Corporate Strategy for Desklib

Corporate Strategy 1
Corporate Strategy

Corporate Strategy 2
Introduction:
This assignment is prepared in context of different functions, components, and strategies adopted
by the organization. It provides deep understanding of different components and functions of
the organization by using the different organizations and scenarios of the UAE.
Structure of this assignment includes four different tasks which reflect the knowledge related to
different functions of the organization. Task 1 of this assignment focuses on the strategies and
theories and models, task 2 on supply chain models, Task 3 on corporate strategies, and task 4 on
the personal skills. Lastly, it describes the brief conclusion for concluding the assignment.
Tasks 1:
1.1 Critically analyze strategic theories and models:
Select your own/any other organization: For the purpose of this assignment, I choose Etisalat.
This group is considered as one of the largest leading telecom groups across the globe. Current
market cap of this group is over AED 156 billion (42.5 billion USD).
Headquarters of this organization is situated in Abu Dhabi. This organization established almost
4 decades ago in UAE as the first telecommunication service provider. An international blue chip
organization, Etisalat group provides the innovative services to almost 140 million subscribers in
16 countries (Etisalat, 2018).
Identify older than one strategic theory and models & Analyze the role of strategic theories
and models in the organization:
Strategic models & theories Role analysis
Porter Five Forces model- This model is the
strategy execution framework and created by
Michael Porter in 1979. Following are the fie
forces:
 Threat of new entry
 Threat of substitute products
 Bargaining power of customers
 Bargaining power of suppliers
 Competitive rivalry among existing
firms (Luftman, Lewis & Oldach,
1993).
This model play important role in the Etisalat
in following manner:
Threat of new entry- The largest barrier is
finance in context of entering into the capital-
intensive telecom industry.
Threat of substitute products- It must be noted
that there are number of non-traditional
telecom industries which impose substitute
threat such as Satellite operators and Cable TV
are giving tough competition for buyers. IN
similar manner, introduction of the internet
based messaging services such as what Sapp
also reduced the portion of revenue earned by
the telecom industries (UAE, 2011).

Corporate Strategy 3
Bargaining power of customers- Now
customers have number of choices in telecom
products and services, and this increased the
bargaining power of customers. The
appearance of competitors in the UAE region
presents number of options to the buyers.
Bargaining power of suppliers- Suppliers in the
telecom industry hold substantial bargaining
power over the operators, and this happen
because it is not possible for operators to
transfer the data and voice without the
equipment’s.
Competitive rivalry among existing firms-
Competition in UAE region is very high, as
new entrants use all techniques to capture the
market (Etisalat, n.d.).
SWOT analysis stands for strength, weakness,
opportunity and threats.
Strength: Following are the strength of
Etisalat:
 Control over different
telecommunication services.
 Effective human resource
 Customer training services.
Weakness: Issue related to the modernization
& underdevelopment.
Opportunity: good reputation for its service
efficiency.
Threat: Strong growing competition in the
UAE region (AL Ansari, 2009).
1.2 Assess to determine how successful different strategies are, when applied
in the global marketplace:
Select any global or regional marketplace and an organization:

Corporate Strategy 4
For the purpose of this section, I choose Abu Dhabi Aviation Company. Abu Dhabi Aviation
provides oil-fields and economic services in the UAE and other Arab countries. This company
also engaged in the services of VVIP transportation facilities, etc.
Identify more than one corporate strategies practiced by the organization & Assess the success of
these strategies in the global/regional marketplace:
Corporate strategies Success of these strategies
Diversification strategy: this strategy is the
corporate strategy which is used by existing
organizations for the purpose of entering into
the new market or industry in which business
is currently not operates. It also includes the
creation of new product for that new market or
industry.
Abu Dhabi aviation is the largest commercial
helicopter operator in the middle east, and for
ensuring future growth and profitability, this
organization is adopting diversification
strategy. This company plans to diversify its
business in training and real estate industries.
Company ensures new facilities related to
training in the Khalifa city and this includes
flight stimulators, flights attendants, etc
(Kasseem, 2016).
It can be said that diversification strategy will
be successful in future in case of present
organization, because this diversification help
the organization in capturing the market in
large extent and also help the organization in
maintaining the balance during the changes
occurred in the economy.
As it helps the company in utilizing their
potentially underutilized resources (Finance
management, n.d.)
Differentiation strategy: For the purpose of
achieving competitive advantage against the
competitors and other organizations,
management can use this strategy.
Training section of the Abu Dhabi aviation is
considered as the competitive advantage of this
company over its competitors. There are
number of levels on which training function is
performed by this company. These training
programs not only satisfying their own training
needs but also the needs of their customers
such as Pilot training, Engineer training, Cabin
Crew training etc (Abu Dhabi Aviation, n.d.).
This competitive advantage of the organization
ensures success and long term survival of the
organization in future. It helps the organization