Pakistan Telecommunication Limited, known as PTCL is a national telecommunication company in Pakistan. It provides the internet and telephone services across the nation and consider as a backbone of the telecommunication infrastructure (PTCL, 2021). Here is the detailed PESTEL analysis of PTCL.
PTCL – Political Factors
PTCL is always affected by the political factors in the country and one of the main reasons for is the monopoly in market. It has been seen in recent years, that government is putting efforts to boost telecom industry by increasing competition. In recent years, political stability is seen in the country and PTCL’s management believes that current government is performing well and hence the company will be able to excel in advance technology in the competitive environment.
This will also help in lowering the costs and can revise policies. The political stability helps PTCL in becoming better and growing faster. It helps the company in bringing advance and efficient services and professional for consumers to capture market share as the biggest competitors are mobile companies (Report, 2021).
PTCL – Economic Factors
Currently, biggest competitors of PTCL are mobile companies like Zong, Ufone etc. These are competing with PTCL indirectly as PTCL is a landline network service provider, but the mobile companies are gaining more market share and economically flourishing, hence, giving the opportunity to PTCL to target the consumers more strategically. It has been observed that purchase behavior of consumers is very much dependent on technology innovation and quality of services. It has become important for PTCL to provide best services to lead the market.
PTCL has monopoly in landline network, but it has to think new product development because of unstable inflation in Pakistan which effects the spending pattern of consumers in long run. There are some products which PTCL introduced and got famous in young generation like DSL, EVO, packages etc (Report, 2021).
PTCL – Social Factors
The social structure in Pakistan is closely tied, however the trend is changing as general public is becoming educated and pursuing professional and career goals. Consumers are well aware of the market conditions and options they have. They know how to get best quality service in less prices, thus value for money. They spend their considerable money and time on entertainment which increases the need for more entertainment systems. Moreover, word of mouth also plays an important role among people using PTCL services.
EVO and DSL had attracted huge customer base. It has been observed that social environment of Pakistan is turning towards liberal side. Thus, PTCL has to gain benefits of this situation and focus on advertising policies as its consumers are now gaining more product information (Frue, 2016).
PTCL – Technological Factors
Technological advancement is becoming necessity for every industry. It is becoming the vital source of gaining competitive advantage. Major technological change has been seen in PTCL with new product development and services. DSL, EVO, smart cards are few examples. Broadband and Internet services are necessity these days and PTCL internet packages are much better than its competitors like Wi-tribe, Wateen etc.
This helped the company in gaining market share as phone sets were made available for consumers and provides RUIMS by the company. This becomes famous among consumers. This is considered as an advancement towards technologically competitive environment (Report, 2021).
PTCL – Environmental Factors
Global warming and climate changes affects the telecommunication industry to great extent. Now a days, mobile phones and landline become necessity along with internet. Weather conditions affect the telecommunication industry, hence PTCL has to make sure that its services must be available to consumers in all weather conditions and in all geographical areas of Pakistan. In rural areas where there are jo mobile phone signals, PTCL landline should work and prove itself as better alternative to people (Frue, 2016).
PTCL – Legal Factors
PTCL does not need to worry about legal issues, as it has monopoly in Pakistan for landline connections across the country. It does not have any direct competitor, but yes mobile companies are its indirect competitors. PTCL is also involved in providing internet and broadband services, which makes it competitive in the industry as there are many other companies like Wi-Tribe. Moreover, PTCL has to follow rules and regulations in order to operate as a leader in the industry (Aabi, 2021).
Conclusion
PTCL is only Pakistan’s landline service provider and has the perk of enjoying monopoly in the industry. However, with the growing need of consumers, the company has to work hard in producing new products or services to compete its indirect competitors like mobile phone companies Ufone, Zong etc.
References
Aabi, K. 2021. PESTEL analysis. [Online], Available at: https://www.scribd.com/document/449736100/PTCL-PESTEL-ANALYSIS, [Accessed on: 28th June, 2021].
Frue, K. 2016. PESTEL analysis of telecommunication industry. [Online], Available at: https://pestleanalysis.com/pestle-analysis-of-the-telecommunication-industry/, [Accessed on: 28th June, 2021].
Report, 2021. Internship report on PTCL. [Online, Available at: http://docshare01.docshare.tips/files/26386/263869469.pdf, [Accessed on: 28th June, 2021],
PTCL, 2021. About Us. [Online], Available at: https://ptcl.com.pk/Home/PageDetail?ItemId=395&linkId=1042, [Accessed on: 28th June, 2021].