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Marketing analysis of the telecommunications provider ETISALAT

"Imagine a world where people reach is not limited by matter or distance. Imagine a world where you can reach closer to your dreams, goals and aspirations. Imagine a world where this is what we do every day."

"Welcome to a brand new day where Etisalat unveils and shares it’s new vision and mission with the rest of the world as well as our new brand. Our new vision is just as in the introduction: A world where people reach is not limited by matter or distance. Our mission is to extend people’s reach. We do this through providing the service and technologies that enable people and businesses around the world to extend them so they can reach each other, their aspirations, ambitions and the best the world has to offer."

That was first two paragraph shared by CEO of Emirates Telecommunication Corporation 'ETISALAT' with his employees in the day of changing of the organization Brand and strategy as apart of changing occur to face the privatization of the Telecommunications sector in the UAE. ETISALAT had dominated the Telecommunications sector in the UAE from 1976 to 2005 when the government allowed another operator to enter the market which is Emirates Integrated Telecommunications 'du'. In fact both of the organizations are Simi-government companies as a part of their shares owned by government.

Since 1976 ETISALAT has been the telecommunications service provider in the UAE, and has built up a modern telecom infrastructure and established itself as an innovative and reliable operator

ETISALAT stands 140th among the Financial Times Top 500 Corporations in the world in terms of market capitalization, and is ranked by The Middle East magazine as the 6th largest company in the Middle East in terms of capitalization and revenues. The Corporation is the largest contributor outside the oil sector to development programs of the UAE Federal Government, and is an award winning socially responsible corporation. Etisalat has also won accolades from across the region for its nationalization program.

Apart from enabling the nation with basic telecommunication services, Etisalat also offers a range of innovative and modern services that have served to position the UAE as one of the most advanced nations in terms of telecom services. Mobile users enjoy the benefits of excellent voice and data applications like WAP, GPRS, 3G, MMS, Push To Talk, BlackBerry services and others. Enterprise and individual customers on the fixed-line network also benefit from services such as ATM (Asynchronous Transfer Mode), Frame Relay, VSAT and ISDN.

The Corporation offers fixed line services over the Next Generation Network, and has been migrating sections of its users onto the advanced network. The timeline for completion of migration is the end of 2007. By establishing NGN, Etisalat will be able to offer voice, video and data over one single source, enabling true Triple-Play functionality

Mobile subscribers exceeded 4.5 million by the end of 2005, up 23% from 2004. This represents penetration of nearly 100 per cent, a remarkable figure regionally and internationally. Internet and broadband penetration also witnessed huge growth during 2005, with penetration at almost 51%. Etisalat has concluded roaming agreements with over 265 operators, and even Etisalat’s prepaid mobile subscribers can roam in many of these networks.

In 1982, Etisalat was the first telecom operator in the region to introduce a mobile phone service, and was one of the early adopters of GSM technology, introducing it to customers in 1994. Since then it has established itself as a regional pioneer by introducing both 3G and MMS in 2003, and most recently, the BlackBerry service in 2006.

As the The Thesis Being apart of Etisalat it required to demonstrate the company Vision, Mission & Goals.

Vision:

A world where people reach is not limited by matter or distance.

Mission:

To extend people’s reached.

Etisalat do this through providing the service and technologies that enable people and businesses around the world to extend themselves so they can reach each other, their aspirations, ambitions and the best the world has to offer. .

Logo Rationale

In brief, the research findings confirmed that customers believed that Etisalat is not approachable. For this reason, Etisalat came up with the reach concept, inviting customers to determine what reach means to them.

What does the shape of the mark mean?

Building on the open-ended meaning of reach, and on our values, Etisalat came up with this mark, leaving it open for people to decide what the shape means to them. The center is transparent and the color variation represents dynamism and movement. It can be perceived as expanding sound waves or water ripple reaching out in 360 degrees. It can be a network, or a Frisbee. It can also be a speech bubble, a quotation or a hot air balloon reaching the limitless sky. Etisalat brand is now filled with warm personal connection with the customers and the market, it can now be perceived as a heart, petal of a flower or a butterfly.

The new mark carries our values:

Optimism: with the transparent center

Caring: represented in the curves, like two arms providing protection when perceived as a heart.

Energy: the color variation depicts movements and dynamism. The shape represents sound waves, a balloon, a butterfly.

Openness: the shape starts from one point expanding in all directions

Enabling & Reliability: research confirmed that Etisalat is perceived as a very reliable trustworthy technical service provider. Etisalat provide services that enable customers to reach their aspirations. This is now maintained in the new logo by keeping the “etisalat” word mark.

Simplicity: Represented in the whole shape and with the letter “e” being represented in the word mark “etisalat”

Rationale behind the colors

Late Sheikh Zayed, peace be upon his soul, always dreamt of green UAE, and this is the main reason that highly motivated us to maintain the green that was present in the last two logos. Etisalat is a UAE national company that is proud to carry the vision of its founder.

Green is a pleasing peaceful color. It is fresh, young and has limitless nourishing potentials. It is also a move away from the industry norm i.e. telecoms companies generally tend to use red and blue in their identities.

The word mark “etisalat” is in dark grey with lower case ‘e’, to make it less formal yet extremely reliable and professional.

International Investment

Pakistan Telecommunications Company Limited (PTCL)

With a population of over 162 million, Pakistan is one of the most promising markets in Etisalat’s investment portfolio.

In 2007, Pakistan Telecommunication Company Limited (PTCL) continued its drive to transform the company into a modern, customer-focused international communication and information provider, as part of management undertakings since 2006.

PTCL made several investments in infrastructure development and added network capacity to enhance services and expand its reach across the country.

