Introduction
The company 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.
Company Profile
PTML is a wholly owned subsidiary of PTCL. established to operate cellular telephony. The
company commenced its operations, under the brand name of Ufone from Islamabad on
January 29 2001.
During the year, as a consequence of PTCLs privatization, 26% of its shares were acquired
by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the
management of Ufone has also been handed over to Etisalat. During the year July 2005 to
June 2006, Ufone continued on the path to success. The Company further expanded its
coverage and has added new cities and highways. Ufone has network coverage in more
than 750 cities, towns and across all major highways of the country.
During the year Ufone successfully completed the network expansion of Phase 4 in existing
as well as in new cities and towns which amounted to more than US Dollar 170 million. As
a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion.
During the year Ufone adopted the policy of simplified tariffs with no hidden charges,
which resulted in positive impacts on the usage trends of subscribers as well as total
subscriber base, which has increased from 2,579k in June 2005 to 7,487k in June 2006. Ufone
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. The company has also been
awarded a new License for providing cellular services in Azad Jammu & Kashmir and the
Northern Areas. Operating Performance Ufones operational performance has been very
encouraging. Despite the stiff competition in Pakistan telecom market which has led to
reduction of prices to bare minimum level, due to its aggressive policies and exercising
strict control over expenses the Company managed to improve its revenue and after-tax
profit by 87% and 54% respectively, as compared to last year.
Future Plans Keeping in view the growth potential of the cellular industry there is no
option but to be aggressive in order to remain a potent force in the cellular industry. In
order to extend cellular network to new cities, towns and highways and enhance its current
installed capacities in existing cities, Ufone has finalized a huge network expansion contract
amounting to about USD 550 million, which will enhance the subscribers capacity by 10
million. This is the largest ever expansion project of Ufone. services, market visibility
through various market initiatives to fulfill subscribers satisfaction and demand and above
all to increase the value of investment for the shareholders. Prestion University Pakistan
Farah Khan Page 4
VISION & MISSION STATEMENT
VISION STATEMENT
To be the leading telecommunication services provider in Pakistan by offering innovate
services for our customer while exceeding shareholder value and employee expectation
MISSION STATEMENT
To become the best Cellular Communication option available in the country for U. At
Ufone we aim to provide you with wider coverage ,superior connectivity ,clear signal and
voice quality .Where ever you are Ufone keep you connected
Organizations External Opportunities & Threats
OPPORTUNITIES:
1. CONTINUING TO EXPAND GLOBALLY:
Ufone has the ability to expand globally. But due to current economic condition all its
operation on halt.
2. PUBLICITY AND MARKETING:
With the right marketing strategy they can acquire much more.
3. DEVELOP NEW VALUE ADDED SERVICE:
This is an opportunity that will never be satisfied, meaning that Ufone should always be
attempting to keep improving new value added services and as we know what is in today
will be out tomorrow.
4. INTRODUCE KIOSK TECHNOLOGY:
Prestion University Pakistan Farah Khan Page 5
Ufone can surprise its competitors by introducing Ufone kiosk. These will be ATM like
machines and that will give 24-hour service to Ufone subscribers to load the balance just
like they take money from ATM.
5. DEVELOP FRANCHISE IN REMOTE AREAS:
Ufone 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.
Ufone 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.
THREAT
1. GOVERNMENT INTERFERENCE
Government interference in terms of taxes will always be treated as a threat.
2. PTCL CELLULAR LICENSE
Ufone is nothing just a cellular license to PTCL, PTCL should provide more financial
support to enhance profitability of its subsidiary company.
3. PENSION PAYOUTS
Part of this threat is their own doing and other is simply unavoidable. Ufone is responsible
for providing generous pension benefits to its employees, which at time seems like a great
idea, however they are now experiencing problems as more and more people begin to
collect.
4. INCREASED HEALTH CARE COSTS
Ufone, like many large companies with quality employees health care benefits, is
experiencing a large financial hit that only get worse as time continues as compare to other
cellular firms
5. TOUGH COMPETETION
As Ufone is cellular company and there is cut throat competition among cellular companies
in Pakistan. There are six other companies also working in Pakistan so Ufone would have to
face some growing competitive pressures. Prestion University Pakistan Farah Khan Page 6
6. PRESSURE GROUP
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.
7. ECONOMIC PROBLEMS
Pakistan is facing some serious economic problems now days so that would also affect
Ufone. The current recession in market is not good for any kind of business including
telecommunication.
OPPORTUNITIES
1 CONTINUING TO EXPAND GLOBALLY
Ufone has the ability to expand globally. But due to current economic condition all its
operation on halt.
2 PUBLICITY AND MARKETING
With the right marketing strategy they can acquire much more.
3 DEVELOP NEW VALUE ADDED SERVICE
This is an opportunity that will never be satisfied, meaning that Ufone should always be
attempting to keep improving new value added services and as we know what is in today
will be out tomorrow.
4 INTRODUCE KIOSK TECHNOLOGY
Ufone can surprise its competitors by introducing Ufone kiosk. These will be ATM like
machines and that will give 24-hour service to Ufone subscribers to load the balance just
like they take money from ATM. Prestion University Pakistan Farah Khan Page 9
5 DEVELOP FRANCHISE IN REMOTE AREAS
Ufone 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.
Ufone 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.
THREAT
1 GOVERNMENT INTERFERENCE
Government interference in terms of taxes will always be treated as a threat.
2 PTCL CELLULAR LICENSE
Ufone is nothing just a cellular license to PTCL, PTCL should provide more financial
support to enhance profitability of its subsidiary company.
3 PENSION PAYOUTS
Part of this threat is their own doing and other is simply unavoidable. Ufone is responsible
for providing generous pension benefits to its employees, which at time seems like a great
idea, however they are now experiencing problems as more and more people begin to
collect.
4 INCREASED HEALTH CARE COSTS
Ufone, like many large companies with quality employees health care benefits, is
experiencing a large financial hit that only get worse as time continues as compare to other
cellular firms
CPM -COMPETITIVE PROFILE MATRIX
EFE is used to collect competitive intelligence information from external from external
environment .It not focuses on internal issues .where as CPM is little different from EFE it is
also consider the internal issues and the best feature of CPM that it allow to compare the
competitor critical success factor with your organization.
* Find out critical success factor.
* Assign weight to each factor depend up how important the specific factor for the
organization success.
* The weight range from 0.0 to 1.0 lower number shows no or minimum importance and
high
weight show more importance of factor to the company. Prestion University Pakistan Farah
Khan Page 10
* Assign rating to each factor depends upon how well organization respond to that factor.
* Assign a 1 - 4 rating to each critical success factor to indicate how effectively the firm's
current
strategies respond to the factor.(1= response is poor ,4=response is extremely good )
* Multiply each factors wait by its rating to determine a waited score.
*Average total weighted score is 2.5.
The above CPM matrix compares the oil marketings companies on importance factors.
The total calculated figures tells the exact situation.
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
In a CPM the rating and total weighted scores for rival firm's can be compared to a sample
firm.
This comparative analysis provides important internal strategic information. Ufone
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 factors Ufone is leading with the weighted point of
0.40
