Strategic Analysis of Mobilink Jazz
Strategic Analysis of Mobilink Jazz
INTRODUCTION:
Mobilink JAZZ is Pakistan's largest mobile network operator with over 30% market share. It
started operations in 1994 as a subsidiary of Orascom Telecom. Mobilink's mission is to be the
leading telecommunications provider in Pakistan by offering innovative solutions while
exceeding shareholder and employee expectations. Its products and services include Mobicash,
mobile internet, prepaid and postpaid plans, and devices. Mobilink segments customers by age,
income, occupation and social class and targets different brands at the corporate sector, youth,
and masses
JAZZ is a subsidiary of VEON Ltd Jazz is a prominent mobile network operator in Pakistan,
providing a wide range of telecommunications services, including voice, data, and digital
services. It was originally launched as Mobilink in 1994 and was rebranded as Jazz in 2017 after
a merger with Warid Telecom. Jazz is headquartered in Islamabad, Pakistan.
MISSION:
To be the unmatchable mobile system of communications in Pakistan, providing the best value to
its customers, employees, business partners and shareholders"
VISION:
STRATEGIC OBJECTIVES:
● JAZZ Indigo brand mainly targets the corporate sector of the Pakistani community.
● The Jazz Octane is designed to attract youth.
● Mobilink JAZZ World targets the masses with its diverse value added services.
Jazz, a telecom company of Pakistan, is the market leader in the arena and has been part of the
sector for the past 20 years. Offering a complete ecosystem to its consumers through Jazz Cash,
Jazz Super 4G, and Jazz WiFi Devices. With the mantra of "Dunya ko bata do" Jazz aims to
fully garnish the growth and connectivity index of its users. An undisputed and undeniable
market leader with the established repute of being the biggest mobile operator in the region.
Through integrated and cutting edge communication solutions, Jazz is Pakistan’s strongest
telecommunications brand, with the largest value-added digital services portfolio. The
company’s mission is to digitize Pakistan and equip the consumers with tools that are a must to
excel in the digital arena. Jazz, with a 40% customer base in the market, bridges this digital
divide through the tactics of its own. The core values of Jazz drive the company towards
exploring new avenues of market success chiefly being: truthfulness, innovation, customer
obsession, collaboration and entrepreneurship.
With the innovation potential yet at hand and the creativity index high,
Synopsis:
This project provides a comprehensive strategic analysis of Mobilink Jazz, Pakistan’s leading
telecom company, using various strategic management tools. The focus is on identifying the
company’s internal strengths and weaknesses, external opportunities and threats, and proposing
actionable strategies based on quantitative evaluations. The tools utilized include the EFE
Matrix, IFE Matrix, SPACE Matrix, and QSPM. The project also explores how Mobilink Jazz
can sustain its competitive edge in a dynamic industry characterized by intense competition,
regulatory challenges, and technological advancements.
The analysis culminates in actionable strategic recommendations tailored to improve the
company’s market position, enhance customer satisfaction, and drive innovation in its product
and service offerings. Key strategies include market penetration, product development, market
development, and forming strategic alliances, with detailed evaluations provided for each.
Learning Objectives:
Opportunities
0.02 3 0.45
14 Increasing
number of users
in rural areas
Threats
6 0.04 3 0.01
High Tax Rates
Total 1 3.37
PESTLE ANALYSIS
POLITICAL FACTORS:
The telecommunication companies in Pakistan have made the sector investor friendly but due to
past and present instability of the political environment in the [Link] is suffering a lot
at the economic front Government is providing great opportunities for foreign investors to bring
in their foreign direct investments but due to the recent security and judicial issues in the country
terror attacks ,money [Link] cellular service sector is becoming highly unattractive for
the both domestic and and foreign [Link] these factors greatly reduce threat of new
entrants in the industry.
Another important issue is the Government Activation Tax (GAT) ". This would highly affect
the profitability and cost of operations for the cellular service providers to a great extent. This
may make the industry attractive as due to low profitability, new entrants may be discouraged to
enter the industry.
The current government has enhanced the GST rate on the cellular sector from 18% in the
current fiscal year. According to the projections made by the Pakistan Telecom Authority (PTA)
and current analysis, this raise in GST has and will continue to have a negative impact on cell
phone usage. Again this policy of the government has provided an advantage to the substitute
companies (wireless phones and CDMA) as this increase in GST is an on-going expense for
mobile users and since there are low costs of switching to these substitute services, this increases
the threat of substitutes.
