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UFone success strategy with reference to regional perspective
Writing this comprehensive dissertation was a really critical and challenging task above all this process I have faced quiet a lot of difficult time during the whole process of research and finding, although when I thought about this interim project I was not expecting it to be so challenging but during the process it self it had many barriers and unexpected situation appeared making it a very daunting task.
There is no doubt of any kind I my self have invested lot of my time and devotion to this research and in the complementation of this report but during my whole journey I was never de motivated and alone I got the full corporation and support from my respected lecturer Mr. Kashif Ali my family supported me on the whole due course they all give the full relevance guidance and moral support I needed to accomplish this task, I am also thankful to all my love ones who were always there with me last but not least I am very grateful to all the UFONE management staff who were in touch with me and helping me getting relevant information while completing my research.
Table Of Content
This document is about the dissertation project that elaborates the UFone success strategy with reference to regional perspective. It includes a research to do an extensive study on U fone in Pakistan enabling readers to closely understand the company success and firm establishment in Pakistan. A major programme of market research will be carried out to assess the same.
The main aim of this study is to explore the factors and considerations which give rise to local strategies development in marketing and sales. In order to achieve the above mentioned primary & secondary both researches will be carried out. In primary research qualitative and quantitative research will be carried out which will include interviewing marketing officials of U fone. The data collected will be analysed closely to produce findings.
Ufone is the upcoming second most largest telecommunication company in Pakistan , the head office is primarily located in 13-B,F-7 Markaz Islamabad ,Pakistan. It is mutually understood every organization large or small it depends on the people which are running them as it is considerably understood telecom sector in Pakistan is growing very rapidly in Pakistan with new emerging companies growing and getting licence the up growing competition is going tough as a core result the consumers are getting a direct benefit getting lower call rates making the companies profit lower than usual.
Ufone commenced its operation under the title brand name of Ufone from the date January 29,2001.Ufone is providing two types of network that is Pre & Post pay. It has some exciting packages in Post pay such as Uwon ,Public demand, Ushare etc. as we see in its post pay packages it is providing a Black berry and value added services etc.
Ufone has always played a meaningful role in the market it has supported innovation and new brands of product in the market with simplified policy with no hidden cost and additional charges. It has a vast network coverage of about as far more than 5885 locations in Pakistan and covered all the major and particular areas in the region the major horse back competitor for Ufone is Mobilink which is holding about 910,000 current subscriber while Ufone has 565,000 existing customer as the further report and analysis says there is about 70.60% annual growth share in this sector in Pakistan .This as whole the research is based on elaborating some drawback in ufone strategy that why it failed to be a market leader what were the lapses and it failed to capture the whole market and subdue the Mobilink.
The company itself started its market operation on 29 January 2001under the brand name of Ufone from the capital state Islamabad its coverage soon covered the major cities in Pakistan after PTCL privatization Ufone is comprehensively owned by Etisalat.
At the early stage during its privatization around 26% of its share was acquired by emirates Telecommunication Company being a consolidated part of PTCL Ufone is now owned by Etisalat.
During this part Ufone continue continued on its on growing part of the success covering and capturing major cities around Pakistan and ultimately have covered its standard operation in around 5885 locations across the country.
It applied a policy of the most simplified tariffs which resulted in a positive attitude from its customers and made its impact the total subscriber base for Ufone is 19.4 million.
It carries its international roaming to more than 130 countries in around the world which include Saudi Arabia .United Kingdom, Saudi Arabia, UAE, Thailand, Cyprus, Srilanka etc.
Ufone currently caters for International Roaming to more than 230 live operators in more than 130 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia, Sri Lanka, Belgium and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 115 Live Operators across 85 countries.
This document is a proposal to write a dissertation project that elaborates the U Fone success strategy with reference to regional perspective. It includes a detail research that have to do an extensive study on Ufone in Pakistan enabling readers to closely understand the company success and firm establishment in Pakistan. A major programme of market research will be carried out to assess the same.
The main aim of this study is to explore the factors and considerations which give rise to local strategies development in marketing and sales. In order to achieve the above mentioned primary & secondary both researches will be carried out. In primary research qualitative and quantitative research will be carried out which will include interviewing marketing officials of Ufone. The data collected will be analysed closely to produce findings.
