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STRATEGIC MANAGEMENT OF PTCL

SUBMITTED TO:

SIR FARRUKH ASLAM

BY:
GROUP NO: 19

NAMES SEAT NO:

SALMAN SAEED P20551060
USAMA ANIS P20551097

DEPARTMENT OF COMMERCE
FACULTY OF MANAGEMENT AND ADMINISTRATIVE SCIENCES
UNIVERSITY OF KARACHI

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IN THE NAME OF ALLAH WHO IS MOST BENEFICIENT AND MOST MARCIFUL

ACKNOWLEDGEMENT

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SUMMARY

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 TABLE OF CONTENTS
S.NO: TOPICS PAGE NO:
TITLE PAGE
ACKNOWLEGEMENT
SUMMARY
TABLE OF CONTENTS
1. Introduction of Ptcl 6
2. Information systems and Ptcl information systems 7
 Old telegraph system
 Computerized fault management system
 Advantages of Computerized fault management system
 Disadvantages of Computerized fault management system
3. B&CC System (Business and Customer Care System 9
 Advantages of B&CC
 Disadvantages of B&CC
 Partial office automation system
 Human resource management information system
4. Information system problems and their solutions 12
Conclusion

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Introduction of PTCL
Pakistan Telecommunication Company Limited (PTCL) is the largest integrated Information Communication
Technology (ICT) company of Pakistan. With a humble start from a telephone and telegraph department in 1947, it
has evolved to offer latest digital and telecommunication technologies today. With the largest fixed line network of the
country, PTCL offers products and services like high speed Broadband internet, CharJi wireless internet, Smart TV
(IPTV) service, over-the-top (OTT) applications like Smart Link App, Smart TV App and Touch App, and world class
digital content like Netflix, iflix and icflix. PTCL’s enterprise grade platforms like Smart Cloud, Tier-3 Certified Data
Centers, Managed Services and Satellite Services are meeting the connectivity needs of organizations and enabling
businesses to operate more efficiently. It acts as the communication backbone for the country with largest fiber cable
network that spans from Khyber to Karachi and submarine cables connecting Pakistan to the world.

PTCL is proud of its more than 70 years heritage; connecting people of Pakistan. PTCL has always played its part in
development of the country and is committed to building a prosperous and digitally connected Pakistan.

VISION
To be the leading Information and Communication Technology Service Provider in the region by achieving customer
satisfaction and maximizing shareholders' value'.
MISSION
To achieve our vision by having, an organizational environment that fosters professionalism, motivation, and quality.
An environment that is cost effective and quality conscious. Services that are based on optimum technology. Quality
and time conscious customer service. Sustained growth in earnings and profitability.

OBJECTIVES
Objectives are the ends towards which activity is aimed. to provide quality services to its customers in Pakistan. to
provide maximum satisfaction to its customers by using the latest technology. to increase the worth of owners. To lead
the telecommunication industry in Pakistan.

CORE VALUES
We Care
We treat everyone with respect, dignity and responsibility.

We Put Customers First 

We are passionate about serving our customers. Their satisfaction is a key measure of our success.

We Work as One Team

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We seek and value everyone’s contribution. Together we are strong.

We Embrace Change
We shape our own destiny by being proactive and open to new ideas.

STEEPLE ANALYSIS
SOCIAL FACTOR
PTCL being a government entity plays a vital role among all telecom operators socially and have more social
responsibilities than any other company in Pakistan. In lot of the areas, where telecom facility is very difficult to be
provided and financially not viable, still PTCL invests for the social betterment of the people of Pakistan. Presence of
Broadband in over 1000 cities and towns is a proof of it. In hundreds of the towns, where even most of the people
cannot afford to have Broadband services, still PTCL provides the services at very cheap rate. Like small cities of
Central Punjab and Interior Sindh, remote areas of Baluchistan and KPP, PTCL has made huge investments with very
little pay back as social responsibilities and to enhance education facilities by providing Broadband services. Another
aspect of social impact is the use of the mobile has become a symbol of social status, which also affects PTCL.

