Business Policy and Strategy 1

Rabia Iram

Business Policy and Strategy

2nd Assignment

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 2

Acknowledgment

By the Grace of Almighty, the most Merciful, the most Beneficial, I'm today
submitting my 2nd Assignment report, at the end of my pragmatic experience and
I'm glad to have it with MOBILINK, where you come first, only if you're the
customer. Thirst of learning is inside you, and whatever the environment, if you're
willing to learn, you do. At Mobilink, I had a new, challenging, yet a perfect
environment to learn. My parents' prayers and their teachings were always with
me and hereby I will like to take this opportunity to show my gratitude to all those
who made my internship an adventurous outwit.
. .
Here I am, from more professional and rather corporate environment of
Mobilink Franchise Okara. I never knew what it all going to be. As I enter the
branch, it took me a minute to realize that the person sitting in the half fortified
walls is the manager. Maybe I was expecting him in a glass sheeted room. At a
glance, I grasped the interesting personality of the manager and today at the end
of my internship; he’s one of the persons I’ll always remember. Sir I learnt from
you is always going to be respected, no matter whatever business field I choose.
Those tips are always in my memory bag.

Despite of the most hectic schedule, my teacher helped me so much. I'm

really grateful to you for clarifying my concepts and making me learn from your
experience. Whatever I learnt from you will definitely help me in my upcoming
study and the professional life ahead. Thank you so much for being so co-
operative and so helpful every time. I hope I have been up to your expectations.

Rabia Iram

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 3

Table of Contents
Title Page No.
Acknowledgment 2
Table of Contents 3
INTRODUCTION 4-6
Management 6-7
Planning 7-13
MOBILINK 14
About Mobilink 14-18
STRATEGY FORMULATION 18-23
SWOT Analysis 23
Conclusion 24
Recommendation 25-26
References 26

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 4

INTRODUCTION

It is useful to consider strategy formulation as part of a strategic management

process that comprises three phases: diagnosis, formulation, and
implementation. Strategic management is an ongoing process to develop and
revise future-oriented strategies that allow an organization to achieve its
objectives, considering its capabilities, constraints, and the environment in which it
operates.
There are four primary steps in this phase:
* Reviewing the current key objectives and strategies of the organization,
which usually would have been identified and evaluated as part of the
diagnosis
* Identifying a rich range of strategic alternatives to address the three levels
of strategy formulation outlined below, including but not limited to dealing
with the critical issues
* Doing a balanced evaluation of advantages and disadvantages of the
alternatives relative to their feasibility plus expected effects on the issues
and contributions to the success of the organization
* Deciding on the alternatives that should be implemented or
recommended.

Formulation of Goals: Goals are “what” a business unit wants to achieve.

• First perform a SWOT analysis
• Next, formulate goals with specificity as to time (by when it will be
performed) and magnitude or quantity (by how much it will be changed). An
organization will normally have a mixture of goals.
• Order your goals from broad to specific categories: for example from
increasing net earnings by 20%-dansk- to increase revenues by 15% and
reduce expenses by 12 % in certain areas.

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 5

• Confirm that your goals relate realistically to the results of the SWOT
analysis performed.
• Examine your goals to make sure they are not at cross purposes with one
another. For example, short term versus long term goals; sales goals
versus profit goals; high growth versus low risk; development of new
products versus deepening existing markets.
• This process is often called Management by Objective or MBO

Strategy Formulation: Strategy is “How” a business unit will achieve what it

wants. Michael Porter, HBS professor and worldwide competitive strategy expert
breaks types of strategy into three categories:
• An Overall Cost Leadership Strategy
• A Differentiation Strategy
• A Focus Strategy

Strategic Formulation:
Strategic formulation means a strategy formulate to execute the business
activities. Strategy formulation includes developing:-
� Vision and Mission (The target of the business)
� Strength and weakness (Strong points of business and also weaknesses)
� Opportunities and threats (These are related with external environment for
the business)
Strategy formulation is also concerned with setting long term goals and
objectives, generating alternative strategies to achieve that long term goals and
choosing particular strategy to pursue.
The considerations for the best strategy formulation should be as follows:
� Allocation of resources
� Business to enter or retain
� Business to divest or liquidate
� Joint ventures or mergers

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 6

� Whether to expand or not

� Moving into foreign markets
� Trying to avoid take over

Management
The functions of management consist of five basic activities: planning, organizing,
motivating, staffing, and controlling. An overview of these activities is provided in
Table.

