Pest Analysis of Telenor

Pest Analysis on Telenor in Pakistan
ASSIGNMENT#3 SUBJECT: DO PEST ANALYSISON A COMPANY IN ONE COUNTRY. SELECTED COMPANY=TELENOR [pic] GROUP NAME: BLITHE WHAT IS PEST ANALYSIS? A pest analysis is a scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors Political Economic Social Technological The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors. In this document we will discuss only two factors. 1. Socio-cultural factors 2. Technological factors TELENOR HISTORY: Telenor is the Telecommunication Company in Norway. Telenor started its operations on 15th of March 2005 and holds one of six mobile licenses in Pakistan. Today, Telenor is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia. Telenor Group provides telecommunication services in 13 countries across Europe and Asia.
SOCIO-CULTURAL FACTORS: Social cultural factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. This factor varies from country to country. Here are some factors which influence the telenor in Pakistan. These are the factors which can not be changed and the organization has to adapt these factors or adjust with these. Religion: As Pakistan is an Islamic country and people are very strict in case of Islam. Most of the people come from ethnic background. Any things against the philosophy of Islam on either print or electronic media are treated as against Pakistan. Culture: Pakistani peoples are very cultural. Most of the people dislike anything extra-ordinary or something which sabotage their culture or subculture. So anything against their culture means against the peoples. Language: The national language is Urdu and literacy rate is very low only 50% peoples understand English .So they have to advertise and publish most of their ads in Urdu or show a Pakistani culture otherwise it may impact on their service. Companies who are targeting upper-end of market mostly published and aired their advertisement in English language. Cheap labor: Most of the people in Pakistan are jobless. Labor rate is very low as compare to other countries because Pakistan is a developing country. Telenor can easily get the labors at low rates so they can save more. Youth generation: Young generation of Pakistan is 45%. This generation is more interested in this kind of thing. So they can be easily attracted by special offers, special packages and emotionally ads. Women roles: In metropolitan cities women are doing work along with their other responsibilities but other than metropolitan cities it is difficult for women to convince their parents and spouses for work. Rural areas: most of the peoples live in rural areas. Anything which favors these peoples would be more profitable. They understand Urdu language. They are also very near to Pakistani culture and religion as compare to urban society. They also like those things which are close to Pakistani culture and religion Islam. So telenor have to care for these rural areas.
Leisure time: Peoples have much leisure time. As most of the women are households. So they have much time for this kind of things .also the population of Pakistan is also increasing day by day. TECHNOLOGICAL FACTORS: Technological factors include ecological and environmental aspects, Such as R&D activity, automation, technology incentives and the rate of technological change. THEY can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological Shifts can affect costs, quality, and lead to innovation. These factors also, cannot be change and company has to adapt these. Recent technologies: Companies have technology with which they can compete in the Pakistan and now companies are investing in their infrastructure to not only expand but also to upgrade their existing structure. So the telenor must use the very new technologies. Fast speed: Telenor is shifting its whole network from 900 MHz to 1800 MHz with the completion of this project within 2-3 months. Telenor will be able in offering Value-Added Services like General Packet Radio Service (GPRS), Multi-media Messaging Services (MMS) and Virtual Private Network (VPN) at very fast speed. So the telenor must provide these services for getting customers. Telenor recycles: telenor recycles tens of thousands of mobile phones through its recycling programs in Hungary, Serbia and Norway. They are currently working on a permanent recycling program that will include all of their markets. GPRS: if they improve their GPRS network in rural areas so they can also provide good internet services to the rural areas. Additional features: Currently there are only few companies who is providing Multi-media Messaging Services (MMS), General Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference Calling, Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at low price and telenor would be provide an addition feature that one can see TV channels on their cell. Video conferencing: video calling is the very new technology and by using this technology they can be successful. Technology rate: this is the era of computer and technology and rate of change of technology is very fast. By adapting these technologies telenor can provide the services at very low rates and can provide the better qualities.

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Pest Analysis on Telenor in Pakistan

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