Telecom sector in Pakistan have gone radical change in the last few decades. As the world has become global village than the competition between local and international rivals are also going to be much speedier. All companies try to update their system with new technology where they are able to competes their rivals and gain market share. This report is about to discuss about the telecom sector in Pakistan that how telecom companies are operating in Pakistan especially will discuss about the successful strategies adopted by Zong CmPak. This would cover the introduction about Zong Company based on its background information. In 2009, the market share of Zong was very low and now the Zong has become the fastest growing telecom operator in Pakistan. This report will gives us the brief insight about the definition and project quality management techniques which are adopted by Zong. It will also describes the important strategies through which it can gain success from its competitors like continuous improvement and six sigma and bench marking techniques to improve its quality of services. This section will also includes the literature review section which will describe the importance of the continuous improvement and six sigma and bench marking techniques of project quality management based on the previous researches. Furthermore these two selected contents were discussed and analyze in term of Zong Cmpak. This section will give us insight about the existing system of Zong Cmpak and about the future insight like what will be the impact of the continuous improvement along with six sigma techniques of quality of the services provided by the Zong Cmpak. the evaluation section will also include the currently problem face by the Zong along with the recommendation to compete with its competitors.
Zong is the first international well known brand who started its operation in Pakistan and covered the widest area. The core purpose of Zong is to facilitate people to communicate with others at will. Apart from distressing about Bills, coverage area and capacity issue etc. Zong provides the facility to communicate with other peoplel and offers unmatched products. As it is established that there is much more problems are to be faced by Zong when there was a lot of load shedding problems as well as law and order situation but Zong proved itself its good technique that continuously moving towards become the leading operator in Pakistan and trapping the market share in a very few time period. Following are some core values through which Zong is taking part to enhance its Quality of services as well as to take part in social well being.
Customer Satisfaction: Customers are the heart of any business so Zong considers their customers as the heart of their success. Zong is committed to provide its customer the best quality services and products according to their current needs.
Passion for Business Excellence: Zong always try to excellence in all the operation they are doing. The commitment to delivering the world class quality products and give value to their customer and all the stake holders who are attached with Zong family.
Trust and Integrity: Zong priority is to develop a good trust between the consumers. Zong always welcome the feedback of their customers and all stakeholders. Zong believes is to empower the humans and all stakeholders of Zong.
Respect for people: Zong try to give respect and esteem to their stakeholders and always welcome the feedback of the consumers.
Corporate Citizen: Zong conducts many programs for the welfare of the society. Zong introduced different training programs especially in rural areas where there are lack of education and health issues.
The two selected content to improve the quality of the project on “Zong Cmpak” are continuous improvement and six sigma and benchmarking technique. Continues improvement method is described as the ongoing effort which is used to improve the products, services or processes. This type of effort can be based on incremental bases as well as based on breakthrough improvement at once (-).it is based on the four step quality models which are Plan to attain opportunities, do it at small level, Check its feasibilities at long run and act on these strategies at long term. This model is sometimes known as the Deming Cycle or Shewhart cycle (-). On the other hand, Six Sigma is a qualitative method through which we can get the statistical representation of the process (Muhammad Imran Qureshi, 2012). The six sigma is divided into two methodologies which are, DMAIC, this process includes (define, measure, analyze, improve and control) while the other one is DMADV which includes (define, measure, analyze, design and verify) (Muhammad Imran Qureshi, 2012).
There are different factors of service which needs to be improved in telecom sector in Pakistan. It can be quality of services provided, customer satisfaction, perceived price, loyalty of customers and trust but I will discuss the service quality which is very important for its branding to capture local market.
The goal of improving service quality can be used to meet the criteria according to the customer requirements which will results in ultimately customer satisfaction. Quality of service can be measured through its five quality dimensions which are empathy, responsiveness, reliability, assurance and tangibility.
Physical environment is one of the features from quality of provided services (Brady & Cronin. 2001). The level of quality provided affects our attitudes, performance and use of that service. The quality of service has a complete construct which will defines the multiple scopes. To analyze the validity and reliability of theses scopes, lot of researchers have accepted since from the last twenty five years (Lee, 2010a). There is a model which divides the quality of service into to categories which are described below Grönrooss (1984). First, technically measuring the quality which shows what is given to consumer and secondly, the particular service which is delivered to the customer. A Parasuraman scale is used to evaluate the expectation and perception of the customer through calculating the gaps in reliability in the design of product, how customer response to these, assurance of quality that leads to the empathy of the customer along with the tangibility of the service (Mettersetal.2003).