Planning:
Planning is the:
� Start of the process
� Bridge between present and future
� Increases likelihood of achieving desired results

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 7

The only thing certain about the future of any organization is change, and
planning is the essential bridge between the present and the future that increases
the likelihood of achieving desired results. Planning is the process by which one
determines whether to attempt a task, works out the most effective way of
reaching desired objectives, and prepares to overcome unexpected difficulties
with adequate resources. Planning is the start of the process by which an
individual or business may turn empty dreams into achievements.
Planning enables one to avoid the trap of working extremely hard but achieving
little.
Planning is an up-front investment in success. Planning helps a firm achieve
maximum effect from a given effort. Planning enables a firm to take into account
relevant factors and focus on the critical ones. Planning helps ensure that the firm
can be prepared for all reasonable eventualities and for all changes that will be
needed. Planning enables a firm to gather the resources needed and carry out
tasks in the most efficient way possible. Planning enables a firm to conserve its
own resources, avoid wasting ecological resources, make a fair profit, and be
seen as an effective, useful firm. Planning enables a firm to identify precisely what

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 8

is to be achieved and to detail precisely who, what, when, where, and why needed
to achieve desired objectives.
Planning enables a firm to assess whether the effort, costs and implications
associated with achieving desired objectives are warranted. Planning is the
cornerstone of effective strategy formulation. But even though it is considered the
foundation of management, it is commonly the task that managers neglect most.
Planning is essential for successful strategy implementation and strategy
evaluation, largely because organizing, motivating, staffing, and controlling
activities depend upon good planning.
The process of planning must involve managers and employees throughout an
organization. The time horizon for planning decreases from two to five years for
top-level to less than six months for lower-level managers. The important point is
that all managers do planning and should involve subordinates in the process to
facilitate employee understanding and commitment.
Planning can have a positive impact on organizational and individual
performance. Planning allows an organization to identify and take advantage of
external opportunities and minimize the impact of external threats. Planning is
more than extrapolating from the past and present into the future. It also includes
developing a mission, forecasting future events and trends, establishing
objectives, and choosing strategies to pursue.

CORPORATE LEVEL STRATEGY

This comprises the overall strategy elements for the corporation as a whole, the
grand strategy, if you please. Corporate strategy involves four kinds of initiatives:
* Making the necessary moves to establish positions in different businesses
and achieve an appropriate amount and kind of diversification. A key part
of corporate strategy is making decisions on how many, what types, and
which specific lines of business the company should be in. This may
involve deciding to increase or decrease the amount and breadth of

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 9

diversification. It may involve closing out some LOB's (lines of business),

adding others, and/or changing emphasis among LOB's.
* Initiating actions to boost the combined performance of the businesses
the company has diversified into: This may involve vigorously pursuing
rapid-growth strategies in the most promising LOB's, keeping the other
core businesses healthy, initiating turnaround efforts in weak-performing
LOB's with promise, and dropping LOB's that are no longer attractive or
don't fit into the corporation's overall plans. It also may involve supplying
financial, managerial, and other resources, or acquiring and/or merging
other companies with an existing LOB.
* Pursuing ways to capture valuable cross-business strategic fits and turn
them into competitive advantages -- especially transferring and sharing
related technology, procurement leverage, operating facilities, distribution
channels, and/or customers.
* Establishing investment priorities and moving more corporate resources
into the most attractive LOB's.

COMPETITIVE (BUSINESS LEVEL) STRATEGY

In this second aspect of a company's strategy, the focus is on how to compete

successfully in each of the lines of business the company has chosen to engage
in. The central thrust is how to build and improve the company's competitive
position for each of its lines of business. A company has competitive advantage
whenever it can attract customers and defend against competitive forces better
than its rivals. Companies want to develop competitive advantages that have
some sustainability (although the typical term "sustainable competitive advantage"
is usually only true dynamically, as a firm works to continue it). Successful
competitive strategies usually involve building uniquely strong or distinctive
competencies in one or several areas crucial to success and using them to
maintain a competitive edge over rivals. Some examples of distinctive
competencies are superior technology and/or product features, better
Presented to: Sir. Nadeem Akram
Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 10

manufacturing technology and skills, superior sales and distribution capabilities,

and better customer service and convenience.

