...Introduction: Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. In the presence of coercive government, monopolistic competition will fall into government-granted monopoly. Unlike perfect competition, the firm maintains spare capacity. Models of monopolistic competition are often used to model industries. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities. Monopolistically competitive markets have the following characteristics: * There are many producers and many consumers in the market, and no business has total control over the market price. * Consumers perceive that there are non-price differences among the competitors' products. * There are few barriers to entry and exit. * Producers have a degree of control over price. The long-run characteristics of a monopolistically competitive market are almost the same as a perfectly competitive market. Two differences between the two are that monopolistic competition produces heterogeneous products and that monopolistic competition involves a great deal of non-price competition, which...
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...DECISION SUPPORT SYSTEM AIMS TO SUPPORT BETTER BUSINESS DECISION-MAKING IN TELECOM SECTOR OF PAKISTAN Thesis Presented to the Faculty of INSTITUTE OF BUSINESS AND INFORMATION TECHNOLOGY In Fulfillment of the Requirements for the Degree of Master of Business and information technology By Muhammad Taimoor Khalid F09MB023 Contents DECLARATION 6 ACKNOWLEDGEMENTS 7 Executive Summary 8 INTRODUCTION 9 Decision Support System 10 Telecommunication Sector in Pakistan 13 PROBLEM DEVELOPMENT 14 Significance of the study 15 Study Objectives 15 Research Research Query#s 15 Relevant Variables 16 Dependent variables: 16 Independent variables: 16 Research Hypothesis 16 Hypothesis # 1 16 Hypothesis # 2 16 Hypothesis # 3 17 Hypothesis # 4 17 LITERATURE REVIEW 18 “ 21 “ 21 (Business psychology and organisational behaviour 21 “ 22 “ 22 RESEARCH METHODOLOGY 23 Introduction to chapter 24 Research Design: 24 Purpose of research 25 Data Processing and Analysis 25 Primary and Secondary data 25 Regression Equation 26 Comparative Analysis 28 Dss and Comapny 28 Respondent age 28 Respondent sex 29 Respondent Work Experience 29 Respondent Qualification 30 Research Query’s Analysis 31 Research Query# 1 31 Research Query# 2 31 Research Query# 3 31 Research Query# 4 32 Research...
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...DIRECT INVESTMENT IN TELECOM SECTOR OF PAKISTAN CONFIDENTIALITY STATEMENT This dissertation has been agreed as confidential between the students, university and sponsoring organisation. This agreement runs for two years from (20 August 2008) STATEMENT OF AUTHENTICITY I have read the University Regulations relating to plagiarism and certify that this dissertation is all my own work and do not contain any unacknowledged work from other sources. WORD COUNT: 16,808 ABSTRACT 07000441 FOREIGN DIRECT INVESTMENT IN TELECOM SECTOR OF PAKISTAN Keywords: FDI, Entry Modes, Determinants, Risks, Pakistan Telecom Abstract Pakistan telecom sector has attracted large inflow of foreign direct investment in recent years. Government policy of deregulation and privatization has created an environment conducive for foreign direct investment in telecom sector of Pakistan. This paper will investigate all those factors which have contributed in attracting the foreign direct investment in telecom sector of Pakistan. However, there are some risks associated with the foreign direct investment in telecom sector due to the current political instability and terrorism in the country. This paper will examine the risks associated with the foreign direct investment in telecom sector of Pakistan. Subsequently it will explore entry strategy for foreign companies to enter in Pakistan telecom market. FOREIGN DIRECT INVESTMENT IN TELECOM SECTOR OF PAKISTAN Dissertation submitted...
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...TELECOM INDUSTRY Telecommunication is the transmission of messages over significant distances for the purpose of communication. In the modern age of electricity, telecommunications has involved the use of electric means such as the telegraph and telephone, the use of microwave communications and the use of fiber optics. Telecommunication has proved to be a vibrant industry across the world with a high growth rate during the past few years. The on-going process of deregulation, privatization, and market liberalization has caused basic changes in the market structure of telecommunications from monopoly to that of a competitive one. These developments have resulted in the establishment of regulators in most countries. The regulators are faced with the challenge of developing a competitive environment in the industry; providing a level-playing field to incumbents and to new entrants in the sector. Telecom industry of Pakistan World has become a global village and this is due to prompt, easy and accessible communication. Telecom segment has changed the shape of communication everywhere and this is a hot issue in Pakistan now a days. Telecom sector has emerged as a fast growing industry during past few years and now Pakistan is promising as one of the most progressive country where the number of mobile phone subscribers has reached 40 million. For the reason different companies are being attracted to invest heavily in this division. Due to the enormous competition among different...
