Etisalat is the key telecom company in the Unite Arab Emirates which is one of the main telecom companies in the Middle East and Africa. In the past, Etisalat was the only telecom companies in the region. It was handling the area, however, just since couple of years; new telecom company has surfaced on the market and boost the competition risk on Etisalat. As a result, Etisalat began to face more issues and issues. Therefore, Etisalat should defeat these difficulties and improve its Total Quality Management since it is very important for Etisalat and could help the business in resolving its problems and enhancing its strategy. With this paper, an investigation and evaluation of the situation in Etisalat has been conducted using the primary and supplementary methods.
Etisalat is one of the main telecommunications companies on earth and the most important operator in the centre East and Africa. The headquarter of Etisalat is in the UAE. In 1976, Etisalat has been established and functioning as the telecommunications provider in the United Arab Emirates. The business has established an impressive telecom infrastructure and established itself as an progressive and reliable operator because it is determined by both latest technologies and experienced HR.
Since Etisalat is growing through the time, it encounters many new difficulties, challenges and problems. Also, the appearing of new companies and competitors increase the troubles to the business. Etisalat like any others has its own strategy. Since Etisalat is a telecom company, it needs mainly well built total quality management and strong strategy. An research and evaluation to the situation of the company and market is very important to Etisalat to be able to identify the risks, opportunities, weaknesses, and talents of the company. Due to the new situation of the market, Etisalat has new priorities and requirements such as training its employees and improving its managers to be better head.
(6) Research section:
? The Industry Environment
A brief background of the industry:
The record of telecommunication is excellent and filled with inventions and improvements. The annals of telecommunication started by using smoke signs and drums in Africa, USA and Asia. During the 1790s, the first set up semaphore systems appeared in Europe. The electro-mechanical telecommunication systems made an appearance during the 1830s. Alexander Graham Bell developed the usual telephone in 1876. In 1878 and 1879, the first commercial cell phone services were sorted out in the places of New Haven and London. Through the 1990s, the Internet's expand for popular extensively.
Global/local market description
The UAE is currently serviced by two telecommunications companies: Etisalat and Du. Etisalat was monopoly the industry of telecommunications until Du initiated its mobile services in February 2007. However, Etisalat, with more than 80% of the market, stills the UAE's leading telecom distributor.
Etisalat is widening considerably worldwide which is the sixteenth largest telecommunications company on the planet. By 2010, Du will own 30 %30 % market show. Since 2002, the number of mobile phone clients in the united states increased extensively by the yearly rates of 25. 6 %, about four times its human population growth. The UAE mobile market is steadily increasing. Also, new telecom products made an appearance and attracted the customers in the UAE. Blackberry, i mobile phone, the many types of Online connections and a great many other telecom services are extensively accepted between the people of UAE. The market of telecommunications is strong in this country since there may be strong inclination towards its products. Telecoms services are extremely important and required in the UAE.
As well, you can find strong growth in the telecom services worldwide. All over the world, the need for broadband and advanced telecom services and products is increasing thoroughly. A whole lot of global telecommunications companies are made an appearance in UK, US and many other countries.
? Environmental \ Industrial Examination:
Porters Five Pushes Analysis:
1. The risk of entrance by potential opponents:
Potential rivals are those who get through a particular industry and offer an alternate products or services. Potential competitors improve the threat of Etisalat. The expected income could be reduced due to potential competition. There are a lot of competitors who aren't available in the market of UAE other than they are really in other counties like UK however they are able to offer their global products. Etisalat is doing its better to prevent these potential competitors from getting through the market of UAE. Etisalat may face more troubles du to these potential competitors being that they are offering cheaper prices, global lines and international delivery. Etisalat needs to preserve its status on the market and making more profits. It is expected for new local telecommunication company to type in the marker and compete both Etisalat and Du. Actually, the chance of the opponents are high somewhat since they are able to attract the customers of Etisalat.
