RIVAL COMPANIES : MOBILINK VS U-FONE

RIVAL COMPANIES : MOBILINK VS U-FONE

History of mobilink :

 operator in South Asia, operates the leading GSM network in Pakistan and provides a range of prepaid and postpaid voice and data telecommunication services to both individual and corporate subscribers. It employs about 8500 people across Pakistan and has served more than 38.2 million customers as of 1st Quarter April 2015.Its head office is in Islamabad, and the current President and CEO is Jeffrey Hedberg. Mobilink the first GSM-based cellular

·         operations in 1990 as the first GSM cellular mobile service in Pakistan with a joint venture by Saif Group and Motorola Inc.

·          who later sold it to Orascom Telecom, an Egypt-based multinational company and then they also further sold it to Vimpelcom Group, a Russian Company.

·         The Orascom group, who formally owned Mobilink has a major share in TWA (Transworld Associates) which operates an undersea fiber-optic cable from Karachi, Pakistan, to Fujairah, UAE.As of June 2010, Mobilink had issued two listed bonds valued at PKR 30.2 billion and PKR 60 billion.

Introduction of Mobilink :

Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in 1994, and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan-a base of over 30 million and growing. Mobilink is the first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of-art communication solutions to its customers. Mobilink offers exclusively designed tariff plans that cater to the communication needs of adiverse group of people, from individual to businessmen to corporate and multinationals, to achieve this objective, Mobilink offer both postpaid (Indigo) and prepaid (JAZZ) solutions to their customers. Compared to their competitors, both the postpaid and prepaid brands are the largest brands of their kind in the Pakistan cellular industry.In addition to providing voice communication services that makes the lives of millions that much easy, they also offer a host of value added services to their customers. At the same time, Mobilink places high importance to its coverage, which is why they cover 9000+ cities and towns nationwide as well as over 120 countries on international roaming service. Organizational structure of Mobilink is geographically divided into three Divisions North, South, and Central. Each division is further divided into Business Units that are as follows

North :

is divided into North I (Islamabad and Surroundings) & North II (Peshawar, FATA)

Central :

into Central I, II, III & IV (Consist of Lahore, Faisalabad, Multan & Gujranwala Regions)

South :

into South I & II (Karachi, Hyderabad and Quetta)

 Introduction of Departments :

In Mobilink House Multan there are 11 departments and all of these department works with integrity to achieve the organizational goals, so the importance of each department is have observed during the internship at Mobilink House Multan.

1) Direct Sales

2) Indirect Sales

3) CNC (Credit and Collection)

4) Finance

5) IT

6) Engineering

Acknowledgement :

  To Him belongs the dimension of the Heavens and the earth, it is He who gives Life and death and He has power over all things.”(Al-Quran)

MISSION:

 “To be a superior communication service company in Pakistan which provides the best value to its customers, employees, business partners and share holders.”

VISION:

 To be the leading Telecommunication Services Provider in Pakistan by offering innovative communication solutions for our Customers while exceeding Shareholder value & Employee expectations.

                                                                                                                   

Growth stage of mobilink :

If one package is launched it will be in growth stage then after few time when its will be in stage of growing it will move to maturity and time will come that the product will move to decline stage and new package will be launched.

Position in BCG Matrix :

Mobilink stands in CASHCOW. In mobilink this BCG will be separately identified for every package. For example every package is not the best and long lasting where as every package will be standing separately in BCG Matrix.

Companies that are large enough to be organized into strategic business units face the challenge of allocating resources among those units. In the early 1970's the Boston Consulting Group developed a model for managing a portfolio of different business units. The BCG growth-share matrix displays the various business units on a graph of the market growth rate vs. market share relative to competitors.

Some limitations of the Boston Consulting Group Matrix include:

•High market share is not the only success factor.

•Market growth is not the only indicator for attractiveness of a market.

•Sometimes Dogs can earn even more cash as Cash Cows.

 Some negative criticism for the following reasons:

•The link between market share and profitability is questionable since increasing market share can be very expensive.

•The approach may overemphasize high growth, since it ignores the potential of declining markets.

•The model considers market growth rate to be a given. In practice the firm may be able to grow the market.

