2018

GROUP MEMBERS
SHANZA NASEER
14220920-058
NOOR FATIMA
a
14220920-004
USAMA
14220920-049
M. IKRAM
14220920-024

[STRATEGIC
MANAGMENT IN PTCL]
 Introduction:
Pakistan telecommunication limited was established in 1962. Pakistan Telecommunication
Company limited is the one of biggest telecommunication company in Pakistan which gives
the communication facilitation internet facilities in country. And company becomes the
backbone of telecommunication infrastructure in many other companies. And creates a
monopoly in company. Firstly Arman net introduced dialup email services in Pakistan for the
first time then such related services were used my many competitors of that time along with
them PTCL was the pioneer along with [Link] introduced the first dial up connection
in Pakistan .
As PTCL was owned by govt. so definitely it was getting some major benefits and also
because the PTCL was serving all over the country in contrast of its major competitors cyber
net and [Link] which were targeting only one to two major cities at that time so capturing
major markets at that time proved to be the best boot for PTCL because people were requiring
internet services at that time IT appeared as a boom. Computer education became not only
fashion but also need and as all we know that internet is a core component if we want to use
computers so PTCL along with its continuously developing technology, improving rates,
trained staff, increased demand and better services basically expanded day by day.

 Vision:
To become the leader of information and communication department as a service provider in
Pakistan and to satisfy over customers by increasing our market share.

 Mission:
 Such type of company that provide environment that increase motivation o provide quality
work.
 Organization atmosphere is to create quality and effectiveness.
 Give services to customer by using advanced technology

 Focus on customers as compare to profit.

 Core Values:
Core values of PTCL are:
 Professional Integrity
 Customer Satisfaction
 Teamwork
 Company Loyalty
 Corporate Information

 Strategic management in PTCL:

 Customer care initiative:
PTCL has taken an initiative of training and development of employees in order to increase the
customer satisfaction. These trainings will add into the abilities of employees and ultimately
customer satisfaction will increase.

 Implementation of ERP system in T&D:

ERP software is been installed by the PTCL in the project of training and development. This is a kind of risky step
but still PTCL grab it for the betterment of the organization. This project is mainly based on setting up the catalogs
and qualifications of employees, evaluate career plans , planning successions, setup appraisal system and work
through individual development planning scenarios in order to meet the customer requirement.

 Quality awareness program:

A quality awareness program has been designed for the PTCL staff. Under this program
employees will be able to enhance their knowledge and skills regarding their work.
Four types of plans are under this program:

 Installation Quality Standards

 Quality Auditor Course
 Companywide Quality Awareness
 Train the Trainer Program
 Strategies Implemented by PTCL in recent years:
 Product development strategy:
 4G wireless:
PTCL has taken major initiatives in introducing 4G in the sidelined areas. Those areas
which has not an easy access to the network atre now being targeted by PTCL such as Azad
jammu Kashmir, KPK, Balochistan and central Punjab.
 Broadband connections:
PTCL continuously developed its major product which was at that time dial up connection
services which after further progress developed in broadband connections which was not
only facilitating to computers at home but every device demanding internet connections
such as mobiles and tablets and because internet became the major requirement of every
house now broadband connectio0ns were in.
 Speed
The speed which in the early days of internet was 33 kb per second now they are offering
you internet at 9.3 mb per second such a fast revolution in speed was the major benefit for
PTCL.
 3G wingle:
After this PTCL introduced some new products into market like firstly 3/g wingle and then
4-G L.T.E AND internet which was basically firstly into your computer, or at your home
came in your hand and PTCL made it accessible everywhere so PTCL introduced its
product and provided its product everywhere making it more comfortable more accessible
and more reliable for customers.
 Unlimited internet:
PTCL won against its competitors and the major benefit it provided was unlimited internet
introduced for the first time by PTCL proved to be the major edge for PTCL
 Smart TV:
Another new product introduced by PTCL in the recent times is Smart T.V in competition
of local cable network and other potential competitors.
 A new project:
In 2017 PTCL worked in an ambitious project of transformation of network . This project
will be continued in 2018 which will give speed of 100 Mbps to the customers of PTCL.
 Marketing and promotion strategies for PTCL:
 PTCL attached itself to all major events happening in Pakistan like in the Pakistan Super
League it was supporting two times champions Islamabad United. Along with this PTCL
regularly advertises itself through various kinds of advertisements, internet advertising,
billboards and many other promotional tools
 Now the major current strategy of PTCL which attracted a lot of customers now a days was
collaboration with Netflix and free 6 month connection of net flix for customers who
choose 8mb connection and people are readily grabbing it and proving to be very useful
 PTCL has made an fiber leasing agreement with Telenor Pakistan for the consecutive 3rd
year .In this way PTCL enhanced the quality and ensured the strength of
telecommunication services of Pakistan market.
 Customer care strategies:
PTCL has worked a lot on customer care infrastructure. PTCL has introduced a new
helpline for the customers. The help line-1218 has upgraded the customer care systems of
PTCL. There are number of integrated channels been introduced by PTCL for customer
care.

