Strategies Formation

Jazz Telecommunication (PMCL)

Presented to: Prof. Dr. Zahid Channar

Presented By: Syed Athar Ali, Khizra Naz, Faiza Kashif

Contents
Input Stage Decision Stage
Internal Factors Evaluation (IFE)Matrix QSPM
External Factors Evaluation (EFE) Matrix Recommendations
Competitive Profile Matrix (CPM)
Matching Stage
SWOT Matrix
BCG Matrix
SPACE Matrix
The IE matrix
Grand Strategy Matrix
Strategy Analysis
INPUT STAGE
IFE MATRIX
Key Success Factors Weight Rate Weighted Score

STRENGTHS
Market Leadership 0.12 4 0.48
Strong Financial Performance 0.12 4 0.48
Extensive Subscriber Base 0.09 3 0.27
Effective Marketing Strategies 0.09 2 0.18
Strategic Partnerships 0.08 2 0.16
WEAKNESSES
Network Quality Concerns 0.12 4 0.48
Competitive Pricing Pressures 0.10 3 0.30
High Debt Levels 0.10 3 0.30
Customer Service Challenges 0.09 2 0.18
Rapid Technological Changes 0.09 2 0.18
Total 1.00 3.01
EFE MATRIX
Key Success Factors Weight Rate Weighted Score

OPPORTUNITIES
Growing Mobile Internet Usage 0.15 4 0.60
Market Expansion 0.12 3 0.36
E-commerce Integration 0.08 3 0.24
Youth Demographic Targeting 0.08 3 0.24
Emerging Technologies 0.07 2 0.14
THREATS
Intense Competition 0.12 4 0.48
Political & Economic instability 0.12 3 0.36
Market Saturation 0.09 3 0.27
Shift in Paradigm 0.08 2 0.16
Regulatory Challenges 0.09 2 0.18
Total 1.00 3.03
 Competitive Profile Matrix (CPM)
Competitors Telenor Zong Jazz
Critical Success Factors W Rate WS Rate WS Rate WS
Network Coverage and Quality 0.16 3 0.48 4 0.64 4 0.64
Financial Performance 0.14 3 0.42 3 0.42 4 0.56
Market Share and Growth 0.09 3 0.27 2 0.18 4 0.27
Pricing Strategies 0.10 4 0.40 3 0.30 3 0.30
Customer Satisfaction and Retention 0.12 2 0.24 3 0.48 3 0.36
Brand Image and Recognition 0.08 3 0.24 2 0.16 3 0.24
Strategic Partnerships 0.07 2 0.14 3 0.21 3 0.21
Market Expansion and Diversification 0.11 2 0.22 3 0.33 3 0.33
Regulatory Compliance 0.13 3 0.39 3 0.39 3 0.39
Total
1.00 2.80 3.11 3.30

The CPM value of JAZZ is 3.30 which shows good competitive position
MATCHING STAGE
 SWOT
STRENGTHS WEAKNESS
1. Market Leadership 1. Network Quality Concerns

SWOT MATRIX
Matrix
2. Strong Financial Performance 2. Competitive Pricing Pressures
3. Extensive Subscriber Base 3. High Debt Levels
4. Effective Marketing Strategies 4. Customer Service Challenges
5. Strategic Partnerships 5. Rapid Technological Changes

OPPORTUNITIES SO STRATEGIES WO STRATEGIES

1. Use Strong financial performance and Effective 1. Address Network Quality Concerns by investing
1. Growing Mobile Internet Usage Marketing Strategies to expand and promote in in emerging technologies like 5G (W1, O5)
2. Market Expansion untapped markets. (S2, S4, O2) 2. Address High Debt Levels by forming strategic
2. Effective Marketing Strategies (4) to target the alliances that bring finances to support market
3. E-Commerce Integration youth demographic. (S4, O4) expansion and emerging tech. (W3, O2, O5)
3. Leverage Market Leadership (1) to capitalize on 3. Mitigate Competitive Pricing Pressures by
4. Youth Demographic Targeting the growing demand for mobile internet services focusing on growing mobile internet usage (W2,
5. Emerging Technologies (S1, O1) O1).

THREATS ST STRATEGIES WT STRATEGIES

1. Innovate in response to Intense Competition 1. Manage High Debt Levels by diversifying
1. Intense Competition through effective marketing strategies (S4, T1). revenue streams (W3, T2)
2. Political & Economic instability
2. Utilize Strong Financial Performance to invest in 2. Address Network Quality Concerns to mitigate
3. Market Saturation diversification strategies, to navigate potential the impact of potential shifts in consumer
market fluctuations during political and preferences ( W1, T4)
4. Shift in Paradigm economic instability (S2, T2).
5. Regulatory Challenges
 BCG MATRIX
Jazz Telecom financial performance (2022)
PKR (Billions)

Revenue 2022 Profit Profit % Relative Market Share Industry Growth rate

261.2 81.08 30.9 0.6 +0.98

*Date Source: Veon Financial Report (Pakistan), Pakistan Credit Rating Agency (PACRA)

