Strategic Marketing Decisions: An Analysis of Etisalat in the UAE

This report provides a comprehensive marketing analysis of Etisalat, a major telecommunications company in the UAE, focusing on its strategic decisions within the competitive landscape. It begins by evaluating Etisalat's external environment using PESTLE analysis, revealing a generally favorable environment for its operations. The report then outlines Etisalat's core competencies, historical development, mission, vision, and objectives. It also addresses CSR and marketing ethics, highlighting the company's commitment to ethical practices and data privacy. Further, the report analyzes the market for Etisalat's products, particularly the potential introduction of 6G technology, and identifies key competitors such as Vodafone, Three Mobile, Telenor, and AT&T. The report concludes by pinpointing critical success factors for Etisalat within the market, emphasizing the importance of understanding strengths, weaknesses, and market dynamics. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

MARKETING
MANAGEMENT
FOR
STRATEGIC DECISIONS

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Executive Summary
In the present business environment it has become essential for the firms to make sure
that they have made effective strategies for their survival in the industry. It is also essential
for the company to make sure that they have proper knowledge about the business
environment around the industry. In order to launch any product in the market companies
needs to have a strategic plan for making sure that they achieve higher profits from their
operations. It is also to be made sure that firm understands its position in the market
especially in terms of the product they want to launch. Various tools have been used in the
report so as to understand the condition of the company in the industry as well as its product
feasibility in the market.

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Contents
Introduction................................................................................................................................3
TASK 1......................................................................................................................................3
External environment of Etisalat............................................................................................3
TASK 2......................................................................................................................................4
Overview of the organisation.................................................................................................4
TASK 3......................................................................................................................................5
CSR and marketing ethics issue relevant to the company......................................................5
TASK 4......................................................................................................................................5
Analysis of the market............................................................................................................5
TASK 5......................................................................................................................................6
Critical success factors within the market..............................................................................6
TASK 6......................................................................................................................................8
Positioning of chosen product compared to its major competitors........................................8
Conclusion..................................................................................................................................9
Recommendations......................................................................................................................9
REFERENCES.........................................................................................................................10
Introduction
In the modern competitive market, it is essential for the companies to make sure that
they understand their status in the industry. It is also crucial that firm evaluates its internal
and external environment (Mullins, Walker and Boyd Jr, 2012). This helps them in making

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plans for the operations of the firm. Any time when the company places its products in the
market, it is essential for them to make sure that they have an effective marketing plan so that
it becomes success. Every company has to make sure that there only goal is not to make
profits only but they also have to think about the ethical issues present in their business.
Etisalat is one of the major telecommunication companies operational in UAE. It is facing
higher competition from the other rivals. This report highlights the internal and external
environment of the Etisalat as well as underlines its competitive capabilities to sustain in the
industry by utilising the opportunities available in the market. It also provides its competitors
analysis and the ways in which its product is perceived in the market.
TASK 1
External environment of Etisalat
It is essential for any company to evaluate the environment in which it is doing its
business (Wilson and Gilligan, 2012). For understanding the environment of the company
PESTLE analysis can be highly beneficial. Pestle analysis for the Etisalat is as follows:
 Political: This Company is working in the political environment that is more than
stable. UAE has good political bonds with the other countries and hence it is easier for
the company to manage its business in other parts of the world. The tussle between
the Arab Countries for power can be a problem for the company (David, 2011).
Business policies by the UAE government are also very helpful for the firms running
inside the nation. In other parts of the world, various types of political instabilities can
be seen. Many political ties has been made and broken which is making it difficult for
the company to expand its base. On the positive and negative scale 3 points can be
given to this factor.
 Economic: Both the economic state of the company as well as that of the UAE as a
nation is on the higher side. Such a strong economy like UAE helps the Etisalat to
conduct its operations smoothly and making higher profits from its operations (Hitt,
Ireland and Hoskisson, 2012). There are many stakeholders that are also available
inside the nation who can invest in future expansion plans of the cited firm. But in the
others parts of the world there are lot of economic instabilities that can be noticed
especially in the European market. On the positive and negative scale economic factor
is weighted as 3.

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 Social: Society of UAE is changing and so are their demands (Hill, Jones and
Schilling, 2014). Communication needs have changed as they demand for higher
connectivity in every region of the country. People also started to demand for the high
speed data. To fulfil the needs of the society company has to make continuous up
gradations in their plans. Since the per capita income of the country is on the higher
side hence people can pay high for good services. On the scale of negative and
positive 3 points is given to the company.
 Technological: There are many technological changes that are taking place in the
country (Foxall, 2014). These changes are happening at faster speed and hence
Etisalat also needs to make sure that they are ready for purchasing the new
technology. With the advancements of technology and the lowering of data rates in
the market, it has become essential for the companies to make sure that they generate
higher profits. On the scale of positive and negative weight of 3 has been given.
 Legal: The legalities for doing business have changed but still the ease of doing
business inside the nation has become easier. Rules related to telecomm has also
eased up which is in favour of the company (Baker, 2014). The legal complications
have been lowered down so as to make sure that Etisalat can easily invest inside the
country. On the negative positive scale weight of 3 is given to this factor.
 Environmental: Most of the technology that this firm is using works on the
frequencies that are harmful for the environment especially to the living organisms.
This has increased the tensions of the government as they have to make sure that
health issues due to the use of such technology does not arise (Chernev, 2018). On the
scale of negative and positive weight of 3 has been given to this factor.
The overall final index of the company is 0.75. The composite PESTLE index is greater than
0.45 which suggests that environment is favourable for the operations of the company.
TASK 2
Overview of the organisation
Etisalat is one of the best performing Telecommunication Company in the UAE. It is
the 14th largest mobile network telecommunication service provider (Vyuptakesh, 2013).
Core competencies of the company