2. The strength of rivalry among established companies in a industry:
This power include that the competitive telecommunication founded companies battle to gain share from each other. Competitive have difficulty has many varieties. Companies could have difficulty using their competitive prices, products models, advertising, providing efforts and their services and aids. Intense rivalry brings about low prices. When established companies in telecommunication industry have difficulties powerfully, strong dangers could endanger the wealth. Oppositely, if companies compete less powerfully, they could easily get their chances to increase their prices and earn much more profits. The chance of the intensity of rivalry is high due to lifestyle of Du Company which catch the attention of a great deal of Etisalat`s customers and provide attractive offers. Also, a new local company is likely to enter the market soon. Thus, you will see two competition for Etisalat.
3. The bargaining ability of buyers:
The Bargaining electricity is the capability to influence the given prices. The bargaining electricity of customers is the ability of customers to make the prices drop or to raise the costs of the products and services by demanding high product quality. Strong customers threaten the business. Oppositely, weak customers dont threaten Etisalat. The vulnerable customers guide the firms to increase their prices and the decrease the products costs to be able to diminish the products` quality and therefore increasing the earnings. Before the emerging of Du, Etisalat was the only company in the marker, thus it handled the market. However, the problem now could be different. After the appearance of Du, Etisalat is pressured to contend the offers of Du by giving a whole lot of offers, cheaper prices and unique products. Currently, the clients of Etisalat become better being that they are disappointed from the indegent support and services of Etisalat. Also, a lot of customers started to package with Du since it provides cheaper prices.
4. The bargaining power of suppliers
The same as the bargaining vitality of buyers, bargaining power of suppliers can affect prices setting. The suppliers have the ability to improve the prices or the expenses of the merchandise and services. Therefore, strong suppliers threaten the firms. Oppositely, vulnerable suppliers dont threaten the set up companies. I believe the bargaining electric power of suppliers is low in circumstance of Etisalat.
5. The closeness of substitutes to a industry's products
The closeness of substitutes to the industry's products is once customers have several options for the same product. After the same product or services is provided by two or more suppliers, the risk will be increased. The closeness of substitutes is recognized as a powerful hazard. On the market of UAE, there are two companies offering the same services of telecommunication: Etisalat and Du. Du is threaten the position of Etisalat extensively since it provides the same products and services with cheaper prices and higher quality.
Company SWOT analysis
? Etisalat is the main telecommunication company in the United Arab Emirates:
It was the first company who expose a mobile phone service in the region back in 1982. It had been positioned as the 6th major company in the Middle East in conditions of capitalization and revenues. The amount of clients has exceeded 4. 5 million by the end of 2005.
? High qualified and experience employees:
Etisalat employees staff of ability, skilled and experienced employees in order to improve the performance of the company.
? Lunching the latest technology in the world:
Etisalat lunches the latest systems on the globe such as Blackberry, I phone and other modern solutions in order to gratify its customers and accomplish their reach to the latest innovations.
? Competitive marketing strategy:
Etisalat hire a competitive online marketing strategy to become always in the very best of the marketplace.
? Distribution strategy:
Etisalat employ a well-built syndication strategy in order to develop its business and reach new countries by reorganizing global techniques.
? Successful management:
Etisalat has expertise and creative management staff that is able to manage efficiently and lead the company to more profitable age.
? Products` poor quality:
Some of the merchandise in Etisalat such as Blackberry devices, I phone and DSL modems are low quality and customers have a tendency to get them for stores apart from Etisalat.
? Poor coverage for mobile network in a few areas:
Some areas are suffering from poor network coverage, especially in areas that are full of buildings.
? Poor coverage of Internet coverage in many areas in the country:
Lots of areas and many people are suffering from the indegent Internet coverage
? Low of the Customer Service:
Lately, the client service of Etisalat became poor. They are simply taking a lot of time in supporting their customers and mending the technical problems.
? Penetrate new regions:
Etisalat is working hardly to permeate to new locations and countries in order to develop its business.
