2025 Strategic Vision of Switch Communications: Beyond Digitalization

Author: Samina Munsib, Hurrairah Imran

Institution: NUST College of Electrical and Mechanical Engineering
Course: EM-816 Strategic Management
Instructor: Sir Yasir Ahmad

MAY 14, 2025

 2025 Strategic Vision of Switch Communications: Beyond Digitalization
Abstract
This paper examines the strategic positioning and future direction of Switch Communications
using frameworks and models discussed in the strategic management course. The Switch
Communications 2025 years Strategy aims to transform the organization from a conventional
value-added services provider into a data-driven, content-led digital ecosystem. The analysis
incorporates tools such as PESTEL, Porter’s Five Forces, SWOT analysis, and the VRIO
framework to evaluate both the external environment and internal capabilities.
Recommendations are offered to enhance the strategy's alignment with long-term competitive
advantage and organizational goals.
1. Introduction
Switch Communications is a privately held group of companies based in Islamabad,
Pakistan, specializing in various sectors including Telecom, Software Development, Agri-
Tech, Travel and Tourism, Weather Forecasting, Health and Fitness, E-commerce, and
Retail. Established in 2011, the company offers a range of digital and conventional Value-
Added Services (VAS) and has a workforce of over 450 professionals.

In start we had only conventional VAS (Value Added Services) Conventional VAS
(Value-Added Services) refer to telecom services that go beyond standard voice calls
and SMS, they provide extra features to users on basic mobile phones (feature phones),
typically through channels like:

IVR (Interactive Voice Response)

 Users dial a number (e.g., 1234) and navigate audio menus using keypad inputs.
 Common for:
o Religious content (Naats, Quran recitation)
o Jokes, horoscopes, news updates
o Health tips
SMS-based Services
 Users send or receive text messages to access information or entertainment.
 Examples:
o SMS quiz or contests
o Daily tips (health, religious, educational)
o Cricket score updates
o Voting (like in talent shows)
The downfall of conventional Value-Added Services (VAS) can be attributed to the
widespread adoption of smartphones and affordable internet access, which have
dramatically changed user behavior and expectations. As mobile users increasingly turn to
apps like WhatsApp, YouTube, and TikTok for entertainment and information, the once-
popular IVR, SMS, and USSD-based services have become outdated. These traditional
services often offer limited interactivity, slow navigation, and repetitive content, making
them less appealing in a digital-first world. Moreover, poor user experiences—such as
auto-subscriptions, difficult unsubscription processes, and unclear charges—have led to
 user distrust and stricter regulatory scrutiny. Regulatory bodies in several countries have
enforced opt-in policies and transparency standards that further limit the aggressive
promotion of these services. Consequently, telecom operators and VAS providers have
seen a steep decline in revenue from conventional VAS and are now shifting focus toward
digital platforms that deliver more engaging, personalized, and user-controlled
experiences.

So it was necessary for the company to move towards another vertical to achieve a
sustained competitive advantage for that Switch Communications directed into Digital
VAS, Digital VAS refers to digital platforms and services which are integrated with the
Telecom operators working on subscription based model and generating revenue mainly
through mobile balance of the customers.
VAS Digital, a business unit under Switch Communications, has unveiled its Digital 2025
Strategy to adapt to the rapidly evolving digital landscape. As telecom operators
increasingly transform into tech-driven platforms, VAS Digital aims to position itself as a
revenue-generating content aggregator, advertising partner, and innovation enabler. The
strategy emerges in response to technological disruption, shifting consumer expectations,
and a need to diversify telecom offerings.
This paper analyzes VAS Digital's strategic intent and objectives using the strategic
management course frameworks, offering both an academic and practical lens on its
transformation roadmap.

