Introduction

Warid Telecom is owned by the Abu Dhabi Group lead by Sheikh Nahayan Mabarak Al Nahayan.
He is Minister of Higher Education and Scientific Researcher in UAE. Warid Telecom started its
operation in May 2005 from Pakistan. Warid Telecom International purchased a license for
operating a nationwide mobile telephony network and long distance international (LDI) for
$291 million US dollars.Within 80 days of launch Warid attracted more than 1 million
users.Currentlythenetwork has around 7.6 million subscribers.
Step 1
Vision and Mission of Warid
Vision
To become the primary service provider of all communication needs of subscribers in Pakistan
supported by exemplary customer care.
Mission
We will continue to challenge ourselves and set new performance standards by investing in
the future of our people and seeking knowledge and innovation in order to exceed customer
expectations and serve our community.
Objectives
Warid telecom have some objectives those are related to marketing and finance objectives
but Warid Telecoms one of the most important objective in the market is to ensure the highest-
level of service and customer care it includes.
Launching of customer relationship programs
Introducing new packages for customers
Make popular the easy load
Marketing objectives
Provide better security for SIM
Improved distribution channels
Launch sports program for youth
Mobile coverage in remote areas of Pakistan
Achieve effective brand awareness within consumer market and in business market
Financial objectives
Companys financial objective is to increase profit by using the selling technique of more
selling to maximize profit.
The company not only wants all the financial benefits but is wants to serve people & by
charging less.
The more the people get use of that, the more profit could be earn by the company.
Strategies
Differentiation by Warid
Warid is offering special discounts offers oncalls of Arab states.This aspect differentiateWarid
from other companies.It also providing billingupdation system which is not given by any other
company.
Market Segmentation(Focused) by Warid
by catering needs of people. They created image by tag line we care for everybody they will
provide best quality service.They givenpost paid packages for middle class Zem and for elite
business class they introduce Zehi. Thats showingdivision of market by Warid into distinct
parts.
Globalization:
According to the research around 15% of Warid's mobile traffic is international. The
international gateway - provided by a submarine cable and dual satellite connectivity from
earth stations.GloballyWarid is not much successful.
Competitiveness
differentiated in value added aspects
Cost Leadership
by providing less price service/product

Step 2
develop new mission and vision
Old
To become the primary service provider of all communication needs of subscribers in Pakistan
supported by exemplary customer care.
New vision of warid
First in customer Mind, First In Customer Choice, when it comes to
telecommunication offerings through innovation.
Step 3
Organization external opportunity and threat
External opportunity
Increasing population
Urbanization rate
Un-served Customer
New Trends
New Technology

External threat

PTA Monitoring Requirements
Uncertain political conditions
Low Pricing Strategies
Strong Competitor presence
Greater network coverage
Substitute threat














Step 4 Construct the competitive profile matrix (CPM)
COMPETITIVE PROFILE MATRIX

WARID UFONE MOBILINK
Critical Factor

Weight Rating Score Rating Score Rating Score
Network
Coverage
0.15 3 0.45 3 0.45 4 0.6
Price
Competitiveness
0.15 3 0.45 4 0.60 3 0.45
Global
Expansion
0.05 3 0.15 1 0.05 3 0.15
Advertising 0.15 1 0.15 4 0.60 3 0.45
Product Quality 0.20 3 0.60 2 0.4 3 0.6
Customer
Service
0.10 3 0.30 3 0.30 2 0.20
Management 0.05 2 0.1 3 0.15 3 0.15
Financial
position
0.1 2 0.2 3 0.3 3 0.3
Customer
Loyalty
0.05 3 0.15 2 0.1 3 0.15
Market Share 0.1 2 0.2 2 0.2 4 0.4

Total

1.0

2.75

3.15

3.45


STEP 5
Construct an External factor evaluation matrix
External factor evaluation matrix
No.
Opportunities
weights Rating (1-4) Weighted Score
1 Youth trend to meet people and
friendship increasing
0.10 4 0.40
2 Education Sector Growing 0.04 2 0.08

3 Population increase by 1.573%
annually
0.08 2 0.16
4 population is still in villages 0.06 1 0.06
5 Still 36.9% people are un-served 0.06 1 0.06
6 Working Women increasing 0.08 3 0.24
7 New Technology 0.10 3 0.30
8 Increasing Urbanization Rate 3.1%
annually
0.09 2 0.18
Threats
9 New communication ways (Web SMS
and Wireless internet Chatting and
emails)
0.12 4 0.48
10 Strong competitor presence 0.08 2 0.16
11 Uncertain political conditions 0.05 2 0.10
12 Inflation up high to 11% in 2012 0.06 2 0.12
13 Relative Monitoring Requirement of
PTA
0.04 1 0.04
14 High Tax rates 0.07 3 0.21
Total 1 2.59



STEP 6
Organization Internal Strength and Weakness
Strength
Lowest Complaints Rate
Good Reputation
Access to Universal Service Funds
Superior product quality
Strongest Financial Base
Weaknesses
Lower Market share
Lower Cellular Subscriber
Low Network Coverage
Seth organization
Lack market positioning
Lack effective dealing with inactive subscribers







Step 7
Construct an Internal Factor Evaluation Matrix.

