Term Paper: Weaknesses of Saudi Telecom Company

By | April 27, 2011

Sample Term Paper

  1. Decline in the market share:

Although STC is a major player in the Saudi telecom industry, but the arrival of companies like Etihad Etisalat (Mobily) and Zain Saudi has given STC a tough time as far as market share is concerned (Dahel, 2001).


  1. Growing international presence:

Apart from the local market the companies is also targeting the international market and is already gone beyond borders. They achieved their priority goal which was to achieve 10% of their operating income from foreign investments (Al-Tawil, 2004).


  1. Stiff competition:

The competition in the telecom market is getting intense day by day with the introduction of new technologies like 3.5G causing main reason for competition.

Analysis of current strategy:

The use of internet telephony is very likely to grow in Saudi Arabia, one of the factors of this high raise is because of the large numbers of expatriates that are living there and they are getting attracted by the outlook of free international calls. The matter of concern for STC was that now days there are so many vice over technologies available over the internet so why would anyone go for   the internet telephony. STC attempted to block the access of voice over internet protocol technologies like Skype but there were not much successful in doing so (Datamonitor, 2009).

Then there are a large number of young people that are living in Saudi Arabia which are being viewed as a potential target market also with the advent of 3.5G technology there is lot to enhance in this field.

Recently the company joined hands with Motive the leading provider of digital life management

Solutions for fixed and mobile broadband services as their main telecommunications carrier in Saudi Arabia, their primary responsibility is to deliver its High Speed Internet Service View solution (Economist Intelligence Unit, 2009).

Providing Solutions:

Apart from this STC is also providing the services with regards to the internet in the following context.

  1. Notification of high school exam results:

The ministry of education is sending the results of the exams through mobile phones since 2003. The main objective of this was to provide the result faster than ever. STC is the main partner of this project with the government.

  1. Appointments reminder:

The objective of this application is to remind the patient with the exact date, time, and contact location for the patient.

Apart from that the media centre on the website also proves very fruitful for the company’s marketing. What the statistics show is that there is a huge demand in the Saudi Arabia’s market and the penetration of the mobile market has increased with in the years (Ford, 2003).

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