Saudi Telecom Company (STC)
Introduction
Saudi Telecom Company (STC) was founded in 1998 as a telecommunication corporation in Riyadh, Saudi Arabia. It mainly offers several services like internet services, computer nets, and landline cell phone.STC has, for an extended period, enjoyed monopoly in the telecommunication industry in both the Middle East and North Africa. However, the provision of a license to Etihad Etisalat made STC lose its monopoly. According to Alharbi (2019), STC offers primary services such as card Telephones, video streaming, and leased transmission cables. Besides, the company has a total profit amounting to $13.8 billion, with approximately 17,000 workers. The company’s prosperity in diversifying business through strategic execution has seen it grow its fiscal muscles and revenues.
SWOT Analysis of STC
Strengths
STC has several strengths in its operation in the Middle East market. One of the muscles is that STC has created a strong brand value in the Arab marketplace. According to Kadasah (2017), in 2015, STC ranked position 250 in BFG out of the overall 500 positions. Therefore, this added value to the company as the best trademark around the Middle East. Eventually, this strength has helped STC to increase its markets. Secondly, STC has a broad market position, precisely in the Middle East. Considering Kadasah (2017), the company’s 4G net covers above seventy-six percent of Saudi Arabia, and it has around $15.83 in profits. Consequently, this makes the company the primary network provider in the entire Middle East.
Additionally, the corporation has extended its dominance in Asian countries like Malaysia. Besides, STC offers a variety of services to its clients; thus, this forms part of its strengths. Some of its services are data services, cloud encryption, and cell phone, among others. These wide ranges of services have helped the company to reduce its reliance risks.
Weaknesses
One of the weaknesses exhibited by STC is its minimal investment in research and development. In the account of Alharbi (2019), several telecommunication corporations make enormous investments in research and growth programs to promote their development. However, STC’s decreased investment in that sector gives its rivals a competitive advantage. These corporations enjoy the competitive edge in the fact that they continue devoting much of their money in research. Finally, they can launch exceptional products and services in the telecommunication sector. The other weakness is the fact that STC has hired much of its assets. According to Alharbi (2019), leased assets attract a fixed monthly or yearly cost. Hence, this expense on the rented assets increases the value of operation for STC.
Opportunities
Saudi Telecommunication Company has several opportunities. Firstly, regarding the current population information, the world population continues to increase (Ghassan, 2019). Therefore, this implies that there is a constant increase in the potential of the telecommunication market. The population increase works to the advantage of STC, and it’s an excellent benefit for the company to advance its sales by taking the opportunity of the advancing number of potential clients.
Secondly, the e-commerce markets serve as an opportunity for the Saudi Telecommunication Company. Considering, E-commerce is a developing economic area that indicates the tremendous latent of expanding a business to the other level. Thus, corporations might generate revenues through the utilization of e-Commerce. Regarding this fact, several customers do like buying products via the online platform compared to the manual method. Hence, STC stands a tremendous advantage to trigger profits by using the e-commerce platform.
Also, considering Kadasah (2017), the presence of skilled labor as well works to the advantage of Saudi Telecommunication Company. The opening of several training centers across the globe has made it possible for the increase in the number of skilled workers across the world. On the same note, skilled labor has increased in the nations where STC is operating. As a result, STC has access to qualified personnel, and this would reduce training and growth expenses incurred by the company. Other opportunities include technological growth and social media.
References
Alharbi, M., Dowling, P. J., & Bhatti, M. I. (2019). Strategic planning practices in the telecommunications industry: evidence from Saudi Arabia. Review of International Business and Strategy.
Ghassan, H., Alhajhoj, H. R., & Balli, F. (2018). Bi-Demographic Changes and Current Account using SVAR Modeling: Evidence from Saudi Arabia.
Kadasah, N. A. (2017). An Evaluation of Service Quality of a Telecommunication Company in Saudi Arabia using the SERVPERF Scale. International Review of Management and Business Research, 6(1), 162.