No.
Strength
weights Rating Weighted Score
1 Quality Service 0.09 4 0.36
2 Brand Name 0.08 3 0.24

3 Voice Clarity 0.08 4 0.32
4 Attractive Packages 0.05 3 0.15
5 Lowest Complaints Rate 0.05 3 0.15
6 Innovation 0.08 3 0.24
7 Customer loyalty 0.07 4 0.28
8 Good Reputation 0.06 3 0.18
9 Strongest Financial Base 0.08 3 0.24
Weakness
1 High level of taxation 0.08 4 0.32
2 Lower Market share 0.06 2 0.12
3 Limited Packages 0.04 2 0.08
4 Management 0.06 2 0.12
5 Low Network Coverage 0.05 2 0.10
6 Lack market positioning 0.07 3 0.21
Total 1.00 3.11


STEP 8
1#SWOT MATRIX
Strengths - S Weaknesses W
Large post paid generation.
Modern network capabilities in
respect of infrastructure.
Technical partnering involving
SingTel, Nokia and Wateen.
Strong Financial base
Loyal Customer
Need to expand
Narrow product line
Low promotional campaigns
Lacking advertisement
Lacking brand awareness

Opportunities O SO Strategies WO Strategies
Dual SIM
Moving to other countries
Coverage to the rural areas
Expected licensing of 3G
Market growth and industry
expansion

Moving to other countries is
possible if have modern network
capabilities in respect of
infrastructure.
Coverage to the rural areas can be
made having financial strength of
share holder and their telecom
expertise.
3G license used to be issued if
Customers are loyal.
Market growth and industry
expansion relates to financial
strength of share holder and their
telecom expertise.
Dual sim possible when it has
technical partnering involving
SingTel, Nokia and Wateen.

Overall expansion can be made if
market growth and industries is
grown.
The product line can be expand by
coverage to the rural areas
Low promotional activities can
improve 3G license used to is
issued
Need to spend on advertisement
should be done if market growth
and industry expansion is made.
By introducing dual sim need of
increase brand awareness in the
mind of people can be achieved.
Threats T ST Strategies WT Strategies
Political Instability
Inflationary pressures
Implementation of customs on
Handsets
Competitors price

Political Instability can be
overcome due to financial strength
of share holder and their telecom
expertise.
Inflationary pressures can be deal
with by large post paid generation.
Implementation of custom
appointment on handsets possible
by duel sim generation.
Can be saved from competitors
price if Customers are loyal.
By expanding market Warid can
escape from competitors price.
By expanding the product line
Warid can escape from inflationary
pressure.
By increasing promotional activities
Warid can overcome political
instability.
By spending on advertisement
Implementation of custom
appointment on handsets is
possible.



2#Space Matrix

Internal Strategic Position

External Strategic position
Financial Strength (FP) Environment Stability (EP)
Increase EBITDA 5
Return on equity 4
The return on Asset4
Revenue Growth Rate 3
Liquidity5

4.2
Price Change by Competitor & Customer
Switching -3
Global Rapid Technological Changes -1
Rate of Inflation & High Interest Rate -1
Expensive Infrastructure -2
Taxes -2

-1.8

Competitive Advantage (CP) Industry Strength (IP)
Control over suppliers and Distributors-1
BrandName -2
Customer Loyalty -2
Quality Service -2
Market share -4

-2.2
Ease of Entry into Telecom Industry 5
Profit & Growth Potential 4
Financial Stability 4
Resource Utilization 4
Productivity, Capacity Utilization 4
Technological 6
4.5


Calculations
Sum of the value of FP + EP = 4.2 + (-1.8) = 2.4
Sum of the value of CP + IP = -2.2 + 4.5 = 2.3
















Warid is a financially strong firm and it has achieved major competitive advantages in a growing
and stable industry.



