Strategic Management Analysis of Etisalat

This report is based on the analysis of the external and the internal environment of Etisalat which is telecom related organization which operates in the United Arab Emirates. The report includes PESTEL analysis of UAE, corporate social responsibility of Etisalat, target market of Etisalat, critical success factors of Etisalat and SWOT analysis of Etisalat.

Running head: STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
Executive Summary
This report is based on the analysis of the external and the internal environment of Etisalat
which is telecom related organization which operates in the United Arab Emirates. Etisalat is
one of the two major technological organizations which are responsible to provide the
telecom services to customers. The target market of the company has been analysed in the
report based on the which the perception about the brand in the minds of target audience is
also discussed. The ways by which the organization is able to fulfil its corporate
responsibilities is also a major part of the discussion. The internal resources and environment
of the organization is analysed with the help of SWOT framework which is based on the
ways by which Etisalat is able to create a position in the telecommunication industry of UAE.

2STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
Table of Contents
Introduction....................................................................................................................3
Analysis of the strategic environment of Etisalat..........................................................3
Task 1.........................................................................................................................3
PESTEL Analysis of UAE.....................................................................................3
Task 2.........................................................................................................................5
About the organization...........................................................................................5
Performance of Etisalat in the last few years.........................................................6
Corporate social responsibility of Etisalat.............................................................6
Task 4.........................................................................................................................8
Target market of Etisalat........................................................................................8
Task 5.........................................................................................................................9
Critical success factors of Etisalat..........................................................................9
SWOT analysis of Etisalat...................................................................................10
Task 6.......................................................................................................................11
Ways by which the target customers perceive the brand.....................................11
Positioning map of Etisalat and its competitors...................................................12
Conclusion....................................................................................................................12
References....................................................................................................................13

3STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
Introduction
The report will be based on the analysis of the strategic environment in which an
organization operates in an effective manner. The organization that is taken into
consideration for this analysis is Etisalat which has its operations in United Arab Emirates.
The corporate social responsibility based activities of the organization will also analysed in
the report in detail. The organization is thereby analysed based on various factors which
include, the target market and the critical success factors in the industry. The chosen product
of the organization named Etisalat will also be analysed in the report.
Analysis of the strategic environment of Etisalat
Task 1
PESTEL Analysis of UAE
Political factors – The United Arab Emirates consists of the seven free Emirates. The
seven Emirates are under the administration of the sheikhs. The rulers are members of the
Supreme Council which is responsible for making the national approach. The Emirates are
rules by the pioneer who the ruler of the greatest Emirate Abu Dhabi. The political
framework of UAE has the ability to unite both the cutting edge and customary structures
which have empowered the nation so that it is able to keep up the political soundness. The
political factors of UAE can be rated at 3 from the scale of “-4 to +4” (Camillus, Bidanda and
Mohan 2017). Etisalat can thereby expand the operations in this politically stable situation.
Economic factors – The economy of UAE is mainly based on the assets based on gas
and oil that is manufactured in the country. The economy of the country has expanded in the
last few years in spite of the political turmoil that has been faced in the year 2008 and 2009.
The development of the country is based on the several monetary ventures that have been
made based on different departments including, power, retail, base divisions. The country

4STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
will be able to proceed with the development based activities with the help of the huge oil
based industry. The rating that can be provided to the economic factors of UAE from the
scale of “-4 to +4” is 3 (Cosenz and Noto 2016). The telecommunications industry of the
country is thereby a booming area for the successful operations of Etisalat.
Social factors – The social factors of the country are based on people belonging to
different age groups. The religions that are followed by the people of UAE are mainly
Muslims and some Christian and Hindus as well. The languages that are spoken in the
country include, Persian, Arabic, Hindi, Urdu and English. The income levels of the
customers of the country are quite high. The rating which is provided to the social factors of
UAE from the scale of “-4 to +4” is 3. Etisalat is a type of organization which provide
services and is preferred by the customers who belong to all sections of the society.
Technological factors – The telecom industry in UAE is highly developed in nature
and the country has been able to stand out with the help of effective telecommunications. The
two major telecommunications partners of the company include, Etisalat and Emirates
Integrated Telecommunications Company (EITC). The telecom industry is highly dependent
on the two partner organizations. The ecommerce industry of UAE is also highly influential
in nature. The government has also provided huge support to the ecommerce based operations
of the different organizations. The rating which can be provided to the technological factors
of UAE on the scale of “-4 to +4” is 4 (Daspit et al. 2017).
Environmental factors – The climatic condition of UAE mainly appreciates the
blend that is created with the help of primary land based conditions. The falls of UAE in the
various dry regions are subjected to the different local climatic conditions. The nation has
been experiencing low downpours for the last few years which has made the area quite dry in
nature. The rating that can be provided to the environmental factors of the country on the

5STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
scale of “-4 to +4” is 2. The environmental conditions of the country need to be taken care by
the operations of Etisalat so that it is remain in the industry in a sustainable manner.
Legal factors – The elected arrangement of the government is known to incorporate
Supreme Council, the parliament body and the Council of Ministers. The federal laws are
thereby implemented with the help of these government bodies for different organizations
operating in this country. The immigration based laws of the country are also quite stubborn
in nature and they need to be followed by the people who enter the country. The financial
laws and policies are developed with the help of the Reserve Bank. The Central Bank of UAE
is mainly responsible for the cash based laws of the country (Durand, Grant and Madsen
2017). The economic laws of the country are able to provide the organizations with a free
environment to conduct their business operations in an effective manner. The rating that can
be provided to the legal factors of UAE in this case within the scale of “-4 to +4” is 4. The
laws and regulations that have been implemented by the government can thereby affect the
policies that have been developed by Etisalat over the years.
The total score based on the positive and negative scale that is provided to the
different factors of the PESTEL factors is 19. The PESTEL based factors of UAE have been
provided thus score with the help of the analysis of the external environment. The decision
rule based score of these factors is 19/24 which is approximately, 0.79 which greater than the
basic score 0.45. The environment of UAE is thereby favourable for the successful operations
of the organization named Etisalat (Dyer et al. 2015).
Task 2
About the organization
Etisalat is the trade name for the organization named Emirates Telecommunication
Group Company. This is an Emirati based multinational organization which operates in the

6STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
telecommunication industry of Middle East. The organization has been able to acquire the
position of the 14th largest operator of mobile network in the entire world. The company has
been named as one of the most powerful organization in UAE. Etisalat reported a
consolidated revenue of AED 5.17 billion. The organization is considered to be a significant
organization among the two major telecommunication organizations in the country. This
company is also the greatest carrier of the international voice based traffic in Middle East.
The internet connectivity that has been provided by the organization to the customers of the
country is an important part of the operations of Etisalat in the country (Ethiraj, Gambardella
and Helfat 2018).
Performance of Etisalat in the last few years
The performance of Etisalat in the telecommunications industry had seen a huge rise
in the previous year. The revenues of the organization in UAE had raised by 5.5% and the
overall revenues of the group further increased by around 2%. The company has seen growth
in the revenues for the last few years and quarters. The profits of the organization had
increased in the year 2017. The subscriber base of the organization had reached more than
12.6 million which further represented the growth of Etisalat year by year. The organization
is thereby aiming at creating a better level of performance for the customers and provide
long-term based value to the stakeholders as well. The launch of the 5G network by Etisalat
was also quite successful and led to the ability of the company to provide the best
technologies to the customers (Foss and Hallber 2014).
Task 3
Corporate social responsibility of Etisalat
The major product that has been considered for the analysis of various operations of
Etisalat is the mobile plan provided by the company to the customers of Etisalat. The

7STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
different plans that are provided by the organization are thereby based on the needs and
demands of the customers. The company mainly provides prepaid and postpaid plans which
are able to fulfil the needs of the customers. The organization has also shown high levels of
dedication to the social responsibilities that are required to be fulfilled for the purpose of
operating in a sustainable manner (Frynas and Mellahi 2015).
The corporate social responsibility based activities of the organization are able to
provide huge momentum to its operations and reputation in the industry as well. The business
organizations engage themselves in various CSR activities which are able to address the
issues based on societal, environmental and other operations related issues. The CSR
programmes are also able to engage the employees in the organizational operations. The
corporate culture of the organization is thereby able to align the values and the principles of
the employees with the organizational objectives. This can also be helpful for the company to
create brand recognition in an effective manner. The CSR based health programmes are able
to boost the morale of the employees so that they become more productive in nature (Hill,
Jones and Schilling 2014). The CSR programmes are gradually becoming a major part of the
key strategies in the Middle East based regions and countries. The organizations in these
areas are thereby looking at the long-term sustainability based projects which are able to
provide high returns to the company. Etisalat has also applied this strategy to improve or
enhance its operations in the telecom industry. The different CSR programmes of the
organization are targeted towards countries like, Nigeria, Tanzania, Sri Lanka and Egypt (Hitt
and Duane Ireland 2017). The company has also seen more profits and higher returns on the
investments with the help of business based CSR activities. The innovative services are
thereby able to open more streams of business for the purpose of helping the communities.
Etisalat has been able to enhance its reputation with the help of different CSR programmes
that have been arranged by the company in different areas. Etisalat is a major participant of

8STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
the United Nations Global Compact which has been able to revolutionise the various CSR
based concepts. The company has also been able to introduce a trend which is known as
“Cause based CSR”.
Task 4
Target market of Etisalat
Etisalat is has acquired the topmost position the telecommunication industry of
Middle East. The organization is also expected to gain a position among the top ten mobile
network operators of the world. Etisalat has been the trend setter for many technologies in the
telecom industry. The company has the largest LTE based network in the entire Middle
Eastern areas. The organization has been able to acquire a significant share in the market with
the help of its technological expertise and high expansion rates as well. The major target
market of Etisalat in UAE are the families and the commercial organizations as well (James
2016). The product of the company that has been considered in the analysis are the mobile
plans that are offered to the customers. The mobile plans of the company mainly consist of
various types of offers that are targeted towards specific groups of people. The company is
thereby targeting the customers based on their demographics which includes, their age,
income levels and other major factors as well. The prepaid and the postpaid plans are thereby
offered to customers based on their personal needs and demands (Kasemsap 2014).
The major competitors of Etisalat in the telecommunication industry are, DU,
Telkom, MTN, Cell, Neotel, Millicom. The competitors of the organization are working quite
well within the environment which has further led to huge pressure on the profits of Etisalat.
The main contribution to the success of the competitors of Etisalat in the market are the
marketing based strategies and campaigns and strategies that have been developed by the
organizations in the telecom industry.

9STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
The competitive strategies that have been implemented by Etisalat in the
telecommunication industry are based on the ways by which the company aims at penetrating
the market and increase its operations in other areas of the world. The development of the
market that is already acquired by the organization is also a major part of the marketing
strategy that has been developed by Etisalat. The diversification strategy that has been used
by Etisalat in the telecom industry is also a major part of the ways by which the organization
aims at creating its competitive position. Etisalat has thereby become a leader in the
competitive telecom market of UAE which has only two major operators. The organization
has targeted the mobile plan based products to large group of customers based on their
specific needs (Popkova et al. 2015).
Task 5
Critical success factors of Etisalat
The success of Etisalat in the telecommunications industry is mainly based on the
various critical success factors which are as follows,
 Etisalat was the one and only telecom operator in the United Arab Emirates
for a huge amount of time.
 Etisalat has acquired the position of the leading organization in Asia, Middle
East, Africa and Asia.
 The growth and expansion of Etisalat has been helped the company to become
one of the most important organization in the entire world.
 The highly demanding telecommunication based industry has been helpful for
Etisalat to become strong and further create high amounts of profit as well.
 The latest and high technologies are used by Etisalat in its various operations
all over the world.

10STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
 The powerful and intense marketing campaign of the organization has also
empowered the expansion based activities in different areas.
SWOT analysis of Etisalat
Strengths – The organization is facilitated with the availability of huge investment of
capital which helps it to provide the latest technologies which is similar to satellite based
services. The clients are thereby allowed satellite technology so their services can be used in
any part of the world. The company is also known for offering enhanced levels of customer
service which helps in creating a loyal customer base.
Weaknesses – The initial expenses of the company are quite high and all the
employees in different parts of the world do not have the right information about new
technologies. The customers and the employees are also not always aware of the technology
that is present in environment (Sakas, Vlachos and Nasiopoulos 2014).
Opportunities – The growth of business operations can increase the network
coverage over larger areas. The availability of low wage employees is also an opportunity for
the organizations to create a profitable position in the industry. The political situation that
prevails in UAE is quite stable in nature which will helps in the proper operations of the
organization.
Threats – The lack that is seen in the purchasing power of the clients is an important
factor that can affect the profitability of Etisalat. The strategies based on marketing that have
been implemented by the competitors also affects the ways by which the organization
operates. The economic recessions taking place in different areas of the world are also quite
important in affecting the revenues of the company in an adverse manner.

11STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
Etisalat can use the financial strength in order to increase its opportunities of
expansion in other areas of the world. This can help the company to create a profitable
position in the telecommunication industry. The major weakness of Etisalat is the lack of
knowledge of the employees related to latest technologies. This weakness can be turned into
a strength with the help of the financial capabilities of the company to create its resources
effectively (Plans 2018).
Task 6
Ways by which the target customers perceive the brand
Etisalat is considered to be a valuable and lucrative brand in Middle East. The loyalty
programme that has been offered by the organization to customers have also been able to
raise the value of the brand. The perception about the brand in the minds of consumers has
also been quite high with respect to the services and products that are offered to them. The
level of products and the quality of services play an important role in the perception of
Etisalat that is created in consumer minds. The competitors of the organization have been
able to create huge pressure on the ways by which it operates in the telecom industry. The
products and services that are offered to the customers have been given more importance as
compared to the competitors in the industry. This provided the company with the topmost and
most valuable position in the telecom market.

12STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
Positioning map of Etisalat and its competitors
The positioning map of the telecom industry will be helpful in understanding the
position that is created by the company as compared to its competition in the market. The
positioning map of the organizations in the telecom industry is explained as follows,
High Quality
Telkom DU
Etisalat
Low Price High
Price
Neotel Millicom
MTN Low Quality
Conclusion
The report can be concluded by stating that Etisalat has been able to create a
profitable and valuable position in the telecom industry of UAE. The competitors of the
organization have been created pressure on the profitability of Etisalat. The analysis of the
external environment of the company has proved that it is suitable for the operations in the
country. The SWOT analysis has depicted that the company can use the strengths for the
purpose of using the opportunities and changing its weaknesses into greater strengths. The
hugely growing telecom industry of UAE is also an opportunity for the successful growth of
Etisalat in the country. This can also help the company to serve the target market in an
effective manner.

13STRATEGIC MANAGEMENT ANALYSIS OF ETISALAT
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