Case Study A Global Investment Marketing Essay

Case Study A Global enthronization Marketing EssayA global investment is a herculean mission that requires the assessment of different aspects of potential drop opportunities in different countries. Moreover, unavoidably serious examination and analysis of success and failure probability. The purpose of this penning is to study the strategy of Etisalat, the United Arab Emirates (UAE) telecommunication company in the Saudi-Arabian-Arabian-Arabian Arabia grocery store as Mobily. Moreover, description, cause and effect of that strategy pull up stakes be discussed at understand Saudis economy and to identify the total investment in the energetic sector. In addition, an attempt to examine the performance of Mobliy and the obstacles it faced was made. A sparely, the difficulty it faced when it started the billet in the Saudi mart bias approximateing to catch a part of mobile ph whizz grocery share, managing its business and communicating with its m early(a) company in the UA E. To overcome these obstacles, Mobily created youthful attend tos for mortalal and companies to add cherish for its subscribers to achieve its strategy target. To develop its success in Saudis market, near business information leave be discussed evaluating its strategy.Table of Contents2- Etisalats globalstrategy3-SAY GOODBYE TO THE MONOPOLY4-Mobily Ownership Structure5-Mobily Objectives6-STRATEGY7-HAJJ arrange ON PROFITABILITY8-INFRASTRUCTURE9-Effect of macro- environmental and micro-environmental on Mobilys merchandise mix2- Etisalats globalstrategyEtisalat is the largest Arab telecommunications firm in the pump East, with 63 million customers and has launched the most advanced serve to the area.( http//www.etisalat.ae)Etisalats strategy is anchored in expanding in transnational markets and being able to be single of the top-10 telecoms go suppliers in the world. To execute this strategy, Etisalat attempts actually to create the retail of mobile devices some some s tates in Africa, Asia and the shopping centre East as Saudi Arabia and Egypt because these countries study shown an increase in GDP, great increase in tribe and unemployment and Etisalat try to present telecom go and solutions which add appreciate to consumers and facilitates perfect multitude with technology.3-SAY GOODBYE TO THE MONOPOLYIn 2004, the only mobile promoter was Saudi telecommunication keep company (STC). At the analogous time, the mobile sixth sense rate however was 40%,and there were only 9.2 million customers. When Mobily entered Saudi market in 2005, broke the monopoly. The liberalization of the Saudi Arabian telecommunication sector caused the penetration rate to rise to 109% in 2007, toas certainlyof 50% for customers growth.Mobily paid 3.46 jillion USD to have the second mobile license in KSA in 2005. Mobily was winning in covering most of Saudi Arabias land with the GSM coverage 97% of populated areas. It was also the first mobile Saudi operator to set outvalue-added services such as location-based services (LBS) and MMS.5-Mobily ObjectivesTo be the best acidify environment in the KSA by caring for their employees.To be Number angiotensin converting enzyme at enjoyment their subscribers.To sustain hightail itership in data applications and services6-STRATEGYMobily is successful attainment its long term vision to change from a pure mobile operator to a multi-functional telecom operator in KSA. Mobily was granted approval by CITC (Communication and Information Technology Commission) to attained 96% of Zajil International Telecom and 99.9% of Bayanat Al Oula which has a WIMAX license, two data service suppliers in KSA in 2008. Mobily is managing the live of existing operations when its purchase of a 66.6% stake from the Saudi National Fiber Network (SNFN) which substitutes the use of STCs international gateway network. The incomes of the SAR2 billion capital increases are used for funding or upgrading. (http//www.mobily.com.s a)Mobily has built a strong connection with Etisalat of UAE for procurement of resource. This connection magnate be compactificant for presenting one of the best plan networks in the world. The revenue of Mobily Company Q2 2010 recorded as 3,972 million showing an increase of 24% over the same tail last category. Mobilys chairman, ENG. Abdulaziz Alsaghyir mention that the increase of our Q2 revenue is due to the growth in broadband revenues and creating a centre of financial aid more post-paid consumer, in addition, Mobily has approved its strategy for louver year time know as GED planning for expansion, differentiation to supply unite telecom services constructed virtually fixed and mobile broadband technologies.7-HAJJ EFFECT ON PROFITABILITYIt is expected that around 3 million soul visit Saudi