 Outcomes of strategies in recent years:

 Fastest growing brand in Pakistan:
Recently an event held in Barcelona PTCL was declared as the fastest growing brand of
Pakistan with a brand value of USD 119 million. A number of famous brands were present
there at this occasion. PTCL was awarded with the trophy which was collected by the CEO
of PTCL.
 Growth in revenues:
o Sequential growth of 3% in revenues:
o According to the financial statement of 2017, 3% increase in revenues of PTCL is been
recorded and on the other hand 2% decrease in expenses has also happened.

This amazing growth in the profit and revenues is the result of the uplifting efforts of the PTCL.
These efforts include the sponsorship of the Pakistan super league, Pakistan Hockey team and
being the official telecom partner of FC Barcelona in 2017.

 Fastest change in Brand value:

According to the brand finance telecoms report 2018 the highest brand value change is recorded
that is 37.5% which is a remarkable achievement. This proves PTCL has undergone a
tremendous process of its transformation.

 Future:
The above mentioned outcomes of strategies applied by PTCL clearly show the uplift of PTCL
in all formats. These strategies have come up with the great result for PTCL. So PTCL should
stuck with these strategies in future also. PTCL has used strategies of all types especially It
focused a lot on advertisement that’s the reason of its success. The profit margin is increasing
with the passage of time and expense rate is minimizing. While on the other hand no specific
competitors are in the market so PTCL is not facing competitive market which is playing the
major role in its success.

 SWOT ANALYSIS:
 Internal analysis:
 Strengths:
o Largest and oldest communication company of Pakistan
o Creating monopoly by capturing 60% of market
o PTCL maintains the clients record efficiently building strong relationship with customers
o Strong brand image
o Strong financial position
 Weaknesses:
o PTCL organizational structure is considered weak
o Low service quality
o Extra number of employees which are not productive for PTCL
o Weak customer care services
o Weak marketing campaigns
o Less attractions for new customers
o Less expertise in specialized fields
o Less training programs for new employees
o Huge number of bad debts for the people owing to PTCL

 IFE MATRIX
Strengths Weight Rating Score

Largest and oldest communication 0.2 3 0.06

company of Pakistan
Creating monopoly by capturing 60% 0.1 3 0.3
of market
Efficient client record 0.05 3 0.15
Strong brand image 0.05 3 0.15
Strong financial image 0.1 1 0.1
Weakness
Low service quality 0.2 4 0.8
Weak marketing campaigns 0.05 4 0.2
Weak customer care services 0.1 4 0.4
Weak organizational structure 0.05 2 0.1
Less attractions for new customers 0.1 4 0.4
Total 1 2.66