Later on, the Parasuraman (1988) explains the consumer’s perception about the quality of the service. Furthermore, Cronin, Taylor (1992) and Teas (1993) conclude that the quality perceived by the consumer is better than the perceptual measure. The quality of service is that what is demanded by the customer wither it is right and wrong Maialietal (2011). Thus we can say that the quality of the services is different according to the people and could not be described on the basis of expectation and performance of the service. It is not important that a consumer will purchase the product or service of high quality, rather than consumers categories the products according to the attributes, its long elastic use, prices of the product or service, comfort level and the past experience of his peers (Bolton and Drew., 1991; Lee, 2010).The continuous improvement is necessary for Zong Cmpak to improve its quality of service provided to customer as well as to compete with its competitors. Zong have the opportunity with having the competitive edge on 4 G network in Pakistan, it can plan to identify the opportunities and check its impact on it service’s provider. After implantation of it small level analyzes the data which will describe how much change will occur due to these strategies. If positive result comes then Zong have option to implement these strategies as a whole. If the other hand if we talk about six sigma: There are many features of Six Sigma that had been examine in past researches. These researches focus on the success factors along with the possible limitations. The six sigma quality management technique will be most effective when organizations have already a solid idea about the alignment of the forms with the goal of the organization as well as it will become a cause of customer satisfaction. Six sigma will be a perfect quality management technique to analyze the performance measurement for Zong Cmpak.
This technique requires the skilled professionals which have gained “Belts of various colors to enhance the output. Now a days, the six sigma consultants and trainers industry is growing rapidly which provides service to improve the quality of the products or services. With reference to Harry and Schroeder (1999), six sigma quality improvement technique will cause a breakthrough for Zong Cmpak to achieve the sustainable and excellence in its operations. Initially the use of six sigma was limited to only in manufacturing industry but within the passage of time it has gained popularity in the services industry. There are some areas where Zong Cmpak can apply this quality management techniques to enhance the performance as well as the customer satisfaction. These areas are the customer’s voice, chain analysis of determining value, satisfaction of customer etc.
But there is a huge limitation that is the project must be time bound and these changes must be implemented within the time frame from four to six month to achieve the desired results.
On the basis of implementation of continuous improvement along with six sigma techniques the performance of Zong can be describe through BCG growth matrix. In BCG growth Matrix, on the vertical axis, we shall see the growth rate of market gives us a best measurement of attractiveness of market. On the X- axis, relative market share represents the measurement of strength of a company in the market and positioning of the company in a market. The BCG matrix can be defined through four SBUs which are as followings:
CASH COW – (LOW GROWTH, HIGH MARKET SHARE)
A business which lies on the mature side of the box has the largest market share in which indicates that the growth of the industry is slow. In this method company requires investment to generate cash which can be invested in the other business.
STAR – (HIGH GROWTH, HIGH MARKET SHARE)
A business which is growing rapidly will have large market share as well. Stars may generate cash but because the market is growing rapidly in star box so they require more investment to maintain their position in a market. If it is successful, a star will adopt and add in a cash cow when its industry mature in future. Zong Star products are their 4G mobile data which are widely in use in Pakistan because Zong is the pioneer company who offered the 4G mobile data to their customers.
QUESTION MARK – (HIGH GROWTH, LOW MARKET SHARE)
A business with holding a small portion of market shares will lies in a high growth industry. These types of businesses required resources to grow their market share in this industry but either they succeed and become stars in a future that is unknown and there is an ambiguity. Zong Postpaid is in Question mark position where it keeps a low market share of Zong in corporate sector and corporate sector trust on other networks and Zong should deeply revise their strategies and should enhance the trust in corporate sector because they generate huge profit .Therefore, they have an opportunity to increase their market share and also increase their market growth very well in the market.
DOG – (LOW GROWTH, LOW MARKET SHARE)
A business which hold a small market share lies in a mature market industry. A dog that is not required substantial cash for the industry growth, but it should rise up their capital that could lead in deployed elsewhere. Otherwise dog keeps some other strategic purposes, they have an option to liquidate their assets and harvest the cash. M9 of Zong relies on this sector because it could make a market in industry. Zong really tried their best and used many techniques but could not get much progress in M9 and M9 is just like indigo which is in a Jazz, djuice of Telenor etc but they could not get market space in telecom.
The following are the some recommendation through which Zong Cmpak can get competitive edge on others.
- Zong should focus on their network quality.
- Zong has high opportunity to launch their operation in Pak-China border where they can earn huge profit and enhance their market share.
- Zong should focus on advertisement that would lead to become more successful.
- Female induction may be increased for ensuring equal opportunities for males as well as females.
- Strong branding make the Zong network more strong
- Zong has launched 4G so it’s time to launch dish TV to capture the more profit.
- Zong should more focus on the corporate sector.
The objective of this project is to identify the problems faced by Zong Cmpak along with different strategies through which it can overcome on these problems. There were two model of total quality management were discussed and its significance judged on the basis on the previous researches. Furthermore, the analyses of these two models were done through the BCG growth matrix and made recommendation on the basis on result drawn.
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TechJuice > Mobile > Mobilink, Ufone and Warid have lost market share to Telenor and ZONG – Telecom Industry 2015 Update. (2015, 03 19). Retrieved from https://www.techjuice.pk/pakistan-mobile-network-industry/: https://www.techjuice.pk/pakistan-mobile-network-industry/