At the very early stage Pakistan introduces the first tele network company in Pakistan known as Paktel in 1990 January 2001. the government permitted them a licence to let them continue their operation by Pak Telecom mobile limited to operate the GSM 9000 all around the different cities in Pakistan , Ufone have succeeded to establish it self in the market by proving the given good services it soon covered all the major cities in Pakistan and invested around a whooping $65 million in its up growing setup and the whole infrastructure .
The target market for the Ufone was the middle class by introducing attractive low cost base packages , Ufone is committed for a better care of its customers as soon as they acquire a new connection not only technical facility but to get convenient services and connection. it also stared its GPRS service though it enables to create then consumers in a global village. And bringing MMS innovative services.It also provides info services through which each and individual can get the latest form of information and keep them self updated. ( source www.ufone.com )
The main head office location for the Ufone is 13-B,F7 Markaz Islamabad, Pakistan .
Cities covered 2336.
"Ufone, it's all about U! We are, where you want to be… …At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals & voice quality. Wherever you are, Ufone keeps you connected."
TELECOMMUNICTION INDUSTRY AND MARKETING IN PAKISTAN
In Pakistan, at present almost 6 telecommunication organizations are operating in the country of which 4 companies are foreign and 2 are domestic. Tele communication sector in Pakistan have developed considerably in the last decade thanks to the liberal policies of the government. The main aim of bringing these foreign companies was to expedite the preparation of industrial growth and improve the telecommunication network in Pakistan. The second phase was more concerned with the extensive and competitive environment for the telecommunication industry as more foreign company such as telenor ,zong and warid entered the market all have the support of knowledge base and funds of their foreign principals which have made them first to introduce products, services and innovative technologies to their consumer base. At the same time, by investing heavily on marketing and sales promotions efforts, telenetwork companies have created awareness about their product. ( source www.pta.gov.pk )
The purpose of this study is to take an example of Ufone and access its local strategies regarding marketing in Pakistan and study how they differentiate from global strategies and how Ufone is trying to cope with the marketing problems arising. This study will also elaborate why Ufone could not gain the most of the market share although being the subsidiary of PTCL. Its share is just a bit below. To what extent it is beneficial for Ufone to compete the existing market players. And what measure and differentiation in policies should it make to be in the competition and far play good in the market beating its existing competitor such as Mobilink.
RQ1.Why Ufone is not able to attract a major share of the market?
RQ2. What are the major barriers for Ufone to reach out to its customers?
RQ3. What are the marketing policies adopted by Ufone to free stand in the market place in a busy and competitive sector of telecommunication in Pakistan?
AIM / Objectives
Objectives of this research are to explore the marketing problems which are influencing the development of the business of Ufone in Pakistan. In this extensive research the cultural factors of Pakistan will be analyzed as the main impediment in the organizational and marketing progress of Ufone which portrays it self as one of the leading telecommunication companies in Pakistan. The practices of Ufone will be explored in context with the local market of Pakistan and what changes they are making for their Marketing and services program exclusively for Pakistan, as Pakistan is one of important countries of Asia. Following are the main objectives.
To explore the facts which give rise to differences in marketing campaigns in different environments?
To explore the specifics which are taken into consideration when developing marketing strategies for a population who holds different values when compared to others
To determine till what extent Ufone market strategy is successful in telecommunication sector.
To analyze and examine the external environment to find the new areas which can take Ufone to top.
To determine the marketing strategies of Ufone in the backdrop of its competitors regarding their services and products.
In this research dissertation we are going to discuss different proposal of marketing strategy in order to increase Ufone productivity and how it can increase its market share and what are the due causes and circumstances which are holding its market share grab backward as compared to Mobilink which is the leading company in the market. Further more it will be discussed why Ufone as being the subsidiary of PTCL could not grab the market share the study would purely be based to different laps and loopholes
Left by Ufone in its marketing policies and its managerial system ,as despite of being strong background. For a successful marketing strategy is about the customers and there Devine needs and the ability to much more satisfy the customers needs ,and as per the amount of competition is there it can maturely build up maintain loyalty of customers and a great deal in increase of sales.