The IFE matrix of PTCL shows that the internal analysis of PTCL is average and not in
very satisfying condition. PTCL needs to upgrade its internal structure.
 External analysis:
 Opportunities
o Big size of market for PTCL
o Product line can be increased further in future
o Increasing technologies has new set of opportunities for PTCL
o PTCL can grab more customers by using better marketing strategies
o Can hire better staff to get human resource advantage
o Joint venture with other companies
o Training and development programs for employees can improve service quality
o Better customer care services can increase customer market
 Threats
o Market competitiveness in revolutionary world
o Instable political conditions
o Market is open for new competitors
o High inflation rate
o Increasing tax rate
  EFE MATRIX

OPPORTUNITY Weight Rating Score

Joint venture with other companies 0.2 4 0.8

Better customer care services 0.1 3 0.3
Training and development programs for 0.05 4 0.2
employees
better staff to get human resource 0.05 2 0.1
advantage
better marketing strategies 0.1 3 0.3
THREATS
Market competitiveness in 0.1 1 0.1
revolutionary world
Instable political conditions 0.05 3 0.15
Market is open for new competitors 0.1 2 0.2
High inflation rate 0.05 1 0.05
Increasing tax rate 0.2 4 0.8
Total 1 3.00

The EFE matrix of PTCL shows that PTCL is externally strong and it has the capability to
capture the opportunities and avoid threats. PTCL has much more opportunities which it can
capture in future to maintain its success.

 Organizational factors:
 Customers:
o Organizations
o General public
 Suppliers:
o Input Tip from Haripur
 o Internal inputs from Siemens
o Ericson and Huawei
 Competitor
o wateen
 Substitute
o Zong
o Ufone
o Mobilink

 CPM Matrix:
Company1 COMPANY 2
WATEEN

Critical success factors weight Rating Score Rating Score

Financial position 0.2 4 0.8 1 0.2
Product quality 0.2 3 0.9 2 0.4
Customer satisfaction 0.1 2 0.2 1 0.1
Organization structure 0.5 2 1 2 1
Customer loyalty 0.1 3 0.3 2 0.2
Management experience 0.2 1 0.2 3 0.6
Advertising 0.1 2 0.2 2 0.2
Total 1:00 3.6 2.7

These results show that the WATEEN is a weakest competitor for PTCL. PTCL has the
competitive edge in the market because there are not many threats to PTCL from
competitors.
 Suggestions:
As ptcl is one of the biggest company in Pakistan and increasing its market share day by day
but ptcl must have to improve its services and increase quality in the internet and
telecommunication servies to capture more and more market share.

Following are some suggestions for ptcl.

 Must focus in the employess and internal customer because a employee can make or destroy
the image of the customers.
 Should Try to introduce a new and advanced system to ensure the productivity and
effectiveness.
 Should Train employees more about customer care.
 Increase market morality with the company polices.
 Must Try to enhance the system to handle customer clients.
 Try to improve their management that helps to decrease bad debts
 Try to decrease the call rates that may increase the strong and long-term relationships whit the
customers.
 PTCL should increase the customer privacy system.
 Company try to introduce that help to utilize the resources in a better way and helps to
increase the productivity of the company.
 should hire more competent and intelligent employees that promote company services in a
better way.

Conclusion:
All the discussion which is done above clearly demonstrates that PTCL is growing very fast in
Pakistan. It has become the fastest growing network in Pakistan. There are some weak points of
PTCL as mentioned above ,if PTCL convert these weak points in strengths this will be highly
beneficial for PTCL. There are no alternatives available for customers that is one of the biggest
reason of PTCL,s popularity. In recent years PTCL has targeted the far areas of Pakistan which
has made the PTCL biggest network of Pakistan. However customers of PTCL often complains
about the low service quality of its products which can be a key reason for its decline in future if
PTCL does not take steps for the improvement of the service quality. As we know that PTCL is
the strongest telecommunication brand of Pakistan and it has strong financial position so there
are opportunities for global expansion of PTCL. Overall PTCL is going good throughout its
career spam but it really needs to improve its quality. It is the strongest brand only because of
almost no competitor in the country of its size and quality of the network. PTCL has used
strategies of all types especially It focused a lot on advertisement that’s the reason of its success.
The profit margin is increasing with the passage of time and expense rate is minimizing. While
on the other hand no specific competitors are in the market so PTCL is not facing competitive
market which is playing the major role in its success.