Competitive strategy is about being different. It means deliberately

choosing to perform activities differently or to perform different
activities than rivals to deliver a unique mix of value. (Michael E. Porter)

The essence of strategy lies in creating tomorrow's competitive

advantages faster than competitors mimic the ones you possess
today. (Gary Hamel & C. K. Prahalad)

We will consider competitive strategy by using Porter's four generic strategies

(Porter 1980, 1985) as the fundamental choices, and then adding various
competitive tactics.

Porter's Four Generic Competitive Strategies:

He argues that a business needs to make two fundamental decisions in

establishing its competitive advantage: (a) whether to compete primarily on price
(he says "cost," which is necessary to sustain competitive prices, but price is what
the customer responds to) or to compete through providing some distinctive points
of differentiation that justify higher prices, and (b) how broad a market target it will
aim at (its competitive scope). These two choices define the following four
generic competitive strategies. which he argues cover the fundamental range of
choices. A fifth strategy alternative (best-cost provider) is added by some
sources, although not by Porter, and is included below:
1. Overall Price (Cost) Leadership: appealing to a broad cross-section of the
market by providing products or services at the lowest price. This requires being
the overall low-cost provider of the products or services (e.g., Costco, among
retail stores, and Hyundai, among automobile manufacturers). Implementing this
strategy successfully requires continual, exceptional efforts to reduce costs --
Presented to: Sir. Nadeem Akram
Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 11

without excluding product features and services that buyers consider essential. It
also requires achieving cost advantages in ways that are hard for competitors to
copy or match. Some conditions that tend to make this strategy an attractive
choice are:
* The industry's product is much the same from seller to seller
* The marketplace is dominated by price competition, with highly price-
sensitive buyers
* There are few ways to achieve product differentiation that have much
value to buyers
* Most buyers use product in same ways -- common user requirements
* Switching costs for buyers are low
* Buyers are large and have significant bargaining power

2. Differentiation: appealing to a broad cross-section of the market through

offering differentiating features that make customers willing to pay premium
prices, e.g., superior technology, quality, prestige, special features, service,
convenience (examples are Nordstrom and Lexus). Success with this type of
strategy requires differentiation features that are hard or expensive for
competitors to duplicate. Sustainable differentiation usually comes from
advantages in core competencies, unique company resources or capabilities, and
superior management of value chain activities. Some conditions that tend to favor
differentiation strategies are:
* There are multiple ways to differentiate the product/service that buyers
think have substantial value
* Buyers have different needs or uses of the product/service
* Product innovations and technological change are rapid and competition
emphasizes the latest product features
* Not many rivals are following a similar differentiation strategy

3. Price (Cost) Focus: a market niche strategy, concentrating on a narrow

customer segment and competing with lowest prices, which, again, requires
Presented to: Sir. Nadeem Akram
Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 12

having lower cost structure than competitors (e.g., a single, small shop on a side-
street in a town, in which they will order electronic equipment at low prices, or the
cheapest automobile made in the former Bulgaria). Some conditions that tend to
favor focus (either price or differentiation focus) are:
* The business is new and/or has modest resources
* The company lacks the capability to go after a wider part of the total
market
* Buyers' needs or uses of the item are diverse; there are many different
niches and segments in the industry
* Buyer segments differ widely in size, growth rate, profitability, and
intensity in the five competitive forces, making some segments more
attractive than others
* Industry leaders don't see the niche as crucial to their own success
* Few or no other rivals are attempting to specialize in the same target
segment

4. Differentiation Focus: a second market niche strategy, concentrating on a

narrow customer segment and competing through differentiating features (e.g., a
high-fashion women's clothing boutique in Paris, or Ferrari).