 Strategic Business Units of Mobilink

• Jazz One

•Jazz Budget

• Jazz Ladies First

•Jazz Easy

•Jazz Octane

•Mobilink Indigo

•Mobilink PCO

Classification of SBUs according to growth-share matrix

Strategic Business Units of Mobilink

•Jazz One

•Jazz Budget

• Jazz Ladies First

• Jazz Easy

• Jazz Octane

•Mobilink Indigo

•Mobilink PCO Classification of SBUs according to growth-share matrix:

CASH COW :

• Jazz Ladies First

•Mobilink Indigo

• Jazz Budget Because these two packages are low growth, high share products. These established and successful SBUs need less investment to hold their market share. They produce a lot of cash to support the other SBUs that need investment.

STAR :

 •Jazz One This package is a high growth, high share product. There is need to invest more for its rapid growth.

QUESTION MARK :

• Jazz Easy

•Mobilink PCO These packages are low share in high growth markets. They require a lot of cash to hold their share. Management needs to think hard about question marks it should try to build into stars or should be phased out.

DOG :

• Jazz Octane It is low growth, low share product. It may generate enough cash to maintain itself but do not promise to be large source of cash.

Mobilink jazz	High market growth	Low market growth
High market share	Jazz jazba	Jazz budget
Low market share	Jazz easy	Ladies first package

Some limitations of the Boston Consulting Group Matrix include:

•High market share is not the only success factor.

•Market growth is not the only indicator for attractiveness of a market.

•Sometimes Dogs can earn even more cash as Cash Cows.

 Some negative criticism for the following reasons:

•The link between market share and profitability is questionable since increasing market share can be very expensive.

•The approach may overemphasize high growth, since it ignores the potential of declining markets.

•The model considers market growth rate to be a given. In practice the firm may be able to grow the market.

Strategic Business Units of Mobilink

• Jazz One

•Jazz Budget

• Jazz Ladies First

•Jazz Easy

•Jazz Octane

•Mobilink Indigo

•Mobilink PCO

Classification of SBUs according to growth-share matrix

Market Segmentation  :

Market segmentation is dividing a market into distinct groups of buyers who have distinct needs. The market consists of many types if customers products and needs. The marketer has to determine which segments offer the best opportunities. Consumer’s can be grouped and served in various ways based on geographic demographic psychographics and behavioral factors. The process of dividing a market into distinct groups of buyers who have different needs characteristics or behavioral who might require separate products or marketing programs is called marker segmentation. Every market has segments but not all ways of segmenting a market are equally useful. For example Telenor would gain little by distinguishing between low income and high income pain reliever users if both respond the some way to marketing efforts. A market segment consists of consumers who respond in a similar way to a given set of marketing efforts in the car market for example consumers who want the biggest most comfortable car regardless of price make up one market segments. Consumers who care mainly about price and operating economy make up another segment. It would be difficult to make one car model that was the first choice if consumers in both segments companies are wise through focus their efforts on meeting the distinct needs of individual marker segments.

Following are the different segments of Mobilink :

•Business class

•Ladies

•SME sector

•Sports

•Flight Roaming

Marketing Targeting  :

The process of evaluating each market segments attractiveness and selecting one or more segments to enter. After a company has defined market segments . It can enter one or many of these segments. Market targeting involves evaluating each market segment attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time; following are the segments by Mobilink.

POSITIONING :

Positioning is arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers. In positioning its product the company first identifies possible customer value differences that provide competitive advantages upon which to build the position. The company can offer greater customer value either by charging lower prices than competitor or by offering more benefits to justify higher prices but if the company promises greater value it must then deliver that greater value. Thus effective positioning begins with differentiation. As whenever we hear the word indigo we quickly evaluate that it is Mobilink, so the Mobilink has very strong positioning in customer minds. Another example is jazz.

PRICE :

Price is the amount of money that customer have to pay to obtain the product, Moblink offers different packages of different call rates to capture the market, Moblink also offers discount, advances, post paid, prepaid connections that a customer easily afford.

