Essay, 6 pages (1500 words)

Marketing analysis of telecom industry in pakistan assignment

She teaches us in the best ay using her personal experience and knowledge. She makes us think and work for the betterment of the society and not to be Just individual. In recent decades the telecommunication Industry started to emerge in Pakistan and in middle of 2000 it grows tremendously well. The telecoms industry developed very quickly and most of this growth can be attributed to cellular and mobile growth. On 2007 the growth rate of Industry was 80. 7%, which was very much beneficial for all stake holders including government.

That growth had certainly influenced the economy of the country. Similarly as compared to 2007 the growth rate of Industry clines in 2008 and it was 39. 4%. 2008 was also a difficult year for Pakistan economy. In 2008 the industry had a slow and steady progress as compared to 2007. But 2009 was proved to be worst then that. The growth rate declined to Just 1. 30%. The internal and external factors such as Economy and politics played a vital role in decline of the growth of the sector. With the increased Telekinesis the telecoms sector growth looks to be heading towards maturity.

Somehow it is predicted that in near future the Industry would come in maturity stage. (3) Industry Introduction In recent time the telecoms industry in Pakistan has grown very fast. Cellular and mobile companies contributed a lot in the growth as compared to fixed lines. Due to the rapid growth in Industry many foreign and local investors invested, So many companies came into the Industry which causes competition. The recent competition and harsh rivalry among the competitors will help the industry grow somehow if not for long period of time.

Mobile sector contributed enough to the growth of the sector. The introduction of mobile phones has introduced wireless network providers who provided the opportunity to the people to use cellular phones and wireless mobile communication. That helped the industry grow more and more. (4) Industry Shape Today the industry is moving at a very steady speed. The growth of the industry is decreasing as compared to past years. The Micro and Macro environment played a vital role in decline of the growth. Recession in economy and unstable politics did caused a lot.

Due to the decline in growth rate now the war is on capturing high share by the companies in the industry. The companies are working hard by providing value added services to satisfy their current customer and attract other networks customer to be part of them. Today the switching cost of consumer is very owe, so the companies must full fill the demands otherwise they will lose their market share. This indication causes harsh competitors and competition certainly interested the industry and raised possibility that it might grow for short time.

Today 6 companies are working in Telecommunication Industry, which are: Mobility, Boone, because they were the first cellular service provider to operate in 100% GSM technology. They have the largest market share of 30%. Telethon takes the second place with market share of 22% followed by the Boone who has market share of 21. 3%. Ward has market share of 19%. The last comer china base company Gong holds 6. 7% market share and Inspiration holds Just 1% of market share. Primary Research: We have conducted a primary research in our University for gaining information about the current market share and satisfaction of customers.

We contacted 50 people in the University and the result of primary research is as follows: Company Name Market Share Consumer Satisfaction Mobility 28% 83% Boone 75% Telethon Wand 61% Gong 78% Inspiration (5) SOOT Analysts Strength: Skilled Labor at low cost. Low production cost. Companies in Industry have latest technology and infrastructure. Established strong mage which attract the investors and customers. The favorable policies of Government for the development of the Industry. WEAKNESS: No research and development program. Employees have Job concern and low morale. Companies in industry don’t have clear strategic direction. Avenue earned per user is low. Opportunities: No any threat of substitute. Huge market size to cover. Creativity and Innovations. Government supporting role. Providing consumer the latest technology. Threats: Recession in economy. Day by Day Increase in Inflation. Tough competition among the competitors. Current security issue and political instability. Due to Competition the Inconsistent policies and decisions of Regulatory Authorities. (6) PEST & MICRO Environment Political factors; In PAKISTAN GOBO. Are not strong . Lets policies changes time by time specially in last 3 years. Due to uncertainty in the policies of COVET. Investors are shy to invest in telecoms industry. The result of these policies is that we don’t see a new company in this industry in last 3 years. However the existing companies are not influenced seriously by this situation and continue to do their business. ECONOMICAL FACTORS: PAKISTANIS economy become worst from 2006 to 2009 due to bad policies of COVET. Our per capita income decreases and people are suffering from the danger of high level of poverty. This situation badly effects the telecoms industry. This situation enforced the companies to reduce their profits because people are not able to pay high call rates.

As a result companies compete in the market on the basis of low calls rates. CALCULATORS FACTORS: A rapid change occur in our culture during 2006 to 2009. Mobile has become a basic need for our society. People are more conscious about cell phones and the service provider. This change helps telecoms industry to grow up and satisfy the customer deeds. TECHNOLOGICAL FACTORS: In 2006 people are not technology conscious. They Just want a good service but nowadays people wants something new beyond the call rates and different packages. They want internet service, GAPS and different technological changes.

This factor changes the whole industry and nowadays companies focus more on technology than COMPETITORS; A high level of competition exists in telecoms industry of PAKISTAN. Major competitors are MOBILITY, BOONE. WARD. GONG and TELETHON. ThiS tough competition effect the whole industry. This competition enforces companies to minimize their profits in order to survive in the market. CUSTOMERS; Customers are the back bone in telecoms industry. All the industry depends on their needs and wants. Their needs and wants changes time by time and all companies do their best to satisfy them.

Therefore telecoms industry is directly influenced by its customers. (7) Target Market Now the growth of industry is not up to the mark and has decreased a lot as compare to few years back so it increased competition and make the companies fight for market share. The target market of the companies in Telecommunication Industry would be: House wife and women (mostly in rural areas). First time subscriber. (8) Competitive Analysis The early growth in the industry has motivated many Investors. So many cellular and mobile service provider companies came in Industry to provide services.

There are six cellular and mobile service providers working in industry. The strong player is Mobility who holds the market. Mobility was the first GSM cellular service provider in the country that’s why enjoying large market share followed by Telethon, Boone, Ward, Gong and Inspiration. There is a harsh rivalry between Mobility and Boone. They are fighting each other to dominate the industry, but Mobility has experience which is key for them to hold their domination. Telethon and Ward are also competing, they are also successful to adjust themselves in the Industry.

Gong the last comer in Industry did Just enough to capture market share in this hard competition. Inspiration has gone out of competition and might end their operation in near future. (9) Personal Recommendation The recent growth rate of telecoms industry is very much concerning for the marketers and companies working in Industry. The industry still can growth and cover up its position in the market because opportunities are available for it. As we hint so the threat of substitute is not a concern because the Industry has built his Image and it has very vast scope.

We have few recommendations that if it happens, Pakistan. The education rate of our country is concerning. If the companies in Industry innovates any system to educate the people especially in rural areas, then it will help the Industry to grow. Today the mobile users reached more than 95 million. Mobile phones become very common. If the companies develop a package that customer start buying things specially FMC (fast moving consumer goods) with their mobile and use mobile as a wallet, then it might help the Industry grow.

We are very much thankful to Allah, who provides us the ability to complete this project. Our group worked as a unit and cooperates with each other. Each and every member utilized best of his skills and abilities to complete the project. We did our best to make a very good Report, but we know that nobody is perfect and there are mistakes. Our core competence is to learn and learn well. Last but not the least we are very much thankful to our AMA “ Aisha Said”, who guided us throughout the semester and helped us a lot full fill our project. We are fully satisfied with her. Thanks AMA

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