Ooredoo Kuwait: Comprehensive Business Environment Analysis Report

This report provides a comprehensive analysis of Ooredoo, a leading telecommunications company, focusing on its operations in Kuwait. It begins with an introduction to the company, its mission, and its market presence. The report then delves into the opportunities and threats faced by Ooredoo, followed by a detailed PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting the company. Porter's Five Forces framework is used to evaluate the competitive landscape, including the threat of new entrants, bargaining power of buyers and suppliers, threat of substitutes, and competitive rivalry. An internal environment analysis, including the VRIO framework, assesses the company's resources and capabilities. The report also examines Ooredoo's business and corporate-level strategies and concludes with recommendations for future growth and success.

Running Head: OOREDOO 0
Management

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Contents
Introduction to the Company.................................................................................................................4
Introduction to the report.......................................................................................................................4
Opportunities and threats of Ooredoo....................................................................................................4
Pestle analysis of Ooredoo Kuwait........................................................................................................5
Porter’s five forces of Ooredoo.............................................................................................................7
Internal environment analysis................................................................................................................8
VRIO framework...................................................................................................................................8
Business strategy of Ooredoo................................................................................................................9
Corporate level strategy of Ooredoo....................................................................................................10
Recommendations...............................................................................................................................11
Conclusion...........................................................................................................................................11
References...........................................................................................................................................13

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Introduction to the Company
Ooredoo was incorporated in the year 1997. Ooredoo is one of the leading
international telecommunication companies that deliver the fixed, broadband internet, mobile
and corporate managed services in order to meet the needs of customers as well as businesses
across the Middle East, South East Asia, and North Africa. Due to its focus on community, it
has vision to enrich the lives of people as well as to stimulate the human growth by helping
people to get their full potential. Ooredoo has strong market presence in Qatar, Kuwait,
Algeria, Maldives, Tunisia, Oman and Indonesia. It has been founded that the shares of
Company has been listed on the Abu Dhabi Securities Exchange and Qatar Exchange
(Shirazi, Gholami & Higón, 2019). Furthermore, it was awarded as the second licensed GSM
operator of Kuwait. It has helped It in gaining huge advantage from the customers of Kuwait.
In Kuwait, it has the vision to empower the society through driving transformation as well as
enriching the digital lives of people. The mission statement of the Ooredoo is to become the
leading as well as integrator communication provider in the Kuwait by fulfilling the needs of
its customers.
Introduction to the report
In recent year, it has been founded that the supportive government is making the great
way for telecom industries to grow more. It is changing the way for overall telecom sector in
Kuwait. Due to this, competition is also increasing to a great level. In the first section of the
report, the discussion is carried on the opportunities and threat of the Ooredoo Company.
Furthermore, the discussion is carried on the porter’s five forces that is essential part of every
company. In addition to this, some political, economic, social, technological, environment or
legal factor also affects the companies in positive or negative manner. Therefore, the
discussion is carried on the PESTLE analysis of the Ooredoo. Afterwards, VRIO framework
has been described in the report. At the end of the report, recommendations are provided that
will help in growing further.
Opportunities and threats of Ooredoo
Due to increase in the growth of telecommunication sector in Kuwait, Ooredoo has
several opportunities. Ooredoo has taken the initiative to adopt the 5G technology all over the

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world. This will help it in developing its wide network in the future. Besides this, it will also
help Ooredoo in getting huge customer and market base due to adoption of 5G network. Due
to this, it is also getting support from government that will develop its networks in the near
future. As it was the first pioneer to implement the 5G technology in the World, it will
continue to increase the customer experience (Ooredoo, 2018). Besides this, Ooredoo has
also done partnership with Huawei in order to supply the better technology for this service. It
provides the huge scope for increase this service to several other markets.
By taking into consideration the threats for Ooredoo, various fluctuations occur in the
local currency exchange rate. Besides this, Customers of this sector are also losing the
confidence due to modification in the regulations of data privacy (Ben-Jacob, 2018). It also
faces completion from company such as Zain group including the Facebook, Google, and
Viber. Therefore, competition in the telecommunication industry of Kuwait is the major
threat that Ooredoo can face in the future.
Pestle analysis of Ooredoo Kuwait
Political factors- it is true that political factors can affect the company on larger scale.
Similarly, Ooredoo, also get affected from the political conditions of Kuwait. Value added at
at the rate of 5% has set up in the United Arab Emirates already. By the year 2019, the same
will also incorporate in the other “Gulf Cooperation Council.” In addition to this, the increase
in tax burden will also adversely affect the telecommunication sector. Similarly, taxes of
consumer will also influence the spending of consumer (International Business Publication,
2018). From the reports of World Bank, telecommunication sector will face challenges in
managing the upcoming impact of political; instability as well as conflict (Faccio & Zingales,
2017).
Economic factors- It is founded that the economic growth impacts telecommunication
industry, interest rates as well as inflation. In the economy of Kuwait, it is founded that
government is also adopting several regulations as well as policies in order to encourage the
competition in the market. It is true that this can affect the economic growth of Ooredoo.
Besides this, it is also founded that government is still the current major investor in the
telecom company. Due to this, it can get several benefits. It is also founded that the economic
growth in the MENA region is low due to plague by war, low prices of oil as well as violence
(Rossotto, Sekkat & Varoudakis, 2015). It is also predicted that the economic growth can also