Cooperative Strategies:
Another group of "competitive" tactics involve cooperation among
companies. These could be grouped under the heading of various types of
strategic alliances, which have been discussed to some extent under Corporate
Level growth strategies. These involve an agreement or alliance between two or
more businesses formed to achieve strategically significant objectives that are
mutually beneficial. Some are very short-term; others are longer-term and may be
the first stage of an eventual merger between the companies.
Some of the reasons for strategic alliances are to: obtain/share technology,
share manufacturing capabilities and facilities, share access to specific markets,
reduce financial/political/market risks, and achieve other competitive advantages
Presented to: Sir. Nadeem Akram
Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 13

not otherwise available. There could be considered a continuum of types of

strategic alliances, ranging from: (a) mutual service consortiums (e.g., similar
companies in similar industries pool their resources to develop something that is
too expensive alone), (b) licensing arrangements, (c) joint ventures (an
independent business entity formed by two or more companies to accomplish
certain things, with allocated ownership, operational responsibilities, and financial
risks and rewards), (d) value-chain partnerships (e.g., just-in-time supplier
relationships, and out-sourcing of major value-chain functions).

FUNCTIONAL STRATEGIES
Functional strategies are relatively short-term activities that each functional area
within a company will carry out to implement the broader, longer-term corporate
level and business level strategies. Each functional area has a number of
strategy choices that interact with and must be consistent with the overall
company strategies.
Three basic characteristics distinguish functional strategies from corporate
level and business level strategies: shorter time horizon, greater specificity, and
primary involvement of operating managers.
A few examples follow of functional strategy topics for the major functional
areas of marketing, finance, production/operations, research and development,
and human resources management. Each area needs to deal with sourcing
strategy, i.e., what should be done in-house and what should be outsourced?

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 14

MOBILINK

Introduction:
Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was
established in 1998 and has grown to become a major player in the
telecommunication market in the world. OTH is considered among the largest and
most diversified network operator in the Middle East, Africa and Pakistan.
About Mobilink:
Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, is the market leader in
providing state-of-the-art communications solutions to over 3.4 million people in Pakistan.
They can proudly boast of being the first cellular service provider in Pakistan to operate
on a 100% digital GSM technology. Mobilink GSM started operations in the year 1994,
from then on it has shown enormous growth.

Mobilink Coverage:

Mobilink provides the most extensive network coverage footprint across

Pakistan through an integrated technology infrastructure in more than 5,000
cities, towns, villages, and countless remote destinations, including
International Roaming in 110 countries through 300 partner operators.
Market Share:

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 15

In April 2001, when the OTH (Orascom

Telecom Holding) took over management
control of the company, the market share
was only 40% but as of March, 2006;
Mobilink served over 14 million subscribers,
representing a market share of approximately
56.2% of total mobile subscribers in Pakistan.
However, during the past two years the market share of Mobilink has gone down
to 41% (As of March, 2007).

Competition Status:
Competition faced by the company is
from al the operators in telecom that
includes all the face SGM (Global
System of mobile) operators, CDMA
operators and LDI operators and land
line operators. All these telecom
companies Human Resource
Departments are in constant need of
new employees. So there is stiff competition in the telecom market for Mobilink.
Comparison with competitors in the market is shown as in the table.
Presented to: Sir. Nadeem Akram
Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 16

Number of subscribes:
The number of subscribes of Mobilink has been fast increasing since year
2000,the number of
subscribes of
Mobilink has almost
doubled in the last
one year from 5
million approx to 10
million approx this
figure has almost increased by 50 times as it was in year 2000. This in fact is a
milestone for Mobilink. Currently the company has a customer base of over 24
million and its growing.