? Increase profits by lunching offers and special offers:
Etisalat has the chance to lunch break offers and promotions in order to earn much more money and catch the attention of customers.
? Strong press coverage:
Etisalat has the capacity to launch strong mass media campaign in order to entice customers.
? Expand its reach into modern technologies, services and marketplaces:
Etisalat does its better to expand its reach into modern solutions, services and marketplaces in order to produce chances for its clients
? Local competition:
Du Telecommunication Company is a fresh local rival to Etisalat since its base in the United Arab Emirates.
? Financial meltdown:
The current global financial meltdown threats Etisalat as many other companies.
? Sales declined:
The declining in profits of Etisalat is due to the emergence of Du Telecommunication Company.
? Poor quality of some products:
Some products and services in Etisalat such as Blackberry devices, DSL modems, network and others are low quality and dont gratify the customers` needs.
? Competition Analysis
Discussion of company performance over time
Etisalat is one of the major telecommunications companies worldwide. It is the primary operator in the Middle East and Africa. Etisalat works in 18 countries in the Middle East, Asia, and Africa. Etisalat provides its services to more than 100 a huge number customers. Year after year, Etisalat is increasing its income through increasing its expanding and progress. Etisalat is a wide-ranging telecommunications operator offering mobile, fixed-line and data services to individuals, projects and global telecommunications companies, and ISPs. Etisalat used to launch the right service to the right customers at the appropriate market at the fitting time. This was shown in the starting of mobile, Internet, GSM, and mobile broadband services in to the Middle East, Asia and Africa. Nowadays, Etisalat has 525 roaming treaties linking 185 countries facilitating 3G, BlackBerry, and voice roaming. Etisalat is a main shareholder in Thuraya which is one of the most important satellite tv geo-mobile communication systems on the planet covering about two thirds of the globe.
Key success factors
There are many key success factors that helped Etisalat to succeed in the industry since its existence.
? It was the only telecommunications operator and provider in the UAE for many years.
? It's the leading company in the centre East, Asia and Africa. Etisalat supplies the latest products and services on earth because of its customers.
? The development and growth of Etisalat helps it to be on of the most important companies on the globe.
? As well, the high demanding of telecom services helps Etisalat to be strong and creates high income in your community.
? The high and latest solutions that Etisalat used in its operations.
? The extreme and powerful marketing campaign of Etisalat empowers it and enlarges its extension.
Etisalat may use all its key success factors to gain a competitive gain. Its development will empower its position more and facilitate its reaching to many other areas and areas. Also, its powerful and powerful advertising campaign gives capacity to Etisalat as marketing is vital to attract the attention of customers. Etisalat may take the benefit of the high demanding of various services of telecom between customers and organizations nowadays.
Identify and compare key strategies pursued by major players in the industry
In the United Arab Emirates, there is only one another competition for Etisalat. It is Du Company. Du entered the market in 2009 2009 and competes Etisalat. Du is adopting a special strategy that differs from Etisalat since its initiating. Du provides the customers with many choices and building a difference in quality, creativity, and pricing. Sine its base, about 2. 9 million people documented in Du as dynamic users. By this, Du turned out that it's been the choice for the major part of new readers in the market of UAE. Du also contend Etisalat by showing the latest services such as preset and mobile telephony, broadband connection and IPTV services to individuals, homes and organizations. Du growing speedily and owns 2000 employees in order to enable this growth. Du is convinced in cultural variety, thus it employees folks from more than 60 countries. Du is designed to represent the prosperous ethnic diversity of the united states, at exactly the same time as being able to provide customers from a variety of languages. Also, Du aspires to support the Emiratization movement in the united states by employing a higher number of UAE nationwide employees. Also, over than 50 %from its top management and customer-facing staff are UAE nationals. Du focused on offering pleasing chances for skilled employees within an international working environment.
Actually, the looks and lifestyle of Du was powerful. It initiated its services by great and powerful advertising campaign. The strategy pursued by du is different somewhat from that pursued by Etisalat.
