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Friday, 26 August 2011

Free Assignment Pakistan Telecomunnication Industry (PTA)

What we have to do:
We have to mention all the “Macro” factors that are affecting the particular industry that is popularly known as PEST analysis in the marketing terms. That what are the all political, economic, social and technological factors that are affecting the industry and creating the opportunities for that Particular industry.
Industry Chosen:
“Telecommunication is the exchange of information over significant distances by electronic means. A complete, single telecommunications circuit consists of two stations, each equipped with a transmitter and a receiver.”
Telecommunication Industry in Pakistan:
Telecommunication industry is the very rapidly growing industry in the Pakistan. There are lots of companies which are dealing in the telecommunication industry in the Pakistan. Mobile subscribers are more than 100 million as of Oct 2010. In fact Pakistan has the highest mobile penetration rate in the South Asian region. According to the PTA, Mobilink continues to lead the market with 31.4 million subscribers, followed by Telenor (24.01 million), Ufone (20.18 million), Warid Telecom (17.16 million) and Zong (7.78 million).
Some of that are given below….
 Mobilink
 Ufone
 Warid
 Ptcl (etc)
Although that is the fastest growing industry in Pakistan but there are many factors which are influencing the performance of the working of that particular industry.
These all factors are given below…….

PEST Analysis:
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an abbreviation for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "PEST" is an appropriate term for these factors.
Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis.
 Political
 Economic
 Social
 Technological

1. Political Analysis:-
Political factors are those which are directly controlled by the political parties and Government they could be able to influence directly in any situation or in any industry. So they create a major impact on any industry.
• Factors that Creating Threats:
Political instability:
In Pakistan Political environment are not stable that is the major threat for telecommunication industry because no one knows at what time Government will change and with the change of government policies will also change.
Risk of martial law:
In Pakistan Risk of martial Law is always threat for all the industries and in the dictatorship they could not be able to explore themselves and do not grow as they could be.

Terrorism is the Major problem that is facing Pakistan in now a days that is the most crucial factor that is hurdle in the growing in the telecommunication sector because no one knows about the terrorist activities.
Pricing regulations:
In Pakistan government dictates the pricing regulations so that influence the smooth working of the telecommunication industry.
Rapid change in Regulations:
In Pakistan Government is changing the policies very rapidly so that creates instability.

• Factors Creating Opportunities:
Industrial safety regulations:
Now the government of Pakistan is trying to give the maximum Protection to this sector and passing number of Laws to make it more safe and stable.
Development of PTA:
Government of Pakistan had developed Pakistan telecommunication Authority (PTA) so that helps in the establishing Business in Pakistan in more efficient manner.
Investor Friendly Environment:
Government is trying to provide investor friendly environment to give the more benefit to the investors and give them maximum safety.
2. Economic Analysis:-
Economic factors are directly controlled and influenced by the financial institutions like State Bank of Pakistan (SBP). So they help the industry in giving economic soundness and provide financial aids to survive in the time of crises.
• Factors that Creating Threats:

Economic Conditions influenced by Government:
In Pakistan Although an proper Institution for telecommunication sector working (PTA) but Government is influencing the working of that department and imposing the policies made by politicians.

Overall economic conditions are not very sound:
Over all economic conditions are not very good for any industry because rate of inflation is increasing day by day and value of currency is going down which causing increase in the value of loan payable that is another major threat for telecommunication industry.

Efficiency of financial market is not so Good:
In Pakistan all the financial institutions are controlled by government rather then the head of financial Institution State Bank of Pakistan (SBP). Rate of interest is increasing day by day it is approximately 21% which is higher then any country in the world so it makes impossible for the telecommunication industry to take loan facility.
Country risk of Pakistan goes to 3:
Risk rate of economy of Pakistan goes to 3 out of 5 that is the alarming situation for the Pakistan as well as all the industries of Pakistan.
Currently government has increased the taxes :
Currently government has increased the taxes on the telecommunication sector so that reduces the income of the telecommunication sector some of the examples of that are given below etc...
 Pre-paid customers were charged 10 per cent withholding tax on every new load, which was deducted in advance
 With 15 per cent sales tax on every call increased the sales tax from 15 per cent to 21 percent for mobile users.