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 It is operational in Around 16 countries of the world with a consumer base of around
167 million.
 It is generating revenue of around 51.7 billion with a net profit of around 8.3 billion.
 It has done 510 roaming agreements that covers around 186 countries of the world
enabling features like GPRS, Blackberry, 3G, 4G voice roaming etc.
Historical development
This company was established in the year 1976 as a joint firm between International Aeradio
Limited, a British company and a local partner. In 1983 structure of ownership changed and
the UAE government had 60% share in it. There was increase from 36000 exchange lines in
1976 to more than 737,000 in 1998. This company has become the 6th largest firm in the
middle-east and one of the largest contributors to the development of UAE outside the oil
sector (Shayah, 2015).
Mission statement
Its mission statement states that to provide a best-in-class total customer experience
internationally and domestically (Etisalat, 2018). To deliver attractive returns to shareholders
by investing in the long term projects for future of the company.
Vision statement
To be the leading and most admired emerging market’s telecommunication company.
Objectives
Etisalat objective is to enhance the experience of the company by providing quality services
to all the consumers and users.
TASK 3
CSR and marketing ethics issue relevant to the company
This company is known for not only making higher profits but also known for
operating its business in more ethical manner as compared to other competitors in the market.
It has done better in the economic responsibilities as they have been generating higher profits
and sharing it with their stakeholders (Theodosiou, Kehagias and Katsikea, 2012). In legal
responsibilities it has obeyed the laws in the past and has made policies so that violation of

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ethical practices is not possible. In terms of Philanthropic responsibilities it has managed to
make its name as a good corporate house.
The company has addressed the issues related to the ethics in a good way. This company has
to manage the privacy of the data of millions of people which can be a difficult task and
hence company needs to have a good policy in this regards. In future, company has to make
sure that with the addition of many new technologies like IOT and cloud. This company has
totally abolished the practice of child labour as well as has become strict over the practice of
discrimination which is not seen in UAE.
TASK 4
Analysis of the market
It is crucial for any company to make sure that for which target market they are
bringing its products. It helps to shape their marketing strategies in a better way (Elkelish and
Hassan, 2014). This company aims to bring 6G technology in most of the countries of its
operations. This is a technology that will help the firm in increasing the speed of data it is
providing to its clients. This is the specific product that suits in the UAE or Arab market only.
This is due to the reason that 6G technology is of higher cost and UAE being a market that is
having higher per capita income.
The needs of the company while bringing these products will be the advanced technology as
well as the new skilled labours that are capable of doing operations on this technology
(Meissner, 2012). In order to do this smoothly they need high amount of investment for
which large financial resources will be required.
The key target market of the company will be the people from the age group of 15 to 75
years. In this also the largest amount of data requirement is of the people that are under the
age group of 45 years.
Their major competitors include:
Vodafone: This company is operating in an around 150 plus countries and providing services
to more than 470 million consumers. It is having more than 1000000 employees all across the
globe. In terms of its growth evaluation it can be said that it is having a fast expanding
cellular market globally. It is having high marketing capabilities. Its strategy of merger and

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acquisition has helped them in their success. Their major strength lies in its brand name and
quick decision making leadership while poor performance in last few years have been their
biggest weakness (Elkelish and Hassan, 2014). Their competitive strategy is to provide best
services in the market. In some of the market they are market leaders while most of the
market they are niche.
Three mobile: Their strength lies in their excellent marketing and advertisement capabilities
as well as higher brand loyalty. Their weakness is their decisions related with pricing. Their
marketing capability lies in their control over niche market.
Telenor: It is one of the world’s largest telecommunication companies in the whole world. Its
strength lies in its market base while the weakness lies in the slow strategic decision making
process. Their strength lies in their market share as well as their strong brand name. They
have been doing joint ventures for expanding into the new market.
AT&T: This firm has a market base of around 100 million customers in approx. 200
countries. Their strength lies in their employee base of more than 250000. Its marketing
capability is high as they are known for the advertisement and marketing strategies they make
(Bodolica and Spraggon, 2014). Their strength lies in its quality of services while their
weakness lies in their limited market share.
TASK 5
Critical success factors within the market
It is essential for the companies to know their strengths and weaknesses. This helps
them in making the strategies for the future (Behery, Jabeen and Parakandi, 2014). It also
helps firms to understand the factors that cause them to underperform. It also helps in
understanding the position of the organisation with respect to critical success factors.
Swot analysis of the company
Strengths
 One of the major companies in Middle East in the services like mobile, corporate data
services, internet, voice calls, broadcast and roaming.
 They are the highest contributors to the development of UAE other than oil sector
companies.

