SWOT Analysis of Telenor
SWOT Analysis of Telenor
SWOT Analysis of Telenor
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Telenor is a multinational company which is one of its biggest strengths. It can boast about its
big investment and strong company culture.
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Telenor Pakistan boasts customer care better than any telecom company in Pakistan. Its main
aim is to provide its customers with the best possible service. 24 hr help line is available for the
customers help if they need it.
Telenor¶s network service is remarkable throughout the country. The signal quality is good and
its signals are available even in the most remote areas.
Telenor covers a total of coverage area in more than 3000 cities, towns and highways throughout
Pakistan, making it the 2nd largest GSM service provider in Pakistan. Telenor Pakistan has more
than 5,000 cell masts throughout Pakistan, making it the 2nd largest network in Pakistan. It has
GPRS service and EDGE service across its network in Pakistan. Telenor has a strategic alliance
with Nokia Siemens Networks for expansion in Pakistan. Telenor currently has these dialing
codes, 0342, 0343, 0344, 0345, 0346, 0347, and 0350.
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eing a multi-national company telenor has got good fund backing and is able to compete with
the well established companies like Mobilink and Ufone. With its cash it is able to make
outstanding marketing strategies.
Telenor targets different types of customers at the same time. With Djuice its main aim is to get
hold of the youngsters. They do this by providing cheap SMS rates. With their post-paid package
³Persona´ they target more of the executive class.
Telenor has a strategic alliance with Nokia Siemens Networks for expansion in Pakistan.
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iggest disadvantage for telenor is the relatively low market share. Mobilink and Ufone have
already settled down. Heavy investment and good marketing strategy is required to break the
other company¶s monopoly in the telecom industry.
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Switching cost of customer from one service provider to other is low. Fewer stakes are involved
with one company. Customer is getting less differentiation from all the service providers. A
service of one provider, if not perfect is a good substitute of the service of others. Pricing is
going down quality is improving and customers enjoying more power.
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On the other hand differentiation between the services players already offering in Pakistan
telecom industry are not much distinct from one other. That means if government liberalized its
regulation more there is potential in other new entrants from abroad to invest in telecom sector of
Pakistan. On the other hand it might be the demotivating factor because of less differentiation;
creative new entrant might not enter easily.
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Initial years were not good as the entry into the telecom industry was not at all easy. The
company also had to bear losses after the propaganda was made against the Norwegian based
telecommunication company after the publication of caricatures of the Prophet (P..U.H).
A number of opportunities exist in the voice telecommunication space, which are centered on
obtaining the necessary licenses and investing in the appropriate infrastructure. A number of
players have already begun to invest in the infrastructure by obtaining comparable data and video
communication licenses and are now in a position to exploit the voice market. This in no way
limits new entrants to enter the market but rather provides acquisition and consolidation
opportunities.
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Obtain one of the existing cellular companies. Valuation could range between 8-12 times
earnings.
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Market size is the biggest ever opportunity in Pakistani telecom sector. Almost 80% of
population is living in rural areas of Pakistan in which above 70% have no access to cellular
connections. That is market opportunity which any operator can avail by applying expansion
strategies.
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Poor network service by the other networks is an opportunity for telenor to exploit. If the
continue their good service to its customers, its customer base is only going to increase. Other
companies loss is going to be telenor¶s gain.
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Government is now stable from the day President General Musharaf has taken over. Therefore
telecom industry of Pakistan has been experiencing growth since last one and half years. Current
government has liberalized the taxation and licensing polices in order to attract more and more
foreign direct investment in the country. ut this political instability can occur if the government
changes and bring new policies which might not be in favor of telecom industry.
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Telenor had to face severe criticism from the religious forces in Pakistan after the publishing of
caricatures on the Holy Prophet (P..U.H). people called for the total opposition of the
Norwegian based company.
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It is a big threat to the company as it cuts down companies profits. Moreover, people can even
shift to other network who have coverage in those areas. So the company should take notice and
try to provide service in every nook and corner of the country.
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Once the SWOT analysis is complete the company needs to pay attention to the expansion of the
business by offering a number of quality products in the market. The company needs to evaluate
its growth strategy so that it can have a clear understanding of the direction towards which it is
heading. The organization should concentrate on its primary line of business in order to achieve
successful expansion.
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The Telenor Group has a strong track record of delivering on ambitious goals. The Telenor
Group has defined strategic ambitions which it aims to achieve by 2011. These are:
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The Telenor Group aims to achieve a substantial revenue increase in the years to come. This
growth will mainly come from existing businesses. The company seeks to increase its core
mobile and fixed voice revenues and explore broadband opportunities in the emerging markets.
The company aims to achieve successful practice of combining a local approach with global
expertise. This means that the local management teams will build a unique performance culture
based on their own initiatives and in line with the Telenor governance model, Codes of Conduct,
vision and values, people policy and the way they work across borders. In terms of Health,
Safety and Environment (HSE), the company¶s objective is to improve working conditions and
environmental management by having clearly defined standards across our operating companies
and supply chains.
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Corporate responsibility at Telenor will be part of managing risk. Telenor now has clearly
defined targets on CO2 emissions from its operations - not just to help save the planet, but to
save energy and money.
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Faced with an increasingly competitive environment, Telenor needs to differentiate itself by
providing a superior customer experience. In their vision ± ³we¶re here to help´, the company
puts customer experience at the top of the agenda throughout the Telenor Group.
The global telecom industry is still growing and generating large profits. Looking ahead, the
company expects the usage of mobile and fixed voice communications to grow significantly.
roadband also represents a huge growth opportunity. However, there are challenging trends,
e.g. maturing markets, financial instability, pricing pressures as well as regulatory issues. Still,
well-positioned players will benefit from market growth and increased efficiency, enabling
significant cash flows in the future.
Climate change: The company¶s number one priority is to reduce CO2 emissions. The Telenor
Group aims to be part of the climate solution by de-carbonizing business processes and reducing
physical travel and transport.
The company needs to constantly monitor its performance from time to time. This helps the
managers to know how effective the strategies have been and what adjustments are required in
the near future.