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Warid Telecom Company Analysis

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Strength:
•Excellent quality service
•Good networking
•More consumer oriented marketing due to ALFALAH Bank
•It brings new trends in mobile technology
•Worldwide roaming
•Choice is high and cheaper rates
•Very easy to use
•Proper connectivity
•Defensive strategy
•Online billing system
•High franchises
Weakness:
•No attractive advertisement on media.
•Very tough competition with other mobile companieslike, MOBILINK, U-FONE, TELENOR and ZONG •Need to expand network coverage in all over Pakistan.
•Need to improve market position
•Programs to address inactive subscriber
•Low promotional packages activities

Opportunity:
•Growing industry
•More use due to increase of business in Pakistan
•Quality awareness in people
•Latest technology
•Internationally accepted network
•More motivational opportunities to employees
•More reliable network
•They have more positive investment opportunities
•Over 60 percent population in rural areas still underserved pentup demand by aggressive network expansion.

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•Multiple SIM
•WARID being used as secondary connection opportunity to stimulate the growth by improving network coverage.

Threats:
•Existing competitors like MOBILINK and U-FONE
•Unstable political system in country
•Low package rate of competitors
•More experienced staff in other mobile companies
•Network coverage is low which need to expand
•Powerful media coverage of existing companies
•Entrance of New Competitor Like ZONG

ORGANIZATIONAL INTRODUCTION:

Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largest groups in the Middle East and the single largest foreign investor group in Pakistan.

Warid Pakistan launched its services in May 2005. It is very famous telecommunication company in Pakistan. Company is well known by its brand name Warid. Their tremendous efforts on management make the services on the reach of the customers all over the country and out of the country.

Warid Telecom is the fastest growing GSM (Global System for Mobile Communication) mobile company in Pakistan with over 13 million subscribers and coverage in more than 187 cities all over Pakistan. Warid Pakistan launched its services in May2005. Within 80 days of launch Warid Pakistan claims to have attracted more than 1 million users. Warid is working in different countries like:

•Pakistan
•Bangladesh
•Uganda
•Congo

HISTORY AND BACKGROUND:

The Dhabi Group is a multinational company based in the UAE, which owns and
operates a wide range of business concerns that are spread across 3 different continents. It has a diversified business interest in the institutions that have enjoyed commercial success as a result of its strong financial resources and extensive management expertise. The Abu Dhabi Group’s major investments are in the following sectors:

•Telecommunications
•Hospitality services
•Property development
•Oil exploration and supplies
•Banking and financial services

Automobile industries.Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largest groups in the Middle East and in Pakistan. Warid Telecom is currently operational in Bangladesh and Pakistan, while it is also setting pace to initiate its operation in Uganda & Congo. Within the markets Warid is already operating, it has quickly developed a large customer base and established itself as one of the leaders of telecom service sector. In Bangladesh, Warid Telecom commenced its operations under a landmark MOU agreed upon by the Dhabi Group and the Government of Bangladesh worth USD 1 billion, out of which USD750 million was exclusively committed for investment in the telecommunication sector of the country. Succeeding the MOU signing, the BTRC license for telecom service provision was issued to Warid Telecom, followed by the signing of interconnectivity agreement with all the existing telecom companies of Bangladesh. In May 10th, 2007, Warid Telecom launched its commercial operations in Bangladesh with a network encompassing 26 districts. By November 2007, the network had been expanded to cover 61 districts and being used by 2 million customers.

VISION:

Warid Telecom’s vision is:
“To be the leading national communication provider with a strong international presence.” To become the essential communication provider in Bangladesh of high quality voice and innovative data services by offering affordable products and services to all market segments and to become an integral part of their everyday lives. Warid Telecom’s brand values include:

•Simplicity
•Honesty
•Innovation
•Quality
•Dynamic
•Friendly

MISSION:

“Warid Telecom’s stated mission is to be the leader in innovation and services.”

OBJECTIVES:

These are the some objectives of the company as any other company has it. Through the complete study of these objectives we can measure how much company has the ability to perform well and customer oriented.