As it is evident in today’s business overall environment both business environment and the customer needs are changing rapidly and thereof the strategy needs to be following and considering swot analysis and consider the amount of changes that are taken place respectively. (Chartered Institute of Marketing, 2007)
The strategy should also define and explain that how it is meeting the customer needs and as well for successful and establish the competitors are.
(Chartered Institute of Marketing, 2007).
Sometime customers are as like businesses competitor the strategy vary and has major varying customers and there needs of customer in large connections. (Donath, 2007).
Another drawback with the Ufone is with its human resource management process writhen the company that will also be discussed in the dissertation report, as we see more and discuss in the report will be that Ufone is just a procedure oriented company and it should make a shift to an employee oriented company so as to satisfy and motivate HR, and that Ufone does not take its valued employees into consideration so it should value its staff.
The whole structural setup of the company is centralize, all the policies and targets have to be approved by the parent company .and as we as the departmental level the structure it self is decentralize.
The company itself is head by the CEO of Ufone MR.Mubasir Naqvi
It handles all the promotion and marketing activities for the company which include packages and the brands
CMO ( Mr.Arshad Yaqoob Khan)
HEAD OF DEPARTMENT
It is a valued method of focusing organizations energy and the refined
resources on to a positive and valued action which can ultimately and possibly
lead to the increase in the sale for the company and capture the target
market.A marketing strategy combines the total development of the product its
total promotion, pricing ,managing other elements and other relation. It also
verifies and explain the market segments and the total of resources the
company have and allocate them in a proper way the product positioning and
the most important the marketing mix showing how the organization will
successfully engage its valued customers in the competitive marketing arena,
Corportae strategies and its mission or goals are linked as the customers
constitute the total source of the company’s revenue. all this frame work of
strategy is directly incorporated with the sales ,the overall strategy is
Often to keep marketing in line status with company or the organizations
Mission statements. Strategies may differ depending on the unique situation
of the individual business. However there are a number of ways of
categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: .
According to the Patton (1990) methodology is defined as the “analysis of principles of the method ,rules and postulates employed by discipline of method to be applied within a discipline." Further discussing it is elaborated it is more than a set of simple method rather than having philosophical assumptions. Techniques used such as getting the primary data were as qualitative and quantitative research methods and processes.
Saunders et al (2003) came up with their ‘The Research Process Onion’ which explain and describes different layers, where each layer explains the form and style of data to be collected from different areas of choice from any organization.
[Source: Saunders, M. Lewis, P. and Thornhill, A. (2003)]
Philosophy of Research
(Google.co.uk/ images/ Research Philosophy)
The research philosophy depends totally upon the direction and the way of the overall researcher and the development of the overall knowledge in the vision of complete research process.
There are very number of reasons that why the understanding of philosophical issues are so important. (Smith: 1998).
The circular nature of philosophical questioning is very much helpful itself and thereof it encourages the vital in depth thinking and much over it generates further question in accordance with the relation of the understood topic and consideration. It is also seen that clarifying assumptions related to the personal motives and values are also seen as useful and important when analyzing and planning a research study. According to its classification it explains three main types of reasons why the philosophy may be significant with the particular research refer method. (Easterby –Smith et al: 1997)
The most important it be vitally helpful for the researcher to more refine and explain the research methods to be use in a study it would merely include evidence gathered and the first origin in the way such info is interpreted and how it help to answer the research question.
Secondly the ground knowledge of philosophy guides and enables the examiner and the researcher to differ the methods and avoid misunderstood and unnecessary work by particular approaches at a very early age.
Lastly it helps the researcher to be very much innovative bringing new ideas and creative by adaptation of techniques and method that were previously used outside there knowledge and experience.
Further more there are three main types or genera of research philosophy
From the three above the research philosophy that would be used in my project dissertation would be.
It generally refers to a define set of perspectives and merge philosophies of science which could be hold by an scientific method is the best plausible approach to uncover the process by which both physical and human events occur it assures only reliable knowledge that is based on true sense experience and positive mutual verification. (Gitman.D, 2009).
This section it explains in detail about the research design that is the plan for collecting, organizing, integrating and analyzing the collected data. Here is the discussion about the sample size and the reasons for selecting the sample, the process that will be used for the data to be collected and how that data will be analysed.
