VISION

“Making

communication
exciting”
 MISSION

“To be the leading mobile

operator of Pakistan by
continuously innovating and
offering exceptional quality
services to be good
corporate citizen and envoy
of friendship between china
and Pakistan core value.
Responsibility makes
perfection”

``

Introduction
 • ABOUT ZONG
Zong is the first International brand of China Mobile being launched in
Pakistan. The company is often cited as China Mobile (Pakistan). It is
meant to empower and liberate the people of Pakistan in every nook
and corner of the country. It will become a part of their hearts, their
minds and bring about a change in their lives that every one desired
but few thought would be possible. The core essence of ZONG is to
allow people to communicate at will. Without worrying about tariffs,
network coverage, capacity issues or congestion. ZONG will be
supported by ground breaking communications, trend setting customer
service and an unmatched product offering which will redefine rules of
the game and establish ZONG as a serious contender for the number
one spot. ZONG would offer its customers with entertaining &
innovative value added services and will empower them by giving a
wide variety of products, services & content to choose from. We are
privileged to be the pioneering country introducing this brand with
others to follow. And God willing, together we will also make ZONG a
success story for others to try and replicate.

• ABOUT China Mobile Pakistan (CMPak)

China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile.
The pioneering overseas set up of China Mobile came through
acquisition of a license from Millicom to operate a GSM network in
Pakistan.

So far CMPak has invested more than US$ 700 million in the telecom
sector in Pakistan and an additional US$ 800 million will be invested till
the end of year 2008.

With ambitious plans to cater to the fastest growing Pakistani market

and to win over the ever demanding Pakistani customer, it will be
offering unprecedented coverage, voice and data services as well as a
wide range of tariff options to choose from.

CMPak's edge comes from the experience and expertise of running the
world's largest telecom service and the commitment they make to
setting quality and customer relations standards.
CMPak is geared to offer neatly packaged VAS products that will
benefit the individuals, corporate as well as small businesses. Led by a
team of professionals from the field of cellular

Communication, CMPak is determined to make its mark in the Pakistani

market and to change the way people communicate.

• HISTORY
Recently china mobile company in Pakistan after replacing the code
0304 with 0314 now introduced its new brand in called “ZONG”. With
an introductory slogan “Say everything” or “Sub Keh Do” & started
its advertising campaign at popular print & electronic media outlets.
Paktel started its commercial operations in Pakistan in November 1990
as the pioneer of cellular telephony with an AMPS network which was
converted to TDMA (Digital) in 2003. Soon after GSM quickly gained
popularity all over the world and became the technology of choice
leaving AMPS/TDMA far behind. Paktel’s principal shareholder was
Millicom Pakistan, which held 98.86% equity of Paktel. But however on
Feb 13th 2007 Millicom announced that it had completed the sale of its
88.86 per cent shareholding in Paktel Limited to China Mobile
Communications Corporation which finalized Millicom’s exit from
Pakistan. Soon after, china mobile company bought all the assets of
Paktel, the new management seems busy, to tie up promotional
strategies, with the intention to win the telecom market slowly &
silently. Well that is just a prediction I have made because in Pakistan
Chinese products mostly are famous due to their cheap prices. & more
the 90% population in Pakistan is price conscious due to their lower or
medium income level, so lets see weather ZONG is facilitating mobile
users specially youngsters by providing lowest calling, SMS, MMS as
well as GPRS rates or not.

• MISSION STATEMENT ANALYSIS

MISSION STATEMENT ANALYSIS

Customer No
Product and services Yes
Market No
Technology Yes
Survival, growth, profit Yes
Self concept Yes
Public image Yes
Employees No
Psychology Yes

• PRODUCTS AND SERVICES

Packages
PREPAID

ZONG 65
Ladies and Gentlemen, we bring you ZONG 65, the new pre-paid
package of ZONG that delivers 100% on economy and guarantees
lowest call rates to any network in Pakistan

12 Aanay Package
Talk for an entire hour - any hour, for only Rs.4.99 and for the first
time in Pakistan you can change the hour everyday!

50 Paisa/Call (8 Aanay)
People claim of simplicity and yet give you half the truth. Only ZONG
gives you the full truth at half the price. Now make calls to any other
mobile network for 8 Aanay.

Free Package
For the first time in Pakistan you can make free calls for life!

ZONG Super Free Number

That's right you can literally talk your heart out 24 hours a day
everyday to that special someone - all for FREE!

