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Strategic Management Essay

The Palestinian Cellular Telecommunications Company (Jawwal) is a member of Paltel Group. It is the first cellular telecommunications service provider in Palestine. It started its operation in 1999, after Paltel officially received the license from the PNA to operate in the Palestinian Territory in 1996. Today and after eight years in business, it holds a leading position in the market after years of full market penetration by Israeli companies, At the financial front, Jawwal realized an increase of 33% in its profits in 2006, in comparison with 2005, thus being able to meet its projected budget for 2006.

Jawwal’s operational revenues reached JD104 millions, which represents a rise of 31% in comparison to the previous year, and 51% of Paltel Group’s income. EBITDA reached JD54 million, representing an increase of 41% in comparison to the year before. This is attributed to the increase in the number of subscribers by 45%, arriving to 820,000 during the year. The net increase in the number of subscribers in 2006 was 254,000, the highest increase in Jawwal history. Jawwal success was a product of its ability to reinforce its place in the Palestinian market.

Jawwal revenues increased from JD28 million in 2001 to JD104 million in

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2006, representing an accumulated annual growth of 30%. EBITDA also increased from JD8 million in 2001 to JD54 million in 2006, achieving a compounded annual growth of 46%. In summary from Jawwal financial indicators appears that Jawwal owns its strong financial position in the Palestinian market while it’s still expanding its customer base since it achieved 1 million customer in 2007, also it has its variety of products and services and strong marketing campaigns and sponsorships in the Palestinian market while Jawwal is the highest profit generating in Paltel group.

Jawwal achieved impressive results in the past years, achieving results that are even more impressive in 2006 and 2007. Not with standing the harsh conditions in which Jawwal is operating, which will be discussed later, it managed to overcome such difficulties through implementing effective methods that Jawwal in line with its strategy and vision. Today, after eight years of devoted work, it is the number one mobile service provider in the Palestinian market with more than 1,000,000 subscribers.

It still endeavors to attract more customers, especially after having achieved its goal of capturing over 75% of the Palestinian market share. This result was achieved by incorporating cutting-edge technology package of services at reasonable prices and high quality, thus staying up-to-date with the latest telecommunications technologies, devising quality-marketing strategies and tailoring the company’s programs according to the different needs of various segments of the Palestinian society. Jawwal’s goal is still centered on serving the interests of its subscribers, shareholders and other stakeholders.

None of these achievements could have been possible without the expansion of the its telecommunications network to provide better and more powerful coverage, in addition to investing in the latest information systems and a highly qualified human resource. To promote and increase the value of our shareholders’ investments and enrich the ICT sector in Palestine, by committing to continued growth and excellence in services, whilst being constantly aware of the needs of our country and citizens.

And we are committed to providing the best services and the most competitive prices for all citizens. Ammar Aker is the Chief Executive Officer of Jawwal. He was named to this position in October 2005. Aker is responsible for managing the company’s operations and developing the corporate policy on an international level. He is the driving force behind Jawwal’s campaign to possess the largest market share and increase the number of subscribers despite the illegal competition of four Israeli mobile operators in the Palestinian market and the obstacles planted by the occupation.

Aker holds a BS degree in Accounting from Edinboro University of Pennsylvania, USA and an MS degree in Accounting from Kent State University, Ohio, USA. Kamal Ratrout is the Engineering Director. He was assigned to this position in 2005. Ratrout is responsible for the strategic planning, set-up, operation and quality control of the cellular system. He is the leader of JAWWAL’s engineering team, which also ensures high quality cellular communication and high level functioning of JAWWAL’s technological infrastructure. Mr. Ratrout and JAWWAL’s Engineering team work in one of the most challenging cellular environments in the world.

JAWWAL has been assigned the minimal frequency in the GSM 900 MHz band under which any mobile operator can function. Therefore more investment, both financial and technical, in the network is essential to accommodate JAWWAL’s growing subscriber base and to compensate for the shortage in the assigned frequency. Mr. Ratrout earned his BS degree in Electrical Engineering from Jordan University of Science and Technology. He has also participated in intensive training programs in cellular systems planning, dimensioning, operation and maintenance in Stockholm, Sweden.

Sumaya Hind was promoted to Director of Corporate Finance in May 2006 and became the first woman at JAWWAL to achieve Director status. She is responsible for preparing reports on the company’s finances and excels at effectively allocating JAWWAL’s financial resources and adjusting budgets and projects to coincide with the uncertainty that comes with life under occupation. She also serves as a liaison between the company and ministries, investors and other mobile operators. Hind has a BA degree in Economics and Accounting from Jordan University and an MBA degree from Keele University in England.

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