TECHNOLOGIAL FACTOR
Technological shift affects and have affected PTCL a lot. Due to rapid changes in technology, PTCL has to make huge
investments to provide latest technology services but at the same time company has to make huge investments. For
example shift of traditional TDM switches into IP Switches require billions of Rupees, which is under way and by the
end of December 2022, 70% of the exchange switches will be converted into NGN switches.
ECONOMICAL FACTOR
Global and National economical situation do affects the working of PTCL as well. Due to high inflation rate, buying
power of the customers is getting low and low. Among all other utilities PTCL lines have the lowest priority among
the customers. Customers will surely prefer to retain and pay bills of Electricity as first priority, Water and Gas as next
priority, thus PTCL line have the least priority among financial constraints of the customers. This has affected PTCL
as well. During 2022 PTCL use to have 5.4(Millions) customers, which have now been reduced to 3.1(Millions) due
to high inflation rate, affordability and competition from the mobiles.
ETHICAL FACTOR
PTCL has shown its commitment to maintaining the highest level of integrity in their business by following carefully
laid down ethical principles in order to develop and maintain good relationship with their customers, employees,
management and suppliers. All customers and employees must be treated with respect and dignity regardless of their
race, caste, religion, gender, age and political opinions. Employee and customer harassment must be prevented at all
levels. Employees must also adhere to values based on merits, performance and transparency while carrying out their
tasks and taking decisions. Employees are encouraged to report any illegal or unlawful means being used by any of
the employees in the company.
POLTICAL FACTOR
Despite privatization of PTCL, still 68% of the shares are with Government of Pakistan. PTCL is working under
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Ministry of IT & Telecom and Secretary IT M/O IT & Telecom use to be the Chairman of PTCL Board. So Political
involvement always remains in decision making of the policies in PTCL. Lot of investments have to be made in the
areas on Political pressure where otherwise it is not feasible economically. Even during hiring of higher officials in the
Company, Political involvement do occurs.
LEGAL FACTOR
PTCL being member of ITR has to follow ITU (International Telecommunication Union) rules, PTA regulations and
Government of Pakistan rules and laws. Similarly Labour laws also apply on the regular employees of the PTCL.
Regular Government employees of PTCL are around 90% of the total employees and have legal protection of services.
This protection affects implementation of performance based culture in the company. Reward and punishment cannot
be properly imposed due to this legal protection
ENVIRONMENTAL FACTOR
Now a day in Pakistan’s environment mobile sector is progressing with a nice pace and is affecting PTCL. Erection of
towers and specially during laying of underground network or its maintenance, one has to dig the streets and roads,
thus affects even the community. PTCL has to pay huge amounts to the municipalities’ for digging of the streets and
road crossings. It affects PTCL financially as well very time consuming. PTCL has to follow international
environment accord as well Ministry of Environment rules in this regards.

PORTER FIVE FORCES

The competitive environment is prepared by five forces:
 Threat of new entrants
 Substitute products
 The bargaining power of suppliers
 The bargaining power of customer
 Competitive rivalry

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In

discussing competition porter competitive strategy distinguishes between factors that characterize the
nature of competition. The competitive forces influence the state of competition and also influences
the collectively determine the profit potential of the industry as whole.

Threat of new entrants (and barriers to entry to keep them out)

Barriers to entry:

Scale of economics:
High fixed costs often imply a high breakeven point. And a high breakeven pint depends on a
large volume of sales. PTCL has achieved this target in Pakistan so it is very difficult to beat
PTCL due this barrier because PTCL has a large volume of sales in telecommunication
department in Pakistan.

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Product differentiation:
Existing firms in industry can built up a good brand image and strong customer relationship
over a long period of time. In Pakistan PTCL is providing number of different products such as

Wire line products:

Land line/ fixed phone Broadband Smart TV

Wireless products:
Vfone EVO 3G 3.1 EVO 3G nitro 9.3 3G EVO Tab
In telecom industry there is not an other industry which have these types of products so PTCL is
completely enjoying its product differentiation.

Capital requirement:
When capital requirement is high the barrier against new entrant will be strong, so in the case
of new entrants of any firms in the telecommunication industry PTCL should have large
amount of capital to overcome to its competitors.

