Strategy analysis and performance PDF

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Strategy analysis and performance
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Table of content
Introduction 3
Company overview 3
Competitive business strategy 4
Potters five forces 4
External environmental analysis 8
Conclusion 10
References 11
Appendix 13

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INTRODUCTION
This paper is focusing on analyzing the current state of the business strategy and
coming up with ways of managing to develop and implementing an effective strategy. (Dhabi,
2014) This will lead and ensure the organization is to achieve its stated goal and its vision. Every
organization aim is to provide services that satisfy their customer, be able to beat their
competitors in the market, expands its market both nationally and internationally and lastly be
able to yield a profit. in this paper, we based on Etisalat company. (Delgado, 2016) This is one of
the biggest company in UAE that provides telecommunication and ICT services in UAE. The
company falls under the ICT and communication industry. (Ameen, 2018) Our focus will be on
this business strategy to improve its performance and how new strategy can be implemented to
enable the company to increase its performance and be able to meet its stated goal.
COMPANY OVERVIEW
The company is called Etisalat, which is located in UAE. Its headquarter is
located in Abu Dhabi; the company was started in about four decades down the line, its main
purpose was to provide telecommunication services to the member states. The company has
enjoyed monopoly since it was started until in 2006 where Du company was established.
(Baraka, 2017) The company is still making great due to the long service it has offered to the
customers. (Delgado, 2016) This paper will focus on the company headquarters, its activity and
the company strategy that has made it last in the market for long. The company a multinational
based in telecommunication service provider, the company is currently operating in 16 countries
across Asia, Middle East and some part of Africa. (Ameen, 2018) The company serves a range of
170 million customers, and it has a strategy to increase its customers across the world. The
company deals with a variety of products this includes fixed line products across the UAE

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countries, it has a great accomplishment in this area, mobile telephone products by creating
connection among the country it serves and other competitors, internet services products which
are mostly used in big companies in UAE and across the world and lastly the company offers
digital television products by airing programs in air using their interlinked network. (Zamberi
Ahmad, 2016) Main activities that take place in the company headquarter are, monitoring of
telecommunication in UAE and other branches in the world, solving customer complains through
customer care platform, implementing new invention to improve performance of the company
and also update new software in the communication sector to increase user friendly interface and
improve the performance of the software.
COMPETITIVE BUSINESS STRATEGY
The company has been enjoying monopoly since it was started, this leads to an
increase in profit and expansion of the organization across the globe. But since the establishment
of Du company into a business that offers telecommunication and internet services, the company
has faced competition and due to the fact that the company needs to perform better than its new
competitor. (Tietenberg, 2016) This lead to coming up with a competitive strategy that will
enable the company to maintain its position and its growth rate.
POTTERS FIVE FORCES
To compete fairly in the market analyzing one's competitor is the best thing to do
in order to identify threats associated with your business and how to figure them out. (Adi, 2015)
Due to the emerging of Du company, Etisalat company has faced competition leading to losing
some of its customers. (Alghamdi, 2016) This leads the company to come up with techniques of
analyzing its competitor. This includes the actions of the competitor, the market the competitor

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serves and what are the products of the competitor. Potters five models helped to analyze and
broke the result into five distinct categories that are easily interpreted and lead to fast decision
making, potter divided the understanding of the competitor into the following category.
Competitive rivalry
This force is used to analyze how severe the current competition is in the
marketplace. This severe rivalry occurs when there are competing companies offering the same
products which may lead a customer shifting to the other rival company. The company was
implementing this force in order to determine what is making their customers shift to DU
company. (Sutherland, 2017) By analyzing the company, we came up with a way of increasing
customer care services that will enable Etisalat company to beat Du in the market. This strategy
was to help the company to get feedback from the customer and be able to correct some of the
mistakes that were making the customers shift to the other company
Bargaining power of customers
The force helped the company to identify the bargaining power of customers.
This was all about the cost of products. The company was able to determine the price at which
the rival company was selling its product and compare with its.
Threats of the new entrance
The force helped the company to analyze the threat that is associated with the
entrance of the new company. (Schaltegger, 2017) The new company came up with brands that
were attractive, free offers and used social media in advertising its products.

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The threat of substitute product or services.
The force was able to help the company to determine the threat of substitute
products offered by a rival company. The rival company introduced offers into free zone areas
which made the rival company gain a lot of customers. (NKANA, 2015) This was a threat to
Etisalat company.
Power of suppliers.
This force helped the company to determine the power it had as a supplier of its
product and what the rival company had. This could help the company to come up with means of
either increasing or lowering its products price.
After Etisalat company had analyzed and determined threats associated with the
company they came up with the following strategic solution, the company decided to focus on
outside market, this would enable the company to expands its market and yield profit for the
stakeholders, (Dhabi, 2014)the company was focusing on coming up with new brands and
increase the speed of the internet to capture the attention of the customer and lastly to reduce its
operating cost to yield more profit.
Etisalat company of telecommunication it has been doing great since it started,
the company is able to serve a wide range of customer all over UAE. (Ma, 2018) It’s able to
connect with other internet offering companies in order to expand its business and offer quality
services to its customers. Although there has been complaining from the customer that products
from the company are costly, the company has sustained its market for years until intrusion of
Du company that came with new offers and reduced price as compared to that of Etisalat