Market Share
Mobilink had a great advantage for years as being the only GSM mobile operator
in Pakistan, however with the entrance of Ufone in 2001 and later on by Telenor,
Warid and Zong, the competition in the mobile sector is heating up. However the
subscriber base Mobilink has remained steady and growing as seen in the table
below:
Table 1: Number of Mobilink Subscribers from 2005-July 20081

Year 2005 2006 2007 July-2008

Subscribers 7,469,085 17,205,555 26,466,451 32,056,336
% Change - 130.3 53.8 21.1
Although the number of subscribers has increased over the years, the same
cannot be said about the market share of Mobilink, which has gradually
decreased over the year. However, although the market shares of Mobilink might
have decreased over the years, but it still remains the market leader in the mobile
sector. The market shares of Mobilink are as follows:
Table 2: Market Shares of Mobilink from 2005-20072

1
2

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 17

Years 2005 2006 2007

Market Share 51.4% 46.3% 39.8%
Change - (5.1%) (6.5%)

ACHIEVEMENTS:
ISO 9002 Quality Management System Certification for Billing,
Engineering Departments and CS Contact Center Biggest Call Center in Pakistan,
which is there to assist the customers 24 hours.
� Bilateral-roaming agreements signed with 100 countries around the world to
have true roaming service operational in 151 operators of the world.
Mobilink GSM Short Message Service Center allows Vehicle Tracking and Fleet
Management services that are being provided by Tracker (Pvt.) Ltd. under the
brand name of C-Track, a company licensed by Pakistan Telecom authority
(PTA). Tracker currently operates from Karachi but can provide these facilities at
all those locations where GSM coverage is available

Mobilink's Values:

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 18

Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trust and
confidence in us. In return, we strive to anticipate their needs and deliver service,
quality and value beyond their expectations.

Business Excellence:
We strive for excellence in all that we do. We aspire to the highest standards and
raise the bar for ourselves everyday. This commitment to delivering world-class
quality translates into unmatched service and value for our customers and all
stakeholders.

Trust & Integrity

At Mobilink, we take pride in practicing the highest ethical standards in an open
and honest environment, and by honoring our commitments. We take personal
responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and
all stakeholders. We believe in teamwork, empowerment and honor.

Corporate Social Responsibility:

As the market leader, we recognize and fulfill our responsibility towards our country and
the environment we operate in. We contribute to worthy causes and are dedicated to the
development and progress of the society

STRATEGY FORMULATION

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 19

VISION

To be the leading Telecommunication Services Provider in Pakistan by

offering innovative Communication solutions for our Customers while
exceeding Shareholder value & Employee Expectations

Mission and Objectives:

Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trust and
confidence in us. In return, we strive to anticipate their needs and deliver service,
quality and value beyond their expectations.

Business Excellence:
We strive for excellence in all that we do. We aspire to the highest standards and
raise the bar for ourselves everyday. This commitment to delivering world-class
quality translates into unmatched service and value for our customers and all
stakeholders.

Trust & Integrity:

At Mobilink, we take pride in practicing the highest ethical standards in an open
and honest environment, and by honoring our commitments. We take personal
responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and
all stakeholders. We believe in teamwork, empowerment and honor.

Corporate Social Responsibility

As the market leader, we recognize and fulfill our responsibility towards our

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 20

country and the environment we operate in. We contribute to worthy causes and
are dedicated to the development and progress of the society
STRATEGIES AT MOBILINK
The findings mentioned reflect three types of major strategies employed by the
organization at various levels. Namely they are:
1). Corporate level strategy
2). Business level strategy
3). Functional level strategy
Corporate Level Strategy:
As their corporate level strategy, they have entered into partnerships with
different organizations.
On the basis of findings, it appears that for the past few years (1999-2003),
Mobilink had a focus on internal growth. All this is evident from the fact that since
the deregulation of the mobile service industry of Pakistan, Mobilink has
undertaken various efforts to ensure that it changes its stance from concentrating
on its existing market to growing its market presence. The main reason for this
change is mainly to keep up with the competition and to retain and increase its
market share. This transition is obvious in Mobilink’s repositioning itself and hitting
the market with a new face with the catchphrase “Reshaping communication”
With the threat of new entrants into the industry after the deregulation, Mobilink’s
strategy took a new turn. To keep abreast with the company, Mobilink took the
following steps during the last 2 years:
� E xpanded its international roaming Service scope in 14 more countries
including Vietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria,
South Africa, Ethiopia, Uganda, Sudan, Bahrain, Caribbean Islands. Bilateral
roaming agreements signed with 100 countries around the world to have true
roaming service operational in 151 operators of the world.
�PROMOTIONAL CAMPAIGNS LAUNCHED
� JAZZ BUNDLE OFFERS: These bundles include a handset, a JAZZ
connection and airtime worth Rs. 200