2. Methodology: Switch Commumications Strategy with respect to strategy principles.

2.1. External Environment Analysis

2.1.1. PESTEL Analysis

 Political: Telecom regulation in Pakistan is closely monitored by PTA;

compliance with data privacy and local content laws is vital. OTP
verification is in compliance with PTA, with emerging scams, OTP
verification for banking apps has been discontinued given the grace period
of 3 months, so this discontinuation can also come towards our all-digital
plans instead of just banking apps, impacting all our services since all
digital services require OTP verification before subscription. So, we have
to make sure we have any other alternative way in case this gets block we
can shift towards other ways like confirmation on IVR or Whatsapp
 Business API. Secondly, in case of any Political events in the country,
Internet disruption is observed which can stop users from subscribing our
services and impact our marketing. Since high budgets are involved in
digital marketing any unplanned political activity can make us lose our
daily subscription targets so we need to evaluate every situation and
optimize and manage our subscription campaigns accordingly.

 Economic: Economic slowdown can occur due to the following reasons

impacting our services in different regards.
o Since one of our products is launched in 4 international marketing
i.e. Iraq, Qatar, Indonesia and Kingdom of Saudi Arabia, the
exchange rate fluctuations can both affect the CPA cost per
acquisition and also the revenue being generated from there
customer as it has been to changed to our currency in order to
utilize it.
o Secondly all the services, the routing of complete traffic, the
databases everything is on Amazon Web Services Cloud, which
bills us in dollars, hence the exchange rate affecting our servers
billing.
 Social: Rising digital literacy, increasing smartphone penetration, and
youth population are favourable trends. The users of social media and
digital apps are increasing day by day, so creating digital solutions which
can help in our day-to-day tasks can bring great business if effectively
managed; from proposing an idea to the market research to executing the
idea. Since we have seen the trends of reels in the current time, not only
the youth but people of every age are busy watching reels so for that we
need to analyse how this can be brought in our apps so the engagement and
customer data can be stored at maximum which can be used later on for
other business projects.

 Technological: As far as technology is concerned, it can be discussed in

both broader and minor perspectives.

o Technological Analysis in Broader perspective:

 Our digital platforms are generating revenue from the
customer balance deduction, this part is called charging,
each vendor like ours Switch Communication does
charging it self, mainly the subscriptions are of daily
package to so our system make sure at the start of each day
the cycle runs and covers complete base for charging
attempts and it should be done as quickly as possible
because if we delay this, our vendor can deduct the amount
for their services and the customer will be left with no
money for us to deduct, now in the strategy we also keep in
mind that this charging can be shifted to the operator itself
anytime, like in case of operator Jazz we were notified
 unofficially that Jazz is making charging in-house, which
means they will decide the rules of charging, when to start
the cycle? how many attempts per day on each customer?
Which product’s charging will take precedence, so when
the charging is shifted to the operator the revenue
drastically drops because nothing is in your hands now. So,
this type of technology shift can impact the targets and was
considered the strategy.
 Using technology advancements to make more new
services and products can help us grow, since using our
conventional services we have made a advertising dept
which will advertise ads in terms of recording (played
between the call) or flashes on the mobile phones of the
user. This new AdTech vertical will help us generate more
revenue and build a marketing company using the
conventional services.
o Technological Analysis in minor perspective: Since our all
digital services for subscriptions/unsubscription, OTP verification
and user information use APIs from the telecom operators, any
changes can impact our flows and strategy will be shifted because
of that, for example for the OTP verification in case of Ufone, we
used to use Ufone API for sendOTP and verifyOTP but since they
wanted more business they allowed our own internal OTP
verification process which uses there messaging protocol, Due to
this when we send user the OTP we know what the OTP is and we
auto paste it and the user just have to click the verification button,
this increases te chances of verification and then subscription, so
due to this technological minor change we can expect to grow more
for this particular operator.