Knowledge requirements:
As well as high capital requirements knowledge and know how are also necessary to make a
barriers for competitors. PTCL is working in Pakistan since 1947. And it has a complete
knowledge staff of telecom sector. So it is also a barrier against its competitors.
Switching costs:
Switching cost refer to the costs of time, money, and convenience that a customer would have
to incur by switching from one supplier products to another supplier. There are some
competitors of PTCL in providing the services of internet facility. Qubee,Wateen, Witribe and
Private net cable providers. PTCL have a high cost of installation which is not a good sign as
barriers to entry.
Access of distribution channels:
PTCL have a number of exchanges in all over the Pakistan. So it is another barrier for new entry.
Advantages on existing producers:
Patents rights
Experience and know how
Goodwill
 Established network

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 Yes No

(+) (-)

Is PTCL has established any brand identities in telecom industry?

Does PTCL will incur any high costs in switching suppliers?

Is a high amount of capital needed to enter a new company in

industry? 

Do the new companies will face difficulty in accessing distribution

channels? 

Do the new companies face the problems in obtaining the necessary

materials, skilled people or supplies? 

Does PTCL product or service have any basic features that give

PTCL lower costs? 

Can the new coming companies expect strong retaliation on

entering the market? 

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Results:
The above facts and figures shows that PTCL have not huge threat from new entrance because the new
entrance will face difficulty in accessing distribution channels, new entrance need huge amount of
capital, new entrance will face difficulty obtaining the necessary materials, skilled people or supplies,
new entrance will take a lot of time to grab the market.

Threat from substitute products:

PTCL have many competitors like (warid, mobilink, wateen, witribe, qubee and etc) which are
providing the substitute products in the telecom market. The threat can be determined on the basis of
annual profit of competitors.

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 Annual profits Threat from
Substitutes
(Companies) (Growth rate)
2022 2021

Warid 26805 29233 9.1%

Mobilink 73936 83271 12.6%

Ufone 27455 40060 46%

Telenor group 45081 51561 14.4%

Wateen (30.05) (10.5) (34.4%)

PTCL 7,458,760 7,244,466 (2.9%)

Results:
According to the facts and figures we can say that the growth rate of PTCL is decreased by 2.9%. This
is not good sign for PTCL. In other hand all companies are going in profit and also increasing its growth
rate gradually except wateen. So there is a need to overcome on its competitors for PTCL

Bargaining power of customer

There is high bargaining power of customer in telecommunication sector. There are many competitors
in market and they are offering the different packages at different prices to customers and situation of
price war is running very hardly. Customer has a power of buying any package which is suited to them.
Charge of switching from one company package to other company package is low. Hence power of
customer is high. Bargaining power can be represented through this table.

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 Questions Yes (+) No (-)

Are there a huge number of buyers related to the number of

firms in the business? 

Is PTCL not charging very high switching cost from

customers? 

Is number of buyers are greater than number of suppliers in

market? 

Is PTCL having a large number of customers each with

comparatively small purchases? 

Is the customer has complete awareness about different

market prices? 

Is the customer is required a lot of important information

about PTCL? 

Is there anything that prevents PTCL customer from

switching to another company? 

Is PTCL customers are highly sensitive to price?

Is PTCL product is unique to some degree or has accepted

branding? 

Is PTCL customers are satisfied from suppliers?

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Results
The above facts and figures shows that the bargaining power of the customer is high because if PTCL
will not provide products and services at the economic rate to customers. They will be move to other
networks which results a decrease in the sales of PTCL. The switching cost which is charged by PTCL
from its customers is so high this is not a good sign for PTCL.

Bargaining power of suppliers:

The power of supplier is high in case of telecommunication sector. But the reality is that numbers of
suppliers are few in the markets but they are competing in the market to make agreement with mobile
service providers. The overall aim of the suppliers is that to get the higher prices from customers.
Yes (+) No (-)

The numbers of suppliers of PTCL are high in the market

there for bargaining power will be high of suppliers. 