According to Malhotra et al (2000) it is critically very important to analyze and have a correct figure to have an account of the nature of study, money and the time while selecting the size of the sample some 30 people including companies’ manager will be targeted to collect the feasible information.
Its one of the most commonly used method in sampling its much more
superior than random sampling as it have an average of much lower errors
.than the random sampling, in this type of sampling a particular group of
people or consumers is selected and made as an subject rather than taken
the whole the people selected will be taken on common grounds with common
Furthermore I will be using this technique in order reduce errors and it time saving more accurate and less expensive and it will help me answer my problem definition questions and to gain my objective. I will take a minimum of 10 interview sessions and online mailed questionnaire will be send to around 20 people.
Getting the research design done, few necessary steps should be developed and analyzed before proceeding towards a questionnaire and interview. The research design should be both qualitative and quantitative.
1. Qualitative method:
It searches the detail meaning and propositions of a
topic tells Why and how of the topic answers. Through analyzing the
unformatted and Unstructured information it dose not rely on the statistical
data but on the true insight of the people about their behaviour, actions,
culture, lifestyle and attitude.
It’s more related to understand issues and phenomena’s and giving detail
answer to the questions with proper understanding to the topic. It’s generally
used to understand the topic or to form a theory that can be future proven by
quantitative research method.
2. Quantitative method:
It searches for answers in a systematic, empirical
and in a Mathematical order through investigating and finding all the
quantitative and Measurable properties of the research project. Analyzing the
information is much Easier and accurate then the qualitative research method,
its much based on scientific And accurate results than just the hypothesis
thereof it proven to be right in every Aspect. Both of the above method of
research would be used as they have its Important in any field research and
they play a vital role in my research.
In this particular research the researcher have chosen the questioner send
through Emails and asked to telephonic conversation in order to collect the
primary data the questioner was asked from the top management of the
companies and were send over to other of its competitors.
There are mainly two types of research approach, namely deductive and inductive approach. The deductive approach develops a theory or hypothesis and designs a research strategy to test those (Saunders et al., 2003). However, on the other hand inductive approach involves the collection of data as a starting point, and then developing a theory as a result of the data analysis .The research approach that will be adopted for this research is the inductive approach. (Thomas W.Lee :2007)
This research intends to explain the relationship between the variables as it takes an explanatory approach. There are two type of research methodology used which are secondary research and primary research approach.
Finding out fact and figures through books, literatures, journals and business reviews .As discussed earlier, to provide and explore insights and understanding of local & to fulfil the objective of this research, qualitative research will be conducted in this report. There are two different interview methods of qualitative research which clarified group and in-depth interview. (Rushkaff, D: 2005)
In this research in depth interview method would be used this particular type of interview is an unstructured, direct and personal interview method and will be better than group interview as it is going to generate much more needed information from the most viable sources on analyzing the individual respondents, uncovering subconscious information, obtaining sensitive information and involving unusual behaviour.( Sekaran .U :1992)
Primary research Is also called field research this involves collection of very important and usable data that does not exist as for the present time ,it is always done after gathering some viable information from secondary data which could be questionnaire or either numbers and many other numerous forms.
Validity and Genarlisability
The validity factor shows the worth and it act as a guarantying Instrument for
the research work. it gives the statistical data the proves the work done
or the research provides a good measure, validity shows that how much
better its is Measured and how much it is reliable. It dependent on whether
people tell the truth or can accurately relate the pas incident. The concept of
generalisability does not restrict the research Work it’s very important to the
fact the work and research done should Imply on many other situations in
different situation at the same field, the idea of it is more ideal than it is
necessary by keeping the above factors in mind as a researcher it will be for
me be very important to keep in mind that when I go for a questionnaire or an
interview the subject participant have ample amount of time to answer the
desired question after his or her proper analyization and they should have
proper space of time to give good answer thus increasing the validity and the
reliability of the Research the research topic and finding should not be bias
and true picture should always be projected and represented. (Thomas E.Scruggs:1971).