Grand strategy matrix:

Explanation:
As PTCL exist in quarter 1, this shows the strong competitive and financial position of PTCL.
According to this PTCL should chose aggressive strategies to attract high market shares.
PTCL is facing high competitive advantage so it should move with aggressive strategies and
extensive advertisement. PTCL is already a strong brand all over the Pakistan so there is an
opportunity for PTCL to expand internationally.
 IE matrix:
IFE

4.0 3.0 2.0 1

4.0
1 II III

3.0

IV V VI
EFE

2.0

VII VIII IX

The result of EFE is 3.00 and IFE is 2.6 which puts PTCL in quarter II of IE matrix. Thus
quarter II of IE matrix shows that PTCL is in a very strong position so it can use aggressive
strategies. It should focus on expansion of the business. Company can penetrate its market,
can develop its market, can also develop its products to capture high market share that
increase companies profit ratio and also help to sustain at this stage.
QSPM matrix
Strategy 1 Strategy 2
Go for rural Introduce brand
Areas in mobile networks
Strengths Weights A.S T.A.S A.S T.A.S
1. Strong financial position .15 3 .45 3 .45
2. Strong brand name .15 3 .45 3 .45
3. Best available staff .10
 4. Largest existing network .15
Weaknesses
[Link] service quality .10
[Link] customer Handling .10 2 .20 1 .10
[Link] Structure .15 2 .30 1 .15
[Link] trained staff .10
Total 1.0
Opportunities
[Link] new markets .15 3 .45 4 .60
[Link] new products .15 3 .45 3 .45
[Link] quality .15
[Link] staff .10
Threads
[Link] entrants like NayaTel .10 3 .30 2 .20
2. Excessive competition by mobile networks .15 3 .45 3 .45
[Link] inflation rates .10
4 Increasing tax rates .10 2 3
Total 1.0 2.65 2.85

If we look at the current scenario introducing a new network connection may be more suitable
strategy for PTCL

Space Matrix

Internal analysis

Financial Position 6

Return on Investment 4

Leverage 4

Liquidity 3

Cash flow 4
Financial Position Leverage 4.2

Competitive Analysis

Market Share -2

Product Quality -4

Customer Loyalty -5

CP Average -3.75

External Analysis

Rate of Inflation -2

Technological changes -4

Competitive Pressure -3

Barriers of entering into market -2

Stability Position Average -3.75

Industry Position

Growth Potential 5

Financial Stability 5

Resource utilization 3

Profit potential 4

Industry position Average 4.25

X-axis 4.2 – 3.75 = .45

Y-axis 4.25-3.75 = .50

Space Matrix for PTCL

- 6
Aggressive
- 5 Aggressive

- 4
- 3
- 2
- 1

-6 -5 -4 -3 -2 -1 1 2 3 4 5 6

-1
-2
-3
-4
-5
.6

Means PTCL Can go for aggressive strategies like go for integration both vertical and
horizontal
BCG matrix:

PTCL

STARS QUESTION MARKS

II I

CASH COWS DOGS

III IV

Explanation:
growth and high profit. So companies should choose different type of aggressive strategies.
PTCL can penetrate its market, also can develop the market, and as PTCL develop many new
Products with the passage of time so it deserves a STAR
SWOT Matrix

Strengths Weaknesses

SO WO
Opportunities With its strong financial value, By improving its technology and
it can easily go further to structure PTCL can go for new
explore new markets products uncapped markets

ST WT
Threats With strong brand name and By improving technology and
financial value it can basically structure it can close doors for
saturate market closing door new entrants
for new entrants