RICING STRATEGY OF MOBILINK:

It is well known brand of Mobilink. Previously Mobilink was offering Jazz connection for about 3000 rupees 5 years ago. Its market oriented statement is  “Aur Sunao” But through the passage of time\now Mobilink is offering Jazz connections for about100 rupees. In 2002 Ufone which is one of the leading competitor of Jazz introduced its prepay connection for about 2500rupees. In 2005 Telenor came into existence in Pakistani market and offered its connections for about 500 rupees. Then in 2005 Warid also entered the market offering its connections for 250 rupees. In this way price war started between these telecom brands in the market. Previously it was Jazz’s oligopoly as they offered their prices. In 2005 Jazz offered a cellphone+connection+prepaid card implementing a product-bundle pricing strategy for creating more attention and attraction. The major shift in the pricing strategy came in when they started 30.secondoperations using the promotional pricing strategy. In the early days Jazz was offering its sim-cards for a high-price using captive-product pricing strategy asits SIM-card is a main product that must be used along with the cell phone. Initially Jazz’s call rates and SMS charges were also reduced using discount and allowance strategy and initially directing towards promotional strategy as the competition between cellular brands in the market grew faster. Recently Jazz introduced its offerings of 0.99 per minute call rates in their “happy hour package” which represents their operations with the promotional as well as psychological pricing of their services. Through its happy hour package they are also operating with promotional strategy as they are engaged in continuous promotion through their offerings. Besides that Jazz adopted segmented pricing strategy as they were charging different call rated from one city to another but its competitors have emerged tremendously they have responded efficiently towards their actions through cutting their pricing mainly applying promotional and psychological strategy

SWOT analysis of Mobilink :

Basically Mobilink hire from reference so SWOT analysis is based on this source. What they lose due to this source and what are the advantages of this source are discussed below:

STRENGTHS:

•Considered very strong and reliable.

•Captured most of the potential customers (28 million and growing).

•Covering over 10,000 cities, towns and villages across the Pakistan.

•First operator to introduce IR for the people of Pakistan.

•Only cellular service in Pakistan to provide coverage on the M2 motorway.

•A very strong brand image.

•Highest market share not only in terms of number of subscribers but also in terms of revenue.

•Mobilink has signed bilateral roaming agreements with 50 operators around the world to have true roaming service operational in over 42 countries of the world.

•In order to facilitate its international Roaming subscribers traveling to USA and Canada, Mobilink is offering Motorola Time port Tri band (TT) handsets on rental basis. These sets are available at all Mobilink's Customer Service centers.

•Mobilink's short message service center allows Vehicle Tracking and Fleet (VTF) Management services.

• Large number of corporate customers.

• Economy of scale.

• Mobilink and Muslim Commercial Bank have made a combined effort in order to maximize the ease and the satisfaction of their respective customers by offering them all banking services from their very own mobile handset.

•Only company offering corporate packages.

WEAKNESS :

•Currently providing not good quality service because of changing their network from900 MHz to 1800 MHz.

•Fewer advertisements now days.

•Most expensive telecom company both in call rates and SMS.

•Engineering department of Mobilink is not that well competent as compared to its new competitors.

OPPORTUNITIES:

•Can expand its networks in the uncovered areas

 •Services in the future can be:

•Telephone

•Wireless

•Calling Cards

•Mobile Phone Banking

•Before start of new companies can target as many new customers as they can.

•Can lower prices to make business difficult for new companies.

THREATS:

•New market players are coming in near future.

• New companies can offer packages for corporate customers in better way.

• Wireless local loop service providers too targeting areaswhich are less developed

• Current price war may reach at a position where only brand names survive.

• Due to expensive quality of service now a days customers can shift to other companies.

•Employee retention is also issue because mobilink fired 1000 employees in October 2008.

•Loss of loyal customer.

History of u-fone :

UFONE commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001. Ufone expanded its coverage and has added new cities and highways to its coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat (telecom company in Dubai) . Under the agreement, Huawei will provide its future-oriented EnerG GSM solution to expand Ufone’s network to cover over 1,500 cities, towns, villages and all major highways in the country. The network also allows Ufone subscribers to enjoy high-speed wireless data service.

The GSM contract for Ufone also include Huawei’s new generation GSM dual density BTS that feature high integrated and receiving sensitivity to improve the network performance and lower the cost of network construction and O&M expenditure. In addition, Huawei will provide Mobile Softswitch solution based on the advanced R4 architecture to satisfy Ufone’s network expansion requirements, enables the telecom service provider to evolve into 3G smoothly.

Ufone markets its prepaid services as “Prepay”. Ufone Prepay is more affordable. Its primary market is intended towards teenagers and students.

Postpaid services are marketed by the name “Postpay”. These services are mainly targeted towards the business community of the country.

Ufone has a subscriber base of 12.49 million as of April 2007 and has network coverage in more than 1600 cities.

Pak Telecom Mobile Limited was awarded a GSM license in 1999.