Pricing Objectives:

The first objective that any company has is the price objective. This is the most important objective of a company. Price is an important element of the pricing mix. It has a great influence on the customers’ perception. It determines the quality and value of the product. In determine the prices of product corporate objectives are very much important. So Warid telecom has certain objectives in their mind. These objectives are;

•Competitive objectives
•Sales objectives
•Customer oriented objectives

Competitive Objective:

The main objective of Warid telecom is to compete in the market. Because they have strong competitors in the market such as Mobilink, Telenor and Ufone etc. So, Warid telecom is setting low prices as compared to its competitors. Warid telecom sets its prices relatively low as compared to Mobilink but its prices are high as compared to Ufone. Warid telecom wants to become the price leader in market. The prices of Warid telecom are low but they are offering better quality and services are better as compared to other network services. Another new product of Warid Telecom have been launched which completely based on the pricing the product name was GLOW. This is new offer from the Warid telecom which have comparatively low price as compared to its competitors. They offered a number free value added services in it e.g. Internet packages, Low weekend charges, SMS Bundles and Night Packages etc.

Sales Objective:

Every company wants to increase their sales. Warid telecom wants to get a huge share of market by increasing its sales. The users of mobile were increasing day by day in Pakistan. So, therefore there is a huge potential in this market for Warid telecom. Warid Telecom has the great opportunity to become leader of the market in such conditions when the Telecommunication industry was on groom. Their main thrust is on increasing the sale of their product. Therefore, Warid telecom has set relatively low prices.

Customer Oriented Company:

Warid telecom wants to satisfy their customers. They feel that their customers are more important for them. Warid telecom wants to provide advanced technology and more features to their customers. Warid telecom wants to serve their customers according to their needs. In order to satisfy customer’s needs Warid telecom has a wide range of customer service centers. The most attractive and new service that Warid Telecom has recently launches was GLOW. GLOW is not only the call package but it is also a website from which we can download a lot of entertaining items such as Songs, Wallpapers, Videos, Themes, ringtones and lot of other items.

ORGANIZATIONAL STRUCTURE/TYPE:

TYPE: Private

KEY PEOPLE:
Sheikh Nahayan Mabarak Al Nahayan, Chairman
Mr. Bashir A. Tahir, CEO Abu Dhabi Group & Warid
International
Board of Directors:
1. Mr. Bashir A. Tahir
2. Mr.Parvez a. Shahid
3. Mr. Lim Chaon Poh
4. Mr. Quah Kung Yang

Management Team:

1. Mr. Tariq Gulzar (Chief Financial Officer)
2. Mr. Shahzad Rauf (Chief Strategy and Operation Officer)
3. Mr. Javed Mushtaq (Chief Information Officer)
4. Mr. Muhammad Irfan Chaudry (chief Technical Officer)

I NDUSTRY: Telecommunication

PRODUCTS: Telephony

S LOGAN: We Care

WEBSITE: www.waridtel.com

Warid Telecom is a tall organization because of more vertical organizational levels. That you will see in the hierarchy of Warid Telecom under the head of “Chain of Command”. Warid Telecom is operating its managerial activities with the help of centralized approach, because hire managers do not allowed decision making to the lower level managers.

ORGANIZATIONAL SIZE:

Warid Telecom is a 100% owned company of the Abu Dhabi Group and offers state-of-the-art telecommunication services at over 7,000 destinations in Pakistan. Warid Telecom launched its cellular services in Pakistan in May 2005. As an organization, Warid Telecom prides itself in being contemporary, approachable and constantly innovating. With achievements ranging from having one of the largest postpaid bases, most loved youth & prepaid brands, international roaming and nationwide coverage, Warid Telecom’s selection of value added services makes communication effective and enjoyable. EMPLOYEE:

Success of Warid Telecom is determined by its success in operating as a unified team. Ii has to earn the trust and respect of our customers everyday in order to be the primary choice of its customers. its success is guaranteed by creative and productive employees who are empowered to make suggestions. Every job at Warid is critically essential to fulfill the overall mission of the company. Their primary goal at Warid, as an empTheir primary goal at Warid, as an employer is, to live their vision and focus on providing exemplary customer care for both internal and external customers. Warid achieve this goal by having dedicated, hardworking and committed workforce. Warid Telecom’s management aims to provide every employee with the tool to professionally groom and develop as highly successful professional while achieving their career goals. OFFICES/ GEOGRAPHICAL LICATION:

HEAD QUATERS :-301-Dhabi Tower, Hamdan Street, Post Box 44222, Abu Dhabi, United Arab Emirates

SUB BUSINESS UNITS:
Warid Telecom International is an Abu Dhabi based mobile
Telecommunication firm providing telephony services in Bangladesh and Pakistan.

