Etisalat
Etisalat
Etisalat
Headquarters are located in Abu Dhabi, Etisalat was founded as the nation's first telecom
services providers in the UAE about 4 decades ago. The Etisalat Group, a multinational blue-
chip company, offers creative facilities and technologies to 149 million customers in 16
countries throughout the Gulf Region, Africa and Asia.
Etisalat became the fastest telecom service in the world by supplying Ookla Speedtest with
the best experience for its customers in 2020. Brand Finance has called Etisalat "The Most
Valuable Portfolio Brand" in the Middle East and North Africa (MENA) and has been the
first Arab World business to cross the USD 10 billion threshold to broader portfolio
valuation. The Etisalat Group is one of the world's largest telecommunications companies in
developing markets. With combined net sales of AED 52.2 billion and combined net earnings
of AED 8.7 billion for 2019, its high credit ratings represent the company's good capital
structure and confirmed long-term results.
We are now living in a time when improvements are happening persistently and unceasingly,
and telecommunications companies have to contend constantly with a new set of realities.
Over the last two decades, the aspects in something we have interacted as a culture have
evolved enormously. Telecommunications, also in its early days, has taken the planet by
surprise, transformed the way we interacted. The pace and method in which it has been
carried out and made room for industrialism to take place-despite the reality that it leaves us
all intertwined.
The telecom industry in the UAE is made up of a duopoly, with both the two companies
being Etisalat and Du battling head-to-head in order to go to the frontline of progress. While
telecom and IT have been independent organizations in the history, they have already teamed
up due to digital computing. The UAE telecommunications companies soon realized that they
wanted to improve their flexibility as telecom operators.
SWOT Analysis
1. Strengths
Largest Network: In the Middle East and Africa, Etisalat is the country's main voice
provider and the 12th biggest in the globe. It has around 510 networking
arrangements, covering around 186 nations, making 3G, BlackBerry, GPRS and voice
commuting possible.
Market Share: The total market share of Etisalat is around 156 billion AEDs. With a
net sale of approximately 52.4 billion AEDs and a net income of approximately 8.4
billion AEDs, the company ranks as one of the most profitable telecommunications
companies.
Best in Class Customer Experience: The Etisalat Group is committed to presenting
the highest customer service at both internal and external level. At almost the identical
time, it offers lucrative value to investors by engaging in the organization's ultimate
objective.
International Blue-Chip Company: Etisalat is a multinational blue-chip corporation
offering creative solutions and services to nearly 140 million customers in 15 Asian
countries, Africa and the Arab Countries.
Broadband Tariff: Etisalat lowers broadband tariff rates to allow them to draw new
and existing customers.
2. Weaknesses
Poor Quality due to Widespread Network: Etisalat has business activities in several
countries. This will contribute to low standard of operation, as they would all have to
be maintained together.
Manage Globe Operations: The business faces difficulties in handling worldwide
logistics due to availability in several countries at a time.
Low Network Coverage: The coverage area offered by Etisalat is poor relative to its
rival Du.
High Calling Charges: There are heavy calling rates in this system. This is a big
drawback as consumers will consider twice before they chose this network.
3. Opportunities:
Strong Economic Foundation: The Business has solid economic foundations that are
supported by the high GDP growth of the world that has increased as a result of oil
prices.
Increase Offering to Costumers: Etisalat supplies consumers with many types of
items. By doing so, the organization is seeking to boost its client base so that it has the
potential to do well.
Mobile Number Portability (MNP): Mobile number usability enables telephone
users to maintain their mobile number by switching through one mobile service
provider to another. This makes it possible for any unsatisfied customers from other
channels to move to Etisalat's service. When a corporation offers superior coverage
than other system operators, it can quickly grow its share of the market.
4. Threats
Strong Competition from Du: Etisalat faces a significant challenge from Du, who
proceeds to extend his services to a heightened level.
Incentives of Other Mobile Companies: The offers provided by other telecom
carriers can pose a serious challenge to Etisalat. These benefits lure more buyers,
stopping a handful from being Etisalat's consumers.
Emerging New Telecom Company: The telecommunications market is booming and
many telecommunications industries are continuing to establish a more efficient and
sustainable approach. This may be a major challenge to Etisalat's company.
Etisalat will use the economic stability to expand its opportunities for growth in other parts of
the world. This will allow the company to develop a sustainable role in the
telecommunications industry. The biggest drawback of Etisalat seems to be the lack of
awareness of workers relevant to the new technology. With the aid of the firm's earnings
ability to build its capital efficiently, this vulnerability can be converted into an asset.
Segmentation of Etisalat
The implementation of the Etisalat Marketing Plan includes the identification of the
segmentation base in order to determine the customer's particular purchasing behavior.
Customer preferences, perceptions and purchasing actions are diverse and based on
multifaceted variables, like:
Gender
Age
Lifestyle
Values
Income etc.
Implementing the segmentation strategy, Etisalat will nail down the broad, diverse target
markets to small and tightly defined categories. Market segmentation studies are standard
strategies for collecting consumer data which can be used to establish categories that have
common features.
After recognizing the particular purchasing habits of consumers and obtaining the requisite
conduct surveys, Etisalat will segment the population into small homogeneous categories.