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rise and exceed in the upcoming year as per the report by World Bank. By keeping this in
mind, it can easily receive the growth by doing investment in varied areas.
Social factors- This factor includes the cultural as well as social philosophy by putting
significant effect on environment of company. In the Ooredoo Company, it get the positive
results due to increasing number of youth and modifications in habits of consumer due to
technology. As compare to this, negative impacts include the decreasing confidence of
customers due to fewer regulations in data security and privacy. Besides this, company also
invests amount in several mass media channel in order to increase the customer and market
base. By doing this, it has the aim to head toward increasing number of customers (AlAli,
2018). It is also founded that Ooredoo is also a part of telecommunication sector. Therefore,
it is quite challenging for the company to promote its services to the deaf community.
Technological factors- investment in the research and development is one of the essential
indicators that put emphasis on the technological development and innovation. Investments in
R & D have also helped the Ooredoo to enhance its production process for reducing the cost.
At the same time, it has also maintained the technological leadership. This will lead to the
several new growth opportunities for Ooredoo (Symeou, 2011). It is also founded that it has
launched the 5G network that will help the Kuwait in its prosperity as well as transformation.
This technology of Ooredoo will take the customers to next generation of innovation. It will
also help the company in improving its data transmission in several regions. Moreover, it can
also take the data analytics for deeper insights.
Legal factors- several legal factors in Kuwait also affects the telecommunication sector
highly. Due to the national security also, regulations are required for the telecommunication
sector. In order to fulfil all the legal requirement, it has separate team that fulfil several
activities including international and local telephone services, data, internet and cable
television services. Due to this only, it has global presence in the Middle East internationally
and in the MENA region (Sniperdhire, 2013). It can comply with the all the legal requirement
in order to enjoy success in Kuwait.
Environmental factors- as Ooredoo has been carrying out its operation in the environment
and for society, therefore, it is the responsibility of the Company to put emphasis on the
social responsibility and sustainability (Alzabi, 2017). November This will increase the
business performance of the company. Therefore, such initiatives of the company will put the

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positive impact on the people as well as nation in which it is operating. For fulfilling the
environmental measures, it complies with the “Compliance International Certification” as
well as ISO 27001:2013. Due to this, Ooredoo is the first telecom provider in the Kuwait that
certified with the latest version (Al-Anzi, Al-Burait, Thomas & Ong, 2017). This certification
clearly shows that Ooredoo is taking proactive approach toward the threats of cyber security.
It also has dedication towards the best practices for minimising the threats. As per the
environment factors, Ooredoo has been listed as the only company to adopt the latest version
of PCI:DSS (Ooredoo, 2019).
Porter’s five forces of Ooredoo
Threat of new entry- It is true that in every telecommunication sector, companies invest huge
amount in networks, cables, software’s as well as servers. Similarly, Ooredoo also keep
investing in new services for ensuring better customer satisfaction. Due to increasing
competition also, it spends huge amount on the maintenance cost. Due to its better market
presence, the threat of new entrant in Kuwait is low (Curwen & Whalley, 2016).
Bargaining power of buyers- in every telecommunication sector, companies offer the basic
services such as data, message, and voice. Besides this, switching cost for customers is also
low. Besides this, Zain group is one such company that has great presence in Kuwait.
Therefore, the buyers can easily switch to the other operators of telecommunication such as
VIVA, Zain group. In this way, the bargaining power of buyers can prove to be high.
Furthermore, more firms can enter in the market that can also increase the bargaining power
of buyer.
Bargaining power of suppliers- every telecommunication industry has to depend on number
of suppliers for several activities such as servers, equipment, cables, and software’s. Due to
presence of other telecommunication companies, suppliers can easily shift toward that. Risks
are also attached with the suppliers and partners by taking into the account the new channels.
Therefore, it can be stated that the bargaining power of supplier is moderate (Ameen &
Willis, 2016).
Threat of substitute- several substitute available for the customers are web developers,
satellite operators, OTT and MVNO provides the substitute services that other
telecommunication companies offers generally (Almutawa, Muenjohn & Zhang, 2018). In