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enterprise. The success of the company has been brought by their best services the company
offers to its customers. (Lasserre, 2017) Both installation of network equipment and landline
telephone are catered for by the company this gives the company an extra advantage over the
other competitors, innovation, and technology has contributed to the rise of the company.
(Ghezzi, 2015) The company always introduces new telecommunication, ICT and internet
technology to improve its performance and satisfy its customer to the fullest. After analyzing the
threat that the company is s facing the company has been able to come up with the strategies of
overcoming its threat and be able to compete fairly in the market. Increasing its branches
especially in the Middle East and Africa has been a great achievement for the enterprise. This is
because the company has increased its customers and also increased its profit. Due to the high
yield of profit the company is able to meet its operation and focus on marketing the product, this
helps the company to perform better than its rival. Etisalat company has been able to overcome
its rival company due to the strategy implemented which lead to an increase in performance.
The key stakeholders of the company have accepted and approved the
performance of the company. This is because the company has expanded its market and
increased its sales. (E. Dobbs, 2014) The main aim of every company is to yield a profit for
stakeholders, and if the company is able to maximize stakeholders income, then wrangles
between the managers and the stakeholders will be eliminated. This has been witnessed in
Etisalat company. (Duffy, 2018) The company has received great awards due to its competence
and efficient services to the customer; this clearly shows that the company has met the
satisfaction of both the customers and the stakeholders.

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External environment analysis
The technical environment is one of the external factors that can cause a great
impact on the business, technical environment deals with the trend and drivers of changes in
technology. (Delgado, 2016) This is very important as far as barriers to continuity of the business
are concerned. Technological shift has the following impacts on the business; there is an effect of
cost and quality of the products being provided by the company which leads to innovation.
(Dhabi, 2014)
The economic environment also has a great impact on the business, some of the
economic environment include inflation rate, growth, interest rate and lastly exchange rate. The
economic environment has a great impact in Etisalat company both its operation and decision
making, the company has a good growth rate, but due to changes in exchange rates sometimes it
faces difficulties of transaction especially with its branches. The political and legal environment
has also had a great impact to the company, this how the government intervene through

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controlling the economy, UAE government has been of great support to the company hence
helping the company to expand. (Baraka, 2017) The government always supports the companies’
policy. External demand has a great impact on the organization; demand controls the marked on
our assessment we found out that there many opportunities in the market in accordance with the
need of the customers. (Andriof, 2017) Customers needed an improved internet connection
which is faster and sustainable this had a great impact on the company because failure to provide
what the customers are requesting will lead to customers shifting to the companies’ rival. the
demographic environment also serves as one of the major factors that affect the company. This
includes the social class, age, gender, and ethnic origin. (Andriof, 2017)The world is evolving,
and the coming generation is well versed with technology hence the company should be able to
improve its technology to cater to the changing generation. Etisalat company has been targeting
the whole population despite education level; this increases the company sales and profit.
Customers are anticipating a change in the way the internet operates; the internet
is very slow in some parts hence hindering the satisfaction of the customers. Due to the workload
in other sectors and emerging of e-business a fast and sustainable internet network is required to
meet the need of the companies. (Ameen, 2018) Technology is both expensive and cheap; most
customers prefer less expensive products that they can afford and the ones that can work
efficiently to their satisfaction. hence there is a need for Etisalat company to lower its price in
order to cater to all types of social classes. (Willis, 2016) This will increase the customer base
and lead to an expansion of the company.
Every business major goal is to maximize shareholders income, this has led to
intervention of Etisalat key stakeholders in coming up with strategy that will lead to success of
the business the key stakeholders have a plan of lowering its cost, expanding it’s the business

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globally and coming up with incentives to motivate their workers to maintain excellent business
management. This will lead to the improvement of performance in the operation sector.
(Alghamdi, 2016) The shareholders are anticipating to improve customer relationships, this will
help the company to get feedbacks how their products and services are operating, both their
strength and weaknesses
Conclusion
In conclusion, if the company holds and still focus on implementing the strategy
that exists, it will be able to achieve its goal. The company mostly focuses on increasing its
performance on the side of customers. (AlMutairi, 2017) By creating a good relationship with the
customer, the company will be able to learn more about the market and what customers’ needs.
The company has a strategy of implementing excellence management system that will motivate
employees to work efficiently and improve in operating performance. This will lead to
innovation and creativity from employees, new features in telecommunication and ICT will be
enhanced. This shows that the company will be able to meet its goals and increase its
performance in the industry.
Bibliography

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Advertising Expenditures. Journal of Advertising Research.

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NKANA, N.A.S, and Dafiovo, J.O., 2015. Integrated Marketing Communication and Consumer
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Appendix source from (Willis, 2016)

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