Break Time Offer

For the first time in Pakistan, ZONG offers you the benefit of calling
your friends and family freely during daytime.

Aik Second Package

Make call for just 4 paisa’s per second!

Unlimited SMS Package

ZONG offers unlimited message package only for 3RS per day.
Postpaid Packages

Line Rent (Rs)

100 300 600 1200 2000

On-Net Calls Airtime 0.5 0.45 0.375 0.3 0.1
Off-Net Calls Airtime 0.5 0.45 0.375 0.3 0.2
FNF 0.4 0.3 0.2 NA N/A
Spouse Number N/A N/A N/A Free N/A
Free SMS (On & Off-Net) 20 60 100 150 300
SMS Rate 1 1 1 1 1
GPRS 15 15 15 15 15

Free Minutes Break Up 100 300 600 1,200 6,800

On-Net 60 180 360 720 6,000
Off-Net-PTCL 20 60 120 240 400
Off-Net-Other Mobile Operator 20 60 120 240 400
Refundable Security Deposit 600 1000 1500 2500 4000

Other Mobile
Interconnect Charges PTCL
Operators
Per/ min 1 0.52
Per /30 Sec 0.5 0.26

Details

• 30 Sec billing
• Air-time rate for both On-Net & off-Net calls are same
• Off-Net Calls i.e. Calls to other mobile operators & PTCL will be
subjected to Interconnect charges given above
• Free minutes will be calculated on per minutes basis
• We will offer 5 FnF (on-net only) numbers on 100, 300 & 600
package
• FnF addition charges will be Rs 15 for each addition
• For FnF Addition / Modification dial 1313 from your Mobile
• Spouse number will only be applicable on Rs 1200 price plan with
 zero charges
• Spouse number can be added / changed once in a month
• Free minutes calculation for Rs 1200 price plan will be exclusive
of Spouse number as the charging on Spouse number will be
zero
• Free Minutes on 1200 package are exclusive of Spouse number

• Spouse number can be added by calling our help line or visit our
Customer services centre
• Rs 2000 LR package will have 6800 free minutes in total, 6000
minutes will be On-Net with a daily cap of 200 Minutes (Fair
usage policy)

• The first 200 minutes of the day will be charged at Rs 0 after

which charging will be done at On-Net Airtime rates i.e. 0.1 per
30 sec
• Mobile Number Portability – MNP
Mobile Number Portability (MNP) enables customers to retain their
mobile telephone numbers (including the three digit prefix) when
changing from one mobile operator to another mobile operator.

Benefits

• You will be able to take advantage of ZONG’s attractive tariffs

and service offerings without even changing your mobile
number.
• You will save the inconvenience of informing all your contacts as
is faced in the changing your number.

You will experience cost saving by avoiding stationary cost

(letterheads and business cards) printing since your number will
remain the same.

• Customer service centers

“The beacon of ZONG’s impression and torch bearers of a new era in

customer interaction, taking customer service into a portal of customer
excitement. These are the doors to ZONG’s first and foremost
realization of its promise to excite customers with a new trend in
service. Setting the tone and ambiance which is second only to your
home, these are ZONG’s arms across the country to welcome everyone
to experience the comfort when a true promise is fulfilled.”

Zone Address
1. S.A 16, 17 & 18, Plot # FL 17, Block 5, KDA Scheme 5,
Clifton Karachi
KARACHI
2. Gulshan-e-Iqbal Opposite Batul Mukaram Masjid
Karachi
Big City, Shop No G 59 & 60. 3-E-2, Liberty Roundabout.
LAHORE
Main Boulevard. Gulberg III
ISLAMABAD 68-E Jinnah Avenue, Blue Area Islamabad
RAWALPINDI Plot # 7, 8 ,9 Bank Road Rawalpindi
FAISALABAD Lucky Plaza, 213 Main Susan Road. Faisalabad
MULTAN Multan Arcade Main Katchery Road Multan
QUETTA Fayyaz Lab, Jinnah Road- Quetta
PESHAWAR Burjaman Centre, University Road, Peshawar
Shop # 5, Ali heights, Auto Bhan Road, near CitiBank,
HYDERABAD
Hyderabad
JHELUM Old Al-Bilal Hotel, Cantt chowk ,GT Road, Jhelum
SAHIWAL 511/BVII, Jail Road, Civil Lines. Sahiwal
DG KHAN Azmat Road DG Khan
GUJRAT Euro Heights GT Road Gujrat
GUJRANWALANear Traffic Police Office, GT Road, Gujranwala
SIALKOT Shop No. 17, Aziz Shaheed Rd. Sialkot
Abbotabad Business Complex, Supply Bazar, Manshera
ABBOTABAD
Road- Abbotabad
MARDAN Zong Plaza, Mall Road, Mardan Cantt
SARGODHA Parhar Plaza, Railway Road Sargodha
BAHAWALPU Baghdad UL Jadeed Road DIG Chowk Near Al Haq House
R Bahawalpur
RAWALPINDI
-
Plot # B130, B block- Satellite town- Rawalpindi
SATELLITE
TOWN
SUKKUR Shop # 421-422.C Minara Road Sukkur
Careers

