PROJECT

PTCL Company FALSE strategies

Submitted By: Submitted TO:

Maam Ayesha
Shabana Riaz
Mehnaz Begum
Kainat Malik
Bushra Ghanzafar
Kiran Shezadi
 Table of Content

 Introduction
 Vision
 Mision
 Core Value
 Strategies of Ptcl
 SWOT Analysis

 Internal Analysis
 External Analysis

 Management Cycle
 Business Strategies
 Leadership
 Differentiation
 Focus

 Functional strategy
 FALSE strategies
 Conclusion
 Recommendation
PTCL – PAKISTAN TELECOMMUNICATION LIMITED

Introduction of PTCL

PTCL is the largest telecommunications provider in Pakistan. PTCL also

continues to be the largest CDMA operator in the country with 0.8 million V-
fone customers. The company maintains a leading position in Pakistan as
an infrastructure provider to other telecom operators and corporate
customers of the country. It has the potential to be an instrumental agent in
Pakistan’s economic growth. PTCL has laidan Optical Fiber Access
Network in the major metropolitan centers of Pakistan and local loop
service shave started to be modernized and upgraded from copper to an
optical network. On the Long Distance and International infrastructure side,
the capacity of two SEA-ME-WE submarine cable is being expanded to
meet the increasing demand of International traffic. With the promulgation
of Telecommunication (Re-Organization) Act 1996, the Pakistan
Telecommunication Authority was established as the Telecom Regulatory
body. Following the open licensing policy in BUY @ PKR 45.40accordance
with the instructions of Government of Pakistan and in exercise of powers
conferred by Pakistan Telecommunication (Re-Organization) Act 1996, the
basic telephony was put under exclusivity and PTCL was given a seven
years monopoly over basic telephony which ended by December 31, 2002.
The year 2006-07 in the telecom sector witnessed a phenomenal growth in
the mobile phone sector in Pakistan, which doubled its subscriber base to
60 million. The Tele density increased from 26% to40%, helping to
spread the benefits of communication technology across the country.
PTCL's mobile phone subsidiary Ufone's subscriber base grew by more
than87%, from 7.49 million to 14 million. The year also witnessed the entry
of majortelecom companies, most notably China Telecom and Singtel, into
the market.Restructuring and re-engineering are in their final stages along
with the implementation of ERP system. From the end customer's
perspective, a major initiative was put in place in the shape of 'Broadband
Pakistan' service launch as afirst step towards providing its customer with
more value addedservice and convenience. With this offering, the PTCL
not only bringing the benefit of high speed Internet access to subscribers in
major cities but will also generate new revenue streams for future growth/

Vision

To be the leading Information and Communication Technology Service

Provider inthe region by achieving customer satisfaction and maximizing
shareholders' value'.
The future is unfolding around us. In times to come, we will be the link that
allowsglobalcommunication. We are striving towards mobilizing the world
for the future.

Mission

To achieve our vision by having

An organizational environment that fosters professionalism, motivation
andquality
An environment that is cost effective and quality conscious
Services that are based on the most optimum technology
"Quality" and "Time" conscious customer service

Core Values

•Professional Integrity

•Customer Satisfaction
STATEGIES OF PTCL

Customer Care Initiative

To achieve the pinnacle of Excellence in Customer Service envisioned

by the President/CEO the Training and Development department has
assumed the responsibility for effectively imparting training under the
Customer Care Initiative to all PTCL employees.

Implementation of ERP system in T&D:

The focus of the project is to set up and maintain the qualifications

catalogs, create and evaluate profiles for a range of objects (for example,
persons and positions), evaluate career and succession planning
scenarios, set up appraisal systems, as well as plan, hold, and evaluate
appraisals, create development plans, and work through individual
development planning scenarios by customizing the functions of personnel
development to meet customer requirements.