Arabia during the Hajj pilgrimage season, which is reflected in Mobilys fourth quarter earnings. Mobily achieved highest quarterly earnings during the fourth quarter.Mobily Quarte rly Earnings8-INFRASTRUCTUREMobily has finished construction its own capacity infrastructure to support itself. On the other hand, when Zain started their business, has rented infection capacity from both Mobily and STC. This produced an additional flow of income for Mobily and STC depending on Zains usage capacity. (http//www.gulfbase.com)9-Effect of macro-environmental and micro-environmental on Mobilys marketing mixThere are many reasons to the macro-environment that will capture the choices of the managers of any establishment. New laws, tax changes, trade barriers, demographic change and governing body policy changes are all instances of macro change. To help analyse these reasons or factors managers can categorise them utilise the PESTEL model. (http//www.oup.com)Kotler (1998) claims that PEST analysis is a assistive strategic fauna for distinguishing market growth or reduction, business position, potential and direction for operations.In analyzing the macro-environment, it is essential to understand the factors that might in turn modify a number of critical variables that are likely to affect the companys engage and supply levels (Kotter and Schlesinger, 1991 Johnson and Scholes, 1993).9.1 Why Saudi ArabiaThere are fewer states to be able to propose secure supplies of inexpensive cleverness, a geographic starting point to a huge market and a customers compulsion to achieve a suitable solution for cutting adventure endeavor or investment. The research has indicated that Saudi Arabia is one of the best 20 destinations for overseas direct investment in the globe. Moreover, Saudi Arabia known as one of the most enterprising nations in the Middle East, Saudis huge natural energy integration with the long-term image and strategic planning to make todays stable, plenteous economy.Saudi Arabia is hoping and arranging for different areas of future which is more comprehensive, expansive, sustainable and unite on both social and economic sector. All of these examples will be improved via Saudis experience financing, assessing to establish a nation of constant development. A massive amount of money has been spent by kingdom of Saudi Arabia to add value proposition to global business. The government of Saudi has think goals of varies faceted reform strategy that lead Saudi Arabia to be one of the suitable position in the global to operate business. (http//www.sagia.gov.sa)Atthesametime, Saudi Arabia is expense tens of billions of dollars to start four economic towns in versatile place of the nation to support economic improvement.9.3The supplier environmentMobily attempts a great deal to depend on several suppliers. Mobliy and its suppliers, both parties depend on the other for their successful commercial. Even though, both parties are looking for security and stableness from their relationship, still they are some reasons to the supplier environment are font to change, such as some disputes on a sudden organize in material or maintenance agreements expenditures which controls by suppliers to increase their prices and this will effect seriously on the company commercial operations.9.4 The immanent environmentMobilys management is placed on marketing intermediaries as agents and distributors to make sure that their products arrive at the final consumer. To Mobilys management, it may seem that the conservative rule of distribution in telecommunication is relatively static. For the reason that changes in the distributive environment happen quietly, and there is a risk of marketing companies impuissance to aware about the commercial change.9.5 The competitive environment.The company must be aware about the potential risk of other players marketing sympathetic and substitute services whether they are of domestic or foreign origin. . In the telecommunication sector in KSA have just three players a potential competitive threat. Whatever the type, size and composition of the telecommunication sector, Mobi lys marketing management has a full understanding of competitive forces. However, Mobily Known with this knowledge, which will have a greater opportunity to compete effectively.http//www.da-group.co.uk/index.php?option=com_contentview=articleid=31micro-and-macro-environmentscatid=2marketing-lecturesItemid=3The marketing mixPriceMobily used some approaches to price a product as the price charged for products and services is set unnaturally down in consideration of gain market share. Once this is attained, the price is increased. In addition, charge a reasonable price when has a strong competitive advantage. On the same time, Mobily attentive about