Du strategy focused on providing many options of high quality products and services with minimal prices while Etisalat didnt reduced its prices and its strategy didnt upgraded since its base. Lately, Du is progressively getting more customers because of its good quality services and the prices that are cheaper than Etisalat. (Du Website, 2010)
? Key Strategic Issue
Developing Etisalats Professionals into FAR BETTER Leaders
Since Etisalat is broadening day by day, their workers and professionals are increasing as well. This increasing affected a lot of things, especially the conflict between your employees to attain higher positions. As a result, some employees become managers and they forget the leaders certification which already are exist in some managers.
Etisalat should change its management strategies to be able to improve its mangers to become more effective leaders.
Etisalat is the leading major telecommunications company in UAE, numerous different offices and divisions that are adapting to the changing dynamics of the global needs of consumers. Etisalat has been known to hire qualified managers who have before shown their capacities for supervising employees. However, there is now a more need for the Etisalat management to build up their command skills to an increased standard to provide direction and course for employees. As the UAE society expands and advances, there will be even more obstacles for Etisalat business to meet at once, so their professionals must be the best leaders possible. Producing Etisalats professionals into more effective leaders will demand new governmental initiatives to inspire those to create management training programs according to global standards.
Etisalats management is looking for new training programs developed by their Human Tool Manager (HRM) to up grade the amount of individual worker performance and overall efficiency in the organization. Etisalat hasn't really experienced in-house management training programs, which means this is a new concept for the kids. They may have not had to increase their on the job training past the basic teaching and supervision level since they founded the company 30 years ago.
However, since globalization has provided many new challenges for Etisalat to expand overseas and also take up new international IT products and services, the level of efficiency within the complete firm must be much better to meet global expectations. As the government-owned monopolized telecommunications IT service provider, Etisalat is definitely able to control the regional market share and revel in major gains. However, with newcomer Du in the UAE market, and a possibility of future overseas competition being permitted to carry out business in the neighborhood telecommunications industry, Etisalat must plan higher levels of rivalry.
? Strategic alternative
Etisalat managers contain the elements which make them good market leaders, but a lot of things resulted in the burial of this talent. Moreover, increasing the mangers of Etisalat could prevent them from many problems such as: shedding many qualified employees, insufficient creativity, routine and other problems.
Management is the complete procedure for collaborating with employees for meeting corporate targets through increased efficiency and effectiveness by getting the most out of the company resources (money, people, equipment, items, properties, factories, land), in the continuously changing global environment. Watson (2002) feels managers have knowledge in reasonable decision-making to evaluate and execute the obligations that the organizations were developed for. Some of the most important leadership skills professionals can figure out how to incorporate in to the company include empowering employees so they have more type in decision-making, delegation of specialist, and instilling management traits. Managerial management must involve the ability to withstand pressure, have confidence in ones own features and decision-making skills, trusting the choices made to be for the good of the business, and providing employees with the chance to show themselves.
Strong leaders make the best professionals because they trust their intuition and make an effort to input improvements in the business through employee contribution (Georgiades, 1998).
The future global workplace is not about the production of tangible items, but instead more about knowledge. This has caused a dramatic shift in the type of the global economy, which has resulted in a required response from organizations in their managerial authority practices. The internet and INTERNET has replaced the hierarchies by systems, leading to a far more horizontal coordination of labour that requires more teamwork and leadership to reach your goals. Employees must work together on projects, inputting all of their cumulative ideas into a far more knowledgeable final result. Issue resolution is becoming one of the more important principles in organizations, where employees must unite and collaborate their problem-solving techniques to be able to come up with the most effective end result (Mullins, 2000).
Middle management leaders would be the future key employees that are empowered by top management, relating to Reich, since figuring out problems and identifying which strategies will be most efficient in resolving them are the essential pushes in organizations today. Despres (2005) seems a fresh form of management that is more amiable than supervisory, posting information, delegating responsibility and motivating upwards and horizontal communication would be the centre of the diffusion of resources and information and the control of knowledge personnel. Direct empowerment of proper employees will lead to less managerial stress and even more participative decision-making. On the job training programs may also be needed to involve employees in the ongoing improvement of the business (Matheson, 1999).