ZONG is committed on attracting and retaining the best human

resource from all over Pakistan. Its also provides a working
environment which satisfies the professional and personal needs of its
employees.

• ZONG Mobile Internet

GPRS Coverage
Fastest growing coverage in Pakistan.

ZONG Unlimited
@ Rs. 400+Tax/month

ZONG Free
@ Rs. 10+Tax/M

MMS
The epoch of multimedia content is upon us and the last thing we’d want is
to stick to the age old conventional messaging techniques.

• ZONG Mobile Internet Hourly Package

Another spectacular service from ZONG that will keep you entertained 24/7.
After rocking the market with our services and all the amazing call rates, we
are back with an outstanding feature for all packages; ZONG hourly based
Internet package.

• ZONG Internet USB Card

The ZONG Internet USB Card is a device (with a SIM inside it) which can be
inserted in your laptop/desktop PC (in the USB Slot) to provide you with
access to the internet. It works on the EDGE/GPRS network and gives you
wireless Internet connectivity, anytime anywhere!
 • ZONG Mobile

Zong has come up with another interesting

Promotion…. you get a phone, almost free but
With a year’s payment in advance. This is equivalent
to the US model where customers have to sign
a contract to get a discounted phone.
In Zong’s case they just get the money in advance
(great for them) and hope that users will stay with
Them after 12 months.
 • External Assessment:
• PEST Analysis of Pakistan in Telecom Industry

In order to survive and remain profitable in today’s competitive marketplace,

Zong need to be able to react and adapt to changes in the external
environment and ideally be proactive in impacting these forces. External
environment factors can be classified into five general categories:
competitive, social/cultural, legal, economic, political, and technological.

Political Factors

• Political Instability:
Pakistan is facing political instability causing danger for the telecom
industry. But the political factor does not effect on Zong so high
because Zong related from china and relationship of china and
Pakistan is very strong.

• Deregulation:
The telecom sector of Pakistan has successfully liberalized in an
efficient, transparent and fastest deregulation of telecom in the region.
The Government of Pakistan gave the status of Industry to Pakistan
Telecommunication Sector.

• Changes in Tax Laws:

Tax rates have been increased day by day government tax rate of call
is 15% and recently government increased it by 6 % more.

Economic Factors:
• Gross Domestic Product:

Telecom sector of Pakistan has a share of almost 2 percent in National

GDP.

• Average Revenue per User (ARPU):

A Comprehensive Strategy-Formulation
Framework
Important strategy-formulation techniques can be integrated into a
three-stage decision-making framework, as shown below. The tools
presented in this framework are applicable to all sizes and types of
organizations and can help strategists identify, evaluate, and select
strategies.

Stage-1 (Formulation Framework)

1. External factor evaluation

2. Competitive matrix profile
3. Internal factor evaluation

Stage-2 (Matching Stage)

1. TWOS Matrix (Threats-Opportunities-Weaknesses-Strengths)

2. SPACE Matrix (Strategic Position and Action Evaluation)
3. BCG Matrix (Boston Consulting Group)
4. IE Matrix (Internal and external)
5. GS Matrix (Grand Strategy)

Stage-3 (Decision Stage)

1. QSPM (Quantitative Strategic Planning Matrix)

 • Stage-1 (Formulation Framework)

Industry Analysis: The External Factor Evaluation

(EFE) Matrix

An External Factor Evaluation (EFE) Matrix allows strategists to

summarize and evaluate economic, social, cultural, demographic,
environmental, political, governmental, legal, technological, and
competitive information. The EFE matrix consists of five steps process.
Five-Step process:

• List key external factors (10-20)

Opportunities & threats. You have to prepare a list of all external

factors which will affect the EFE matrix. These factors should be two
points to be kept in mind these are opportunities and threats

• Assign weight to each (0 to 1.0)

Sum of all weights = 1.0

Now you have to arrange them according to their weight age that
which factor is most important. It should be weight age in % ages. The
sum of the total of all the factors should always be one.