I have certain family friends working in U fone for considerable amount of time
and they can help me giving and proving me reliable sources of information
for my research making it very much reliable and correct.(Perry, C :1994)
In this research it is collectively confirmed the reliability would be kept as the
top priority as the research and study work and also the data collection is
limited to the company’s Islamabad office only so no miss match could occur
as all the information is coming from the head office it self but as for seen on
the other hand main threats such as errors or the level of bias is concern I will
personally will make my level best to reduce such probability and get valid
reliable results. Easterby et al (2003)
Facing and analyzing the work as concerned with the ethical issues are very
much Important it should be in a very proper and appropriate consideration
about the Behaviour and controlled appropriate academic conduct of research
Furthermore as a sound researcher I have consider all the ethical code and
issues While performing my research with appropriate behaviour and purely
be using my Research of work, privacy would be the key component as all
that have been Interviewed and questioned is kept confidential. The whole of
the research is simply based on my empirical research and material this is
not Plagiarised and is following the proper code of conduct and language.
De Vaus (2002) has defined questionnaire as being a very general term that
directly relates to the interim collection of the data where all the provided
responded to the given questionnaire are required to give a particular similar
respond to the question. Although it is seen that Oppenheim (2000) is of the
great opinion that the direction Of any one to understand what ever he or she
wants from the questions ,similarly it is very important to highlight that all the
question in the research will be formally used to define the point and
understand the probability of the research topic it self and its purpose.
Question are designed to get the desirable data from the given respondents
Saunders et al (2003)
SELF ADMINSTERED QUESTIONNAIRES
Saunders et al (2006) have greatly made a differentiation among different
situations where questions are used and there methods, it varies from
situation to situation. There are about majorly four types where questioner are
send and collected these are delivery, collection , postal ,telephonic and
online questionnaire. In this research online and telephonic questionnaire data
collection method is used.
Saunders et al (2003) has focused the importance of designing of the
questions by stating that the internal and the validity of the prescribed data.
As in further to collect the primary data and the information, a pre designed
and formulated structure of questions are designed and tested to ensure the
quality data In above all it is designed altogether 10 questions in which 9 are
close ended and 1 is an open ended question, the sole reason to design the
close ended question is that it is time saving easy to answer and have very
low frequency of errors and also seem to be very easy to code.
And as there is one open ended question to give the responded freedom to give there opinion in the short time.
Saunders et al (2003) has described majorly three types of interview
structured ,unstructured and semi structured interview. In this report
structured interviews were taken to save time and to be more precise , so that
the coding must be much easier ,telephonic interviews were taken place key
people from the company were selected and traced for interviews information
and views from the competitors as well.
Market position of telenetwork companies in Pakistan
as it is analyzed clearly that the market share of Ufone is limited to 21% while as its competitor Mobilink the capturing leader in the market having a major share of 36% as it will be discussed and explain later in this chapter what prospect laid and hold back Ufone in Pakistan although being a subsidiary of PTCL as compare to other international network such as Mobilink.
Province Wise Penetration Of Cellular Companies
This graph shows the expanding penetration of different mobile companies in different states and provinces in Pakistan between year 2007 & 2008. where after careful research it is estimated below which company succeeded the major growth ratio .
Coverage Area By Service Providers
As in this graph it is explaining the coverage of different networks in Pakistan the survival for the competition lies in the innovation and new value added products being introduced in the market ,as noted out of 376 Tehsils across Pakistan almost about 77% are currently covered by mobile networks brining the coverage figure up to 290 .
Mobilink is almost covering for about 7011 region and as for Ufone covers about 2986 region in Pakistan and so far the rest is covered by different other networks.
One of the biggest upset of Ufone is that it is unable to meet the demand and facilitate its customers further it is seen that the organizational structure it self is very weak, the centralize structure fails to provide the proper upsweep guidance over the company policies.
Another factor is its dependence on PTCL after analyzing it is also for seen there is great lack of its franchise all over the country even though it has a growing customer base it is not able to support the customer load.
Lacking innovative services although it has some unique and different services but it has failed to provide new product in market quiet often that’s one the big reason it is loosing some of its attention in the market .
When Ufone was introduced in the market it had an existing giant in the market Mobilink which is still giving Ufone a tough time and is the toughest barrier for the Ufone to outplay the market.