Contributions toward the achievement of commercial goals for organizations be based upon teamwork and desire to ensure superior performance. Regarding to Harris (1997), measuring team performance can be difficult; however, it is essential to make sure clubs are effectively driving a vehicle the business forward. Teamwork is vital to organizational success, and experts say designing work tasks to be shared experiences brings about group success. Professionals would want to introduce organizational buildings into the initiatives through learning and ingenuity, leading to the necessity to get more detailed knowledge staff (Stoner, 1995; Telleria, 2002).
In conclusion, Etisalat is a favorite and strong telecom company. It is one of the main companies in the centre East. However, Etisalat needs for development in many areas:
1. Change the original culture of Etisalat and upgrading it by quality culture.
2. Raise the commitment by the top management.
3. Getting ready a well developed and prepared total quality execution plan.
4. Arranging an awards and popularity programs.
5. Making a well developed infrastructure that supports the procedure and improvement processes in Etisalat.
6. Formulate a strategic eye-sight for the company. This eye-sight should supply the purpose and aim for the culture change.
7. It is extremely significant to take into consideration that culture change should be handled the Top-management, because the motivation to improve the superior management is a significant indication. The Top-management is should be extremely to get the change in order to use and apply the change in all of those other organization in actual way.
8. Actually, the change needs to be important and recognized at the first level in order to confirm that the management team is to get the change. The tendencies of the management must embody and reveal the types of principles and behaviors that must be recognized in all of those other organization.
9. Changing the organization to aid organizational change and bettering the total quality system.
10. To connect culture to organizational regular membership is one method to implement and apply a quality culture and increase the total quality system, so persons can be purchased in terms of their correspondence with the new culture.
11. An exercise office could be proven for the staff in order to obtain technical knowledge. The management must make use of the employees education and training programs, specifically career training. The management must as well expand the facilities wanted to workers throughout working out stage.
12. The current wages and incomes formation of the company should be customized and improved. The essential income rate should be increased in order to encourage the employees.
13. Etisalat has to consult with and make its employees prior to the execution of new operations and options for increasing the competence.
14. Etisalat should pay more attention on the issue of training professionals and provide professional courses on their behalf in order to boost their skills and knowledge. Leadership is vital concern in Etisalat. Therefore, it should pay much attention to improve it.
William von Alven. (2000). Bill's 200-12 months Condensed History of Telecommunications, from:
http://www. cclab. com/200year. htm
Etisalat Website. (2010) from www. etisalat. ae
Du Website. (2010) from http://www. du. ae/en/
Willmott, B. (2002). Morale comes, trust plummets says new record. Training Newspaper.
Georgiades, N. (1998). Management for Competitive Edge. NY: John Wiley & Sons.
Mullins, L. (2000). Management and Organisational Behavior. NY: Preston Hall.
Deci, E. (2008). Intrinsic drive. NY: Plenum.
Matteson, I. (2002). Organizational Action and Change Management. Cambridge: Foot Knowledge World Business Education.
Stoner, J. (1995). Management. NJ: Prentice-Hall Inc.
Telleria, K. (2002). Managing processes through teamwork. Business Process Management Journal, Vol. 8, No. 4.
Interview questions and Answers with Mr. Abdulla Al Zaby in Etisalat
Do you think Etisalat has professional strategic management strategy?
In fact I believe the tactical management strategy of Etisalat is good somewhat but it requires for further improvements
What is the Marketing action plan of Etisalat?
Etisalat has strong marketing plan. Etisalat always give attention to appealing to customers by initiating powerful and attractive marketing campaign
How Etisalat gaining competitive edge?
Etisalat is attaining its competitive benefits by initiating and offering the latest products and services to its customers all over. Also, Etisalat is doing its best to offer good quality services and sufficient prices and deals that appeal to its customers.