ECONOMIC FACTORS:
The global economic slump and current economic instability and recession" in the country has
drastically affected the state of cellular service industry in Pakistan. High inflationary pressures
and other unfavorable factors have resulted in low real incomes for people. This has made buyers
more price-sensitive and willing to switch to any service that provides lower rates and a wider
range of services. This is also because the cost of switching for buyers is low. This has increased
rivalry within the industry as each competitor fights for a higher market share, while the growth
in the industry saturates.
The total revenue of the cellular service industry is stated in terms of U.S. Dollars. Recent
economic crises in the country have devalued the foreign exchange rate of Pak Rupees against
U.S. Dollars over the last year. Pak Rupee depreciated from approximately Rs280$. The
depreciation of Pakistani currency has reduced the total revenue of the sector in terms of the U.S.
Dollars and therefore, real earnings are declining. This makes the industry unfavorable for the
new competitors to enter and make investments in the industry.
SOCIAL FACOTORS:
Due to the price sensitive nature, customers always look out for the connection that provides the
best priced packages and focus on network coverage. And usually an attractive package by one
firm can influence the purchase of many customers because of the multiplier effect. For instance,
if one package is in demand, people would start switching over to that mobile connection in
groups of families, friends and [Link] trends have shown that more and more people
in the society are becoming concerned about their lifestyle and how others perceive them within
the society. In the upper-middle and higher income brackets majority of the people want to be
perceived as sophisticated and want to use exclusive services in order to feel as being part of the
higher class and status. For such customers there is more focus on high value added service and
exclusive packages. This slightly reduces rivalry in the industry, making it more attractive.
TECHNOLOGICAL FACTORS:
The pace of technological advancements is so high in the industry that it makes the provision of
services more and more complex. The existing companies are finding it difficult to match the
current global technological competencies as it is very costly to provide these services,
specifically faster 4G+ data speed in urban areas.
Providing its users with the latest services through their mobile connections (like GPRS, WAP
and Edge services) and other facilities such as easy load, credit sharing and convenient and faster
billing services is very important for survival. To keep pace with these new services is very
important to retain customers and target new ones as these technological services have a high
potential demand and require continuous updates. This again reflects rivalry as firms copy each
other's latest innovation, even if it's at a higher cost or loss. In other words, any update made by
any company within the industry must be immediately taken into effect by all other companies in
order to compete successfully with rivals. New Generation technologies in communication which
include WLL, WI-FI/wireless LAN, UMTS are not provided by any telecom service providers
but there is a high potential of such service requirement by the customers.
IFE Matrix:
Score
Weakness
0.42 0.74
Interpretation:
A score of 2.79 interprets that Jazz is performing way above than average of 2.5 but there’s still areas of
improvement needed to get more rating.
CPM Matrix:
MOBILINK Zong Telenor
JAZZ
● Mobilink: Should maintain and build on its competitive advantages to stay ahead.
● Zong: Close to Mobilink, Zong should analyze its weaknesses and work on areas to close the
gap.
● Telenor: Needs a strategic overhaul to compete effectively. Identifying and addressing
weaknesses in critical areas is crucial for improvement.
SWOT Analysis:
Strengths:
1. Strong brand name
2. Largest market share
3. 4G/LTE status through the acquiring of WARID
4. Among top 10 mobile phone operators in the world
5. Technology
6. Largest market share and high number of subscribes
7. Largest market share and high number of subscribes
8. 4G leadership largest 4G network in Pakistan
9. Future ready 5G Technology rollout
10. Jazz cash and jazz world App Leadership
Weakness:
1. Financial cost increased 2023 5.6%
2. Profit before Tax decreased by 2.13% 2023
3. Heavily reliance on urban markets
4. Difficulties in integrating the operations of Warid and Mobilink
5. Focus Towards internet services
6. Inconsistent internet speeds, especially during peak hours.
7. High infrastructure and operational costs, especially in expanding coverage.
8. Customer often switch to competitors due to dissatisfaction with service issue
9. High Tariffs as compared to competitors & expensive Services Quality both call rate and SMS
10. Extensive organizational structure
Opportunities:
1. Sponsorships for local and International events
2. Changing Marketing Mix
3. Investment and Development Opportunities
4. Improved Customer Service and Value Added Services
5. Industry Growth (supply push and demand pull, pursuit of expansion)
6. Raid growth in internet usage at cell phone
7. Expansion potential to outreach the far – flung areas of the country
8. Adopting New Technology such as tap to pay and Gift Cards
9. Local handset manufacturing
10. Increasing number of users in rural areas
Threats:
1. Intense Competition - Telenor, Ufone, Warid & Zong ,Onic
2. Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan
3. Market saturation of Subscribers
4. Increasing maintenance Cost
5. Skilled labor attracted to competitors via better benefits
6. Price war between brands in telecom industry
7. Natural disaster; like the recent flood caused huge losses
8. Introduction of Mobile number portability
9. Inclement weather can be detrimental for the service
10. High Tax Rates
Strategic Recommendations:
SO Strategies:
1. Leverage the strong brand name to sponsor local and international events and enhance market
visibility.
2. Utilize the largest 4G network in Pakistan to expand services in far-flung areas and tap into
increasing rural users.
3. Use Jazz Cash and Jazz World App leadership to introduce tap-to-pay and gift cards, targeting
rapid growth in internet usage.
4. Deploy future-ready 5G technology to capture the demand for industry growth and
digital innovation.
WO Strategies:
1. Address inconsistent internet speeds by investing in improved customer service and infrastructure
to gain a competitive edge.
2. Mitigate the reliance on urban markets by focusing on rural area expansion and launching
affordable packages.
3. Counter the high financial costs with local handset manufacturing and partnerships to reduce
operational expenses.
4. Turn the difficulties in integrating Warid and Mobilink operations into an opportunity for a
streamlined marketing mix.
ST Strategies:
1. Utilize the largest market share and 4G leadership to withstand intense competition from other
telecom brands.
2. Employ future-ready 5G technology to mitigate risks of market saturation by attracting early
adopters.
3. Promote the Jazz Cash platform to combat the price war by offering unique value-added services.
4. Leverage the strong brand reputation to address the challenges posed by natural disasters through
CSR initiatives.
WT Strategies:
1. Reduce high infrastructure costs by adopting cost-efficient technologies to counter price wars.
2. Improve service quality and tariffs to minimize customer attrition and mitigate the risk of skilled
labor moving to competitors.
3. Simplify the extensive organizational structure to enhance adaptability against an inconsistent
regulatory environment
BMC Matrix:
IE Matrix:
Quadrant Placement:
Based on the scores:
BCG Matrix:
Provinces Sales % Sales Profit (in % Profit RMSP Industry
Revenues millions) (Relative Growth rate
(millions) Market (%)
Share
Position)
Province-wise Interpretation:
1. Sindh
● Position: Star
Explanation: Sindh is in a high-growth market and has a strong market share. It generates the
majority of the company’s revenues (54%) and profits (58%). The company should continue
investing heavily in Sindh to sustain growth and dominance, leveraging its leadership position.
2. Punjab
● Position: Dog
Explanation: KPK’s market is stagnant, with a low market share. It contributes less to the
company's sales (18%) and profits (15%). Investments in this region should be minimized unless
specific opportunities arise, such as niche markets or underserved segments.
4. Balochistan
● Position: Dog
Explanation: Balochistan operates in a declining market, and its contribution to sales and profits
is negligible (1%). Despite a relatively higher RMSP (+0.7), the negative growth suggests limited
long-term potential. The company should consider divestment or reallocation of resources to
more promising regions unless there is a strategic reason to stay.
Strategic Implications:
1. Sindh (Star):
Invest heavily to capitalize on the high-growth market. Focus on enhancing services,
improving infrastructure, and retaining customers.
2. Punjab (Cash Cow):
Maintain market share and profitability through cost efficiency. Revenues from Punjab
can be used to fund growth in Sindh or other high-potential areas.
3. KPK (Dog):
Minimize investments unless a niche market can be identified. Consider strategies to
either exit or consolidate operations to reduce costs.
4. Balochistan (Dog):
With a declining market and minimal contribution, divestment might be the best strategy
unless specific opportunities arise to serve underserved segments profitably.
SPACE Matrix:
Dimensions Scores
Internal Dimensions
Financial Positions
FP Average 3.50
Competitive Position
CP Average -3.00
Stability Position
Industry Position
Average IP 5.33
The coordinates (+2.33,−0.10)(+2.33, -0.10)(+2.33,−0.10) place the SPACE Matrix analysis in the
Competitive Quadrant.
Quadrant: Competitive
This quadrant signifies that Mobilink Jazz has strong internal capabilities and is in a stable and
moderately growing industry. The company is well-positioned to leverage its competitive
advantages to outperform rivals and consolidate its leadership.