As far I researched in the company it self I came across that it is having some internal issues it is running as a plague and it was uprooted when it was getting privatize by Etisalaat.being a core part of PTCL many of its employee were not happy with the new pay scale bringing uncertainty in the company it self.
As the company itself ufone wants to expand globally itself but its future operations are halted due to current economic crunch situation and some internal issues.
Having a great potential it has the ability to expand but its holded back with correct publicity and marketing it can go much further
INTRODUCE KIOSK TECHNOLOGY
It can give a hard hit surprise by introducing its Ufone Kiosk, in which there will be atm like machine to topup for customers from anywhere any time they like as they if like using an atm machine.
Government interference in its policies and heavy taxing posses a great deal of threat to its market position ,further more it is studied in this research is the PTCL cellular licence as Ufone is nothing but just an cellular licence to PTCL therefore it should provide more of it financial support to much more enhance its profit of its subsidiary company.
Pension and Increase Health cost Payouts
Part of its major threat came out from its own past policies it is responsible of providing generous pension benefit to its employees which for a start seemed a good idea but at this time when it had to be paid off it is bringing its impact on company financial bone, similarly health and care issues cost were also seemed to be extra burden on the company it self and is therefore experiencing a large financial hit shrinking its overall budget .
There are some pressure groups that are seemed protesting on the signal towers that are being installed in the residential areas of which people opinions are they are causing serious health issues giving a bad publicity to the company in the market
As the country itself is facing economic crunch it has a direct effect on the Ufone the current recession in the market itself is not good reducing the consumer base and bringing a shortfall in sales
Marketing policies adopted by Ufone to free stand in the market place
Ufone post pay is the brand that keeps up for most of it customers, this brand are for those who expect more from there life for the best possible of the value .
Ufone core status is the value for money it has always kept the lowest call rates making its profit low and try to gain the market share with giving modern technology and giving best of services.
All the service providers are facing intense pricing competition in the market itself they are the heart of brand selection when it comes to the customers so it is very crucial
The plan is to capture the pricing needs of the customers and use it on timely basis e.g giving excellent call rate on eid days and public holidays ,introducing hourly rates in ramzan when people are least likely to avail it thus earning more profit for the company and portraying its good name in the form of a valid offer.
It plays a very valid role in promotion services competitors of Ufone are seeking to penetrate every loophole they find where others haven’t reached every other is widening there networks and coverage in different areas for now Mobilink has this advantage being the oldest in the market Ufone have to grab this in order to sustain the hard competition in the existing market.
Ufone is widening it coverage to all the remote areas in the country to meet the requirement of its increasing customer base . it has intensive promotion in the cities and also thinking to improve promotion in rural areas .
it believes in integrated marketing communication which is seen as a careful blend and mix of value customers it employs different marketing activity and communicative channels which are coordinated to provide maximum output
This is much more effective way to communicate the message Ufone is using this drop back to reach and frequent advertisement it always makes an ads more appealing and there engaging there minds to the product .
Ufone adverts in the following patterns.
Print Media > Printing there ads in various news papers
Broadcast Media > Prior choice using electronic media on tv and radio
Display Media > It is the second most choice of Ufone where it holds most of its advertising such as billboards, hoarding etc. new innovation is also bought in this method where different public icon places are decorated by Ufone cars are painted even public transport are used as painted sign boards for the company.
It is administered by a low level of marketing by Ufone for now at latest it launched the “hajj guide" service on Ufone in order to mingle around people directly and motivating and helping them to go for their product
Ufone direct administers on road project teams as in supported by an umbrella of the franchise where it directly market and sell its sim cards.
In personal selling Ufone adopts the push & pull strategy where sales representative of Ufone pushes the sales making customers buy the product directly this is achieved by through a sales coordinated force recruited for this specific task
Identification Of Main Problem
The main problem faced by the ufone in this era after the careful research is
the increase in taxation amount imposed by the government its not just Ufone
who had the hardest hits its with other telecom companies as well as the
government had increased the amount of GST on telecom and it may have a
very advance impact on this sector facing a decline due to this fact.
Government revenue from the particular sector is increasing as day by day
taxes are increasing day by day as since in 2007-08 the mobile sector it self
contributed 79 billion as form of taxes to the government which is 25% higher
than last year Huge taxes had a great impact in the company status the main
reason for its decline is huge amount of the GST imposed by the government
and strict policy making it shut down over 3 million SIMs card the complete
impact would be seen more over next year as the GST will be captured from
the upcoming year.