Quality Awareness Programme:

In order to create quality awareness and skills improvement of PTCL staff,

a 3-year QA plan has been made. The project is scheduled from March
2007 to December 2009. Following four types of programmes are under the
work plan:

• Installation Quality Standards

• Quality Auditor Course

• Companywide Quality Awareness

• ‘Train the Trainer Programme’ offered to the faculty of

PTCL training centers
SWOT ANALYSIS

INTERNAL ANALYSIS

Strengths

•Largest operational network and infrastructure within ICT (Information

&Communication Technologies) segment.

•An integrated Monopoly

•Market leadership in Local loop, Wireless local loop (WLL) and Fixed
telephony.
PTCL (Ufone) is market challenger in GSM segment

•Ufone is performing well though Warid and Telenor are tough competitors.
PTCL,Ufone’s profitability increased by 49.2 percent to Rs 977 million in
1H/FY07 ascompared to Rs 655 million in the corresponding period last.

•Competitors still depend on PTCL network either directly or indirectly

•Experienced Telecom Resources

Weakness

•Not been able to nurture its growth around customer services oriented
strategy

•Internal organizational and business processes issues

•Monopolistic culture has further added to its complexities

•Paknet, the internet service provider arm of ptcl continues to incur losses
due topoor management and lack of network optimization

•Ptcl-v, the fixed wireless phone service is poor

•Over employment & low productivity.

•Slow decision making including external interferences.

•Corporate culture akin to government departments.

EXTERNAL ANALYSIS

Opportunities

•Low teledensity of pakistan.

•Have vast infrastructure and real estate assets which can be leveraged
further.

•Global connectivity reliability has been improved. PTCL is expanding the

longdistance and infrastructure side through spreading out two sea-me-we
submarinecables..

•Partnership with new entrants in a deregulated environment.

Threats

 Increased competition in long distance continues to exert pressure.

 VOIP use is increasing despite ambiguous and discriminatory policies

•Exposure to market competition

•Migration to Cellular Networks

•Ability to Attract & Retain Quality Professionals

•Reduction in International Settlement Rate taxablerevenue base.

•Accelerate expansion of telecom infrastructure to extend telecom services

to unserved and undeserved areas.

•Encourage fair competition among service providers, while maintaining

leadership in the telecom sector

•Maintain consistency with the Pakistan IT and internet promotion policy of

lowprices for Bandwidth and Internet access.
ORGANIZATIONAL L MANAGEMENT CYCLE

The cycle above describes the Organizational Management process at

PTCL. Yellow blocks describe the core functions of the Company
performed at all levels in the Organization. Blue Blocks are the Strategic
functions which are performed at the Strategic level only.

TYPES OF ORGANIZATION STRATEGY

CORPORATE STRATEGY

GROWTH

PTCL Upcoming

IPTV Services
Ever wondered what it would be like to receive adverts on TV only for the
products that you areinterested in buying? What if when you are
watching the latest thriller on a movie channel or alive cricket
match and you have to suddenly leave to attend to guests, you are
still able to come back and see the action from exactly where you left?
What if you can see the daily and monthly program list and times for your
favorite TV channels with the press of a button? What if you areoffered a
multi channel TV service with state of the art digital DVD picture
quality? Well youwon’t have to wonder for too long as all of these
and many more features will soon be coming your way in shape of
PTCL’s multi channel IPTV service!

 Broadcast and specialty TV channels

– Digital Broadcast TV – Pay-per-view (PPV)

 Directed advertising
– The ability to receive specific adverts for products that you are
interested in buying

 And many more mouth watering features

– Gaming – Interactive services – SMS/voice integrated applications
BUSSINESS STRATEGY

As the ptcl growing its position as the leading ICT service

provider and a profit leader, a five year Strategic Master Plan for
the Company, with defined corporate KPI targets, timelines and ownerships
was developed by the PTCL management. Defining yearly targets on
market shares for various voice and data services, introduction of a
corporate KPI based performance measurement system, Restructuring
of the organization, formulation of IPTV, Triple Play and converged
services, migration to an end to end IP based network, Investment
strategies such as Assets Management for risk diversification and improved
Return on Investments ,were all part of the master plan.