International Investments:

•Iranian Sanden Industries
•J.C. Mc Leans & Co.
•Neo Pharma
•National Tele Systems and Services
•Al-Jazira Management Mall
•Abu Dhabi Vegetable Oil Company
•Nama Development Enterprises.
•Le Royal Meridian Hotel, Abu Dhabi
•Dhabi contracting
•Union National Banking, U.A.E.
•Alfalah Exchange Company, U.A.E.
•Bank Alfalah Ltd., U.A.E. Investment in Pakistan
•Bank Alfalah Ltd.
•Alfalah GHP Investment Management
•Alfalah Securities
•United Bank Limited
•Warid Telecom
•Wateen Telecom
•Emaar Al Bilaad Properties

DECISION MAKING IN TERM OF ORGANIZATIONAL STRUCTURE:
•Organic Organization.
•Highly flexible and adaptable structure.
•Fluid team based structure.
•Open communication network.
•Empowered employees.
•Little direct supervision.

Normative decision- making process:
The managers can make the decision according to the Rules and regulation set by the top management. Descriptive decision- making process:
The goals are set by the board of directors. All the hierarchy flow the goals and plans. Approval of Decision:
The major decisions are made by the board of directors then they analyze on
the basis of market competitors, customers, opportunities and internal structure of organization and then CEO approved finally then that major decision implement.

ORGANIZATIONAL CULTURE:
•Empowers creativity empowerment and entrepreneurial spirit. •Warid is sure to take your career to new heights grow personally and professionally.

Customer and clients:
Warid has 9.7 millions customers
Government Agencies:
Government agencies are not much effecting the company. Warid Telecom International LLC, purchased alicense for operating a nationwide mobile telephonynetwork pay $291 million US dollars. Suppliers:

Producing the inputs with their own.
Competitors:
•Ufone
•Mobilink
•Telenore
•ZONG
Socio Cultural Element:
Warid is advertising according to the norms and beliefs and culture of the people of Pakistan. They also care about norms and beliefs of their employees and customers.

ORGANIZATIONAL PORTFOLIO ANALYSIS:
The major players of Pakistani mobile market comprises of Mobilink, Ufone, Telenor, Warid and Zong. Mobile sector which is nowdriven by lowest tarrifs, maximum coverage, and relatively better quality the Pakistan mobile market maintained rapid growth during 2013. The main reason for this slow growth could be a strong competition between cellular and fixed line industry offering low packages to its consumers. COMPETITORS:

MOBILINK:
Mobilink enter into the market in 1994 as a market leader both in terms of growth as well as having the largest customer subscribers. During the year 2012-13 Mobilink added comes 5.7 million subscribers and stood in the second position in regards to subscriber’s prospect. Ufone:

Ufone commenced its operation from Islamabad on January 29, 2001. 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. Now during year 2013 it added 4.0 million subscribers as compared to its addition of 6.5 million in previous year. TELENOR:

The years of 1855 to 1920 was a pioneering period in the history of Norwegian telecommunications. Manual mobile telephony services were introduced in Norway in 1966; Telenor now has mobile operations in 12 markets around the world. Telenor started its business in Pakistan in 2011. During the year 2012-13, Telenor added about 7.4 million subscribers as compared to 7.1 million in 2010-11. 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. Subscribers of Zong in April 2013 were 3,146,763. Its growth was negative previous year but in 2013 it added 2.9 million subscribers in last few months. SUBSCRIBER OF CELLULAR SERVICE PROVIDER:

The mobile subscriber numbers for last few months tell an increasing story. Zong and Telenor has been growing at a brisk pace, at the expense of Mobilink and Ufone. Take a look at April and May changes. Mobilink’s share of market is down to 37%. But in June, Warid fought back by adding the largest number of subscribers. Telenor and Zong seems to be losing some steam after a few months of high subscriber intake. Mobilink continues at sluggish pace. Ufone and Telenor numbers remain extremely close to each other. COVERAGE OF CELLULAR SERVICE PROVIDER:

Tough competition in cellular mobile market of Pakistan compelled all operators to expand the network rapidly so that they can add more subscribers on their network to improve their revenue. Currently more than 91% of population has access to cellular mobile service all across Pakistan though the access is more in thickly populated localities. Some areas of Baluchistan and NWFP remained uncovered due to disturbances in those areas; rest of the country is almost covered by now. During the year 2012-13 all operators have added around 8,000 new cell sites, which is an impressive figure because it takes huge investments to install the cell sites. Ufone has added highest number of cell sites in 2012-13 and that addition was 1,827 new cell sites during 2012-13. With addition to these, Ufone total cell sites have reached to 3,471. Next was Mobilink who added 1,817 cell sites, its total cell sites stands at 7,339 which is the highest among all. Total cell sites in Pakistan reached 21,518 which were only 13,752 in 2010-11. In terms cell sites growth, Ufone growth was 111% while CM Pak growth remained 100%. REVENUE OF CELLULAR SERVICE PROVIDER:

Financial health of the cellular mobile industry seems to be volatile and most of the operators are operating in loss though their revenues have increased significantly over the last few years. Most of the operators are engaged in rolling out infrastructure and operators have to spend a huge amount on import of machinery and equipments. Depreciation of Pakistani currency has further exacerbated the financial position of the industry. Moreover, low tariffs and increased tax rates could also be responsible factors for low profit margins in the industry. In the year 2012-13, revenue grew by 35% compare to 48% last year. Among the operators, Telenor is the most efficient operator in terms of revenue generation who has increased about 97% revenue in 2012-13 compared to previous year and reported Rs. 45 billion revenues in the fiscal year 2012-13. Mobilink earned about Rs. 80 billion revenues which is 24% higher than the last year. Mobilink and Telenor hold about 70% of the total revenues of the industry while 29% is held by Warid and Ufone. Warid and Ufone have 15% and 14% of total revenue respectively. MARKET SHARE OF CELLULAR SERVICE PROVIDER:

Mobilink continued to be market leader in terms of market share by subscriber in Dec 2013 although the company lost its share of 11% in the reporting year as compared to 50% in 2011. Warid acquired 17% of total in Pakistan at the end of 2012. Ufone and Telenor also gained some market share where Instaphone lost its market during the year. In 2013 the share of each company in mobile market exhibited a change, except for Ufone whose subscriber share remained more or less the same. Mobilink kept on loosing its share for another year in favor of Telenor and Warid. ORGANIZATIONAL POLICIES:

HUMAN RESOURCE POLICIES:
HR department in Warid Telecom is engaged to allocating the human and non human resources, highly qualified engineers and staff. They are also arranging the training sections for the new employees and also for the old employees for better out put or performance. Hiring strategy of HR department:

The hiring process under HR department is as follows:
•First HR department collect the CV’s
•Then they call the people
•Deferential Interview
•Short list the skilled people

FINANCIAL POLICIES:
Warid has a division in marketing department that is responsible for financial activities incurred related to marketing promotions, campaigns, and events. It is not a big division; its main purpose is to act as interface b/w marketing and finance departments. Marketing Finance is responsible for: •Signing CEO notes from authorities

•Preparing PRs
•Keeping financial records of costs incurred
•Issues related to payments of vendors as per invoices
ADMINISTRATIVE POLICIES:
Administrative department is a centralized department responsible for various administration and general supervision tasks which includes: •Local
Government Relations
•Office Maintenance and management
•Office Building Locations / Civil Works
•Coordination with Architects / Contractors
•Transportation Office
TECHNOLOGICAL POLICIES:
Warid is trying to utilize state of the art technologies to stay ahead of time. They are recently also trying to aquire 3G technology, they do not presently have any such system which can help them to differentiate in any way.

ORGANIZATIONAL PLANNING:
GOAL:
WARID aims to climb to the top of the telecommunication sector by the next three to five years. PLAN:
New initial plan is to acquire over 14 million customers in four phases. It have a plan to set coverage to 121 cities of the Pakistan ORGANIZATIONAL STRATEGIES:
In Warid business strategy, three things are there:
Competitiveness:
Differentiated in value added aspects
Cost Leadership:
By providing less price service/product.
Rapid Response of company:
When need identify they response to it.

Customer care by providing quality service:
The pre-paid segment is branded and marketed as Zem Pre-Paid. Zahi-Post-paid and Zem Pre-paiduser enjoy various value added services (VAS), such as SMS, MMS, GPRS, 64K SIM and a host of other features. However International Roaming is only available to its Zahi (post-paid) users.

