Pest analysis telecom industry pakistan

The analysis also identifies external opportunities and threats that may help or hurt the company in the future. Strengths Cutting-edge fiber-optics technology, high-performing cable equipment, a respected brand name, excellent customer service and a strong sales team are just a few strengths that boost the resource capabilities of a telecommunication company.

Pest analysis telecom industry pakistan

The company has about million subscribers in 26 countries around the world. While this was up 6. This excluded the money it made from selling the Verizon Wireless stake in US.

Some of their operations in these countries are through joint ventures.

PESTLE Analysis of the Telecommunication Industry

Despite having big presence across various regions, Vodafone has faced multiple challenges in the past few years. It is either the market leader or is among the top 3 service providers in every country. Such strong position often implies financial leverage, larger capacity to absorb risks and greater capability to steer the market direction.

Geographically diversified business — Looking closely at the countries listed above, it is easy to conclude that Vodafone has a presence in all kinds of mobile markets.

Developed markets like Germany and UK bring bulk of revenue. Then there are markets like India that have immense growth potential both in voice and data. So declining business in one region can be compensated by growth in another.


Developed and advanced network — While not necessarily the trailblazer of LTE network launch in its areas of operation, Vodafone deployed LTE and high-speed wireless networks in most of its markets within a few years of spectrum allocation or ecosystem stabilization.

Networks in India, Egypt and Turkey are also in the process of upgradation. Similarly, in the first half of the last decade, the operator was aggressive in providing 3G services. Strong brand recognition — Aggressive strategy, creative advertising, decent customer service and employee-friendly policies have helped Vodafone in cementing its place among the better brands of the world.

This makes it easy for them to win new customers and retain the existing base.

Pest analysis telecom industry pakistan

Weaknesses — Sluggish economic conditions in Europe — The continent brings in about two-thirds of the revenue for Vodafone.

Consequently, the operator suffered when the European economy was weak over the past few years. Incidentally, Vodafone has huge presence in all these countries.

Lower disposable income and high unemployment prompted customers to cut down on their mobile phone bills. The region is now showing signs of revival but the road to recovery is long. In Spain, it is up against Telefonica owned Movistar and Orange.

Telecom New Zealand and 2degrees are rivals in New Zealand. The scenario for Vodafone is similar in other developed and emerging markets. Absence from the profitable US market — Vodafone does not provide wireless telecom services in the United States although it does have a small enterprise business in the country.

Despite the argument that Sprint and T-Mobile are weaker, higher tariffs have made sure that all major telcos in America are overall strong financially.

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Unfortunately, lack of presence in USA is a drawback about which Vodafone cannot do much. The LTE coverage has been achieved in more than half of Europe. This investment is a tremendous long term opportunity for Vodafone to position itself as the leader of high speed and reliable wireless services.

Pest analysis telecom industry pakistan

Likewise, Africa has a lot of untapped market. Fixed telecom and cable services — Vodafone has been aggressively looking to expand towards non-mobile services in order to diversify its portfolio and generate new sources of income. Vodafone already provides fixed phone services in a few regions.

Clearly, it intends to evolve into a fully integrated telecom service provider in the long term. This demonstrates the extent of its dependence on the continent.

Not surprisingly, its service revenue from the region declined by 7.PEST Analysis of Pakistan in Telecom Industry Political Factors Political environment of Pakistan is stable in the current situation and country is not progressing in terms of .

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Providing expert analysis, independent forecasts and competitive intelligence on the telecommunications industry. Report includes: BMI Industry View, Industry SWOT Analysis, BMI Industry Forecast Scenario, Telecommunications Risk Reward Index, Market Overview, Regulatory Environment, Company Profiles and Competitive.

1 Industry Analysis: Soft Drinks Barbara Murray (c) explained the soft drink industry by stating, “For years the story in the nonalcoholic sector centered on the power struggle between Coke and Pepsi.

PEST Analysis of Pakistan Telecommunication Sector: Introduction Pakistan is on the verge of Telecom revolution Pakistan continues to be one of the fastest growing telecom markets in the world.5/5(4).

The economy of Pakistan is the 25th largest in the world in terms of purchasing power parity (PPP), and 42nd largest in terms of nominal gross domestic product. After the deregulation of the telecommunication industry, the sector has seen an exponential growth. a pestel/pestle analysis of the telecom industry was great in many terms for the telecom sector and except for a few pessimistic reports, is expected to remain an year of great opportunities. PESTEL analysis of the macro-environment There are many factors in the macro-environment that will effect the decisions of the managers of any organisation.
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