STC
STC
Executive summary
1.1 Background
The Saudi Telecom Company was found on 1998, following by the
Council of Ministers Decree No. 213 dated 23/12/1418 H, approving
of set up a Saudi Stock Company under the name of Saudi Telecom
Company
Accordingly, STC adopted a challenging program aiming to transform
its business from government system to the recognized commercial
business standards. The company has developed clear strategies
focusing on internal re-organization and development of its staff,
enhancement of its internal processes and studying its customers
needs and requirements while continuing carrying out its national and
social duties and responsibilities STC is the leading national provider of
telecommunication services in the Kingdom of Saudi Arabia. The
company is working continuously to fulfill and satisfy the market
requirements, keeping pace with the emerging technologies in the
telecommunications sector and satisfying its customer's needs. STC
has put in its consideration that, this is the way to reinforce its place
and identity in view of a changing world where the role and usage of
telecommunications became more significant .
Body
2.1 index
1 | INTRODUCTION
2
A PEST analysis is a useful strategic planning to revenue and analyse the impact of the
macro- environment in which the organization operates .
Date:
25/10/2013
Political Factor
Political lawsto establish atelecommunications companyin the Kingdomof Saudi Arabia:
1 . Apply for the establishment of the company (model ) .
2 . Book business name ( if desired commercial partners to use the name of the company
).
3 . Memorandum of Association - Summary of the Memorandum of Association (model)
4 . A copy of the national identity of the partners .
5 . In the event of a foreign investor must obtain a license from the General Authority for
Investment and submit an application to the body .
6 . After approval of the application is referral to the virtue of a notary documentation .
[SaudiTelecomCompanyInformation , Dec 1 & http;//]
Registration procedures the commercial register :
1 . Provide a statement in the contract summary publication of the Official Gazette ( or
villages ) and the ministry's website .
2 . A certified copy of the Memorandum of Association.
3 . Out of bank certificate (in case of cash capital ) .
4 . Partners appointment of the Director 's decision if it is not set in the Memorandum of
Association.)www.mci.gov.sa,2013)
Governmental fees:
The Company assumesallgovernment feeswhichmustfactorthe
contractorpaidbygovernment regulations(residence and work permitandrenovatedand
the consequentdelayfromfinesifthe delay wasdue tothe company,
thefeechangeprofession,feesexit visasandreturn) andunder the terms ofthe provisions
ofthe contract between thecompanyand the worker.(stc.com.sa,2013)
Annual fees (1,200 ) Real up to a maximum of five years . )www.mci.gov.sa,2013)
Technology Factor
STC has continually invested in a number of cables and partnerships to develop a unique
international data network:
Investments in two new cable systems: IMEWE recently launched; and upcoming
EIG.
Access to Africa via SAS-1 and planned SAS-2 cables allowing connection to EASSy
cable Landing stations in 3 different cities on west/east coasts of KSA.
MENA and GBI submarine cable consortiums land within STC landing station
Strength
2- Has an experience in different types of
communication
3- It is a strong competitors
1- late expansion in more countries
Weakness
Opportunities
2- Develop infrastructure
3- New Product
1- Lack of the necessary information
Threats
Strength :
One of the largest telecommunications companies in the Middle East which is widespread
on both local or international level , It has a wealth of experience in human resources or
in the different types of communication ,It is competitor for global telecom companies
that provide various types of communication technology.
Weaknesses :
An unconsidered expansion of STC communication in lucrative countries, where the
potential of growth is high (like far east, India and china),which results in a substantial
financial burden on the company's impact on the price of the shares. Service quality and
customer care is lagging behind competitors, which results in negative image for the
companys potential for attracting new customers. Mismanagement and lack of expertise
in certain sectors of the company which results in a low level of some of the services
provided by the company.
