survival, growth, profit Yes
Self concept Yes
Public image Yes
Employees No
Psychology Yes
Packages
PREPAID
ZONG 65
Ladies and Gentlemen, we bring you ZONG 65, the new pre-paid package of
ZONG that delivers 100% on economy and guarantees lowest call rates to
any network in Pakistan
12 Aanay Package
Talk for an entire hour - any hour, for only Rs.4.99 and for the first time in
Pakistan you can change the hour everyday!
50 Paisa/Call (8 Aanay)
People claim of simplicity and yet give you half the truth. Only ZONG gives
you the full truth at half the price. Now make calls to any other mobile
network for 8 Aanay.
Free Package
For the first time in Pakistan you can make free calls for life!
Postpaid Packages
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100
300
600
1200
2000
FNF
0.4
0.3
0.2
NA
N/A
Spouse Number
N/A
N/A
N/A
Free
N/A 45
Interconnect Charges
Other Mobile Operators
PTCL
Per/ min
1
0.52
Details
• 30 Sec billing
• Air-time rate for both On-Net & off-Net calls are same
• Off-Net Calls i.e. Calls to other mobile operators & PTCL will be
subjected to Interconnect charges given above
• Free minutes will be calculated on per minutes basis
• We will offer 5 FnF (on-net only) numbers on 100, 300 & 600 package
• FnF addition charges will be Rs 15 for each addition
• For FnF Addition / Modification dial 1313 from your Mobile
• Spouse number will only be applicable on Rs 1200 price plan with zero
charges
• Spouse number can be added / changed once in a month
• Free minutes calculation for Rs 1200 price plan will be exclusive of
Spouse number as the charging on Spouse number will be zero
• Free Minutes on 1200 package are exclusive of Spouse number 45
• 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 experience cost saving by avoiding stationary cost (letterheads and
business cards) printing since your number will remain the same.
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Zone Address
1. S.A 16, 17 & 18, Plot # FL 17, Block 5, KDA Scheme 5, Clifton
KARACHI Karachi
2. Gulshan-e-Iqbal Opposite Batul Mukaram Masjid Karachi
Big City, Shop No G 59 & 60. 3-E-2, Liberty Roundabout. Main
LAHORE
Boulevard. Gulberg III
ISLAMABAD 68-E Jinnah Avenue, Blue Area Islamabad
RAWALPINDI Plot # 7, 8 ,9 Bank Road Rawalpindi
FAISALABAD Lucky Plaza, 213 Main Susan Road. Faisalabad
MULTAN Multan Arcade Main Katchery Road Multan
QUETTA Fayyaz Lab, Jinnah Road- Quetta
PESHAWAR Burjaman Centre, University Road, Peshawar
Shop # 5, Ali heights, Auto Bhan Road, near CitiBank,
HYDERABAD
Hyderabad
JHELUM Old Al-Bilal Hotel, Cantt chowk ,GT Road, Jhelum
SAHIWAL 511/BVII, Jail Road, Civil Lines. Sahiwal
DG KHAN Azmat Road DG Khan
GUJRAT Euro Heights GT Road Gujrat
GUJRANWALA Near Traffic Police Office, GT Road, Gujranwala
SIALKOT Shop No. 17, Aziz Shaheed Rd. Sialkot
Abbotabad Business Complex, Supply Bazar, Manshera Road-
ABBOTABAD
Abbotabad
MARDAN Zong Plaza, Mall Road, Mardan Cantt
SARGODHA Parhar Plaza, Railway Road Sargodha
Baghdad UL Jadeed Road DIG Chowk Near Al Haq House
BAHAWALPUR
Bahawalpur
RAWALPINDI -
Plot # B130, B block- Satellite town- Rawalpindi
SATELLITE
TOWN
SUKKUR Shop # 421-422.C Minara Road Sukkur
Careers
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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.
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 Mobile
• External Assessment:
• PEST Analysis of Pakistan in Telecom Industry
Political Factors
• Political Instability:
Pakistan is facing political instability causing danger for the telecom
industry. But the political factor does not effect on Zong so high
because Zong related from china and relationship of china and Pakistan
is very strong. 45
• Deregulation:
The telecom sector of Pakistan has successfully liberalized in an
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .
Economic Factors:
• Gross Domestic Product:
The average revenue per user is falling. It does not affect value able on
Zong. Because Zong started in same condition.
The decline in Rupee value against the US Dollar, the decrease in the
interconnect charges and lower priced tariffs have resulted in an
overall decrease of ARPU in US Dollar terms.
• Outflow of Capital:
Technological Factors:
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• Technological Development:
Companies are investing in their infrastructure to not only expand but
• Technological Advancement:
Currently all companies are providing Multi-media Messaging Services
(MMS), General Packet Radio Service (GPRS), Virtual Private Network
(VPN), Pocket Stocks, Conference Calling, Wallpapers Animated
pictures Polyphonic ring tones (WAP), and Voice Mail at low price.
Technological Trends:
The well-recognized technology trends that are influencing the evolution of
the network indicate that:
o The cost of a call is becoming even more insensitive to the distance;
o The modularity of the network is increasing;
o The networking is shifting from circuit-switched to packet-routing;
o The voice communication is now independent of the network;
o The geographic boundaries are irrelevant for emerging technology;
o The intelligence and function are moving away from the central office.