• Assign 1-4 rating to each factor

Firm’s current strategies response to the factor: how well firms

response to these factors.

• Multiply each factor’s weight by its rating

Produces a weighted score

How the firm will respond to these factors external factors. Such
criteria are known as rating.

• Sum the weighted scores for each

 Determines the total weighted score for the organization.
Highest possible weighted score for the organization is 4.0; the lowest,
1.0. Average = 2.5

• EXTERNAL FACTOR EVALUATION (EFE)

MATRIX

EXTERNAL FACTOR EVALUATION (EFE) MATRIX

Key External Factors Weight Rating Weighted
Score

Opportunities

1 Globalization 0.10 3 0.30

2 Marketing 0.15 4 0.60

3 Acquisition 0.08 2 0.16

4 New Product 0.07 3 0.21

Development

5 Northern Areas 0.10 3 0.30

6 Pak China Borders 0.13 3 0.39

Threats

1 Old Stable 0.12 4 0.48

Companies

2 Attractive Packages 0.10 3 0.30

By Others

3 Price War 0.06 3 0.18

4 Government 0.09 3 0.27

Interference

TOTAL 1.00 3.19

 • Total weighted score for the ZONG external factor is 3.19 which
is above average

The Competitive Profile Matrix (CPM)

The Competitive Profile Matrix (CPM) identifies a firm's major

competitors and their particular strengths and weaknesses in relation
to a sample firm's strategic position.
The weights and total weighted scores in both a CPM and EFE have the
same meaning. However, the factors in a CPM include both internal
and external issues; therefore, the ratings refer to strengths and
weaknesses, where 4 5 major strength, 3 5 minor strength, 2 5 minor
weakness, and 1 5 major weakness.
There are some important differences between the EFE and CPM. First
of all, the critical success factors in a CPM are broader; they do not
include specific or factual data and even may focus on internal issues.
The critical success factors in a CPM also are not grouped into
opportunities and threats as they are in an EFE.
In a CPM the ratings and total weighted scores for rival firms can be
compared to the sample firm. This comparative analysis provides
important internal strategic information. Zong’s Competitive Profile
Matrix is provided in Table. In this matrix market share, growth rate
and financial strength are the most important critical success factors,
as indicated by a weight of 0.60. in market share Mobilink is leading
but in the growth factor zong is leading with the weighted point of
0.40
 • Competitive Profile Matrix (CPM)

Competitive Profile Matrix (CPM)

Critical Success Weig Ratin Weight Ratin Weight Ratin Weight Ratin Weight
Factors (CSF) ht g ed g ed g ed g ed
Score Score Score Score

Market Share 0.15 4 0.60 3 0.45 1 0.15 3 0.45

Growth Rate 0.10 1 0.10 3 0.30 4 0.40 3 0.30

Financial 0.08 3 0.24 3 0.24 4 0.32 3 0.24

Strength

Management 0.12 4 0.48 3 0.36 3 0.36 3 0.36

Coverage 0.10 4 0.40 3 0.30 2 0.20 2 0.20

CCS 0.13 4 0.52 3 0.39 3 0.39 2 0.26

Advertising 0.06 2 0.12 3 0.18 3 0.18 4 0.24

Brand Name 0.10 4 0.40 2 0.20 3 0.30 3 0.30

Packages 0.09 2 0.18 3 0.27 3 0.27 4 0.36

Price 0.07 2 0.14 3 0.21 3 0.21 3 0.21

Competitivenes
s

TOTAL 1.00 3.18 2.90 2.78 2.92

The ratings values are as follows:

1 = major weakness,
2 = minor weakness,
3 = minor strength,
4 =major strength.

As indicated by the total weighted score of 2.78, Zong is weakest.

because it is at its initial position as compare to competitors. With the
point of 3.18 Mobilink is leading. Only eight critical success factors are
included for simplicity; this is too few in actuality.