: Opportunities
Opportunities that available to the STC company could be in the form of new technology
or develop infrastructure that could expand the customers base, and allow to build the
company strength and create a new opportunities to reach for more customers , so this
.will increase the company's income and that is the base for the company's growth
: Threats
The threats that could threat the company is distrust of the use of the revenue on the
investment , lack of necessary information to know what is more wanted in the market,
lack of regularity clarity that concern the new structure and models for the market , fail
to use all the new form of communication , weakness of the mergers and partnership
strategies , fail to select new tools to measure the quality of the work privacy and
.secretariat, the lack of the structure flexibility
Strong management
Strength
231-
Innovative culture
Brand name
High staff turnover
231-
Online presence
Customer service
New services
Weakness
Opportunities
231-
Online market
New market
Political risks
Threats
23-
Bad economy
Matures markets
: Strength
: Strong management
It can help the company reach its potential by utilizing strengths and eliminating
weakness, strong management has a significant impact , so an analysis should put
more weight into it
:Innovative culture
An innovative culture helps Zain to produce unique products and services that meet
.their customers needs
:Brand name A strong brand name is a major strength of Zain that gives the ability to charge higher
.prices for their products because consumers place additional value in the brand
: Weaknesses
: High staff turnover High staff turnover can hurt Zain s ability to compete, because replacing valuable
staff is expenses
: Online presence The online market is essential for displaying information and selling products. A weak
online presence can result in lost opportunities for Zain "Online Presence (Zain)" will
have a long-term negative impact on this entity, which subtracts from the entity's
.value
customer service Weak customer service hurts Zain s reputation and causes customers to flee to
competitors, who are more respondent
: Opportunities
: New services 10
New services help Zain to better meet their customers needs. These services can
expand Zain s business and diversify their customer base
: online market The online market offers Zain the ability to greatly expand their business. Zain can
market to a much wider audience for relatively little expense
:New marketsNew markets allow Zain to expand their business and diversify their portfolio of
products and services
:Threats
: political risks Politics can increase Zain risk factors because governments can quickly change
business rules that negatively affect Zains business it will lead to a decrease in
profits. "Political Risk (Zain )" is a difficult qualitative factor to overcome, so the
.investment will have to spend a lot of time trying to overcome this issue
: Bad economy A bad economy can hurt Zains business by decreasing the number of potential
customers, this threat will have a long-term negative impact on this entity, which
.subtracts from the entity's value
:Matures markets Mature markets are competitive. In order for Zain to grow in a mature market, it has
.to increase market share , which is difficult and expensive
.[Zain SWOT Analysis NOV 19 & http;// ]
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Mobily company
1. Saudi fibre optic network.
Strength
Weakness
Opportuniti
es
Threats
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Strength:
Saudi fibre optic network:
1-
2-
3-
Weakness:
A price war with STC and Zain:
1-
The main concern is a price war with STC and Zain, which
puts margins and ARPU levels under pressure.
high net-worth:
2-
Opportunities:
Mobile number portability (MNP):
2- Mobily has ambitious expansion plans for its own network of flagships. Also,
a new franchise retail concept (MiniFBO) will complement existing Mobily retail and channel partner outlets,
cover more than 60 cities/towns and help
achieve its targets on sales and customer experience.
support from the Saudi government:
Threats:
Competition in the market:
1- Competition in the market remains fierce, with Zain making every effort to capture
subscribers. Currently, Zain and Mobily's pricing and rates are the same. We
believe the real differentiator will be the quality of service.
Mobile number portability (MNP):
2- Mobile number portability (MNP) will lead to increased competition
between operators, since it
will become easier for subscribers to transfer from one operator to
another.
Heightened competition stemming from the entrance of MTC:
3- Heightened competition stemming from the entrance of MTC by 2008,
as the third mobile
player, is likely to lead to decreases in ARPU.
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Recommendations:
1. STC needs expansion in more lucrative market
2. Better marketing research to determine costumer requirements and improve
satisfaction
3. Improving expertise either through taking over reputed well-known companies or
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4.1 Conclusion
Saudi Telecom Company (STC) is the leading provider of telecommunications services in
the Kingdom of Saudi Arabia and it is among the largest operators in the Middle East.
The company provides mobile and fixed telephone services, along with Internet and
other data services, to residential and business customers. Operating the Jawal and Hatif
networks, the company offers such brands as QUICKnet for mobile Internet service and
the inVISION bundle of voice, broadband, and television. STC also operates a submarine
communications cable system connecting Saudi Arabia and Sudan in Africa through Arab
Submarine Cables Company.
Based in the pest analysis of STC, Changes in the comoanys environment can create
great opportunities for the organization and cause significant threats.
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For example, opportunities can come from new technologies that helpsSTC to reach new
customers, from new funding streams that allow to invest in better equipment, and from
changed government policies that open up new markets.
In addition, the SWOT Analysis helps the company carve a sustainable niche in the
market. by looking at STC and the competitors of the company using the SWOT
framework, STC can start to craft a strategy that helps to distinguish its company from
its competitors (mobily and zain) , so that STC can compete successfully in the market.
Reference :
Discover New Opportunities. Manage and Eliminate Threats. (2013) ,Retrieved November 25
2013, from http://www.mindtools.com/pages/article/newTMC_05.htm
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