 Environmental: Sustainability expectations are increasing; digital

platforms have lower physical footprints. Environmental factors in
Pakistan are not considered to be very much important as they are the hot
topic in long term strategies of all the companies abroad but following are
the points which can be linked to ecology factors of PESTEL:
o Lower Physical Footprint: Unlike traditional businesses, digital
platforms like Kidjo, Busuu, and SecureTeen do not rely on
physical goods, logistics, or printed materials. They run on cloud
infrastructure, apps, and data servers—resulting in a much smaller
carbon footprint compared to manufacturing or retail industries.
o Energy Usage Still a Factor: Although digital platforms are
cleaner, energy consumption from data centers and mobile usage
(especially video streaming) is still a concern globally.
Environmental-conscious companies are now expected to
optimize data usage, use energy-efficient infrastructure, or adopt
green hosting.
 o Sustainability as a Brand Value: Users, especially younger
generations, are more aware of environmental issues. Showing
commitment to green practices—like reduced paper usage, digital
billing, efficient app design, or partnerships with sustainable
brands—can enhance brand image and user loyalty.
o Telco Expectations: Telecom partners may also expect digital
service providers like Switch to align with their corporate
sustainability goals (e.g., Jazz and Telenor Pakistan both publish
ESG reports).

 Legal: Copyright and IP protection are essential for content-based

revenue models. Talking about our cloud storage app, we have legal
terms and conditions where it is clearly mentioned how delay in
payments can cause the deletion of the users’ data. We have been sent
legal notice a couple of times which can affect the repute of the product
and eventually the company but with proper logging and explanations
with messages reminder sent to the user for the renewal, we were clear
on our part, so in your strategy you always have to keep legal aspects in
mind too that which of my actions can come against me in further and
how it will be mitigated for instance this case since we had proper
documentation and the user agreed to the terms and conditions we got
the upper hand.

2.1.2. Porter’s Five Forces

 Threat of New Entrants: Moderate; high entry barriers due to

partnerships and licensing. Since the telecom companies are only 4 right
now i.e. Jazz, Ufone, Zong and Telenor so there are not that many
options and it is very difficult to enter into VAS services in digital
 domain, for the vendors, the trust they have gained plays an important
role in the partnerships, in case a new vendor comes for a product to start
with the telco there many issues e.g. No previous partnerships so you
probably won’t get the deal and some old vendor will get, since the
business will be new and no previous large customer bases which are
bring in the revenue so all of the business conditions will be according to
the telecom companies and not new vendors. So, the company like our
who has built the position in becoming Pakistan’s top leading VAS
services provided the threat of new entrants is very low.

 Bargaining Power of Suppliers: High; global content providers and

technology vendors have strong negotiation power. For example, if have
a total unique customer base of 45 million from a particular telecom
operator, we can use this base to collect data for a lot of projects.
Secondly with this huge number of bases comes great revenue so even
though the telecom operator has always the stronger side, the vendor can
start negotiations on any aspect of the product due to the base and
revenue they are generating for the telecom as share.

 Bargaining Power of Buyers: Moderate; End-users are price sensitive

but loyal to brands with better UX.