How the Information technology utilized by Etisalat helping to achieve it goals?
Etisalat is based mainly on advanced Information Technology System to be able to attain its tactical organizational goals and purposes. Since Etisalat is a telecom company, the IT system is very important for all its responsibilities and functions.
What are the key barriers and difficulties encountered by Etisalat?
Etisalat as all other companies encountered many obstacles and challenges. For instance, Etisalat faced difficulties in abstaining high skilled recruiting and training them. Another difficulty is the bettering of the management personnel and encouraging them to be leaders. Also, the competition with another telecom companies are another problem.
How Etisalat get over these barriers?
Etisalat tries to defeat its obstacles by utilizing a well built total quality management that can solve the issues and change the weaknesses to strengths.
How important are employees to Etisalat?
Human resources are incredibly important to Etisalat. They are one of the center requirements for the success of the business. That`s why Etisalat is insisting on training and bettering its employees.
How effectively HRM techniques affect the tendencies of the recruiting in the business?
HRM practices are very important Etisalat. The Human resources are influenced a great deal by these techniques as they are able to encourage the employees or discourage them. that`s why Etisalat does its best to improve its HRM techniques as it can be.
What do you think the major means used in Etisalat to increase production in the business?
The major means found in Etisalat to increase productivity in the business are Training, rewards, and benefits.
Will Etisalat take up expatriation as a way to get organizational and global experience?
Yes, Etisalat has various branches in many areas because of its expansion to many countries. The expansion of Etisalat gave it a chance and good chance to have new and overseas experience through utilizing human resources from different nationalities who enjoying different encounters.
Is a SWOT examination used in Etisalat when interacting with significant issues outside of tactical planning?
Yes sure, SWOT analysis used in Etisalat when working with significant issues beyond strategic planning because its is one of the very most effective methods that might be used to identify the weaknesses, strengths, risks and opportunities of Etisalat in every period.
How important do you think is it to determine long-term targets for Etisalat?
It is certainly very important to establish long-term objectives. Long-term objectives are one of the most crucial characteristics of the quality culture within an organization.
How do you really rate the individuals resource capability to manage and implement a big change process or new tactical direction?
Actually, both human source of information and the management of Etisalat needs for improvement. The capability of human tool to manage and implement a change process or new proper path in Etisalat is good somewhat.
How Etisalat motivate its individual resource to keep and support the execution of proper initiatives?
Etisalat encourage its human resource to maintain and support the implementation of proper initiatives by prize them, provide them with reimbursement, offer training programs and increase their earnings in addition to give them more advantages.
Does indeed Etisalat maintain its policy regularly?
Not always, since long time Etisalat doesnt improve some aspects in its insurance plan.
Please complete the group that best pertains to you
o Gulf countries
o Arab countries
o Western european countries
4. Education level:
o Bachelor Degree
o Grasp Degree
o PhD Degree
5. Current age group:
o Below 25
o Above 45
6. Total working experience:
o Up to 5 years
o 5 to 10 years
o More than 10 years
1. Are you currently satisfied with the strategic management strategy of Etisalat?
o Neither satisfied nor dissatisfied
2. Do you consider Etisalat has well-built Marketing action plan?
o To some extent
3. Do you consider Etisalat has ground breaking Strategy?
o To some extent
4. Is Etisalat using the info technology well in obtaining its goals?
o To some extent
5. Is Etisalat motivate and encourage its employees?
o To some extent
6. Does one think that HRM of Etisalat has effects on the habit of the recruiting positively?
o To some extent
7. Do you really think that Du endanger the position of Etisalat in the region?
o To some extent
8. Have you been content with the Strategic Planning of Etisalat?
o Neither satisfied nor dissatisfied
9. Do you consider the Strategic Management of Etisalat can achieve the Company`s goals?
o To some extent
10. Will Etisalat motivate its human tool to keep and support the execution of tactical initiatives?
o To some extent