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 21

� INTERNATIONAL SUMMER PROMOTION: Discounted international tour

packages to Sri Lanka, Malaysia and Maldives
� “JAZZ-AUR-SUNAO”, “LIFE MEIN JAZZ LAO” (a change in the marketing
strategy)
� Indigo packages deliver nation wide cellular freedom at local Call rates
� Exclusive deals to 6 northern area destination including Chitral, Galliat, Hunza,
Kaghan , Skardu and Swat.
� Roam the World: year long promotion including travel to the Holy Land in
Ramadan, avail amazing offers at the Dubai Shopping Festival, be a part if the
FIFA World Cup in Germany or visit Paris, Milan, London and NY.
Joint Promotional Agreements with Various Organizations
�JAZZ-HYUNDAI BUNDLE OFFER: Jazz connection and a latest Hyundai L-
120 phone set for only Rs. 2750
�Jazz member Get Member: Opportunity for customers to become the brand’s
ambassador and at the same time earns Rs. 400 in airtime. The new Jazz
customer will also get Rs.100 free airtime.
�Mobilink’s Nokia 9500 offer
�MOBILINK-AVIS partnership: Mobilink joined hands with AVIS, a global brand
and the world’s leading car Rental Company to offer discounted car rental rates
(locally as well as internationally) to all Mobilink post-paid customers.
Foreigners visiting Pakistan using the Mobilink network for cellular services swore
able to receive a 20% discount on Avis-Car rental Service.
�Mobilink and UBL launch online bill payment facility for Indigo subscribers
�MOB- Motorola V3 launch
�Mobilink –CITIBANK Joint Promotion (free INDIGO and Call n Control
connections to all Citibank Credit Card members)
�Handset Kiosk inside Mobilink Service Center: a ‘hand-set Kiosk’ set up at
Mobilink service center at Awami Markaz, Karachi. The kiosk was set up in
collaboration with Mobile Zone. It gave customers the added convenience of
purchasing quality hand sets of leading manufacturers such as Nokia Samsung or

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 22

Sony Ericson right from Mobilink Service Center. On every purchase the
customers would get some free gifts to add more value to their purchase.
Business Level Strategy
As their business level strategy it has focused on Differentiation strategy ever
since it started. Mobilink has always made successful attempts to distinguish their
products or services from other in the industry. They make their product unique
through:
Advertising
� Highly creative people in the marketing dept
� Billboards, TV commercials, bringing in famous personalities from media to
endorse their packages
Functional Level Strategy
Sales and Marketing
�Differentiation Advantage:
�Because they target the customer groups they offer tariff plans that are
exclusively designed to cater to the communication needs of a diverse group of
people, taking into account occasional users to businessmen. To achieve this
objective, they offer both postpaid (Indigo) and the prepaid (JAZZ) solutions to
their customers
�The marketing department immediately identifies and responds to the customer
needs
�Comes up with interesting marketing strategies which include advertising,
Commitment to Total Customer Satisfaction:
Customers are at the heart of my success. They have placed their trust and
confidence in us. In return, I strive to anticipate their needs and deliver service,
quality and value beyond their expectations.
Passion for Business Excellence:
I strive for excellence in all that I do. I aspire to the highest standards and raise
the bar for myself everyday. This commitment to delivering world-class quality
translates into unmatched service and value for my customers and all
stakeholders.
Presented to: Sir. Nadeem Akram
Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 23

Trust & Integrity:

At Mobilink, I take pride in practicing the highest ethical standards in an open and
honest environment, and by honeying my commitments. I take personal
responsibility for my actions, and treat everyone fairly, and with trust and respect.
Respect for People:
My relationships drive my business. I respect and esteem my employees and all
stakeholders. I believe in teamwork, empowerment and harmony.
Responsible Corporate Citizen:
As the market leader, I recognize and fulfil my responsibility towards my country
and the environment I operate in.