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Five forces looks at five key areas namely threat of new entry, power of
• 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.
to different companies like PTCL wireless local loop, GO CDMA, WORLD CALL
etc. these services in future will be like mobile phone services like they are
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .
planning to offer services a lot but currently they are offering SMS and CLI
services to their customers.
• Competitive Analysis
Major competitors of ZONG include
Mobilink
Ufone
Telenor
Warid
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Mobilink GSM
Type
Genre
Subsidiary
Founded
1994
Founder
Motorola USA
Headquarters
Islamabad, Pakistan
42 Kulsum Plaza, Blue Area
Area served 45
45
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
Firm’s current strategies response to the factor: how well firms response to
these factors.
Opportunities
Threats
Interference
• Total weighted score for the ZONG external factor is 3.19 which is
above average
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Critical Success Weig Ratin Weight Ratin Weight Ratin Weight Ratin Weight
Factors (CSF) ht g ed g ed g ed g ed
Score Score Score Score
Strengths
Weaknesses
• Total weighted score for the Zong’s internal factors is 2.91 which is
above average
• Threats-Opportunities-Weaknesses-Strengths
(TOWS) Matrix
The Threats-Opportunities-Weaknesses-Strengths (TOWS) is also named as
SWOT analysis. A TWOS Analysis is a strategic planning tool used to evaluate
the Threats, Opportunities and Strengths, Weaknesses, involved in a project
or in a business venture or in any other situation requiring a decision. This is
an important tool in order to formulate strategy. This Matrix is an important
matching tool that helps managers develops four types of strategies: SO
Strategies (strength opportunities), WO Strategies (weakness- opportunities),
ST Strategies (strength-threats), and WT Strategies (weakness-threats).The
most difficult part of TOWS matrix is to match internal and external factor.
Once the objective has been identified, TOWS are discovered and listed.
TOWS are defined precisely as follows:
Strengths are attributes of the organization that are helpful to the
achievement of the objective.
Weaknesses are attributes of the organization that are harmful to the
achievement of the objective.
Opportunities are external conditions that are helpful to the achievement 45
of the objective.
Threats are external conditions that are harmful to the achievement of the
objective.
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .
45
O1. Globalization
O2. Marketing S1,O1 Expand
S3,O7 Penetration W3,O3 Acquisition
O3. Acquiring
O4. Covering Pak S1,O3 Acquisition
China Border
O5. Covering Northern
Areas
O6. New Product
O7. Penetration
SO-Strategies
Matching the strength 1 and opportunity 4 Zong can expand their business.
ST-Strategies
Matching the strength 1 and threat3 Zong can use the strategy of cost
leadership. 45
Matching the strength 3 and threat 2 Zong can use the strategy of
penetration.
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .
WO-Strategies
Matching the weakness 3 and opportunity 3 Zong can use the strategy of
acquisition.
WT-Strategies
Matching the weakness 3 and threat 2 Zong can use the strategy of
downsizing.
1. Revenues 5.0
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2. Return on investment 4.0
14
3. Advertising -2.0
-8.0
-10
3. Resources utilization
4.0
16
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Conclusion
Defensive Competiti
ve
A business unit that has a large market shares in a mature, slow growing
industry. Cash cows
Require little investment and generate cash that can be used to invest in
other business units.
A business unit that has a large market shares in a fast growing industry.
Stars may generate
Cash, but because the market is growing rapidly they require investment to
maintain their lead. If successful, a star will become a cash cow when its
industry matures.
Require resources to grow market share, but whether they will succeed and
become stars is unknown.
A business unit that has a small market shares in a mature industry. A dog
may not require
Substantial cash, but it ties up capital that could better be deployed
elsewhere. Unless a dog has some other strategic purpose, it should be
liquidated if there is little prospect for it to gain market share.
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.
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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.
Weakness
Zong mobile is only made for zong network. Other networks cannot
operate 45
in this mobile.
Highest possible weighted score for the organization is 4.0; the lowest, 1.0.
Average = 2.5
Total weighted score for the Zong mobile is 3.24 which is above average in
its overall internal strength.
Total weighted score by Zong in internal factor evaluation is 3.24 which is
above average. 45
It is very simple mobile which has no extra features but the other
companies have stylish and attracting mobiles in market.
It can improve its features like other cell companies. And can attract
the people.
Threats
Total 1 1.7
3 iii. 4 iv. 5 v. 6
Total
weight
Of EFE
2
vi. 7 vii. 8 viii. 9
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1
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .
Quardrant-1
Market development
Market penetration
Product development 45
Forward integration
Backward integration
Horizontal integration
THE UNIVERSITY OF LAHORE
ZONG ( Su b Kah Do) .
Concentric diversification
Quardrant-2
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
Quardrant-3
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Liquidation
Quardrant-4
Concentric diversification
Horizontal diversification
Rapid
Market
Growth
Quadrant II Quadrant I
Weak Strong
Competit Competit
ive ive
Position Position
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Quadrant III Quadrant IV
Slow
Market
Growth
ZONG lies in first quadrant so the all strategies of 1st quadrant can
be apply on zong
Opportunities
Development
Threats
TOTAL 1.00
Strengths
People
Weaknesses
• 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
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prints in every corner of the country to capture the market.
• In the SBU of Zong mobile Zong should use the strategy of hold and
maintain.
• References
• www.zong.com.
• www.google.com
• www.pta.com.pk
• Rana Armughan
Zong Garden Town Ali Block Lahore
• Rao Farhan Ali Khan
Zong Kchehri Chowk Multan
The end
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