competitors. However, most of their prices it is fair and satisfied for most of the customers.PlaceChannel distributionMobilys distribution strategy is driven by three main conduct whichDirect sales The direct sale channel includes Mobilys 24 flagship stores and clv fully branded stores. The flagship stores are completely owned and empl oyed solely with Mobily personnel, while the fully branded outlets manage as franchises.Indirect sales The Firm depend deeply on its distribution partners to attain simple range distribution at a rapid pace. Mobily has a sign primary distribution contract with seven major distributors, each of which special effects sales through 149 fully branded, 288 co-branded and 4,000 secondary distributor outlets.Co-branded The Company has channelled sales through ATM and the cyberspace for top-up of prepaid cards. So as to focus VIP sector successfully, the Company has begun a separate particle of Corporate and VIP Sales.ProductMobily has been achieving the three levels of product which are the burden product, the Actual product, and finally the augmented product. In addition, another marketing tool for evaluating products as The Product Life Cycle (PLC) which based upon the biological spiritedness cycle, and The Customer Life Cycle (CLC) which focuses upon the production of and delivery of lifetime value to the consumers.( http//marketingteacher.com)Three Levels of a ProductMobily attribute Connect Al Zaeem, Connect Turbo Router, Connect Turbo, Connect Mini WIFI, Ferrari Connect, Connect Foot Ball, Connect hanker Tail, Mini Wi-Fi.Postpaid Mobily Minute buntes , sombre Wave Mada, Najma,Deeraty, Raqi, Fallah Mobily Khatty and Khatty Plus.Prepaid 7ala, Anees, 7ala Plus, Wafeer, Mabuhay Kababayan, Blue Wave, Visitors Line Rihal, fallah, I phone line.Smart phones I phone 3Gs, Iphone 4 , BlackBerry,Nokia N8,Samaung Galaxy Tab, Liquid E Ferrari .Broadband at home, Mobile internet, Internet Roaming(can only be used outside the kingdom of Saudi Arabia). (http//www.mobily.com.sa) promotionMobily is using the promotions mix to deliver a unique campaign as Personal Selling. (Mobily tend to be well trainee for their sales workers in the approaches and techniques of personalised selling to meet high margin in sales).Sales Promotion. macrocosm Relations.Direct Mail.Trade Fa irs and Exhibitions.Advertising.( Mobily paid for communication to develop attitudes and create cognizance for people. Furthermore, Mobily use the advertising in media such as newspapers (local, free, trade), magazines and journals, television (local, national, satellite), open-air(prenominal) advertising (such as posters).Sponsorship (Mobily bought for SR 200 million over the five years to associate their brand with Al-Hilal which is one the leading and well-known football game clubs, not only in Saudi Arabia but in the Middle East and Asia).( http//saudijeans.org)SWOT AnalysisStrengthsThe improvement and concentrate on advance(a) products and value-added services.The experiences shift and indirectly supported from the mother company Etisalat UAE.Mobily have been using an aggressive marketing strategy that enabled it to obtain a 30% market share in less than two years of operation.To decline the cost of operation and improve data revenues flow, Mobily is improving a new Saudi f ibre optic network.Mobily has been improving the company brand and reputation, to attract the corporate sector in KSA.Saudi government avoids currency risks.quickly responded to a new competitor Zain by creating roaming agreements with about 100 operators in 56 countries.Well improved mobile network coverage with 3G services.Weaknesseslow in the increasing postpaid customers in Mobilys subscribersContinuing need for high spending for improve the network servers.High focus of prepaid subscribers, about 90% of customers signalling lower average revenue for parson.STC is ranked first in broadband overallOpportunitiesDue to rising oil prices in the world lead to build a strong economy and high GDP per person in a region.A strong population growth, 69% of the population is under the age of 30.Partnership with parent operator for entering new telecom markets.Increase market share in mobile broadband.Saudi government attempts to capture foreign direct investment in the telecommunications business through improvements in information technology sectors.Purchase of companies in the value chain.ThreatsIntense competition due to the entrance of MTC lately, as the third mobile player, is leading to decreases in average revenue.Due to easier for customers to transfer from one operator to another that lead to increased competition between operators.Low demand response to new services.Decline in margins as a run of price wars.Failure of public to adapt to changing technology.