The introduction of Ufone, the new CDMA-based WLL platform, is poised to become the largest fixed wireless telephony network in Pakistan.

On the wireless broadband front, a major upgrade of the WLL CDMA network was rolled out in order to provide wireless broadband services in 17 major cities.

Technical trials are also in progress and will be followed by a pilot project in WiMax technology.

PTCL succeeded in obtaining an IPTV license from the regulator and the service will be launched in 2008

This will be a landmark addition to the PTCL service portfolio and will enable the company to provide Triple Play (voice, video and data) services over a single fixed line connection.

The customer will be provided with a single interface along with single billing.

The launch of ‘Broadband Pakistan’ was a major milestone in PTCL’s quest to provide customers with value-added services and convenience of use.

PTCL took over the mantle as the dominant service provider in Pakistan in just five months after launch, underlining its resounding success.

Ufone the country’s second largest mobile service provider, boosted its operations by rolling out the country’s largest ever expansion of its network, worth US$ 525 million.

The new investment aims to expand capacity and coverage in existing and new cities, as well as providing high speed cellular mobile and wireless data services.

By mid-2008 the two major expansions will give Ufone coverage in over 4,500 cities, towns and villages, and all major highways in the country.

PTCL started restructuring its workforce in 2007 and the exercise is expected to be completed in 2008.

These initiatives will serve PTCL well in its plan to evolve into a major force in the exciting and fast-growing Pakistani telecommunications market space.

Etihad Etisalat - Mobily

Through the launch of High Speed Packet Data Access (HSPDA), which allows high-speed broadband on mobile, was well received by customers and added to customer growth.

International agreements with Etisalat gave visitors to the country preferred rates during Hajj, and there was minimal or no disturbance in the network during this peak event in the Islamic year.

Points of sale now stand at 23 flagship stores and 104 Franchised Business Outlets (FBOs), which means Mobily can be reached at all main locations across the country.

The Mobily network now reaches 93.7% of the population in the Kingdom of Saudi Arabia and Mobily subscribers numbered 11 million by the end of December 2007, a growth of over 60% in comparison to 2006.

Market share now stands at 41%, and steady growth is expected to continue as products and services attract customers by keeping up with their needs and requirements.

In term of revenue, Mobily grew by 44% year on year, with net profit growing by 97%.

As a financial investment, Mobily has now reached financial breakeven in terms of profitability, in line with expectations and project plans.

In line with its strategic growth plans, Mobily secured an Islamic loan of SAR 9.187 billion in March 2007.

Mobily’s all-round development was recognized by investors and media alike.

It won the ‘Best New Service’ award at the Telecom World Awards Middle East 2007 Conference, as well as being named the ‘Best Gulf Joint Stock Company’.

ETISALAT INTERNATIONAL

Etisalat management recognizes the importance and responsibility of balancing profitability and growth with long-term sustainability

Over the last five years, the Corporation has continued its high growth trajectory and has been progressively looking beyond the borders of the UAE

All of these initiatives are geared towards fulfilling its vision of joining the league of major telecommunication players in the world.

Its core strategy for market selection remains woven around low penetration and high population.

This is backed by strong market research on high growth potential, consumer behavior, and value creation opportunities.

Today, customers demand not only basic services but also want to take advantage of the value chain in terms of product and service segments.

Innovation technology offerings from Etisalat’s stable produce a strong ‘me too’ element. Etisalat’s UAE strategy of delivering the latest technology has established its reputation across the world, so its subsidiaries find it easier to enter new markets.

As a result, Etisalat is warmly welcomed as a new entrant whose new products and services are eagerly anticipated.

As it expands its global footprint, the Corporation has been conscious of ensuring that it optimizes the synergies existing in regional markets such as the Middle East or West Africa. In addition, it encourages sharing lessons learned in one operation with others.

It has effectively utilized its experience of setting up Greenfield operations in Mobily in Saudi Arabia to the market in Egypt. This ensured Etisalat’s Egyptian operations passed the 1 million subscriber mark within 50 days of starting operations.

Over the years, Etisalat’s brand equity has grown in profile. In order to leverage its strong brand, the Corporation launches all Greenfield projects under the ‘Etisalat’ brand.

However, in acquired assets where there is an existing strong brand (like ‘Moov’ in West Africa), it nurtures and strengthens the existing brand.

In 2007 Etisalat acquired new assets and consolidated its position in existing markets.

It entered two new and exciting markets – Nigeria and Indonesia. With their large populations and relatively low penetration, these markets match Etisalat’s core corporate strategy perfectly.

Aligned with the Corporation’s mission of extending people’s reach, other promising additions to Etisalat’s investment portfolio can be expected in 2008 and beyond.

Subsidiaries

Emirates Cable TV and Multimedia – EVision

EVision is the UAE’s leading cable TV provider, offering close to 200 channels in over 21 languages and offering diverse programming suited to the diverse population base of the UAE. With the basic package alone containing 85 channels, and other options including Showtime Cable, Orbit Vision, ART, Firstnet and Pehla, E-VISION is the most comprehensive cable TV provider in the Middle East. Service is now available in Abu Dhabi, Dubai, Sharjah, Ajman and Al Ain, and is expected to be rolled out across the nation soon

Emirates Telecommunications and Marine Services FZE- e-marine

E-marine operates in the field of submarine cable installation, maintenance and repair throughout the region and beyond. E-marine is the only company of its kind in the Middle Eastern region, and handles regional and international projects with ease. This subsidiary owns three fully equipped cable ships and a modern cable depot in Abu Dhabi. Major international projects have been undertaken by e-marine including the recent block-2 of the SMW-4 cable, FOG and FLAG

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