The Internal Factor Evaluation (IFE) Matrix

A summary step in conducting an internal strategic-management audit

is to construct an Internal Factor Evaluation (IFE) Matrix. This strategy-
formulation tool summarizes and evaluates the major strengths and
weaknesses in the functional areas of a business, and it also provides
a basis for identifying and evaluating relationships among those areas.
Intuitive judgments are required in developing an IFE Matrix, so the
appearance of a scientific approach should not be interpreted to mean
this is an all powerful technique. A thorough understanding of the
factors included is more important than the actual numbers. Similar to
the EFE Matrix and Competitive Profile Matrix, an IFE Matrix can be
developed in five steps:

List key internal factors (10-20)

o Strengths & weaknesses

Assign weight to each (0 to 1.0)

o Sum of all weights = 1.0

Assign 1-4 rating to each factor

o Firm’s current strategies response to the factor

Multiply each factor’s weight by its rating

o Produces a weighted score

Sum the weighted scores for each

o Determines the total weighted score for the organization

Highest possible weighted score for the organization is 4.0; the lowest,
1.0. Average = 2.5
 • INTERNAL FACTOR EVALUATION (IFE)
MATRIX
INTERNAL FACTOR EVALUATION (IFE) MATRIX
Key Internal Factors Weight Rating Weighted
Score

Strengths

1 Investment 0.09 4 0.36

2 High Growth Rate 0.11 4 0.44

3 Advertising 0.12 3 0.36

4 Net Work Portability 0.12 3 0.36

5 Zong Mobile 0.07 3 0.21

6 Resources Assets 0.08 3 0.24

And People

7 Location And 0.10 3 0.30

Geographical
Coverage

8 Government Dealing 0.09 3 0.27

Weaknesses

1 Bad Image Of Paktel 0.06 2 0.12

2 Coverage 0.07 1 0.07

3 Low Market Share 0.05 2 0.10

4 Weak MIS 0.04 2 0.08

TOTAL 1.00 2.91

 • Total weighted score for the Zong’s internal factors is 2.91 which
is above average

• Stage-2 (Matching Stage)

• Threats-Opportunities-Weaknesses-
Strengths (TOWS) Matrix
The Threats-Opportunities-Weaknesses-Strengths (TOWS) is also
named as SWOT analysis. A TWOS Analysis is a strategic planning tool
used to evaluate the Threats, Opportunities and Strengths,
Weaknesses, involved in a project or in a business venture or in any
other situation requiring a decision. This is an important tool in order to
formulate strategy. This Matrix is an important matching tool that
helps managers develops four types of strategies: SO Strategies
(strength opportunities), WO Strategies (weakness- opportunities), ST
Strategies (strength-threats), and WT Strategies (weakness-
threats).The most difficult part of TOWS matrix is to match internal and
external factor. Once the objective has been identified, TOWS are
discovered and listed. TOWS are defined precisely as follows:
Strengths are attributes of the organization that are helpful to the
achievement of the objective.
Weaknesses are attributes of the organization that are harmful to the
achievement of the objective.
Opportunities are external conditions that are helpful to the
achievement of the objective.
Threats are external conditions that are harmful to the achievement
of the objective.

Steps for developing strategies:

There are eight steps involved in constructing a TOWS Matrix:

1. Rank external opportunities
2. Rank external threats
3. Rank internal strength
4. Rank internal weaknesses.
5. Match internal strengths with external opportunities and mention
the result in the SO Strategies cell.
6. Match internal weaknesses with external opportunities and mention
the result in the WO Strategies cell..
7. Match internal strengths with external threats and mention the
result in the ST Strategies cell.
8. Match internal weaknesses with external threats and mention the
result in the WT strategies cell.

• TOWS MATRIX OF ZONG

Strengths–S Weaknesses – W

S1. Capital W1. Coverage

S2. Network W2. Bad Image Of
Portability Paktel
S3. Resources W3. Low Market Share
S4. Location W4. Weak MIS
S5. Government W5. Old Staff
Dealings
S6. High Growth Rate
S7. Advertising

Opportunities – O SO-Strategies WO-Strategies

O1. Globalization
O2. Marketing S1,O1 Expand
S3,O7 Penetration W3,O3 Acquisition
O3. Acquiring
O4. Covering Pak S1,O3 Acquisition
China Border
O5. Covering Northern
Areas
O6. New Product
O7. Penetration
 Threats – T ST-Strategies WT-Strategies

T1. Old Stable S1,T3 Cost Leadership

Companies
S3,T2 Penetration W3,T2 Downsizing
T2. Attractive
Packages By
Competitors
T3. Price War
T4. Government
Interference

STRATEGIES FROM TOWS MATRIX

SO-Strategies

Matching the strength 1 and opportunity 4 Zong can expand their

business.

