Etisalat-Global Strategy? Essay
Etisalat was founded in 1976. It is telecommunication service providing organization based in UAE. In 1982 it was the first telecommunications operator in the region which introduced cellular phones. Since then it is continuously expanding its businesses offer variety of services across the UAE. Etisalat services include fixed line and wireless networks. It is currently operating in 15 countries across the globe. Etisalat is 13th largest company among cellular network operators all over the world. Its total customer base is over 100 million.
Etisalat known as Celltel until 2007, and Tigo (Sri Lanka) between 2007 and 2010, is currently owned by the UAE based telecommunications operator Etisalat. It is also working as an internet hub in UAE and provides its services to other telecommunication operators in the region. Etisalat Strategy shows the long term direction and scope of the organization that will gain advantages for organization by configuring its resources within competitive environment, to work according to shareholder expectations and by achieving market demand. Etisalat strategy defines where business intends to be in a long run.
The markets where the organization is currently working which are 13 different countries in Asia and Africa and those countries in which Etisalat intends to initiate
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Further Etisalat business strategy defines how it is going to manage its assets, technical competencies finances and other resources. In global perspective Etisalat business strategy after assessing the external environment of the host country and PEST analysis of the market determines those environmental factors that vary according to region and will affect the ability of the organization to compete. These strategies are formulated by keeping in view the stake of shareholders involved in the organization.
Etisalat strategy varies according to its different business levels. The corporate business strategy of Etisalat focused on enhancing the development and growth of the company, this strategy also shows company’s commitment towards outwards and forward focusing initiatives. This corporate strategy of Etisalat shows the ambition of the company to compete the best companies operating in telecommunication sector.
With respect to this strategy the company intends to become more performance driven and focusing on customers, company intends to expand its business in different global markets and capture lucrative expansion opportunities. The outcome expected by the company after adapting this corporate strategy is to get accelerated growth and to strengthen the leading position of the organization. By adopting this corporate strategy the company intends to reinforce the value proposition to its stakeholder’s cluster that is customers, company employees, its shareholders and society in general.
This strategy intends to expand the range of company’s products and services and also launch new one with the aim of boosting customer satisfaction by offering superior quality. Its global strategy also includes identifying new lucrative markets for company’s further growth of the company moreover company intends to e-enable the country and intends to create a broadband society in all host countries and wants to provide developmental opportunities to corporate employees. Read about network level strategy
All features of this corporate strategy are defined by the CEO and deputy CEO of Etisalat. The second business level strategy is business Unit Strategy that mainly concerns with how Etisalat is competing in a particular market, Etisalat is considered as a leading company which is committed to provide superior quality products and services to its customers and believe to think one step ahead from its rival companies. The new corporate level strategy intends to explore new market and exploit more and new opportunities.
Last business level strategy is operational strategy that concerns with how each business part of Etisalat is organized to effectively and efficiently deliver the business unit and corporate level strategy direction. In this strategic level the company focuses on issues regarding people, processes and other resources The marketing department of the organization deals with the sales and pre sales procedures of the products and services that include advertising promotion and various other marketing practices.
The global and the local marketing strategies of host and home countries vary according to the product and service type, and preferences and demand of the customers as well but it first starts from market assessment and evaluation of goods and services. Marketing department has strategies that will vary according to product and customer or we can say that what they offer to different host countries depends on the nature of services and products.
Mostly Etisalat offer homogeneous products that are such type of products that might need little or no modification the company Etisalat marketing department will decide according to the need of host country what to offer. Major changes in the product mostly occur due to technological changes other than that, changes are expected to remain low while promoting their products in host country. The promotional message for the product might vary with respect to no or modified product, the marketing department can opt for an identical or different message that truly depends on the nature of market or host country and on its conditions.
