Analysis of Emirates Telecommunications Corp

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Introduction

Emirates Telecommunications Corp. is a global corporation operating in Asia, the Middle East, and Africa, currently covering a network of 16 countries. Created in 1976, Etisalat achieved many worldwide awards and is presently the only mobile provider in the United Arab Emirates (“Overview of the Etisalat,” 2016). This paper will conduct research of the enterprise, including its history, completing a SWOT analysis, and establishing a strategy to gain a competitive advantage to get a full overview of Emirates Telecommunications Corp.

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Overview of the Company

Etisalat is one of the largest telecommunication companies in Asia and the Middle East, with broad representation in those regions. The corporation offers many products to its customers, including the provision of telecommunication services, contracting a consultancy to related international businesses, proposing of mobile and data services for personal and corporate use (PTCLMEDIA, 2012). Moreover, Emirates Telecommunications Corp. manufactures SIM cards, offers managerial and technical training, and is responsible for other minor business services related to telecommunications.

According to the official website of the company, it is responsible for a customer base of 160 million across 16 countries, including UAE, Egypt, and Indonesia (Etisalat, n.d.). The firm promotes modernization and being the leader of innovative technology in the cointries its represented. Furthermore, Etisalat reguarly invests in smaller businesses, shows its social responsibility, and continues to be an active partner of multiple sports teams, such as FC Barcelona and FC Manchester United.

Company History

The British company International Aeradio Limited founded The Emirates Telecommunications Corp. in 1976. In 1991, Etisalat became a monopoly with gained regulatory and control power benefits from Federal Law No. 1 (“Overview of the Etisalat,” 2016). In 20 years the corporation increased the exchange lines from nearly 40 000 to 800 000 by 1998. Etisalat was also the first company to provide Internet in the UAE in 1994, which proves its innovational approach. The introduction of 3DTV in 2010, increased Etisalat shares, being one of four countries in the world to demonstrate it (“Overview of the Etisalat,” 2016). With such global coverage, the company regularly beats the lists as one of the most successful and innovative telecommunication enterprises.

Etisalat SWOT Analysis

Strengths
  • Large network coverage
  • Large Subscriber Base
  • High Innovation Rates
Weaknesses
  • Unequal service delivery across different countries
  • High calling charges
  • Lack of proper product marketing
Opportunities
  • Mobile number portability
  • Investment in new technology
Threats
  • Currency fluctuations
  • Emergence of new corporations

Strengths

Etisalat’s undeniable strength is its large coverage. It is the biggest telecommunication network in the Middle East and Africa, which gives it huge influence and significant benefits on the industry’s market. Secondly, the organization has a wide subscriber base, situated in 16 countries. With over 150 million clients, Etisalat provides excellent customer service experience, offering good returns to the shareholders (Statista, 2020). Lastly, it has high innovation rates, which allow it to remain the leader in the industry. It frequently creates new products and services to please the users and better the customer experience.

Weaknesses

Unequal service delivery across all countries is one of the critical weaknesses. Due to the different networks in many countries, Etisalat cannot provide the same high-quality services in every location. For this reason, the company must work towards the improvements of network coverage, or otherwise, it may lose customers in many places. Another downside of the corporation is high calling charges, compared to the competitors. For buyers, the prices are the primary reasons for choosing the network, and Etisalat may lose potential clients due to the high costs. Lastly, the corporation does not have effective marketing of its products. Even though the innovations and services are of high quality, the company does not promote them enough and fails to provide correct positioning, which lowers its advantage between competitors.

Opportunities

The telecommunication market offers many opportunities to the companies, and mobile number portability is one of the latest, most useful innovations. Allowing to keep the phone number, Etisalat may attract new customers who refused to choose the network due to many issues with phone changing. Investment in new technology is an immense opportunity for Etisalat to increase its product offering, expanding its influence on more related industries. Moreover, innovative behavior may expand the customer base, attracting young clients interested in the latest technology.

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Threats

The representation in many counries exposes Etisalat to currency fluctuations, especially in less stable markets. As the corporation has offices in some African and Middle Eastern emerging and unstable countries, it may reflect on the business’s revenue. Such unreliable market behavior may also negatively affect the market shares and decrease the stakeholders interest. Tough competition from other local and global companies is becoming a threat to Etisalat. New corporations are being created, offering customers great deals, which Emirates Telecommunications Corp. must monitor. The company should keep the leading position by always offering more than its rivals.

Ways to Create Competitive Advantage

Based on the SWOT model, Etisalat has many opportunities for expanding and, also, as many threats from its market. To create a competitive advantage, the company must emphasize on its experience and reach out to customers with the message of Etisalat reliability. A reminder of why the clients chose this network will keep loyal customers who may have considered switching to the competitors. The telecommunication company has potential and assets to develop innovations and implement them into their business, which will eliminate smaller competitors and create an advantage above them. New products and offerings may also attract the clients from main rivals, who failed to adopt innovations.

References

‌Etisalat. (n.d.). About us. 2020, Web.

Overview of the Etisalat Telecommunication Company. (2016). Dubai-Freezone. Web.

PTCLMEDIA. (2012). Etisalat Group Corporate Video [Video]. YouTube. Web.

Statista. (2020). Etisalat Telecommunication Group Company – statistics & facts. Web.

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BusinessEssay. (2022, February 1). Analysis of Emirates Telecommunications Corp. Retrieved from https://business-essay.com/analysis-of-emirates-telecommunications-corp/

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"Analysis of Emirates Telecommunications Corp." BusinessEssay, 1 Feb. 2022, business-essay.com/analysis-of-emirates-telecommunications-corp/.

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BusinessEssay. (2022) 'Analysis of Emirates Telecommunications Corp'. 1 February.

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BusinessEssay. 2022. "Analysis of Emirates Telecommunications Corp." February 1, 2022. https://business-essay.com/analysis-of-emirates-telecommunications-corp/.

1. BusinessEssay. "Analysis of Emirates Telecommunications Corp." February 1, 2022. https://business-essay.com/analysis-of-emirates-telecommunications-corp/.


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BusinessEssay. "Analysis of Emirates Telecommunications Corp." February 1, 2022. https://business-essay.com/analysis-of-emirates-telecommunications-corp/.