From S1 and O7 they can use the strategy of penetration.

From S1 and O3 they can use the strategy of acquisition.

ST-Strategies

Matching the strength 1 and threat3 Zong can use the strategy of cost
leadership.
Matching the strength 3 and threat 2 Zong can use the strategy of
penetration.

WO-Strategies

Matching the weakness 3 and opportunity 3 Zong can use the strategy
of acquisition.

WT-Strategies

Matching the weakness 3 and threat 2 Zong can use the strategy of
downsizing.
 • The Strategic Position and Action
Evaluation (SPACE) Matrix
The Strategic Position and Action Evaluation (SPACE) Matrix is another
important Stage 2 matching tool of formulation framework. It explains
that what is our strategic position and what possible action can be
taken. It is not closed matrix. It is prepared on graph. It is closed
matrix. This follow counter clock wise direction. It contains four-
quadrant named aggressive, conservative, defensive, or competitive
strategies. The axes of the SPACE Matrix represent two internal
dimensions financial strength [FS] and competitive advantage [CA])
and two external dimensions (environmental stability [ES] and industry
strength [IS]).
These four factors are the most important determinants of an
organization's overall strategic position.

• A SPACE Matrix for a Zong

Financial Strength (FS)
RAITNGS

1. Revenues 5.0

2. Return on investment
4.0

3. Working capital 5.0

14

Competitive Advantage (CA)

1. Resources Assets -2.0

2. High growth rate -1.0

3. Advertising -2.0
 4. Competition capacity utilization
-3.0

-8.0

Environmental stability (ES)

1. Technological changes -3.0

2. Rate of inflation -4.0

3. Demand variability
-2.0

4. Barriers to entry into market

-1.0

-10

Industry Strength (IS)

1. Deregulation increase completion in telecom industry

3.0

2. Financial stability 5.0

3. Resources utilization
4.0

4. Profit potential 4.0

16

Conclusion

FS average is 14/3 = 4.67

CA average is -8/4 = -2.0
ES average is -10/4 = -2.5
IS average is 16/4 = 4.0

Directional Vector Coordinates: x-axis: 4.67+ (-2.5) = 2.17

Directional Vector Coordinates: y-axis: 4.0+ (-2) = 2

The Zong should peruse Aggressive strategies

 • SPACE MATRIX FOR ZONG
Conservati (2,
ve 2.17) Aggressiv
e

Competiti
Defensive
ve

• BCG GROWTH-SHARE 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.

BCG Growth-Share Matrix

On the vertical axis, market growth rate provides a measure of
market attractiveness. On the horizontal axis, relative market share
serves as a measure of company strength in the market.

The growth-share matrix defines four types of SBUs:

CASH COW - (LOW GROWTH, HIGH MARKET SHARE)

A business unit that has a large market shares in a mature, slow

growing industry. Cash cows
Require little investment and generate cash that can be used to invest
in other business units.

STAR - (HIGH GROWTH, HIGH MARKET SHARE)

A business unit that has a large market shares in a fast growing

industry. Stars may generate
Cash, but because the market is growing rapidly they require
investment to maintain their lead. If successful, a star will become a
cash cow when its industry matures.

QUESTION MARK - (HIGH GROWTH, LOW MARKET

SHARE)

A business unit that has a small market shares in a high growth

market. These business units
Require resources to grow market share, but whether they will succeed
and become stars is unknown.

DOG - (LOW GROWTH, LOW MARKET SHARE)

A business unit that has a small market shares in a mature industry. A

dog may not require
Substantial cash, but it ties up capital that could better be deployed
elsewhere. Unless a dog has some other strategic purpose, it should be
liquidated if there is little prospect for it to gain market share.

Zong SBU
 Post paid
 Prepaid
 Zong mobile
 Zong USB

Zong postpaid has low market share of 0.25% and high growth rate
of16% so in BCG matrix it lies in 1ST quadrant of question marks.

Zong prepaid has high market share of 0.7% and high growth rate
of15% so in BCG matrix it lies in 4TH quadrant of stars.

Zong mobile has low market share of 0.4% and high growth rate
of11% so in BCG matrix it lies in 1ST quadrant of question marks.

Zong USB has low market share of 0.25% and no growth rate. So in
BCG matrix it lies in 2ND quadrant of dog.