For telecommunication products and services the advertising is mostly universal, any changes might be pertinent to culture, language or various similar factors but the main crux of the advertisement message will remain same. The marketing department strategies are designed in such a way that it supports the corporate strategy of Etisalat, the objective of the company to expand globally is supported by marketing department strategies to find new market and assess its potential and threats and initiate business in case of favorable environment.
Marketing department also analyze and make strategies that will support company to operate effectively and gain optimum results while venturing in a new market or existing host countries, it also analyze the market requirement and demands and supports various other elements like if company is intending to introduce new technology, new services or products, the department will support by analyzing whether such change is needed if yes than where the demand for it lies, after identification of appropriate market it will design such plan that will define how company will sell those services or products in that market who will be the target audience and how they will be satisfied. All these objectives and its approaches to attain them are aligned with Etisalat strategy of global expansion explore new markets and offer services and products accordingly, such effective alignment of departmental strategies with the corporate one leads to attainment of organizational objective and supports company to grow with profitability.
Etisalat strategy is based on deliberate school of thought, Etisalat focuses on planning for future in such type of organization whose business is technology based it is necessary to think ahead and plan for future, Etisalat plan for their future analyze it and accordingly, the company future planning benefit it in such a way that it anticipates prospective markets that will support it to create a unique advantageous position in the market. The strengths and weaknesses of Etisalat strategy is that it is designed keeping in view the prospective changes that will occur in market, environment, needs and demands it also defines how company will sustain its superior position among its competitors.
Etisalat strategy belongs to deliberate school of thought which has a weakness that company might usage an obsolete strategy, while planning. Opportunity that arises by the current strategies practiced by the organization are that it opens up new avenue for the organization to grow and expand globally, to promptly identify the potential markets and businesses that company can do, and increase the profitability. Threat that company face is that unexpected Political Economical Technological Social crisis might result in failure of the current strategies practiced in organization. Another threat is that remains there in smooth environmental and other condition is from competitors.
The industry is going through rapid technological changes, and the company first introducing an improved and advance technology gets an edge over its competitors in the market. Etisalat strategy of innovation is directly concerned with the technological advancement that the company made. The services and products that Etisalat is offering are mostly technology based therefore organization plans in a way to develop its resources to coup up with the prospective changes in the global market (Rugman, Hodgetts & Collinson, 2006). The analysis of culture while entering into new market or working in host country is of critical importance, an organization cannot succeed without analyzing and acting according to the different cultures of the host countries.
Company analyze, differentiate and plan with respect to various cultural elements like language, religion, values, attitudes, customs, manners material good, aesthetics and education. Without considering these elements of culture which are of critical importance organization can neither initiate a business nor achieve its objective of attaining profitability, Etisalat diversified global business success is directly dependent on the culture of its hosts countries, cultural of the host country will influence company hiring and selection standards and criterion, the corporate environment that will be developed by the people hired from host country. The culture also determines the limitations that company has to keep in view while doing business in host countries.
The ability of Etisalat of innovation and in introducing new technology is its biggest strength that has the potential of expanding the business of Etisalat and might offer the organization to invest in new businesses, explore new markets, offer superior quality products and services and take an edge over competitors. These future initiatives will make organization a market leader and improve the international standing of the company. In future is expected that Etisalat might lose its market share therefore it is suggested to develop sustainable competitive strategy which requires that company should develop farsighted and audacious growth strategies.
It should develop strategy for a winning organization and people that involve relentless innovation and growth culture within organization, it is suggested that organization should emphasize in developing its human resource to create leaders and winning teams. Company should try to retain its customers by adapting pre-emptive defensive strategy. Company should win and retain customers it is also require that company marketing strategies should be effective enough to snatch customers of competitors too and by also creating value for them. For gaining competitive advantage Etisalat should build its resources and increase its adaptability towards changes that are globally occurring. REFERENCES Rugman, M. , A. , Hodgetts, M. , R. & Collinson. S. (2006). “International Business “3rd Ed: USA. Prentice Hall/ Financial Times.