DIFFERENTIATION

PTCL has by far the largest network coverage, competitive price, and a range of
Value Added services including Phone book, messaging, and call logs. PTCL
wireless service gives voice quality of a landline with country-wide coverage,
employing the state of the art CDMA 2001xtechnology and nationwide availability.

COST LEADERSHIP.

PAKISTAN PLUS LEADERSHIP

Pakistan Plus offers 2,500 minutes of nationwide calls for a fixed
package charge of Rs.199.
T h e p a c k a g e a l s o i n c l u d e s f r e e vo i c e m a i l a n d c a l l wa i t i n g . M
o r e o ve r , f o r c o n ve n i e n c e t o c u s to me r s , a l l s u b s c r i b e r s wh o
we r e o n P a k i s t a n P a c k a g e a s o f 3 1 s t M a r c h 2 0 0 8 h a ve
b e e n shifted to Pakistan Plus with effect from 1st April 2008

Line Rent (excl. taxes) RS. 174

Package charge RS. 199.99
Local_ Peak (8am to 9pm) RS. 2.00/2mins
Local_Off Peak (9pm to 8am) RS. 4.00/4mins
NWD Calls FREE (up to 2500 minutes)
additional
minutes would be charged at
RS.2.00/ mins

FREE Services Voice mail, Call waiting

VALUE LEADERSHIP

Value Plus is designed for the internet savvy and offers 1,200 internet
minutes in addition to 25nationwide calling minutes per month for a
fixed package charge of Rs. 75. The package alsoincludes free
voicemail and call waiting

FOCUS STRATEGY

Broadband and Value Added Services

PTCL through diversification and assorted products and services could

retain itsfundamental presence in the Telecom Sector. Introduction of DSL
Broadbandservices across major cities with plans to include more cities in times to
come willenhance the revenue base of PTCL. Stiff competition from other
cable basedbroadband service providers and local cable operators
still persists. PTCL’sbroadband services100,000 subscribers by providing
services in the five largestcities and had a decent start by adding over
10,000 subscribers within the first fewmonths of its operations depicting
PTCL’s brand recognition.
FUNCTIONAL STRATEGY

HUMAN RESOURCE DEVELOPMENT HR ASPECTS

The transformation from a legacy public sector organization into
a responsive and competitive enterprise in the deregulated era could not
have been possible without implementing a forward looking Human Capital
development and management strategy. One of the most important
objectives of this new strategy was to optimize the workforce which was
implemented by offering the voluntary option of separating From PTCL in
exchange for financial compensation. Around 29,920employees opted to
pursue other career opportunities after accepting terms of
voluntary separation from PTCL.
MARKETING

Market Structure
PTCL is leading in terms of traffic on WLL in Pakistan, which has about 54
percentmarket share of total traffic of WLL segment. Two major players,
PTCL and Telecardhave lost market share in WLL traffic in quarter ending
December 2007 whencompared with the same quarter of the last year.
PTCL share came down to 54percent from 57 percent while Telecard share
in total traffic has come down to 22percent from 30 percent. WorldCall has
gained 100 percent and its share reached to22 percent at the end of 2007
compared to the same quarter last year. PTCL, theincumbent operator in
fixed line in Pakistan has also emerged as market leader with57 percent
market share followed by Telecard and Worldcall with 19.6 percent and20.2
percent market share at the end of December 2007.Great Bear
Internationalshare is reported to be 3 percent, while Wateen Telecom share
is 0.2 percent,whichstarted their services during the quarter. PTCL has
gained over 1 percentmarketshare compared to the same quarter of last
year while Telecard added over5 percent market share during this period.
GreatBear International though a smaller shareholder in WLL market but its
share isincreasing due to its quality of service as it reached to 3 percent as
compared to 2percent in December 2006.policies by the PTA.