Introduction :

During the last year Ufone successfully completed the launching of sites under Phase V in existing as well as new cities and towns by investing more than US$ 525 million. This has increased the asset base of Ufone from rupees 20 billion to 27 billion. To further enhance the subscriber base and strategically position the company in the growing telecom market, Ufone has finalized a network expansion for Phase VI contract amounting to about US$ 170 Million. Ufone currently, has network coverage in more than 4,745 locations throughout the country

Ufone's operational performance has been very encouraging despite stiff competition in Pakistan telecom market which has led to reduction of prices to bare minimum level. Ufone managed to improve its revenue and after tax profit by 87% and 54% respectively, as compared to the last year through aggressive policies and exercising strict control over expenses.

Vision statement :

“To be the telecommunication service provider in Pakistan by offering innovate communication solutions for our customers while exceeding shareholder value and employee expectation.”

Mission statement :

To be the best cellular communication option available in the country for “u”………..

At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals and voice quality. Wherever you are, Ufone keeps you connected

The major competitors of Ufone are domestic companies like :

 MOBILIINK :

Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a telecommunication service provider in Pakistan. According to PTA statistics, Mobilink has 30.88million customers by January 2008. Mobilink's Head office is located in Kulsum Plaza, BlueArea, Islamabad

TELENOR :

Telenor(OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries.

PAKTEL/ CHINA MOBILE/CMPAK  :

Paktel was the first ever company granted license to carry out cellular phone services in Pakistan, set up by Cable & Wireless. It carried out AMPS services until 2004, when the company launched GSM services as well. Its main competitor emerged in late 1990s as Instaphone and soon began to dominate the market. On 4th May 2007, Paktel was renamed to CMPak. And then, on 16th May 2007, China Mobile announced that it had upped its stake in CMPak to 100%. Moreover, PTA (Pakistan Telecommunication Authority) has announced that it may resolve the frequency issue with China Mobile, as it was one of the main reason for pullout by Millicom International Cellular S.A.

WARID :

Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing telephony services in Bangladesh, Pakistan and Uganda.

 ZONG :

Zong is the first International brand of China Mobile being launched in Pakistan. It is meant to empower and liberate the people of Pakistan in every nook and corner of the country.

Growth stage of u-fone :

Same is with u-fone as of Mobilink , If one package is launched it will be in growth stage then after few time when its will be in stage of growing it will move to maturity and time will come that the product will move to decline stage and new package will be launched.

BCG Matrix :

In Bcg matrix ufone stands in Cashcow category.

The telecom market’s growing rate in Pakistan is higher than any Asian country. Ufone offers lower rates and better network then other already established cellular companies. All living standards have been captured by Ufone, like Students, Labour and Businessmen, etc.

Ufone aims to provide with wider coverage, superior connectivity, clear signals & voice quality to their valued customers

U-fone	High growth rate	Low growth rate
High market share	Uth package	Life package
Low market share	Uwon package	One number free package

MARKET SEGMENTATION :

Cellular service market is a diverse set of people. Ufone as well as other cellular service companies segment their market on four bases: - economy, age, gender & occupation.

I. ECONOMY:           Upper class, Middle class, socio-economic class, lower class.

II. AGE:                      Teenagers, youngsters, middle age, aged people.

III. GENDER:            Male & Female.

IV OCCUPATION:   Corporate class, Business class, working class etc.

 TARGETING MARKETERS :

Cellular phones are the technology of new era, the 21st century. These cellular phones are the main focus of our youngsters. All the cellular companies are targeting The Youth one way or other. Ufone is no longer a follower in this race. Its main focus is “THE YOUTH” of Pakistan which is its Target Market.

TARGET MARKETING STRATEGY :

Ufone has always been targeting Youth Market by using young brand endorsers or ambassadors. It always brings such packages and offers that precisely meet the needs of our young people. No doubt it has also launched packages, brands and offers for working people, business class, ladies and aged ones. Ufone seeks to target masses in the long run.

POSITIONING :

Positioning is the process of creating an image of company’s brand in the mind of market. Companies position themselves emotionally, functionally or on the basis of brand quality. Ufone is still a market challenger in comparison to market leader MOBILINK. It is still to reach to the top most position of cellular companies. So Ufone positions itself on the basis of its services.

Ufone’s former Positioning Statement:

“Everybody Loves to Ufone Prepay “

Ufone’s new Positioning Statement:

“Ufone tum hi toh ho.