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this way, it is clear that threat of substitute is high in the telecommunication industry despite
of best telecommunication service provider in Kuwait and other countries.
Competitive rivalry- Ooredoo is operating in such telecommunication segment where it has to
face huge competition due to presence of other leading companies. Zain group is the biggest
competitor in front of the Ooredoo. In spite of this several local regulations in Kuwait also
presents the competitive environment for preventing the monopoly. Several regulations
presents as it can also disrupt the market. In this way, it is clear that competitive rivalry is
high in Kuwait in the telecommunication sector (Abdullah, Naser & Fayez, 2018).
Internal environment analysis
VRIO framework
Primary
Action Valuable Rare Inimitable Seamlessly
Organised
Competitive
Advantage
Sales force
and change
management
Yes No
Can be
imitated by
the
comeptiors
Still there
present lot
of potential
for utilizing
the
excellent
and
effective
sales force
Can provide the
sustainable
comeptive
advantage. IN
thisa way potential
is certainly present
here.
Track
record of
project
excellent
Yes,
especially in
that industry
where there
are common
cost overrun
Yes,
especially
in the
segment
where
Ooredoo
operates its
business
No, because
there is no
such
competitor
has imitated
its expertise
in its own
way
Yes,
company
has proved
to be quite
successful
in it.
Providing
effective
competitive
advantage.

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Intellectual
copyrights,
property
rights as
well as
trademarks
Yes, they are
really
valuable in
order cope
up with the
increasing
competition
Yes
because
IPR as
well as
other rights
are rare.
Risk of
imitation is
low but
given the
margin in
this
industry,
chances of
disruption
can be high
Firm has
still not
utilized the
full extent
of IP as
well as its
other
properties
Providing strong
competitive
advantage
Social media
strategy
Yes because
by using this
strategy, it is
able to
communicate
with the
competitors
in an
effective
way
No,
because
almost all
the firms
are also
Investing
in the
digital
media
It can be
imitated by
the
competitors
Yes
It has significant
in the
telecommunication
industry.
Therefore, can
provide the
sustainable
competitive
advantage.
In this way, it is clear that Ooredoo is effectively utilising its resources and at the same time,
empowering its customers for enjoying the self-services through its digital channels.
Business strategy of Ooredoo
Strategy is the logical practices in order to persuade and accept the place of firm in the
market. In order to attain the strong competitive advantage in the market, it is essential for the
firms to adopt several strategies. Therefore, strategies that are adopted by Ooredoo is given
below-
Social media business strategy- It is the essential strategy of Ooredoo. Through this, Ooredoo
companies all over the globe are investing as well as extending its social media presence. It is

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doing this because it wants to deliver the leading customer experience as customer’s
extensively uses the social media for connecting with their friends or family. This strategy
has proved to be effectiuve way for Ooredoo to interact with customers in best possible way
(Katsioloudes & Abouhanian, 2016).
Cost leadership strategy- In a report of Ooredoo, the CEO of Ooredoo has stated that it is
putting emphasis on offering its customer a huge range of effective services as much as cost
effective. Therefore, global fibre strategy proves to be effective for the Ooredoo. It sees the
significant potential in providing the better business services as well as enable the business
customer deploy the fibre to their benefit (Ooredoo, 2013).
Differentiation strategy
Ooredoo in Kuwait region has effectively used differentiation strategy. Recently, it
has announced the partnership with Matrixx Software. By adopting this strategy, it is digitally
transforming the mobile experience of several customers in Kuwait. Ooredoo has launched
the ANA by giving its customers a complete control of their mobile plans (Alzabi & Shah,
2016).They also have freedom to choose as well as can customise the digital package
according to their needs. Besides this, Ooredoo in Kuwait is the first and foremost operator in
the market to launch the services. It also provides the customer to have complete control of
their digital worlds as well as mobile plans. It also make easier for the customers to buy and
pay for Ooredoo services from their mobile phone (Ooredoo, 2019).
Corporate level strategy of Ooredoo
This strategy identifies those arrangements that organization adopts that helps it in attaining
the competitive edge buy dealing and choosing with cluster of several businesses contending
in various industries and product market. It is basically based on the mergers and acquisition,
internal growth as well as joint venture. This will help in increasing the group profitability
related to the economies of scope.
Following are the Corporate strategy of Ooredoo:
1. Market penetration strategy- Through this strategy, it tends to offer the basic services
such as fixed, mobile, broadband internet and corporate managed services in various
areas.