Activation tax is being charged @500 per connection as for the company it’s a
major expense as Ufone is unable to pass this charge to the company
because of the strict competition so as far the company has to bare this
expense itself. This activation tax has increased drastically from Rs 17.57
billion to Rs 19.18 billion in 2007-08which is 11% much more higher than
before.Ufone is able to contribute 25% in tax of the total market which has
bring its impact in reducing its market position much more down due to heavy
expense in the for of taxes
Devaluation of Currency
The devaluation of Pakistani currency has further further devaluated
Position of Ufone in the industry Devaluation of the local currency has further
more increased the cost of doing business it self and making it hard to take
international loans , it has been further observed low tariffs and high taxation
and strict competition is also responsible for low margin of profits in the
Network Connectivity Problem
It is also to be found to be a major issue with low signal boosters of Ufone it
has found to be complaint by the consumers for disrupts line, busy networks
and call endings Ufone have to work on this very serious issue to resolve its
Too Much Advertisement
Ufone is bombarding and investing huge amount of its capital on TV adverts
as a draw back people are fading up with this type of unwanted and
unnecessary advertisements’. It is spending large portion on advert rather
than improving its service which is much more important for the point of time,
at current its observed that Ufone has spend 550 million on its interior
services but far more is required to provide a better service.
( source : www.telecom.pk )
Revenue From As Different Parts Generated
(source: propakistani.pk/.../ )
Graphical representation of drop in share of Ufone 2008-09
(Source: www.propakistani.pk )
Conclusion & Recommendations
By carefully and keenly analyzing the Ufone it has been for seen that it is not
being a safe player in the market, as it is always penetrating the market by
taking huge risks and promote there products and packages very
aggressively. It holds the second position in the market but it has failed to be
the overall market leader in telecommunication as its always facing a very
tough competition from its hard hit rival Mobilink .as I researched I came to
learn that telecom market is the toughest to enter and survive as it is so
rapidly changing every day in this Ufone does have to survive it has to move
forward to capture more of its market in order to be the leader.
As it is the most growing industry huge amount of investment is needed to be
done as it has been observed that competitors are hiring professionals to
make and entertain the subscribed consumers resulting and implementation
of value added services. People working in with Ufone give flexibility for
change and opportunity to learn and provide excellent endless possibilities as
it has been learnt that Ufone believes that all of its employee have right to
offer input and that helps create innovation in organization helping to grow.
Its revealed some complications in the findings as it been analyzed that
almost the people are very much concerned about the call rates and prefer
any particular company with cheap rates so as far it is very important for
Ufone to manage this and give excellent call rates and innovative packages if
it wants to increase its market share and subscriber base.
As It is found obvious Ufone is a big brand and as it has been there in the market for a while but still it has some areas where it has to work it self out in order to gain the better share in the market and fight against its competitor.
The company visibility have become quiet low in certain areas of the market as Ufone is targeting certain audience it has to broaden its horizon in order to attract more customers
As it has been observed in today’s market is already in economic crises so in this situation Ufone should be more concerned with culture and the preference of its customers to get the bigger share in the market.
It has been observed there is a big gap of market and potential in the rural areas in the country for Ufone to penetrate as its competitor Mobilink is rapidly capturing those market its time that Ufone should get it up and starts its network along those areas to get more of its subscriber.
Ufone needs to create a hump of motivation among its employee in order to create more effective and efficient workforce, it should also give them strong reward that helps making good relation with the company and the employee making it easier to achieve the task.
Efficient marketing system should be planned and implemented marketing should be done in wide spread covering huge target audience not of particular type as Ufone has been doing it in the past.
Employee participation should be encouraged in order to get newer innovative ideas.
Organization must have its efficient and proper inventory system as its an world wide recession Ufone must acquire this step in order to sustain in the market.
Extra expenditure should be cut down and the budget should be carefully invested in the most demanding sector of the company.
Ufone should try to increase its budget but getting more investment inside this would give its benefit in the long run.
Should make an effective strategy to overcome its competitor and grab its market .
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