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A SWOT Analysis Of PTCL Systems

2263 words (9 pages) Essay in Information Technology

03/05/17 Information Technology Reference this

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There is no skimpy competitor of PTCL in landline but with the growth of telecommunication business of Pakistan rivalry increasing specially in mobile phone sector. There are more then 800 million subscribers of cellular phone. There are 03 big players in mobile phone industry but 3 of them are the competitor of PTCL: Mobilink, Telenor, Warid Tel.

Mobilink is the largest mobile phone company of Pakistan. Mobilink is currently having more then 31,958,597 users base which is the 36% of total cellular industry of Pakistan. Mobilink is basically challenging Ufone which is subsidiaries of PTCL.

Telenor is another cell phone company it have 17,841,074 subscribers which is 20 % of total mobile industry.

Warid Tel

Waridtel is also providing cell phone services in Pakistan. Waridtel have more than 15,114,678 subscribers which are 17% of Pakistan mobile industry.

NEW COMPETITORS

Other than mobile & land line PTCL is facing competition in F.W.T (Fixed Wireless Telephone) product market. Below are the main competitors.

Telecard, World Call

SWOT ANALYSIS OF PTCL

Here I am giving my SWOT analysis of PTCL. I tried to use my keen observation in order to find the strengths, weaknesses, opportunities and threats. As it is very difficult for an internee to discuss with the employees of any organization about its weaknesses, moreover they are also not so much open in telling their strengths and opportunities.

Where there is a company in operation it has to work in two kinds of environment i.e.

The external environment and

The internal environment of the company.

For a company to avail maximum and avoid maximum, it has to know what it has to avail and what it has to avoid. The external environment has scanned by the management for any arising opportunities or any critical threats. The resources of a company constitute its strengths and weaknesses.

External factors are broadly categorized into;

Economic forces

Social, cultural, demographic, and environmental forces

Political, governmental and legal forces

Technological forces

Competitive forces etc

Internal factors are;

Marketing strength of firm

Financial/Accounting resources

Management

Computer information system

Production/operations etc

Why SWOT analysis

A SWOT Analysis is conducted by the company so that it is able to position itself to take advantage of particular opportunities in the environment and to avoid or minimize environmental threats. In doing so, the organization attempts to emphasize its strengths and moderate the impact of weaknesses. The analysis is also useful for uncovering strengths that have not been fully utilized and in identifying weaknesses that can be corrected. Matching information about the environment with the organization’s capabilities enables management to formulate realistic strategies for attaining its goals. Strengths

A professional management is running PTCL. PTCL Management is continuously allocating funds for new technology, enhancing knowledge pool, acquiring professionally skilled personnel and so many arrangements regarding meeting the requirements of rapidly changing environment.

PTCL has the largest network coverage in the country including almost all the cities and their peripheries which others lack yet.

The company has got a very vast and very strong infrastructure within the country based on the landline network

PTCL is rich in assets as compared to others in the industry, as it possesses and owns all of its machinery, stations and places

PTCL is the biggest data service in Pakistan home users. It provide dialup internet and also DSL services at low prices with unlimited download so PTCL by providing these services is getting its place in the market as a leader in data services providers.

PTCL also provides the data services to other operators which include PIE (Pakistan Internet Exchange), DSL and provides domestic and international lease circuits.

PTCL is offering many value added services to its home and corporate customers and which includes Toll Free 0800, UAN, UIN, VPN, and premium services 0900, voice messaging services (VMS).

It has the largest no of employees in Pakistan. PTCL is providing its services in all over the Pakistan do it has large number of offices and telephone exchanges which contain large number of skilled and unskilled employees.

It is also strengthen with state of the art technology. PTCL is keen to acquire new technologies to provide quality and valuable services to its customers.

It provides maximum range of services. PTCL is the largest converged services carrier providing all telecommunication services from basic voice telephony to data, internet, video conferencing and carrier services and business all over the country.

Weaknesses

After the success and completion of Voluntary Separation Scheme (VSS), PTCL is facing shortage of the employees because some of the exchanges have been left non functional as all of the employees in those exchanges have opted the VSS and that had been approved after which the vacancies have not been filled yet.

There is no job description at PTCL; the employees have made them at their own in the company among themselves.

ERP department is under process of up gradation at presently which is costing a lot to the company in terms of both money and time as well.

The clashes between new employees and the old regular employees affect the working of the company due to professional rivalry and discrimination.

Reference check form is an important element of selection process of an employee, the company used reference check but there was no form designed for this purpose formally.

PTCL is not providing customer services up to the mark. Poor customer services leads to customers’ dissatisfaction and cause disconnections which ultimately results in high mix rate. No company wants to have high churn rate.

Opportunities

PTCL has a vast network spread all over Pakistan. Due to its experience in the field of telecommunications and a trained workforce, PTCL has a great opportunity to do well in the deregulated scenario under the Etisalat Management.

Privatization & liberalization of IT sector.