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...Introduction to Telecom Industry Sector Overview Telecommunication has now become one of the prime services which an economy needs for rapid growth, development and modernization of its various sectors. Government of Pakistan awarded status of industry to telecom sector in year 2003-04. Benefits that accrue to a declared industry are now available to Telecom Sector. Over the past two decades, the institutional and regulatory framework of the telecommunications industry has changed radically. In most of the countries, public telecommunication operators (PTOs) have been fully or partially privatized and regulations concerning access to telecommunication markets, provision of services to users and pricing mechanisms have been overhauled. Basic Telephony Pakistan telecommunications market for the fixed-line services was dominated by Pakistan Telecommunication Limited (PTCL). But now PTA has been given the role of a regulatory body and is responsible for implementing the telecom deregulation policy. For a long time, Pakistan lagged behind in the region as far as telecom access is concerned. With cellular mobile revolution taking place, Pakistan 's tele-density currently stands at 10.37%, with gross subscribers base of fixed (5.05 million) as well as mobile subscribers (10.54 million) touching 15.59 million for a population of 152.53 million. The government is taking Pakistan's telecom future seriously and has deregulated the sector. As a result, scores of new private entrants...
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...Technical methods that affect the industry Mobile networks are one of the most technical aspects of any mobile company and the technological changes affecting the networks have changed considerably, since the first mobile company Paktel was introduced in Pakistan. Paktel s network ran on advanced mobile phone system (AMPS). Amps WAS THE ANALOG MOBILE PHONE STANDARD DEVELOPMENT BY bell Labs. AMPS were a first generation cellular technology that used separate frequencies or channels , for each conversation. AMPS used considerably more computing power in order to select frequencies; however cell centers could flexible assign channels to handsets based on signal strength, allowing the same frequency to be reused in various locations without interference. However it suffered from some weaknesses when compared to today s digital technologies. Since it is an analog standard it was very susceptible to static and noise and had no protection from caves dropping used scanner. However with the introduction of mobilink in 1992, Pakistan s mobile industry entered into the second generation of mobile networks with GSM. GSM is the most popular standard for mobile phones me the world. Its promoter, the GSM Association, estimates that 82% of the global mobile markets use the standard. Its ubiquity makes international roaming very common between mobile phone operators, enabling subscribers to use their phones in many parts of the world. GSM differs from its predecessors in that both signaling and...
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... Thank you Hooria Majid ABSTRACT Taxes affect citizens, economy of the country, businesses, governance mechanisms, etc. Not only revenue mobilization, an effective system of taxation helps in formalizing the economy, encourages economic growth, shapes political cohesion between tiers of the Government, and results in increase in social sector service delivery. We are now quite used to hearing the rhetoric by the government and bureaucracy on how Pakistan has one of the world’s lowest tax to GDP ratios since long (by their account it has stood between 9.50 and 10.40 percent in recent years), which also happens to be extremely low when compared to its neighboring countries and similar economies. So Government is unable to allocate reasonable funds for development projects. Although Pakistan has adopted best practices of the World through Income Tax Ordinance 2001 and formulation of Inland...
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...on Ufone By: AYESHA HASAN BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES The overall consensus of industry analysts is that Pakistan is one of the countries with a huge E X E C U T I V E S UMMARY 3 untapped potential for telecom growth and an attractive investment environment. Recently Business Monitor International (BMI) ranked Pakistan as a key destination for telecom growth. The BMI rankings take into account a number of factors including industry situation, growth potential, competitive landscape and economy and political risks etc. The Pakistan market reached the 90 million subscriber mark in September 2008, almost double from 2006 numbers. The growth slowed after that and at the end of November 2008 the total mobile subscriber number was 90.5 million. Pakistan needs to increase telecom research and development work within the country. China and India are in the process of becoming world major R&D centers for technology and telecommunication. Two top Chinese telecom equipment firms have announced their plans to collaborate with Pakistan: Huawei is working with UET Lahore and ZTE will setup R&D center in Islamabad. The goal of the policy makers should be to increase the rate of transfer of technology from abroad, broaden the pool of local skilled workforce and accelerate the local production of telecom equipment and handset parts etc. PTCL was established to operate cellular telephony. The company commenced its operations, under the brand...