SWOT Analysis

Strengths:
• Strong Brand Image
• Potential customers
• Highest Coverage
• First to introduce IR
• M2 Motorway coverage
• Biletral roaming with 50 operators
• Motorola Time port Tri band (TT) handsets
• Tracking and Fleet (VTF) Management services.

Weakness:
• Currently providing not good quality service because of changing their
• Network from 900 MHz to 1800 MHz.
• Fewer advertisements now days.
• Most expensive telecom company both in call rates and SMS
• Weak customer retention
• Engineering department of Mobilink is not well competent

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 24

Opportunities

• Can expand its networks in the uncovered areas

• Services in the future can be
• Telephone
• Wireless
• Calling Cards
• Can target maximum corporate Customers
• Lower prices

Threats:
• New market players
• Competitors can offer packages for corporate customers in better way.
• Wireless local loop service providers
• Brand names survival.
• Corporate customers can shift to other companies
• Employee retention
• Loss of loyal customer

Conclusion

The mobile industry has seen phenomenal growth over the year, showing growth
rate of more than 80% in 2007. This growth is not new to the industry, as previous
years have shown substantial growth as well. This growth is a direct result of the
increased competition in the mobile industry, resulting into better services at
reduced rate. Furthermore, this has favorably affected our economy as a whole,
generating revenues for the government, through direct and indirect taxation and
creating employment opportunities for the people. The mobile industry of Pakistan
is considered by a majority of prospective employees as the best industry for a
job.

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 25

Mobilink has been in operation since 1994, and since then has become the
market leader by providing its customers with the state of the art products and
services. Mobilink has for years enjoyed a good market share of the total industry;
its current market share is 36%3.
Even though Mobilink has been a market leader, for so many years, providing the
most technological advanced products and services, it has for a number of years
been facing strong competition from Telenor and Ufone, which has resulted in a
decrease of its market share. This has led Mobilink to a policy of diversification, by
introducing products like Mobilink PCO and WIMAX services. Although Mobilink
has diversified, it still is providing competitive products and services for its core
products-Jazz and Indigo.
Finally, internships are an important part of the academic program, as they
provide us with the practical experience during our academic career. I am very
grateful that I received an internship at Mobilink as it was a great learning
experience on how a multinational company works and further improved my skills
of team working and critical decision making.

Recommendation

The problem that I identified was the lack of job rotation within department and not
enacting on job advancement rules and procedures. Some of the
recommendations to this problem are as follows:
Firstly I would recommend that the department officially start job rotation. The
major benefit of which would include even more motivated employees, with
enhanced skills.
One of the major arguments against job rotation is that without it, employees will
perform only one task and will become specialized in that particular job.
Furthermore, the argument also suggests, that with job rotation, only general
information is imparted to employees, not essentially helpful in doing complex
tasks. However, in today’s business environment, multitasking is becoming more

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad
 Business Policy and Strategy 26

and more essential and thus rotation becomes essential in making employees
multitask.
Furthermore, the organization structure of the treasury department makes it easy
for job rotation, as all sub departments major functions are interlinked to each
other and mostly all departments currently have more than one associate
employee, except cash management.
Secondly I would also suggest that specific job related training should also be
imparted to the employees, this would have an additional benefit of further
improving their current skills and knowledge, while attaining new through job
rotation. Also professional counseling programs should also be started to provide
employees with the information, regarding future prospects at Mobilink and in the
mobile industry.
Lastly, I would suggest, that Mobilink adheres to its job advancement procedures
because for an employee that has worked with Mobilink for more than 2-3 years,
they should be awarded with the fruits of job advancement, as I believe that the
criteria of job advancements currently used is a standard in most MNC’s and job
advancements are a part of career growth. Furthermore, job advancement s will
create future leaders for Mobilink.

Selected References:
• Mobilink (mobilinkgsm.com)

• Pakistan Telecommunication Authority (pta.gov.pk)

• Porter, Michael E. (1980). Competitive Strategy: Techniques for

analyzing industries and competitors. New York: Free Press.

• Porter, Michael E. (1985). Competitive advantage: Creating and sustaining

superior performance. New York: Free Press.

Presented to: Sir. Nadeem Akram

Allama Iqbal Open University, Islamabad