Wireless local loop (WLL) is the alternative for landline phone lines. PTCL has the great opportunity to expand its market through WLL base subscribers.

PTCL has the great opportunity in data services. There is a great potential in data services market.

Through proper segmenting the market, PTCL can explore new segments and can increase its business significantly.

Threats

Deregulations not only provide new opportunities but also pose some threats. Up till now PTCL is enjoying a monopoly in fix line telephony but after deregulation of telecom market PTCL is facing competition from other telecom companies. This may result in fall of traffic and revenue.

Being a semi-government organization PTCL has direct effect of the political and domestic instability, which affects the working of the company.

As government has permitted the reactivation of labor unions recently, it can be a serious threat to the company.

The competitors of the company that are other telecom companies are well organized and well managed, they have their focus on the operations and on the competition in the market while PTCL is still under the process of reorganization and up-gradation.

The company is facing new competitors, Wateen Telecom, in landline services which may offer a great competition to the company in landline and internet services in the country.

Large number of disconnections has the greatest threats to PTCL. Which lowering the share of its prime business of land line phone.

Conversion towards mobile. Increasing competitions between mobile companies resulting in better mobile packages. So its customers are switching towards mobile phones.

New entrants in the markets. New companies are entering in voice and data services which can cause lowering the market share of the PTCL.

Continuously decreasing call rates by mobile phone companies cause the low new connection rate. Because new customers preferring mobile phone instead of landline phones.

Fiber optic damages are other threats to PTCL which cost a lot to the company.

Recommendations

No doubt PTCL financial results show a fair picture of its excellent performance over the year but it is not enough there are number of issues that need to be address in order to raise its performance and also to successfully face the challenges set by the globalization and rapidly changing economic world. On the basis of my experience I have put some recommendations and findings as under.

I during the internship found out that there is poor staffing, some of the departments are over populated and some even don’t have the number necessary to run the department.

Customer services should be improved, that will help to improve customer satisfaction and results in low churn rate.

PTCL should recheck its marketing strategies as currently very few people know the services offered by PTCL. It should install more billboards, use print and electronic Medias.

Employee’s attitude and behavior towards work and customers must be improved as due to staff competition every individual customer is vital.

Increase service offering at competitive and affordable rates.

Minimize exposure to Government’s (PTCL) revenue in the short term.

Working environment should be improved by introducing good corporate culture in the organization so the employee satisfaction can be achieved, which results in low employee turnover.

Coordination among the departments should be improved by introducing new practices through which department interact with each other properly. So they work together to achieve organizational goals.

Strategies should be built by using proper market information, so the good strategies lead towards accomplishment of organizational goal efficiently.

PTCL should also focus on WLL services which can be helpful in increasing its market size.

PTCL should have more focus on data services which has the great potential and company has the sources to avail this opportunity.

Proper segmentation should be done so the new segments can be explored and targeted.

CONCLUSION

PTCL is the largest telecommunications provider in Pakistan. The company maintains an important position in Pakistan as a communications provider to other telecom operators and corporate customers of the country. It has possible to be an instrumental agent in Pakistan’s economic growth.

PTCL has laid an Optical Fiber Access system in the main urban centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network.

PTCL have the monopoly in providing the Land-Line Telephone Connection in Pakistan and it’s playing its role magnificently. In current scenario PTCL has increases its Revenue quite dramatically and probably that as soon as this organization has become privatized it will flourish its revenue in better manner. PTCL should at once change its Finance upper level of chain of command and should stream line in the good manner.

PTCL should also give confidence to the Billing On line system that each and every customer should have to pay his/her bill on line base.

The system of E-PAYMENT which though survive in PTCL finance system but there is need of development in this facility.

The image of PTCL being most important Telecom providing is not good in the eyes of ordinary customers particularly there are lot of complaints about including the bogus local calls in the monthly bills of various customers. PTCL should also give the detail of local calls made from any Land Line Number which would be provided in Micro level to the customer.

Defective Telephone link should be Fault Free within 24 hours in order to maximize the Revenue, as Revenue of PTCL should give up at the cost of defective Telephone.

PTCL should make Customer Care Centers in distant areas

If I have to express my experience of internship in PTCL I would briefly say:

PTCL is a good Organization in the way that anybody can join it for his/ her long-term career. Overall working environment is at ease. Management of branch cares a lot of its staff and considers them as the plus point of PTCL.

The customers are entertained individually because customer is the king of all activities. Same kind of actions and attention is given to all the customers. Getting ideas for development from customer side is a new idea and that is working very well in PTCL. The customers are asked to fill a suggestion form and the standards of the organization are enhanced through them.

In PTCL, all the activities are done on computers that enhance the organizations ability. I found my internship training at PTCL to be a very pleasing experience. The training was helpful because it helps me a lot to learn bout real life working environment.So far my learning is concerned; all the employees at branch were quite helpful. They helped me to understand the activities of an org to possible extent. Their good attitude gave me more self-confidence to learn more and to ask if I have any query in my mind.

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