o Price Sensitivity: Users of digital services in Pakistan, especially

prepaid customers, are highly sensitive to price. Even small
changes in daily or weekly subscription rates can lead to
cancellations or complaints. If a product doesn’t clearly show
value for its price—such as through exclusive content or benefits
—they are likely to unsubscribe or move to free alternatives.
o Switching Costs Are Low: Digital products like Kidjo, Busuu, or
SecureTeen are easy to subscribe and unsubscribe from. Users
can quickly switch to another app or service with similar features
(e.g., free YouTube kids instead of Kidjo). This increases their
bargaining power because they don’t feel locked in.
o Loyalty to Better UX: However, Switch products offer a better
user experience (UX)—such as smoother UI, faster content
loading, simpler subscription flows, or personalized
recommendations, users are less likely to switch, even if the price
is slightly higher. Good UX reduces churn and increases
perceived value. Giving example of our Fitness app Fitflex, it has
the best UI, we have food scanner which scans the food and tell
the calories to maintain your daily calorie count and let’s you
know if the food is suitable according to your goals or not. We
have proper nutrition module available which has all types of
food categories, so customization to this extent helps you to keep
your user engaged and minimize the churn rate.
  Threat of Substitutes: High; social media platforms and international
OTT players pose threats as following
o Free Alternatives: Apps like YouTube, TikTok, and Facebook offer
free entertainment, learning, and even kids’ content. A user might
choose to stream kids’ videos on YouTube instead of paying for
Kidjo, or watch language-learning videos instead of subscribing to
Busuu.
o Bundled Content by Telcos: Some telcos in Pakistan bundle
international services like Netflix or YouTube Premium with their
data plans. This makes it harder for standalone paid services to
compete unless they offer highly localized or differentiated
content.
o User Preference for Popular Platforms: Many users are already
familiar with and regularly use social media apps. Switching from
a habit-driven free app to a paid one takes a strong value
proposition, which is hard to build quickly.
o Low Switching Cost: Because digital content is mostly consumed
through smartphones, switching from one app to another takes
seconds. This amplifies the threat of substitutes.

 Industry Rivalry: High; competition from other telcos and digital

platforms is intense which can cause following issues and these should be
kept while developing the strategy
o Same Products Across Multiple Telcos: When Switch integrates
the same product (e.g., Kidjo, Busuu, SecureTeen) with all major
telcos—Jazz, Zong, Ufone, Telenor—it reduces the product's
exclusivity. This means no telco gets a unique edge, and users can
access the same service regardless of their network, increasing
market saturation and reducing differentiation.
o Telcos Compete on Pricing and Bundles: Each telecom operator
might offer different pricing, bundles, or promotional strategies
for the same product, leading to direct competition. For instance,
Jazz might offer a cheaper daily package for Kidjo than Zong,
making users shift networks or apps based on pricing, not content.
o Digital Platform Alternatives: Apart from telcos, pure digital
platforms (like Google Play apps or third-party OTTs) offer
alternative services without needing any operator integration. This
increases rivalry because users can bypass telco channels entirely.
o Marketing and UX Differentiation: The fight for user retention
depends heavily on branding, UX, pricing, and customer support
—all of which vary between telcos, even for the same integrated
product.

2.2. Internal Environment Analysis

2.2.1. SWOT Analysis
 Strengths: Strong market presence, existing infrastructure, cross-
functional teams, brand leverage. Since Switch Communications is not
just a startup and it has formed to be a company with 450+ employees
which are divided all domains from Business solutions to commercial
team to solutions and delivery to development team to operations team to
marketing team and a complete creative team as well, so with this
dynamic team one could build any digital solution and promote it.
Secondly having more than 15+ products in total and most of the
products integrated with all the telecom operators of the country we have
a strong position on the vendor side; this helps us to gain the trust of the
bigger companies in our case telcos. Resources whether it may be human
resource of the technical resources the company is equipped with
everything so this helps in getting new business whether it be of IoT
devices or any digital apps.

 Weaknesses: Overreliance on legacy systems, limited monetization

models beyond subscriptions. One of the main weaknesses of Switch
Communications is its overreliance on older or legacy systems. While the
company has made significant efforts to go digital, some of the internal
systems are still based on outdated technology. This slows down
innovation and increases maintenance costs. When new digital products
are introduced, these old systems sometimes cause integration issues,
which can lead to delays or poor user experiences. Another weakness is
that the current business model mostly depends on subscription revenue
through telecom charging. While this model works well in the local
market, it does not allow much flexibility or growth, especially when
compared to newer revenue models like in-app purchases, advertising, or
freemium content. This limited approach might become a challenge in
the future if user expectations continue to grow or if telecom operators
reduce support for direct charging models.