Zong Mobile
Strategic Business Unit Of ZONG Telecom
Zong has come up with another interesting promotion …. You get a
phone, almost free but with a year’s payment in advance. This is
equivalent to the US model where customers have to sign a contract to
get a discounted phone. In Zong case they just get the money in
advance (great for them) and hope that users will stay with them after
12 months.

Strengths of ZONG mobile

 Zong is the first company who introduced

mobile

With the brand name of ZONG. Zong is

benchmark leader in this SBU.

 It is available at very cheap price. Anyone

can get it paying Rs 1900 with Rs 1900
balance.

 Large number of people appreciates and gets the mobile

immediately.

Weakness

 Mobile is totally made by china and people’s perception about

china mobile is not good. So its resale value is low.

 Zong mobile is only made for zong network. Other networks

cannot operate

in this mobile.

 Zong is depending on ZTE.(Zheng Telecommunication

Electronics) ZTE is the vender of zong. Zong purchase mobile
from ZTE.
 Internal Factor Evaluation

Internal Factor Evaluation Of Zong Mobile

Strengths Weights Rates Score
Benchmark Leader 0.26 4 1.04
Cheep Rates 0.35 4 1.4
People's Appreciation 0.09 3 0.27
Weakness
Resale Value 0.18 2 0.36

Restriction Of Other Networks 0.05 2 0.1

Dependent On ZTE 0.07 1 0.07
Total 1 3.24

Highest possible weighted score for the organization is 4.0; the lowest,
1.0. Average = 2.5
Total weighted score for the Zong mobile is 3.24 which is above
average in its overall internal strength.
Total weighted score by Zong in internal factor evaluation is 3.24
which is above average.

Threats of ZONG mobile

 Other competitors can introduce like this mobile in market.

 It is very simple mobile which has no extra features but the other
companies have stylish and attracting mobiles in market.

Opportunities for ZONG mobile

  It can improve its features like other cell companies. And can
attract the people.

 Zong can manufacture the mobile its own. Because it depends

on others

External Factor Evaluation Of Zong Mobile

External Factor Evaluation Of Zong Mobile

Opportunity Weights Rates Score

Improving Features 0.35 2 0.7

Manufacture Mobile 0.15 1 0.15

Threats

Threats Of Competitors 0.35 2 0.7

Threats Of Cell Companies 0.15 1 0.15

Total 1 1.7

Total weighted score by Zong in external factor evaluation is 1.7 which

is below average.

• The Internal-External (IE) Matrix

This is also an important matrix of matching stage of strategy
formulation. This matrix already explains earlier. It relate to internal
(IFE) and external factor evaluation (EFE). The findings form internal
and external position and weighted score plot on it. It contains nine
cells. Its characteristics is a s follow
• Positions an organization’s various divisions in a nine-cell display.
• Similar to BCG Matrix except the IE Matrix:
o Requires more information about the divisions
o Strategic implications of each matrix are different
• Based on two key dimensions
o The IFE total weighted scores on the x-axis
o The EFE total weighted scores on the y-axis
• Divided into three major regions
o Grow and build – Cells I, II, or IV
o Hold and maintain – Cells III, V, or VII
o Harvest or divest – Cells VI, VIII, or IX

Internal External Evaluation Matrix

Total weight of IFE

4 3.4 3 2
1
i. 1 i. 2 ii. 3

3 iii. 4 iv. 5 v. 6

Total
weight
Of EFE
2
vi. 7 vii. 8 viii. 9

Steps for the development of IE matrix

• Based on two key dimensions IFE and EFE.

• Plot IFE total weighted scores on the x-axis and the EFE total
weighted scores on the y axis
• On the x-axis of the IE Matrix, an IFE total weighted score of
1.0 to 1.99 represents a weak
• Internal position; a score of 2.0 to 2.99 is considered average;
and a score of 3.0 to 4.0 is strong.
• On the y-axis, an EFE total weighted score of 1.0 to 1.99 is
considered low; a score of 2.0 to 2.99 is
 • Medium; and a score of 3.0 to 4.0 are high.
• IE Matrix divided into three major regions.
• Grow and build – Cells I, II, or IV
• Hold and maintain – Cells III, V, or VII
• Harvest or divest – Cells VI, VIII, or IX
The SBU of Zong (mobile) lies in 3, 5, 7 quadrant. So the strategy of
these quadrants (hold and maintained) will be apply here.