• The relative market share is used to compare a company’s brand market share with the market share of its largest competitor in the industry.
• The overall teledensity for the country increased from ~85% in FY21 to ~89.9% in FY22. This meant an improved increase in density of ~4.9%
(source: PACRA annual telecom report)
 BCG MATRIX
Relative market share position in the industry
High +20

1.0 Medium .50 Low 0.0

• Backward, Forward & Horizontal

integration
• Market Penetration
Industry growth rate

• Market Development
Medium 0

• Product Development
Low -20

Company position
SPACE MATRIX
Financial Position (FP) Rating Stability Position (SP) Rating
Working Capital 4 Technology changes -4
Cash Flow 3 Rate of inflation -3
Inventory turnover 4 Pricing range of competitors -3
Earnings per share 4 Risk involved -2
Return on investment 3
Demand variability -4
Leverage 2
Competitive pressure -3
Total 20 = (3.3)
Total -19 = (-3.1)
Industry Position (IP) Rating Competitive Position (CP) Rating
Growth potential 4 Market share -5
Profit potential 5 Product quality -4
Financial stability 4 Customer loyalty -4
Productivity 4 Product life cycle -5
Resources utilization 3 Control over suppliers -3
Excellent leverage 3 Control over distributors -3
Total 23 = (3.8) Total 24 = (-4)
 0.20
SPACE MATRIX FP
+7
Conservative +6 Aggressive
y-axis = FP + SP = 3.3 - 3.1
Market Penetration +5 = 0.20
Market Development
Product Development +4
Diversification
+3
+2
+1
CP IP
-7 -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 +7
-2
-3
-4
-5
Defensive Competitive
-6
-7
SP
IE MATRIX

IFE Score is 3.01 and EFE Score is 3.03 hence JAZZ lies in Quadrant I
Grand Strategy MATRIX
Rapid Market Growth

Quadrant I Quadrant II

Strong
Weak
Competitive
Competitive
Position
Position Quadrant III Quadrant IV

• Related Diversification
• Unrelated
Diversification
• Joint Ventures

Slow Market Growth

Matrix / Strategies Analysis
Total
Alternative Strategies SPACE BCG IE GS Counts
Forward Integration   2
Backward Integration   2
Horizontal Integration   2
Market Penetration    3
Market Development    3
Product Development    3
Diversification   2
Joint Venture  2
Retrenchment -
Divestiture -
Liquidation -
Mergers & Acquisition -
DECISION STAGE
Possible Strategies
Strategy 1 (Product Development)
Action: Invest in the development of fast mobile internet services and solutions (5G) due to
growing demand in data services.

Reasoning: This action aligns with Product Development, allowing Jazz to enhance its service
offerings and stay competitive in the evolving telecom landscape.

Strategy 2 (Market Development)

Action: Explore geographical expansion within Pakistan, particularly focusing on underserved areas
in Northern and Remote regions.

Reasoning: This aligns with the Market Development strategy, targeting new customer segments
in untapped regions.

Strategy 3 (Market Penetration)

Action: Implement aggressive pricing strategies and promotional campaigns to increase market
share among existing customers.

Reasoning: This aligns with the Market Penetration strategy, leveraging Jazz's current market
leadership and extensive subscriber base.
Quantitative Strategic Planning Matrix (QSPM)
Key Factors Weight Strategy-I Strategy-II
(Investment in 5G) (Market Expansion)

INTERNAL FACTORS AS TAS AS TAS

Financial Resources 0.12 4.00 0.48 3.00 0.36
Technological Capabilities 0.14 4.00 0.56 3.00 0.42
Market Leadership 0.09 3.00 0.27 4.00 0.36
Brand Loyalty 0.11 3.00 0.33 3.00 0.33
Subscriber Base 0.10 4.00 0.40 2.00 0.20
EXTERNAL FACTORS
Economic Conditions 0.08 2.00 0.16 2.00 0.16
Regulatory Environment 0.06 3.00 0.18 3.00 0.18
Technological Trends 0.10 4.00 0.40 3.00 0.40
Cultural Adaptability 0.07 3.00 0.21 2.00 0.14
Competitive Landscape 0.08 4.00 0.32 3.00 0.24
Total 1.00 3.31 2.79
Recommendation
As per the analysis of all matrixes and QSPM score

•Based on the QSPM analysis, the Product Development strategy (Investment in 5G) achieved a higher
score , 3.31 as compared to 2.79 for market expansion.

•Prioritizing this strategy leverages Jazz's strong financial resources, technological capabilities, and aligns
with the company's potential to stay at the forefront of emerging technological trends
References:
1. Pakistan Telecommunications Authority (PTA) Annual Report -2022

2.VeonFinancial Report – 2022 (for Pakistan)

3. Pakistan Credit Rating Agency report for Telecom Sector Report (PACRA)

4. Jazz (Pakistan Mobile Communication Limited) annual financial report -2022

5. Telecompaper (International research and publishing company for telecom sector)

6. Opensignal (Global data and insights integrating network for wireless and broadband operators).

7. Business Recorder
Thank You