 Opportunities: Growing digital ad spend, localized content demand, and

youth engagement. The digital landscape in Pakistan is growing fast,
which opens many doors for Switch Communications. One big
opportunity is the increase in digital ad spending by both local and
international brands. With millions of users across their apps, Switch can
monetize this traffic better through video ads, banners, or sponsored
content. This could become a major revenue stream apart from
subscriptions. Another opportunity is the demand for localized content.
Most international platforms provide general content, but Switch has a
chance to produce content that is more culturally relevant and language-
specific. For example, health tips in Urdu or kids’ stories in regional
languages can attract users from all age groups and backgrounds. The
youth population in Pakistan is also a key opportunity. Young users are
spending more time on smartphones and apps, and they are open to
trying new services. Switch can tap into this trend by launching fun,
 useful, and affordable apps in categories like education, health,
entertainment, and productivity.

 Threats: Regulatory challenges, content piracy, and fast-paced tech

changes. The biggest threat for Switch Communications is the changing
regulatory environment.

o Since our 98% of revenue is coming from the subscriptions we

need have another model for generating revenue stream, for that
we have strategically launched E-commerce store with two of our
products Fitflex and Bakhabar Kisaan, on which we will sell gym
items, nutrition powders, gym wear for Fitflex and for BKK we
will sell seeds, fertilizers, agriculture machinery etc to facilitate
farmers who are a huge part of our GDP. Secondly on the digital
part, rules around user consent, content licensing, and mobile
charging are becoming stricter. If the Pakistan
Telecommunication Authority (PTA) changes its policies or
blocks charging APIs, it could directly impact revenues so going
from direct billing charging to OTT (over the top) where we make
our products available to everyone in the world and dependency
on the telecom operators is finished. For this threat we have made
Ersaal, MemeWorld and Fitflex allowed to all the world by
introducing email sign up instead of phone number and integrated
the payment system of Stripe to bill the customers for our
services, the revenue coming from this stream is low but it will
grow with time as the products grow.
o Another major threat is content piracy. Since the digital products
mostly rely on paid or exclusive content, piracy of our fitness
videos on Fitflex, educational videos on Busuu, and and Kids
entertainment videos on Kidjo can reduce the value of the content
and affect user retention. Users might find pirated versions of the
same content on other platforms for free, causing churn.
o Finally, technology is changing at a very fast pace. New tools,
platforms, and user expectations mean that a product which is
successful today might not be relevant tomorrow. If Switch is not
able to innovate or keep up with new trends, other faster and
more agile competitors may take the lead.
2.2.2. VRIO Framework
 Value: Switch Communications has a few resources that give it a
competitive edge in the local market. One of the most valuable resources
is its ability to integrate directly with all telecom operators in Pakistan.
This means Switch can reach users through simple mobile balance
charging without requiring a credit card. This model is valuable in a
country where many people don’t have access to traditional banking.

 Rarity: As for rarity, the kind of partnerships Switch has, with

operators, content creators, and regional brands is not something every
company can easily build. These relationships give them exclusive
distribution access and help launch services faster than competitors.
Being a vendor, to have such a large customer base of the country, it is
itself a rarity in business and this customer base and their data on the
apps can be used to further enhance business.

 Imitability: In a shorter-term Switch can not be imitated as to build huge

base it requires time given the limitations of systems as well as telco
infrastructure capabilities, but in a longer-term imitability can be
achieved the reason we are moving to business that are independent of
the telecom sector.

 Organization: Team restructuring and digitization readiness indicate

capability to exploit advantages. when it comes to organization, Switch
is structured to take advantage of these resources. There are dedicated
product teams, cross-functional squads, and digital reporting units. All of
these help in faster execution of ideas and support the long-term vision of
becoming a leading digital content and utility provider by 2025. Any idea
by any resource is welcomed and supported through out to the launch and
 growth if it has potential. Employees are well taken care of and a growth
environment is provided to every individual.