Grand Strategy Matrix

This is also an important matrix of strategy formulation frame work.
Grand strategy matrix it is popular tool for formulating alternative
strategies. In this matrix all organization divides into four quadrants.
Any organization should be placed in any one of four quadrants.
Appropriate strategies for an
Organization to consider is listed in sequential order of attractiveness
in each quadrant of the matrix. It is based two major dimensions
1. Market growth
2. Competitive position
All quadrants contain all possible strategies there are four quadrants in
grand matrix that further contain various set strategies.

Quardrant-1
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification

Quardrant-2
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation

Quardrant-3
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Liquidation
Quardrant-4
Concentric diversification
Horizontal diversification

GRAND STRATEGY MATRIX FOR ZONG

Rapid
Market
Growth

Quadrant II Quadrant I

Weak Strong
Competit Competit
ive ive
Position Position

Quadrant III Quadrant IV

Slow
Market
Growth

ZONG lies in first quadrant so the all strategies of 1st quadrant

can be apply on zong
Stage-3 (Decision Stage)

The Quantitative Strategic Planning Matrix

(QSPM)
The last stage of strategy formulation is decision stage. In this stage it
is decided that which way is most appropriate or which alternative
strategy should be select.

Steps in preparation of QSPM

1. List of the firm's key external opportunities/threats and internal

strengths/weaknesses in the left column of the QSPM.
2. Assign weights to each key external and internal factor
3. Examine the Stage 2 (matching) matrices and identify alternative
strategies that the organization should consider implementing
4. Determine the Attractiveness Scores (AS)
5. Compute the Total Attractiveness Scores
6. Compute the Sum Total Attractiveness Score

Quantitative Strategic Planning Matrix (QSPM)

SELECTIVE STRATEGIES MARKET PENETRATION MARKET DEVELOPMENT

Key External Weigh Attractiven Total Attractiven Total

Factors t ess Scores Attractiven ess Scores Attractiven
(AS) ess Scores (AS) ess Scores
(TAS) (TAS)

Opportunities

1 Globalization 0.10 3 0.30 2 0.20

2 Marketing 0.15 4 0.60 3 0.45

3 Acquisition 0.08 2 0.16 2 0.16

4 New Product 0.07 3 0.21 3 0.21

Development

5 Northern 0.10 3 0.30 2 0.20

Areas

6 Pak China 0.13 3 0.39 2 0.26

Borders

Threats
1 Old Stable 0.12 4 0.48 3 0.36
Companies

2 Attractive 0.10 3 0.30 3 0.30

Packages By
Others

3 Price War 0.06 3 0.18 2 0.12

4 Government 0.09 3 0.27 2 0.18

Interference

TOTAL 1.00

Strengths

1 Investment 0.09 4 0.36 4 0.36

2 High Growth 0.11 4 0.44 3 0.33

Rate

3 Advertising 0.12 3 0.36 3 0.36

4 Net Work 0.12 3 0.36 3 0.36

Portability

5 Zong Mobile 0.07 3 0.21 3 0.21

6 Resources 0.08 3 0.24 3 0.24

Assets And
People

7 Location And 0.10 3 0.30 3 0.30

Geographical
Coverage

8 Government 0.09 3 0.27 3 0.27

Dealing

Weaknesses

1 Bad Image 0.06 2 0.12 1 0.06

Of Paktel

2 Coverage 0.07 1 0.07 1 0.07

3 Low Market 0.05 2 0.10 2 0.10

Share

4 Weak MIS 0.04 2 0.08 1 0.04

SUM TOTAL 1.00 6.10 5.14

ATTRACTIVENES
S SCORE

We select the two strategies market penetration and market

development. There total attractive score is 6.10 and 5.01
respectively. The strategy market penetration has big score.

CONCLUSION

Zong has strong financial position and growing fast. That is the reason
we didn’t found much discrepancies. As seeing the growth rate of
Zong it may be possible that Zong can be the leading mobile
operator in Pakistan. There are some minor discrepancies but they
are adjustable with little effort.

• Recommendation
• Zong Telecom should be increasing their network coverage and
foot prints in every corner of the country to capture the market.
• Zong should adopt the strategies of market penetration market
development and related diversification, but the most effective
strategy would be market penetration.

• In the SBU of Zong mobile Zong should use the strategy of hold
and maintain.

• Zong should hire the skilled management.

• Zong should not waste their opportunities and get more help as
possible.

• References
• www.zong.com.
• www.google.com
• www.pta.com.pk
• Rana Armughan
Zong Garden Town Ali Block Lahore
• Rao Farhan Ali Khan
Zong Kchehri Chowk Multan
The end