Aggressive
Possible Strategies for warid
Market Penetration
Market Development
Product Development
Backward Integration
Forward Integration
Diversification





3 BCGMatrix
BOSTON CONSULTING GROUP MATRIX
BCG matrix is designed to enhance the multidivisional firms efforts to formulate
strategies. It also help multidivisional firm to manage its portfolio of business by
examining the relative market share position and industry growth.













Here we have Warid telecom firm. It have two divisions. One is prepaid second is
post paid.Pre paid division generating more revenue thenpost paid.
This firmfall in stars because firm have high market share and high industry sales
growth. Thereis some possible strategies for Warid.
Possible Strategies for Warid
Market Penetration
Market Development
Product Development
Backward Integration
Forward Integration







Division Revenue Profit Growth rate Relative
Market share
Prepaid 73% 70% 15 .80
post-paid 17% 30% 09 .70
4 # I.E Matrix


Grow and Build
This firm fall in IV cell and there is some possible strategies for WaridTelecom
firm.
Possible Strategies for Warid
Market Penetration
Market Development
Product Development
Backward Integration
Forward Integration


IFE
EFE
Strong 3.0-4.0 Average 2.0-2.99 Weak 1.0-1.99
High 3-3.99 I II III
Medium 2-2.99
IV
V VI
Low 1-1.99 VII VIII IX


5 Grand strategy Matrix













GRAND STRATEGY MATRIX
Grand strategy matrix has become a popular tool for formulating alternative strategies. Warid
firm is located in quadrant I of grand strategy matrix. It shows the excellent strategic position.
Warid need to continue their concentration on current markets such as market penetration,
market developmentand productsdevelopment. It is an appropriate strategy for Warid.


Rapid Market Growth
Quadrant II
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Quadrant I
Market development
Market penetration
Product development
Forward, backward and horizontal
integration
Concentric diversification


Strong
Competitive
Position
Slow Market Growth
Weak
Competitive
Position
Quadrant III
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Divestiture
Quadrant IV
Concentric diversification
Horizontal diversification
Conglomerate diversification
Joint venture
Advantages.
Quadrant I firms has excessive resources.
Quadrant I firms are committed to a single product and then related diversification
reduce the risk associated with a narrow product line.
Quadrant I firms can afford to take advantages of external opportunities in several
areas.
6Quantitative strategic planning matrix (QSPM)
QSPM Technique is designed to find out the relative attractiveness of feasible alternative
actions.This technique objectively specify which alternative strategies are best.



Key Factors Weight AS TAS AS TAS
N
o.
Opportunities

1 Youth trend to meet people and
friendship increasing
0.10 4 0.40 3 0.30
2 Education Sector Growing 0.04 2 0.08

3 0.12
3 Population increase by 1.573%
annually
0.08 3 0.24 4 0.32
4 population is still in villages 0.06 3 0.18 2 0.12
5 Still 36.9% people are un-served 0.06 2 0.12 2 0.12
6 Working Women increasing 0.08 - -
Find new areas and
markets where they
are not accessing.
Reassess the existing
markets and gain
market position where
they are not
competent.
7 New Technology 0.10 3 0.30 4 0.40
8 Increasing Urbanization Rate 3.1%
annually
0.09 3 0.27 2 0.18
Threats
9 New communication ways (Web
SMS and Wireless internet Chatting
and emails)
0.12 4 0.48 3 0.36
10 Strong competitor presence 0.08 3 0.24 3 0.24
11 Uncertain political conditions 0.05 3 0.15 2 0.10
12 Inflation up high to 11% in 2012 0.06 3 0.18 3 0.18
13 Relative Monitoring Requirement of
PTA
0.04 2 0.08 2 0.08
14 High Tax rates 0.07 3 0.21 3 0.21
Total 1
N
o.
Strength Weight AS TAS AS TAS
1 Quality Service 0.09 2 0.18 3 0.27
2 Brand Name 0.08 2 0.16

4 0.32
3 Voice Clarity 0.08 4 0.32 4 0.32
4 Attractive Packages 0.05 3 0.15 3 0.15
5 Lowest Complaints Rate 0.05 2 0.10 2 0.10
6 Innovation 0.08 3 0.24 3 0.24
7 Customer loyalty 0.07 3 0.21 3 0.21
8 Good Reputation 0.06 2 0.12 3 0.18
9 Strongest Financial Base 0.08 2 0.16 2 0.16
Weakness
1 High level of taxation 0.08 4 0.32 3 0.24
2 Lower Market share 0.06 - -
3 Limited Packages 0.04 2 0.08 2 0.08
4 Management 0.06 - -
5 Low Network Coverage 0.05 2 0.10 3 0.15
6 Lack market positioning 0.07 - -
Total 1.00 5.07 5.15