3. Strategic Intent and Goals

VAS Digital’s vision is to evolve into a content-first, data-driven digital services platform
with sustainable monetization models. Key pillars include:

 Switch Communications' main strategic goal is to transform itself from just a

value-added service provider to a full digital content and utility platform. The
VAS Digital 2025 Strategy is built around moving towards content ownership,
flexible monetization, and improved customer experience. This means Switch
wants to stop relying only on third-party content and instead create or co-own
content, so it can control quality and earn better margins.
 The focus for the next few years is on building a content-first and data-driven
model. This includes expanding the content library in areas like health, fitness,
parenting, and kids’ education. The goal is not just to offer services but to offer
meaningful and daily-use content that keeps users engaged.
 Another part of the strategy is to become smarter with how services are sold. This
involves creating self-subscription flows, improving self-care portals, and using
analytics to recommend the right products to the right users. Also, Switch plans to
make its platforms open for advertisers and media partners. This will help in
generating ad revenue and make Switch a digital advertising partner for brands.
 Switch also wants to localize its offerings more. That means apps and services in
Urdu, regional languages, and with culturally relevant topics. The company
believes this will not only increase user engagement but also reduce churn because
people will feel more connected to the product.
 Overall, the company’s goal is clear: become a leading local player in digital
services by offering original content, smarter access, and better customer journeys
—while continuing to partner with all telcos for maximum reach.
 These pillars are structured to be implemented in phases over three years, prioritizing
high-revenue and high-engagement verticals like fitness and fintech in the initial phase.

4. Strategic Recommendations

 Optimize Revenue by Differentiating Pricing for Each Telco.

Currently, all digital services (Kidjo, Busuu, SecureTeen) are integrated with all telcos
at standard prices. This creates internal cannibalization and telco-to-telco competition.
A better strategy is to introduce differentiated bundles for each telco. For example,
Jazz can offer Kidjo with a learning add-on, Zong can offer Busuu with exam prep,
and Ufone can bundle SecureTeen with mobile insurance. This creates tailored value
and prevents direct pricing wars.

 Localize Content Further for Tier-2/Tier-3 Cities in Pakistan.

Users in these regions respond better to regional content (Sindhi, Pashto, Punjabi) and
voice-based interactions. Switch should develop voice-driven parenting guides,
regional stories, or video explainers in native dialects for platforms like Kidjo and
MomCare. Also, since literacy is lower in these segments, simplified UX and missed-
call-based onboarding can drastically increase adoption.

 Develop Jazz-Centric Microservices for Better Stickiness.

Given Jazz's large prepaid base and higher ARPU segments, Switch can pilot micro-
services like "daily language tip by Busuu" or "bedtime story by Kidjo" on WhatsApp
or IVR, which don’t require app downloads. These quick-use micro-experiences can
attract users who hesitate to subscribe to full apps and eventually convert them.

 Enhance Charging File Validation to Reduce Invoice Disputes

To address pricing mismatches and ensure transparency, Switch must invest in
charging file validation tools that automatically flag abnormal entries (e.g., incorrect
 price points, charging time mismatches). This will reduce disputes like those recently
observed with Jazz and improve partner confidence.

 Build an Exportable White-Label Platform for KSA (Vision 2030)

KSA’s Vision 2030 emphasizes digital learning, localized Islamic content, and safe
parenting tools. Switch can rebrand and export platforms like Kidjo and SecureTeen
as modular, Arabic-localized white-label services for Saudi operators like STC or
Mobily. Partnering with a Saudi content house for cultural adaptation (e.g., Islamic
values in parenting or cartoon series with Arabic roots) will improve acceptance.

5. Conclusion
Switch Communication’s 2025 Strategy is a robust attempt to future-proof its offerings
and align with shifting consumer behavior. Using strategic frameworks, the strategy
appears well-grounded with a clear focus on value creation, innovation, and digital
transformation. Continued execution with agility and responsiveness will be key to long-
term success.
References
 Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of
Management.
 Johnson, G., Scholes, K., & Whittington, R. (2017). Exploring Strategy. Pearson.
 Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior
Performance.
 Strategic Management Journal guidelines and formatting standards.
 Switch Communication internal data.