PTCL suppliers would find it hard and difficult to enter my

business 

PTCL have a variety of potential suppliers.

PTCL business is significant to its suppliers.

PTCL cost of purchases has not major influence on PTCL

overall costs. 

Is PTCL have products which is differentiated from

competitors products? 

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Results
According to the facts and figure PTCL have strong bargaining power of suppliers because the huge
numbers of suppliers of PTCL are working in the market, PTCL suppliers would not find it hard and
difficult to enter my business, PTCL have a variety of potential suppliers, PTCL have products which is
differentiated from competitors products.

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Competitive rivalry
Currently there are many market competitors but in future they might be increased. The intensity of
competitive rivalry within an industry will affect the profitability of the industry. The completive
actions might be taken from the price competitions, advertisement, and sale promotion campaigns,
introducing new products for the market, providing guarantees or warranties and improving after sales
services.
Competition can decrease the demand of PTCL, expand the market or it can leave demand unchanged.
There are different factors to determine the intensity of competition in the market.
Yes (+) No (-)

PTCL is growing rapidly?

In cost structure the fixed costs of the PTCL are a relatively low

portion of total costs. 

Is PTCL can switch customers through suppliers easily?

There are significant product and brand difference between PTCL

and its competitors. 

It would not be hard to get out of this business because there are

no specialized skills and facilities or long-term contract 

commitments etc.

PTCL customers would incur significant costs in switching to a

competitor. 

Is PTCL having the capacity to achieve a substantial increase in

output capacity? 

If success is a prime strategic objective, then PTCL will be likely

to act very competitively to meet their targets? 

This is difficult for PTCL to exit from the market?

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Results
The above facts and figures shows that PTCL have strong threat of rivalry companies, because PTCL is
not growing rapidly, PTCL has decreased it profit in previous year which is the major threat for PTCL
and this is only due to PTCL competitors which decrease the PTCL profit like (Wateen, Warid, Ufone,
Mobilink, WiTribe, and Qubee).

FINANCIAL STATEMENTS ANALYSIS

KEY SUCCESS FACTORS

Leveraging existing operations
1. Extensive distribution network positioned to launch new products

2. Long distance & International (LDI) next generation network BT, T-Systems and Saudi Telecom

3. NWD & International connectivity

4. Extensive last mile connectivity / metro fiber: over 425 km of optic fiber in Karachi and Lahore

5. Existing corporate sales team / corporate relationships

6. Existing relationships with key consumers

7. Control of significant amount of traffic through existing services such as payphones and prepaid calling cards

8. Strong existing brand recognition

Market understanding and knowledge

1. In-depth country/market knowledge

2. Understanding of telecom industry / products, experience of over a decade

3. Up to date with evolution of technology and international trends

4. Relationships with key industry players: operators, regulator,

5. Incumbent, relevant government authorities / Ministry, consumers, Vendors, financial institutions and investors 6.
Knowledge of successful market dynamics due to existing strong brands and marketing initiatives

7. Existing rights of way (RoW) / relationships to secure new RoW swiftly

8. Competitor insight and analysis

Successful execution skills covering build and operations

1. Proven track record of large scale / infrastructure projects to successfully execute a plan encompassing build,
launch and operations

2. Ready access to strong highly skilled in-house resource pool of skilled employees

a. Technology & business acumen

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 b. Ability to effectively develop and manage a variety of businesses

3. Strong financial position

4. Sales & marketing understanding to create the leading brand in the market focusing on

a. quality / reliability and relevance (targeted marketing / services)

b. leveraging the existing infrastructure and network to gain time to market and

c. lower cost of sales / marketing

5. Thorough understanding of technology and ability to create optimal solutions given demographic profile of
customers, country topography, strategic initiatives and technology capabilities

6. An optimal operational set-up benefiting from local market and cultural knowledge importing international best
practices and efficient cost structures

KEY PERFOMANCE INDICATORS

Leverage has impact on the debt to equity ratio and debt ratio will be increased and markets understanding and
knowledge awareness has increased the sales and net income will be increased and Successful execution skills
covering build and operations has lower cost of sales and net income will also be decreased.

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