Or

“It’s All About U”

Ufone’s positioning strategy:

Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for “MASSES” on the basis of services it is providing and its lowest call rates. It makes them believe that it satisfies the needs of everyone (viz all classes, age & genders). It tells them that Ufone is there when anybody needs it. The brand name UFONE itself is a positioning statement.

DIFFERENTIATION :

In these days of intense competition marketers find it hard to differentiate their services from those of competitors. Now customer care about only price. An unsatisfied customer will immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her demands is out of question for marketers.

Differentiation Strategy:

Ufone has always strategied in satisfying the demands of its customers. In doing so it has been successful in differentiating itself in terms of:-

·                    Price

·                    Quality service

·                    Technology

CUSTOMER RELATIONSHIP :

With 28 million mobile users in Pakistan, Ufone is having a subscriber base of around 7 million. Ufone is showing a remarkable growth rate. It is maintaining a healthy customer relationship through its “customer service centers” and “call centers”. Its department of “Customer Operations” is specially designed for maintaining Customer Relationships.

Customer Relationship Strategy:

Ufone strategize to build and maintain strong customer relationships in order to build long-term customer loyalty and to capture customer lifetime value. In this context Ufone has been training its internees and permanent employees in the fine art of interacting with customers. It is also strategizing to offer gifts & rewards for its long-term customers in its PostPay to match the wonderful customer relationship strategy of INDIGO.

TOTAL MARKET ORIENTATION :

Total Market Orientation is about understanding and meeting customer’s expressed and latent needs.

Strategy:

Ufone has always considered the ever growing needs of low call rates and quality service. It has provided its customers their needed packages and has introduced such brands & packages that meet customer’s latent needs as well. For example 5 ka 15 is result of a latent need of women of our society. They plan to make a short call but it becomes a long one unintentionally due to gossips and chit chats.

COMPETITORS :

There is a hard core competition among the cellular service providers in Pakistan. Ufone is a market challenger in its competitive position, where MOBILINK is the market leader. Warid, Telenor and newly introduced ZONG are also strong contenders in market challenger category. Ufone has the following four direct competitors:-

Mobilink

Telenor

Warid

Ufone also considers the following as its competitors:-

ZONG (former PAKTEL)

PTCL WIRELESS

Wateen

WorldCall

S.Com.

STRENGHT :
Ufone has network coverage in more than 750 cities, towns and across all major highways of the country.

Ufone provides International Roaming facility with more than 150 international operators across 79 countries.

Ufone is proud to have an efficient and friendly customer service through 21company-owned Sales & Customer Service Centers and nearly 250 franchisees across the country.

Ufone has always believed in a solid commitment to growth, security andreliability. Therefore, Ufone has always balanced its expansion efforts and qualityof service. With a total current investment of $400 Million.

Utunes was launched on 4th Dec2007 which attracted many people towards ufone.

U fone is offering the service of Multi-media Messaging Service (MMS).

As mobile users in the country have reached over 78 million at a very rapid pace, Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 16.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto its network. A remarkable achievement indeed, especially considering the fact that two new international players also entered into the market in 2005.

While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man.

Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand.

U fone has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility.

It has the post paid service that is normally to attract the Business class people. Most of the business and elite class people use post paid and other services offered by the U fone.

Ufone has a subscriber base of 18.97 million as of October 2008.

U fone was the first cellular Company in Pakistan that introduced the service of GPRS and hence took the competitive advantage.

U fone has some exciting and energetic SMS packages that made SMS almost free. They are offering Rs. 25, Rs.50, Rs.100, Rs. 150 SMS packages which its subscribers are really loving it.

U fone has some very exciting and low call packages like “5 ka 15” , “u-one”, ucircle”, “ U fone ghanta”, “U fone has some very exciting and low call packages like “5 ka 15” , “u-one”, u circle”, “ U fone ghanta”, “U fone life package ”and “ prepay Public Demand” etc which attracted lots of customers towards it and many other cellular company users are also switching to it.

U fone post paid is also offering black berry set that is useful and tempting for the business

U fone currently caters for international roaming to more than 195 live operators across 119 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 75 Live Operators across 59 countries.

WEAKNESS :

Ufone does not have the proper lists of its customers. It has the list but this list is not authentic which is increasing the unauthorized use of its sim specially pre pay. Ufone have to take serious steps to properly list its customers to ensure that there is no misuse.