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 Higher revenue and higher profit shares showcases the performance of the company
in the past few years (Davies, 2015).
 Highly innovation friendly company and hence they are market leaders in many parts
of the world.
 This company has 525 roaming agreements in approx. 185 countries enabling 3G,
voice roaming and Blackberry.
 Support from the government of UAE has become the major strength of the company.
This helps them in making effective decisions related to political and economic
affairs.
Weakness
 Less control in various countries all around the world.
 They have been poor in managing their global operations which has resulted in the
some bad performances in the past.
Opportunities
 They have high potential of expanding their business in developing nations like India
and China. These two countries have large population which can become an excellent
market for the cited firm.
 They have higher chances of enhancing customer services (DUBAI TRADE, 2011).
 They have the opportunity of providing increased bucket offering to their consumers
which can help them in attracting larger number of consumers towards the products of
the company.
Threats
 High numbers of competitors are present in the market. Some of the major
competitors in the market like Telenor, Vodafone, AT&T are having higher capability
to influence the trends in the market.
 Brand clutter might lead to major consumer churn rate.
 There are new players entering into the market. These new entrants have new kinds of
plans that are capable of attracting consumers towards their products.
With the above analysis it can be said that the company has a good capability to address the
needs of the market. This analysis also explains that in spite of such a large competition in the

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market Etisalat has the capability to lead the market. Their excellent financial and other kinds
of resources give them the strength to capitalise on the opportunities they have in the market.
In existing time the value preposition for the company is that it is fostering innovations. This
company is known for its innovative approach that it uses for attracting its consumers. Since
the 6G technology is innovative and is specifically designed for the countries like UAE
having higher per capita income and has less tax barriers for business.
There are some market issues that are faced by the organisations:
 Excessive competition: In the market of UAE this company is facing a challenge as
there is limited amount of people living there while the number of companies has
increased considerably.
 Oil and gas industry dominance: There is a dominance of the oil and gas companies
inside the country which tends to influence of market and its demands (Al-Ansaari,
Bederr and Chen, 2015).
 Excessive advancements in technology: This has become a challenge for the company
as they have to make sure that they make innovation at a pace that they beat all their
competitors in the market (Stefanović, et al., 2015). Without making such strategy
company may fail to ensure their high growth.
TASK 6
Positioning of chosen product compared to its major competitors
It is essential that company places its product in a better way (Suliman and Hayat,
2011). The company aims to place its products in the premium products that provide
excellent experience to the consumers. This helps the company to gain higher profits from its
chosen product. As UAE is the market where people can easily avail this technology and it is
feasible in the cited market.
People also understand the product or services of the company to be better than other
competitors (Khan, 2012). This is the reason why the company has able to capture the larger
part of the UAE market. People are ready to pay the higher prices for the products and
services of the firm.
Positioning map for 6G technology

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On the positioning map the company aims to put its product in the first quadrant i.e.
High performance and high price. This is perfect for the companies that are in the business of
telecommunication in the rich economies like UAE. This kind of positioning helps companies
in making a higher brand name and brand value in the market. This is one of the best
positions to achieve higher profits in the UAE market.
High performance
Etisalat Telenor
Vodafone Airtel
High price Low price
Low performance
Perceptual map for the 6G technology
Low Innovative
AT&T
High coverage Low coverage
Etisalat
Vodafone Telenor

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Highly Innovative
On the perceptual map this company is placed between highly innovative and high
coverage quadrant. In terms of technology most of its big competitors are under the same sub
category. This is the perception which every company wants to make in the telecomm
industry. Since innovation is the base of the industry as well as it is also important for any
organisation to have a high coverage. This is the most primary thing that every company
demands.
Conclusion
From the above report it can be concluded that Etisalat is one of the best performers in
the telecomm industry. This company needs to analyse on its strengths so as to grab the
opportunities present with them. This company aims to launch its 6G technology in UAE for
which the environment of the country is very good. This company has been performing well
in terms of CSR activities which have helped it in creating a good brand image. On the
perceptual mapping this company places its 6G product on highly innovative and having
higher connectivity. On the positioning map it is placed in the region of high performance
and high price.
Recommendations
This will be a fairly new technology in the market and hence they have to make sure
that there is proper implementation of the technology. The bandwidth requirement for this
technology will also be high hence companies need to properly invest on the technology for
making this swift smoother. Company should also make improvement in the customer
services departments so that better services can be provided to a consumer which is necessary
for the growth of the company.