This can be achieved by exploring the spatial, socioeconomic, cognitive and psychographic
profiles of consumers.
A few of such segmentation techniques can be used by the organization to select the best
business segments and to establish a successful marketing plan.
The regional segmentation distinguishes the market by geographic regions, such as
capital, state and region.
Demographic segmentation would enable Etisalat to separate the market as per
demographic information such as age, ethnicity, gender and income.
If Etisalat prefers behavioral segmentation, consumers would be grouped as per their
purchasing pattern, such as the level of use the rewards desired, the opportunities for
use and brand loyalty.
By utilization of psychographic segmentation would result with in classification of
clients as per their habits, desires, beliefs, beliefs and characteristics.
Targeting and Positioning of Etisalat
After splitting the broad diversified consumer market into narrower categories with
homogeneous traits, Etisalat should carefully select the target segment which desires and
aspirations are in line with the company's resources and expertise.
Targeting may be achieved by determining the market appeal and potential for growth of
defined segments. Etisalat may select one or even more segments based on the features of the
segments as well as the finances, requirements and development objectives of the
organization.
The economic appeal and growth prospects of each segment can be measured using the below
indicators:
Established segments of the required size
Have some concrete differences.
The predicted revenues are projected to outweigh the increased promotion expenses.
Segments are readily available.
By segmenting the consumer market and selecting the correct target market, Etisalat now
needs a specific positioning statement that will give the customers a favorable picture of the
product delivered. Etisalat should follow the appropriate steps to establish an efficient
positioning strategy:
Create a strategic plan for the Etisalat Marketing Campaign by referring to the following
questions:
What does the brand stand for?
What are all the desires and wishes of your target audience?
How does the brand fulfil those needs?
How unique is your bid from your competing companies?
The answers would provide ample details to establish a positioning argument.
A review of their contact and marketing approach with rivals would expose new areas
that may be discussed through a tailored positioning message.
Classify the strengths/weaknesses of the company by matching it with the rivals in
order to find that the holes presented by the firm can be filled.
Analyze the positioning of rivals to determine their own market place.
Using empirical data obtained from a specific business, consumer and rival polls,
create a strategic plan and regularly assess its validity by gathering primary and
secondary data (such as focus groups, surveys, interviews, etc.).
Using the test findings to make the required changes to the placement of the brand.
Target Market
As a telecommunications business, Etisalat serves almost all of the age-group categories, but
the primary focus is now on the young and technical segments. Market plans are launched
and revised periodically to address the needs of customers in this target group. The business's
approach to marketing is multi-segment marketing, where the company wants to develop
plans in such a manner that all target groups are protected.
Competitive Analysis
External study of the world of the business is insufficient to infer the usability of the
telephone company. Assessing the internal factors that propel Etisalat towards its
performance is thus appropriate for determining the special elements that offer the business a
competitive advantage.
Efficiency: The company's activities rely on productivity due to its dedication to
providing its consumers with premium services. Its interior and exterior voice calls
are relatively secure and fulfilling. The LTE 4G Broadband network is reliable and
has higher data transfer speeds. The 5G LTE trial offers an innovative step to boost
Internet surfing quality.
Quality: The service offerings use ingenuity to offer high-quality goods and services.
Etisalat's engagement in the settlement of public and financial problems in its field of
operations produces ecosystems distinguished by quality experience. Because quality
offerings and consumer loyalty are now the company's focus, the organization has
been planning ahead on enhancing operating processes which are ineffective in order
to improve its competitive edge.
Innovation: The creativity element has been a prominent element of the goods and
facilities of the Business. The company also invested in new technologies in order to
achieve a strategic advantage over its competitors. For example, the launch of the
VoWiFi & 5G LTE platform in the Middle East, the first in the country shows how
the organization aims to integrate the new technologies into its offerings. Innovative
programs have contributed to the organization's acknowledgment and accreditation of
prizes in the creativity division.
Customer Responsiveness: In order to focus on the quality of the goods and services
delivered, input from the consumers of a specific business organization is important.
In regions such as Africa by Etisalat Nigeria, more than 21 million customers have
shared average satisfied with the quality they offer and increase the concerns that
have to be resolved in order to enhance their services in the country. Etisalat creates a
strong consumer partnership that acknowledges the views of the customers.
Recommendations
In consideration of the important strategic concerns, Etisalat wants to adopt the below
recommendations for improved global operations.
Etisalat should develop alliances and collaborations with major competitors in the market to
increase its economy of scale, thus limiting new competitors. The impact will expand and
improve Etisalat's network both domestically and globally.
Apart from stepping into developing markets, considering the possible resistance from
already existing players, Etisalat must consider entering the Australian, European and
American ecosystems. The plan would extend Etisalat's brand identity to other countries.
Equal distribution mechanisms must be placed in place to give consumers from different
socioeconomic groups an attractive kit. Minimizing the running costs would allow a good
price cutting change.
Conclusion
The company's history in the telecommunications industry, which has spanned more than
three decades, is already instrumental in setting the basis for its business competitiveness.
The vulnerabilities and challenges that Etisalat has also been exposed to have slowed its
business growth. Various options, such as alliances, mergers, acquisitions as well as the
expansion of its global footprint, may be tactical for sustained development.