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...Porter Five forces looks at five key areas namely threat of new entry, power of buyers, power of suppliers, threat of substitutes, and competitive rivalry. Threat of New Entry • As government of Pakistan is showing liberalism in case of telecommunication sector and opened its policies to award new licensees to new mobile service providers so threat of new entry is high. • As set-up cost is in billions of dollars so in this case threat of new entry is low, but there are companies who are working to achieve licenses and approaching PTA to know terms and conditions for this. • As for this business companies need a well established distributions and franchises network so threat of new entrant is high in this case. Bargaining Power of Buyers • Power of buyer is high in telecommunication sector. There are six market players and players are offering different packages at different prices and a situation of price war is running. Buyers have a power to buy any package which is suited to them. • Cost of switching from one company package to other company package is low. Hence, power of buyers is high. Bargaining Power of Suppliers • The power of suppliers is low in case of telecommunication sector. • But the fact is that numbers of suppliers are few in the market but they are competing in the market to make agreements with mobile service providers. Threat of Substitute Products • Government also gave so many land lines and wireless local loop licenses to different...
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...PEST Analysis of Pakistan Telecom Sector: The Telecom sector all around the world and especially in Pakistan has experienced a tremendous growth in the last few years. The telecommunication sector of Pakistan was awarded the status of industry in 2005 and since then it has been one of the fastest growing sectors of Pakistan quite eminent from various factors such as the mobile density reaching 52.87 in April, 2008 and the number of mobile subscribers reaching 85 million. (Source: Pakistan Telecommunication Authority, Annual report 2007-2008). PEST stands for Political, Economical, Social & Technological factors of the external macro-environment. A PEST analysis is an analysis of the external macro-environment that affect all firms, Such external factors usually are beyond the firm’s control and sometimes present themselves as threats. Many macro-environmental factors are country specific and a PEST analysis will need to be performed for all countries of interest. Political Factors: Political environment of Pakistan is stable in the current situation and country is doing excellent on economic front. Environment is investor friendly for telecommunication sector. Government is also supporting telecom industry. Economic Factors: Marketers should consider long term and short term state of a trading market. Inflation is controlling by state bank and under strict eyes but unemployment rate is going up and up with the increase of level of poverty. Socio-Cultural Factors: ...
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...large economic incentives (huge cost savings due to elimination of the telephone network) to merge the telephone network with the computer network system using a single unified system of cabling, signal distribution and management. Information and communication technology expenditure (% of GDP) in Pakistan was reported at 4.37 in 2008, according to the World Bank. Information and communications technology expenditures include computer hardware (computers, storage devices, printers, and other peripherals); computer software (operating systems, programming tools, utilities, applications, and internal software development); computer services (information technology consulting, computer and network systems integration, Web hosting, data processing services, and other services); and communications services (voice and data communications services) and wired and wireless communications equipment. Information technology in Pakistan is a growing and rising industry that has a large potential. Matters relating to the IT industry are overseen and regulated by the Ministry of Information Technology of the Government of Pakistan. The IT industry is regarded as a successful sector of Pakistan economically, even in...
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...ijcrb.webs.com SEPTEMBER 2011 VOL 3, NO 5 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Porter Five Forces Analysis of Pakistan Mobiles Communication Limited (Mobilink): A Critical Approach Akhtar Munir Retail Sales Officer in Mobilink. Afnan Khan Saddozai Management Trainee Officer in National Bank of Pakistan Dr.Bakhtiar khattak Chairman: Department of Business Administration, Gomal University, D,I.Khan Dr.Shumaila Hashim Lecturer: Dept of Bus.Administration, Gomal University, D.I.Khan. This paper has written as a part of academic research, on the basis of data availability. The analysis is based on researchers’ own understanding; company’s management may disagree with it. Abstract This paper attempts to analyze the intensity of competition within industry for Mobilink on the basis of Porter five forces model. Study indicates that although it is a market leader in cellular sector in Pakistan yet it has strong rivals. Further more subscribers’ switching cost is low. So the company is required to must consider these two factors in policy formulation. On the other hand position of forces like suppliers and substitutes availability and potential entry of new entrants is weak. Key Words: Mobilink, Pakistan, Porter Analysis, Subscribers, Suppliers, Rivals JEL Classification: F23, L25, L63, L96, N7 Introduction Environmental scanning is the most important step in strategic management process, which is conducted to find out all those trends and events that...