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2. Product development- in the countries where it is providing its services, it provides
the high-speed services as well as broadband services. It is also providing 5G data
speed services to its customers in several countries.
3. Market development- By conducting its operation in several countries including
Kuwait, it has developed its market.
4. Diversification- It has also diversified its services in cyber security, and operators.
Recommendations
It is true that by operating its services effectively, it is successful in attaining the large
customer and market base. It is founded that Kuwait has one the largest mobile penetration
rate of the World. Therefore, it is recommended to the Company to grow the market such as
E-commerce. Along with this, it can also develop the smart infrastructure development, M2M
and several start-ups. In order to gain the more customer base, it can advertise its business on
social media pages such as Facebook or Twitter. This will make its communication more
interesting as well as different from all the other companies (Ben-Jacob, 2018).
In addition to this, it is also required by the Company to give more emphasis on the
increasing unemployment rates in the future. By providing more employment, it can also
minimise the threats for the company (Messiliti, 2018). Besides this, sufficient investment in
research and development will also prove to be beneficial for the Company. Through this, it
will come to know the changes that are occurring in the environment whether it is change in
customer demand or government policy. Through this, it can also head toward the first
position in the telecommunication sector of Kuwait. It can also ensure all the legal
requirement as well as rule and regulation made by the government. This will assist it in
doing investment in several areas.
Conclusion
In the limelight of above discussion, it can be concluded that Ooredoo is growing well
in Kuwait. It is serving effectively to the customers by providing fixed, broadband internet,
mobile and corporate managed services. By doing so, it is satisfying the needs of customers
as well as effectively following the rules and regulations of government. It is also founded
that telecommunication sector is growing well in Kuwait. Government is also supporting

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telecommunication industries that can provide several opportunities to Ooredoo. It has
adopted cost leadership strategy in order to provide satisfy the customers in a better way.
Besides this, competitive threat is also putting impact on the company. In this way, adoption
of innovative strategy can also bring the sufficient benefit in the Company.

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References
Abdullah, A. L., Naser, K., & Fayez, F. (2018). Obstacles toward Adopting Electronic
Government in an Emerging Economy: Evidence from Kuwait. Asian Economic and
Financial Review, 8(6), 832-842.
AlAli, M. S. (2018). PREDICTING FINANCIAL DISTRESS FOR MOBILE
TELECOMMUNICATION COMPANIES LISTED IN KUWAIT STOCK
EXCHANGE USING ALTMAN’S MODEL. Journal of Economics Finance and
Accounting, 5(3), 242-248.
Al-Anzi, B. S., Al-Burait, A. A., Thomas, A., & Ong, C. S. (2017). Assessment and modeling
of E-waste generation based on growth rate from different telecom companies in the
State of Kuwait. Environmental Science and Pollution Research, 24(35), 27160-
27174.
Al-Anzi, B. S., Al-Burait, A. A., Thomas, A., & Ong, C. S. (2017). Assessment and modeling
of E-waste generation based on growth rate from different telecom companies in the
State of Kuwait. Environmental Science and Pollution Research, 24(35), 27160-
27174.
Almutawa, Z. H., Muenjohn, N., & Zhang, J. (2018). Attitudes and behaviors as predictors of
service quality in the telecommunications sector context. International Journal of
Quality & Reliability Management, 35(3), 656-677.
Alzabi, T. (2017, November). Exploration of service-centric factors in telecom industry of
Kuwait. In 2017 4th IEEE International Conference on Engineering Technologies
and Applied Sciences (ICETAS) (pp. 1-5). IEEE.
Alzabi, T. H., & Shah, A. (2016). The different perceptions of factors that influence user
satisfaction among mobile communication subscribers: Study in Kuwait. ARPN
Journal of Engineering and Applied Sciences, 10(23), 17698-17704.