BCG METERICS:
•It is a framework created by BOSTON Consulting Group to evaluate the strategic position of business brand portfolio and its potential. •(Growth rate of industry) and competitive position.

•Stars: SBU’s placed in this cell are highly attractive because the industry in which they are located is robust and the business has a strong competitive position in the industry. Stars generate large amounts of cash, but also require heavy investment to continue to grow and to maintain competitive positioning.e.g. Ufone. •Cash Cows: These SBU’s are the corporation’s key source of cash, and are typically the core business. They possess a strong competitive position, but are located in an industry that is mature, not growing or declining. A Cash Cow generates more cash than it requires, providing funds to the corporation to invest in other ventures. E.g. Mobilink. •Question Marks: When a business is located in a growing industry, but has not achieved a strong competitive position, an attempt to evaluate further investment is shrouded by ambiguity as to eventually becoming a “winner”. These are termed “Question Marks” because they deserve attention to determine if the venture can be viable.eg:- Warid. •Dogs: A business situated in a low growth or declining industry, such as at the decline stage, has a precarious future. If the business has not already developed a strong competitive advantage, it should be divested. E.g. Paktel.

SWOT ANALYSIS:
Strength:
•Excellent quality service
•Good networking
•More consumer oriented marketing due to ALFALAH Bank
•It brings new trends in mobile technology
•Worldwide roaming
•Choice is high and cheaper rates
•Very easy to use
•Proper connectivity
•Defensive strategy
•Online billing system
•High franchises
Weakness:
•No attractive advertisement on media.
•Very tough competition with other mobile companieslike, MOBILINK, U-FONE, TELENOR and ZONG •Need to expand network coverage in all over Pakistan.
•Need to improve market position
•Programs to address inactive subscriber
•Low promotional packages activities

Opportunity:
•Growing industry
•More use due to increase of business in Pakistan
•Quality awareness in people
•Latest technology
•Internationally accepted network
•More motivational opportunities to employees
•More reliable network
•They have more positive investment opportunities
•Over 60 percent population in rural areas still underserved pentup demand by aggressive network expansion. •Multiple SIM
•WARID being used as secondary connection opportunity to stimulate the growth by improving network coverage.

Threats:
•Existing competitors like MOBILINK and U-FONE
•Unstable political system in country
•Low package rate of competitors
•More experienced staff in other mobile companies
•Network coverage is low which need to expand
•Powerful media coverage of existing companies
•Entrance of New Competitor Like ZONG

PEST ANALYSIS:
Pest analysis has four main components from which we analyze the company or product under these circumstances. This analysis includes these factors •Political Factor
•Economical Factor
•Socio cultural Factor
•Technological Factor
Political Factors:
1)Regulatory Initiatives: The actions like Level Playing Field Regulation, out of court settlement case and all related activities in this that affect the organization’s performance which is very important for any organization to remain in on-going competition. 2)Governmental Decisions: Government decisions like Telecom Regulation, Issuance of Mobile Operator license and decrease and increase in Tax rates also affect the Overall performance. Economical Factor:

Short term and long term state of trading should been considered in Pakistan. Inflation rate was controlled by the State bank of Pakistan this authority have a strict eye on our economical issues. But besides this we have high increasing rate of unemployment as well as increasing level of poverty. These days Pakistan has double figure interest rate. The price of Dollar increased and reached up to the Rs. 85PKR. Keeping all these situations into the consideration the Warid Telecom decreases its calls rates. Now Warid telecom giving the most attractive packages for its customers. Socio cultural Factors:

During the formation of marketing strategies Warid look a lot of consumer behaviors and social culture factors which influence the buying behavior of the Warid’s product. In this context Warid look various consumer behaviors and buying pattern of culture. So in the view of successful marketing strategy Socio cultural factors influence very much. So it involves the way how consumer think and feel and how they interpret Warid in such an Islamic country. Technological Factors:

In Pakistan Companies have technology by which they can compete in the industry and now there is usage of heavy investment for building and upgrading the infrastructure of organization.

Cite this Warid Telecom Company Analysis

Warid Telecom Company Analysis. (2016, Jul 23). Retrieved from https://graduateway.com/swot-analysis-3/

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