Strategic Recommendations:
1. Market Penetration:
o Focus on increasing market share by enhancing customer loyalty programs, offering
aggressive promotional packages, and improving service quality.
o Leverage existing customer base by cross-selling value-added services such as JazzCash.
2. Product Development:
o Introduce innovative products, such as advanced 5G services and bundled packages with
exclusive features, to attract tech-savvy customers.
o Focus on digital solutions like enhanced mobile apps, IoT offerings, and partnerships
with content providers.
3. Cost Leadership and Efficiency:
o Optimize operational costs by automating processes, outsourcing non-core activities,
and enhancing energy efficiency in infrastructure.
o Invest in shared infrastructure projects with competitors to expand rural coverage at a
reduced cost.
4. Strategic Alliances:
o Collaborate with global telecom technology firms for innovation and technology
transfer.
o Form partnerships with OTT platforms, local e-commerce firms, and fintech companies
to diversify revenue streams.
Grand Strategy Matrix:
Given that Mobilink Jazz is in the "Strong Competitive Position & Slow Industry Growth" quadrant
(Quadrant II), it should focus on growth but in a strategic, sustainable manner. The company should
aim to reinforce its competitive position while diversifying its offerings to adapt to the slower growth
of the telecom industry. It must focus on innovation, cost efficiency, and market diversification to stay
ahead of competitors.
Therefore, the strategies recommended aim to maintain and build upon its strengths while
adapting to the slower growth conditions of the industry.
1. Market Penetration
Goal: Increase market share in existing markets.
● Why: Since Mobilink Jazz has a strong competitive position (as reflected in its SPACE
Matrix), the company is in a good position to increase its market share in the existing
markets it operates in. The telecom industry in Pakistan may be facing slow growth
overall, but there are still significant opportunities to attract customers from
competitors or gain share from new demographics, such as youth, rural customers, or
corporate clients.
● How:
o Aggressive Marketing: Mobilink can use targeted advertising campaigns through
traditional and digital media to increase brand visibility and customer engagement. For
instance, targeted ads and offers on social media platforms or TV targeting specific user
groups (e.g., young professionals, students, etc.).
o Loyalty Programs & Offers: Offer discounts, bundles, and incentives like discounted
tariffs or value-added services (e.g., additional data, free minutes) to encourage
customer retention and attract more users.
o Customer Retention: By focusing on improving the customer experience, Mobilink
can reduce churn. Offering personalized plans and 24/7 customer support would be
essential.
● Examples:
o Jazz World App: Encouraging users to use the app for various services (recharge, bill
payments, data management) with offers and rewards.
o Discounted Data Plans: Offering exclusive data packages for social media usage or
streaming services to attract young and tech-savvy users.
2. Product Development
Goal: Innovate and develop new products or services to stay competitive.
● Why: The industry is growing slowly, but innovative products and services can
differentiate Mobilink Jazz from its competitors. Product development allows the
company to provide unique, value-added services and enhance customer loyalty. 5G
services and mobile financial services like JazzCash can be focal points for new
product offerings.
● How:
o Rollout of 5G Technology: Mobilink should accelerate its 5G rollout to position itself
as a leader in this space. Offering exclusive 5G plans and making the technology
accessible to a broad user base (both urban and rural) can help Mobilink tap into a new
market.
o Mobile Financial Services: JazzCash is already a leader in mobile payments in Pakistan.
Further enhancing this service with features like international transfers, credit lines, or
expanded merchant networks can bring new revenue streams and further engagement.
o Value-Added Services: The company can also introduce new features for data-intensive
customers, such as specialized cloud storage solutions, gaming services, or premium
content subscriptions (e.g., Netflix or Spotify partnerships).
● Examples:
o 5G Subscription Plans: Introduce attractive 5G packages and targeted data plans for
gaming, streaming, and social media.
o JazzCash Expansion: Develop new financial tools, such as digital loans, bill
payments, or mobile savings accounts, to cater to underserved segments.
3. Strategic Alliances and Joint Ventures
Goal: Collaborate with other organizations to leverage mutual strengths, expand into new
markets, or enhance technology.
● Why: While the industry is experiencing slow growth, the competitive pressure from
Telenor, Zong, and other players can be countered by forming strategic alliances or
joint ventures. These partnerships can help Mobilink access new technologies, expand
its market reach, or share operational costs.