FUNCTIONAL STRATEGY

Financial Aspects
The structural adjustments undertaken by the company in response to the
increased competition and substitution impact of mobile expansion has
adversely hit the profitability of PTCL in the short run.
FALSE STRATEGIES

 PTCL customer service is still not good and this is one of their main
strategy that they will not apply or not work on this and due to this
there is very less number of brandloyal customer.
 The monopolistic culture of PTCL won’t let then to improve their
service.
 PTCL have over employment and low productivity as well.
 PTCL HR department is not up to set standards on the bases of
appraisal system of their employees.
 PTCL waste huge amount of resources.
 Their staff won’t get any benefit for their higher qualification and since
12 year their promotions are stopped.
 Under utilization of resources e.g they have complaint management
system but still customer complaints are not rectified on time.
 Ptcl corporate culture is similar to the government offices.
 PTCL is not properly marketing their new services and product
 PTCL is facing huge threat of migration from landline to mobile
phone.
 Increasing involvement of rivals in social activites can badly effect
PTCL Image and market share.
 Brilliant customer service of rivals is a huge threat for PTCL.
 Increasing rate of cyber crime is also threat for ptcl high speed
ibternet devices like EVO, EVO nitro.
 Continuously improving quality of Naya tell is also threat for PTCL

Conclusion:

For PTCL, re-branding initiative can only have any sort of meaning if it is
aligned with proper rationales and concrete change. An image cannot be
purchased, it must be built. Without a constructive attitude, change, PTCL
goals will become meaningless.

It is not about making superficial changes, but the need of today is for
substantial reform. This change must be followed by superlative services,
good customer service, and dedicated people. Otherwise the re- branding
initiative will be reduced to meaningless slogans, images and sound bytes.
So for authenticity to be deeper than promotional claim, brands cannot
solely be the preserve of the marketing department.
PTCL must have to introduce automation in its processes and improve MIS
system. In wake of change of corporate orientation from engineering to
commercial each employee will have to change his attitude the way he
works accordingly. PTCL will have to open up to reality and the changed
world outside to grab business share. New challenges require new
approach from PTCL. Everyone will have to gear up to achieve better
customer satisfaction.

So PTCL has to do is to bring about a positive change in attitude and

mindsets of each and every employee. Improved customer services and
launch of new products is the only way to survival for PTCL. Every
employee of PTCL is its Marketing person and ambassador of the
Company. By changing in attitude it can contribute to company in particular
and to the society in general.

Recommendation:-

PTCL must have to focus on their employee

Till now PTCL is just a procedure-oriented company but It should be shifted

from that to an employee oriented company to satisfy and motivate their
HR. PTCL have to value their staff.

PTCL must have to motivate their employees

PTCL HR management is continuously saying that it motivates and

appritiate their employees but according to the employees there is no
motivational aspect present, which put positive impact on their
performance.

PTCL have to unfreez the promotion.

PTCL have to unfreez the promotion program which is closed since 12

years. Due to this motivation and positivity decreases in employee.

PTCL lacks in Professionalism

PTCL is not following a very professional attitude. A lot of biasness and

personal favoritisms exist their and employees are evaluated on the Bases
of personal relations with their respective upper management, without
taking performance much into consideration.

PTCL have to invest in training their employees

Till now Ptcl doesn’t give his employees required training opportunities but
now they have to invest in this area if they want to improve their market
standing and service quality And at the same time ptcl have to make
contract with their employees that cant leave PTCL for a specific period of
time after training.

PTCL have to invest in Customer service

Poor customer service is the main problem of PTCL and competitors are
hitting Ptcl through this area and now PTCL have to invest in that area to
convert this weakness into strength.

Proper appraisal system

Ptcl must have proper appraisal system or proper reward system which
raise the motivation level between employees and also improve
productivity,

Improve marketing strategy

PTCL managemet have to improve the marketing stretagy because now

days they mainly advertise their sevices on Smart tv. They have to
advertise on other channels too.