QSPM Technique is designed to find out the relative attractiveness of feasible
alternative actions. Total attractive score of both strategies are mentioned above.
Here we find higher score of second numberstrategy which is Reassess the
existing markets and gain market position where they are not competent. This is
more attractive strategy and Warid telecom must follow it

Step 9

Long term objective:

1 MARKETING OBJECTIVE
1. To ensure highest level of telecommunications service and customer care.
2. Competitive advantage over competitors.
3. To increase market share to 25% of the total market in the year 2012 14.
4. Offer competitive rates in the market
5. Increase in market reach through effective advertisements.
6. Achieve effective brand awareness within consumer market.
2 FINANCIAL OBJECTIVE
Core financial objectives that will be gained are as follows:
Improved cash flows
Greater Earnings
Strengthen financial base
Wide Profit margins
These core objectives will be achieved by selling at competitive rates with more quality
offering and more importantly the promotional campaigns to gain greater customer
attraction.
Strategies

Through this analysis it is concluded that Warid currently lies in first quadrant and required to
develop aggressive tone in its strategies and activities. To ensure this following can be the
strategies that can be adapted.

Market Penetration
Market Development
Product Development
Backward Integration
Forward Integration
Conglomerate Diversification
Concentric Diversification

Step 10

How recommendations will be implemented

Low Competitor presence in Northern and Rural areas poses a real opportunity and is one
defined criteria upon which the appropriate strategy will be chosen.
Other criteria will be proper positioning in customer minds.
Improving product offerings with variation in existing offerings.
Keeping choice criteria in mind and provided that Warid currently lies in 1st Quadrant. We will
choose two strategies that will work in accordance to set criteria. These two strategies will be:
Market penetration
Market development
In order to implement desired strategy following will be the path of action:
By choosing for the Market Penetration strategyWarid has been able to attract a large number
of buyers and a growing market share. Thus by achieving a high sales volume, they are able to remain
or progress in the market. In market penetration we go for bundling and low price strategies.
Bundling
Low price
Promotion wayswill consider current lacking in Warid promotional campaigns we will go for more
aggressive campaigning including activities that will serve multiple objective of company. This
range of activities will include promotional songs under Warid logo, more creative and humour
oriented ads that will create a more lasting image of Warid in mind of customer while it will
also create greater brand awareness. Warid will also organize LAN gaming activities to involve
youth at greater lever.
Warid is currently lacking behind in market share as its network coverage is limited as compare
to other cellular services operating in Pakistan. In order to expand its customer base we will
follow market development strategy. Through market development strategy we will cover
northern and rural areas of Pakistan using existing product and services. Warid can fill this gap
and can increase its market share and it revenue base.
ACTIVITIES TO BE IMPLEMENTED
Sales representatives target all the untapped markets, by using WARIDs current
products.
Product line should be extended by offering new service for the customers.
Warid is lacking in communication with its customers so its core focus will be on this
activity.
There should be decentralization decision making and employee should be encouraged
for their opinions which is currently lacking behind due Seth culture in Warid
More budget and resources should be allocated to advertisement and sales promotion
in order to create better and lasting image of Warid in customers mind.
Role of R&D should be increased to help
a) Target markets most effectively
b) To get knowledge about consumers preferences

HOW IMPLEMENTATIONTO BE DONE
Develop desirable skills in the employees who are assigned the basics of target
implemented these skills may include.
The ability of sales force, personnel in finance department, expert in R&D etc, should
first understand the nature of the tasks or tasks importance for the company.
To increase the ability to put right people on right jobs .i.e. the person of finance dept.
should not be given the tasks of R&D, which is highly sensitive and innovation field.

Clarity in communication
Rapid and accurate movement of information should be confirmed .To do so efficient
and effective feedback systems should be introduced.
Proper time period should be given for the start and end of the task and each personnel
related to that specific job should be given complete information about the geographic
area of his/her sales and the volume to be sold in case personal selling and sale
promotion.(the balanced score board technique may be adopted)

Step 12

For evaluation and control a comprehensive audit of all the dept will be done. By
comparing the current results to that of company objectives. They get comprehensive
information from all the departments carefully and its analysis is conducted with great
care. The results are analysed with great emphasis on the companys behalf.

If there appears any deficit then revise their strategies implement them and then get
the results and if there are no loop holes found they continue to implement that
strategy for the specified period of time.

This whole evaluation process will be conducted twice a year.












Strategic Managment
Project

Warid Case Analysis


Submitted to: Sir.Noumanahmed
(M.S department M.A jinah campus comsatslhr)