● How:
o Partnering with Tech Giants: Collaborating with global tech companies (e.g., Huawei,
Qualcomm) for 5G technology or cloud services can help Mobilink upgrade its network
infrastructure and services.
o Mergers or Acquisitions: Mobilink could look for opportunities to acquire smaller or
regional telecom players or even enter into a merger with a foreign telecom operator to
enter new international markets.
o Retail Partnerships: Mobilink could form alliances with electronics or mobile device
manufacturers to offer bundled deals on phones with mobile subscriptions. Partnerships
with banks for mobile banking or digital payment services are another avenue.
● Examples:
o 5G Partnership: Teaming up with a major international player like Ericsson or Nokia
for 5G infrastructure.
o Joint Ventures for Content Delivery: Collaborating with streaming platforms like
Netflix or YouTube for exclusive mobile bundles or content access for Jazz customers.
4. Market Development
Goal: Expand into new markets or new customer segments.
● How:
o Target Rural Markets: Expand coverage in rural areas where mobile penetration is still
growing. Develop specific rural-focused marketing campaigns that highlight
affordable tariffs and services that meet the needs of this population.
o Global Expansion: Explore expansion into neighboring countries (like Afghanistan or
Bangladesh) where the telecom sector is still in its early stages or where demand for
mobile data and financial services is growing.
o New Customer Segments: Focus on emerging markets like corporate customers or
young professionals who are looking for affordable, reliable mobile services. Mobile
data-driven services could be a key selling point.
● Examples:
o Rural Internet Packages: Develop special mobile broadband packages tailored to
rural users who are primarily using mobile for internet browsing and social media.
o Jazz 5G in New Regions: Expand 5G services to underserved regions to capture new
customer bases.
QSPM Matrix:
Strategy 3:
Strategy 1: Strategy 2: Strategy 4:
Strategic
Key Strategic Weig Market Product Market
Alliances and
Factors ht Penetration Development Development
Joint Ventures
(AS) (AS) (AS)
(AS)
Strengths
Strong brand
0.07 4 (0.28) 4 (0.28) 3 (0.21) 3 (0.21)
image
Wide network
coverage in 0.06 4 (0.24) 3 (0.18) 3 (0.18) 4 (0.24)
Pakistan
Growth in revenue
0.06 4 (0.24) 3 (0.18) 3 (0.18) 4 (0.24)
(55% increase)
Leadership in 4G
0.06 3 (0.18) 4 (0.24) 3 (0.18) 3 (0.18)
network
JazzCash
dominance in 0.05 3 (0.15) 4 (0.20) 4 (0.20) 3 (0.15)
mobile payments
Weaknesses
High infrastructure
and operational 0.04 2 (0.08) 3 (0.12) 3 (0.12) 2 (0.08)
costs
Heavily reliant on
0.04 3 (0.12) 2 (0.08) 2 (0.08) 4 (0.16)
urban markets
Inconsistent
0.04 3 (0.12) 4 (0.16) 3 (0.12) 2 (0.08)
internet speeds
Opportunities
Demand for 5G
0.05 4 (0.20) 4 (0.20) 3 (0.15) 4 (0.20)
services
Increasing users in
0.02 3 (0.06) 2 (0.04) 2 (0.04) 4 (0.08)
rural areas
Adoption of new
0.05 4 (0.20) 4 (0.20) 4 (0.20) 3 (0.15)
technologies
Local handset
manufacturing 0.02 3 (0.06) 3 (0.06) 4 (0.08) 3 (0.06)
opportunities
Threats
Intense
competition from 0.08 4 (0.32) 3 (0.24) 4 (0.32) 4 (0.32)
other operators
Market saturation
0.06 4 (0.24) 3 (0.18) 3 (0.18) 3 (0.18)
of subscribers
Rising dollar
0.02 3 (0.06) 3 (0.06) 3 (0.06) 3 (0.06)
exchange rate
Total
Attractiveness 3.91 3.72 3.51 3.72
Score (TAS)
3.9
Market Penetration
1
3.7
Product Development
2
Strategic Alliances & Joint 3.5
Ventures 1
3.7
Market Development
2
Strategic Recommendations:
1. Focus on Market Penetration (TAS: 3.91):
o Mobilink Jazz should prioritize expanding its customer base in urban and rural
markets through aggressive marketing campaigns, competitive pricing, and
improved customer satisfaction strategies.
o Enhance loyalty programs and offer bundled services to retain and attract
customers.