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...Strategic Analysis of Etisalat 2011 Paritosh Kashyap Etisalat, the telecom giant from UAE is among the one of the non oil sector based success stories from the Gulf. This given analysis will consist of the basic introduction followed by the overall telecomm market in UAE. Post which the growth and expansion of various businesses of Etisalat over the last decade will be studied which will be followed by some of the major international subsidies of Etisalat. In the concluding part the future strategies of Etisalat will be analyzed. Introduction Emirates Telecommunication Corporation, branded as Etisalat is one of the major telecommunication companies in the world, operating across Middle East, Asia and Africa. It provides mobile and fixed line data and voice services to individuals, enterprises, telecomm companies etc. It also provides a wide range of high tech and complimentary services to telecomm companies including SIM card manufacturing, payment solutions, staff training, peering, voice and data transit, sub marine and land cable services. (Etisalat.ae, 2011) The company was founded in 1976 as a joint venture between International Aeradio limited, a British company and local partners. Later on in 1983, the govt. of UAE had a 60% stake in the company and rest was publicly traded. From 36,000 exchange lines in 1976, it was having around 7, 47,000 lines in 1998. Today Etisalat is considered as one of the biggest success sagas in Middle East and is one of the biggest...
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...HISTORICAL BACKGROUND The service sector has been growing rapidly after the World War II, as many nations shift from a manufacturing based economy to service economy. Telecommunication industry is playing an important role in the communication system that has become an obvious for this modern world. ‘Orascom Telecom Holdings’ which was established in 1998 is one of those dynamic telecom companies of the world. Till date, this Egyptian Telecom company is facilitating cellular phone service to the people of 9 countries. Banglalink™ is the new member of the esteemed GSM family of Orascom Telecom Holdings. The scenario of the telecom industry has totally changed as BanglalinkTM entered in the industry with the aim of serving mobile phone services to the mass population of the country so that the entire communication system of Bangladesh develop dramatically. If we compare the present situation of ‘BanglalinkTM’ with Sheba Telecom Company, we find the emerging growth and cordial consumer acceptance of ‘BanglalinkTM’ which was never been seen and even thought during the operational period of Sheba Telecom Company. Brand preference and consumer acceptance of Banglalink TM has created this immense growth rate. Banglalink™ is the new member of the GSM family of Orascom Telecom Holdings. Orascom Telecom Holdings is operating in 9 countries of the world. The subsidiaries include Egypt, Algeria, Pakistan, Tunisia, Iraq, Bangladesh, Congo Brazzaville, Zimbabwe, and Democratic Republic of...
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...but in Pakistan SMEDA (small Medium enterprises development authority) has defined SMEs as “the enterprises can be small and medium which has up to 250 employees and having annual return about Rs.250 million.” In Pakistan we can say that there are about more and less about 2 million small and micro level business and enterprises are exist. In among these 2 million there are about 400000 are form manufacturing side about 600000 from services side enterprises and about one million are exists from trade sector mean retailers. In Pakistan Small Medium enterprises is almost near to ninety percent of the whole business enterprise. It contributes a lot in almost every sector of Pakistan like manufacturing, agricultural and services based organizations. The part of every province in SME are contributed in SME Punjab province has the highest contribution about 65.26% share is in Punjab, KPK has about 12.21% while Sindh province has about 17.82% share in SME in total of 2.96 million units in Pakistan of which about 93.9% are established enterprises and 6.1% are household enterprises. Baluchistan share is about 2.09% in over all units in Pakistan. All sectors are very important in SME but manufacturing sector is very important in SME in context to the economic development. Manufacturing sector has about 66.5% of shares in SME which is the highest one in over all sectors in Pakistan. Other is household, wholesale; retail or restaurants, agriculture farming and poultry sectors are also...
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