• Factors Creating Opportunities:

Foreign Direct Investment:
During 2010 telecommunication sector attracted US $ 142.7 million FDI which was 26.4% of the total FDI in the country during this period. So government is trying to give maximum benefit to the telecommunication industry.

Lowest Labor Rates in the world:
During the quarter ending December 2009, telecom sector Labor Cost of Pakistan is very Low as Compared to other Countries so that is also an opportunity for the Telecommunication sector.

Fastest Growing Industry in the Pakistan:
Telecommunication industry is the fastest growing industry in the Pakistan that shows that investment is quite comfortable in telecommunication sector.

3. Social Analysis:-
Social analysis is directly attached with the people and with the culture in which they are working if they try to dictate the social factors that create the threats to that industry and if they work with in the social norms then social factors become the key to success.

• Factors that Creating Opportunities:

The Pakistani people are more social:
Pakistani people are more social so they have family system and they want to remain in contact with other through any means so that is the opportunity for telecommunication sector to capture the feelings of the people.
Celebrate lot of festivals like:
Pakistani people celebrate a lot of festivals on that occasion they try to make contact to their all family members and other at any cost these occasions are Jashn-e-Baharan, Eid Celebrations and other cultural festivals. They create the lot of opportunities for telecommunication industry so they make calls to their relatives particularly on that festivals.

Population is increasing Rapidly:
The total population of Pakistan is approximately 169,248,500. The population is increasing rapidly which increase the number of cellular usage and help in projecting high profits.

• Factors Creating Threats:

Un educated People:
Low Educated people could not be able to understand the language of telecommunication (ZEM 1.O, ZEM 2.O etc).That create misunderstanding and create threat about the particular package.

Corruption is the major threat for any industry in the Pakistan that is because people are unaware and un educated but now these telecommunication companies are working on that like….
 AJ NAE BOLO GY TO KAL BUGHTOO GY {Khamoshi Ka Boycott} (Djuice)
 KRO MUMKIN (Telenor)
These are all campaign to educate people and develop the positive behavior in that social culture.
Destroying Cultural norms:
Although these companies are bringing positive change in the society but also destroying the social culture and providing the negative attitude to the young generation of the country by providing late night services that is affecting the education of the young generation.

4. Technological Analysis:-
Technology is the most known word in the modern world so any advancement in the technology affects the industry if industry settles them accordingly then it opens lot of doors of success and achievement if they do not respond toward the advancement then that particular company goes into the darkness.

• Factors Creating Opportunities:
Technology is changing the attitudes and behavior:
Telecommunication technology id changing the behavior of the people and providing them opportunities to get the bright future.
Impact on cost structure:
Due to latest technology the cost of telecommunication industry is decreasing and they are giving lowest rates to the peoples to remain in contact with relatives and with heir family.
Introduction Of CDMA technology:
Introduction of CDMA (CDMA stands for Code Division Multiple Access.)Technology in the mobile Sims is also creating the Opportunities for the telecommunication industry. This technology gives less radiation then GSM technology.
3G mobile technology:
The latest technology of 3G mobile communications has been earmarked and PTA will soon be inviting applications for 3G spectrum auction. This technology will increase operating capacity and revenues by using HSPA technology.

• Factors Creating Threats:
Focus on increasing the Coverage:
The current focus of the telecommunication industry is on increasing the coverage rather then up gradation of the systems they should up grade the systems to meet the requirement of the modern world.

The number of macro-environmental factors is virtually unlimited. In practice, the firm must monitor those factors that influence its industry. Even so, it may be difficult to forecast future trends with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables.

-------------------------------------------------------Thank you-------------------------------------------------

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