It has many franchises in the whole country but as its customers are increasing day by day so its present franchises are not enough to fulfill the needs of it customers.

Ufone also face problems and its network get jammed on special occasions like Eid, Christmas, New year etc

U fone has the problem of voice quality. Though its coverage area is vast and it covers more than 750 towns and cities in Pakistan but the voice quality is not as good as it should be.

U fone though has some unique and distinct services but it has not yet given many innovative services as compared to other cellular companies.

U fone was the first to introduce the SMS packages but their packages are not flexible enough and its charges are only on monthly bases while it should be on both monthly and daily basis.

Call rates from u fone to u fone is very cheap but to other networks its rates are expensive.

Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is a bit poor.

In U fone web support is not available.

Its customers service staff need training because at many franchises their employees are have been complained about behaving rudely.

If U fone company have to progress and grow in market it has to improve its advertising campaign. Its advertisements are not good and eye catching.

Being the part of PTCL it has to face many problems like strike by employees etc.

When U fone came into the seen in Pakistan cellular market Mobilink was already prevailing in the market and it was all Mobilink monopoly that time. Though with the passage of time U fone took many customers of Mobilink but still Mobilink has large number of users because it was first to Pakistan’s cellular market and this is the competitive disadvantage to U fone.

Ufone is plagued with some internal problems like when it is privatized to Etisalaat being the part of the PTCL many employees were not happy with the pay scale that they were offering.

OPPORTUNTIES:

U fone could develop some new and innovative services to attract customers and some of the suggestions are as under which will help them to increase their revenues:

1.It should introduced International SMS packages like local SMS. Already U fone is offering lowest International SMS rates but if they introduce some package like this it will get lots and lots of success.

2.They should also introduce some International call packages to Middle Eastern countries because there are lots of Pakistanis who are living in those countries so people will definitely be tempted towards such package.

3.In “ U fone ghanta” package time of the package should be extendtwo more hours so that more & more people will use this service and causing U fone to generate more revenues.

U fone should develop some new franchises in remote areas so that people will get more and more benefit from it and it will help to increase their customers.

As in Pakistan Youth is almost the 50% of the population so U fone can take advantage of this demographic situation and should introduce more and more services and packages that attracts youth towards it.

U fone should extend its network coverage area to Northern part of the country as well because in that part not too many companies are giving services and if Ufone give its service there then it will definitely attract people and its number of customers will shoot like a rocket.

It should also introduce some packages for internet users on mobile if it do so then many people will switch from other networks towards it.

If U fone enhance its voice quality then definitely it would be prefer more by customers.

U fone should import technological equipments from China because they are giving the best technology at very low rates so it will not only help U fone to be ahead technologically but also will help U fone to decrease its cost.

U fone can surprise its competitors by introducing “U fone kiosk”. These will be ATM like machines and that will give 24-hour service to U fone subscribers to load the balance just like they take money from ATM

THREATS :

As U fone is cellular company and there is cut throat competition among cellular companies in Pakistan. There are six other companies also working in Pakistan soU fone would have to face some growing competitive pressures.

Pakistan is facing some serious economic problems now days so that would also effect U fone. The current recession in market is not good for any kind of business including telecommunication.

In Balochistan and FATA where U fone already has network coverage is in danger  because of critical situation and operation being held there. Investment of U fone is in danger.

U fone penetrated in the market from 2005 to 2006 quite rapidly but since then itis experiencing a bit slower growth.

By the arrival of China Mobile Company (Zong) in cellular industry of Pakistan the U fone and other companies now have to face the severe competition. As Zong is introducing some various attractive packages of both SMS and calls to attract customers. U fone have to develop strategies to counter their strategy and to survive in the market.

The key threat to U fone is also some adverse Government policies of implementing Tax on telecommunication industry that will ultimately affect the revenues.

There are some rumors about the shares of PTCL in the market. Being the Subsidiary company of PTCL, U fone will also be affected by that.

Telenor is giving higher rumenration to its employees as compared to U fone so many of its skillful and competent employees are going there. That will affect the company’s profitability in the long run.

Some Pressure groups are protesting on the Towers that are installed in residential areas. Their opinion is that it is not good for health of people to have such towers near their homes that cause radiations.

U fone have to revise the list of subscribers who are legal and authorized. Because now the Government has warn to take strict action if any company would not keep such record.