Executive Summary The Saudi Telecommunication Group provides integrated mobile, fixed and broadband communications services to over 142 million subscribers in 10 markets including Saudi Arabia. Headquartered in Riyadh, Saudi Arabia, Saudi Telecom Company (STC) is the largest telecommunications company by market capitalization, total revenue and number of employees in the Arab State region. In the last few years, STC has gone beyond its local borders to the international markets, forming a network of businesses and investments in a number of GCC countries, Asia and Africa.
The company is now present in Kuwait, India, Indonesia, Malaysia, Turkey, South Africa and Bahrain which has enabled STC to serve a larger number of customers internationally. The current CEO of STC International is Ghassan Hasbani. And In 6/6/12 There Been A Change In CEO Now It’s Khalid AlGhonaim. The form of mobile services subscribers about 81% of the total STC subscribers investigating the company’s 73% of the total revenue as at the end of 2007. Where the number of subscribers 17. 3 million subscribers at the end of 2007. Formed at that time 61% of the total mobile users in the Kingdom of Saudi Arabia.
As a subscriber line services about 19% of the total participants in the company’s services are investigating the company’s 27% of its revenue as at the end of 2007. STC to expand outside the borders of the State Headquarters and the acquisition of 25% of the group Axis – Malaysia – working in the field of telecommunications value of $ 3. 04 billion. Which in turn runs a number of mobile phone networks in Malaysia, Indonesia and India. The agreement also included the acquisition of 51% of the Company Pte Ntarend (a subsidiary of the group) and the winning mobile phone license in Indonesia.
And thus exceeded the company “STC” in the past few years local borders to the world to establish a network of businesses and investments in a number of Gulf countries, Asia and Africa, where the company located in Kuwait, India, Indonesia, Malaysia, Turkey and South Africa In addition, the company accounts to different ratios in a number of institutions and local and regional companies including Foundation Arabsat Satellite Communications and working in the field of broadcasting via satellite.
Cable Company and the Arab maritime link between the two shores of the Red Sea (Saudi Arabia – Sudan). The company recently acquired 100% of the first online service provider Net. In addition to a commercial company Saudi Arabia. STC has branches in several countries in the world, among them VIVA in Kuwait, Malaysia, Turkey. 1. INTRODUCTION : Saudi Telecom Group,( STC) is a Saudi Arabia-based telecommunications company that offers landline, mobile and internet services.
The first is the operator of telecommunications services in Saudi Arabia. The company was established under the Council of Ministers Resolution No. 171 dated September 9, 2002, and Royal Decree No. M / 35 dated April 21, 1998, a Saudi joint stock company in accordance with the Council of Ministers Resolution No. 213 and the date of April 20, 1998, which was adopted by the Company Statute. In 2003 included the company’s 30% of its shares on the Saudi bourse in the largest IPO ever known Arab markets.
Allocated 20% of the shares subscribed for Saudis in their personal capacity and allocated 5% of the General Organization for Social Insurance, and another 5% for the benefit pensions. In 2004 the company lost its monopoly on mobile phone services after the assignment of a second license to Etihad Etisalat. In April 2007 ended its monopoly on fixed telephone services after the victory of a consortium led by Bahrain’s Batelco, the second license raised by the government, and also for the company and a prepaid card called Sawa is popular deployment in Saudi Arabia.
Accordingly, the company adopted an ambitious program aims to transform its government to become, in accordance with established business recognized, where the company developed clear strategies interested in re-structuring of the Interior, and the rehabilitation and development of its employees, and review and improve its internal procedures, and study the requirements and needs of its clients, with the need to continue to carry out the duties of the company and responsibilities national and social development.
The “Saudi Telecom” Company national leader in providing integrated communications services in the Kingdom of Saudi Arabia, where the company operates, and continuously to respond to market demands, and keep up with developments and technological developments in the field of communications, and to meet the needs of its clients, bearing in mind that this is the way of which established the company’s status and identity, especially in light of changing world of growing role of telecommunications and its uses.
1. 1 MISSION: STC missions to exceed the expectations of their employees and customers by fully leveraging their capabilities and potential. And their mission can be achieved and seen through their objectives : 1. To be the best work environment in the region by caring for their employees first. 2. To be Number One at delighting their customers. 3. To maintain leadership in data applications and services. 4. To provide the best information services with an eye on the credibility and transparency
And the belief of the company the importance of its customers and the need to meet their needs and desires, the company adopted the strategy of “vanguard” which works to support and strengthen the position of the company’s competitive position, where the company is seeking through the implementation of its strategy to promote a culture of concentration on the customer in all of the company, which was reflected in the design administrative structure of the company, which consists of the Center for the company, and a number of functional units, and four major business units focused on the master slides to customers, namely:
• Services sector individuals. • Services for the residential sector. • Services business. • Wholesale sector. 2. Body of research 2. 1 SWOT ANALYSIS : The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
|Internal Factors | |Strength |Weakness | |Financial resources |The lack of absolute clarity to the customer | |Strong brand identity in the market |Low quality or performance of services provided | |Infrastructure |Low technical performance and lack of punctuality | |Innovative new product development ideas | | |Institutional culture prevailing in the Saudi market | | |Full coverage of the areas | | |External Factors | |Opportunities |Threats | |Growth in demand for products in each year |The existence of rival companies in the field of | | |communications, such as Mobily and Zain | |Development of services and speed of response to customer |The existence of rival companies in the field
of Internet, | |requests |such as Mobily and Zain Logo | |Focus on niche targets with corporate clientele |Decline in margins as a result of price wars | | |Failure of masses to adapt to changing technology | | |Entry of international companies in the market | 2. 2 Critical success factors: Identifying CSFs ( number of areas which satisfactory results will ensure successful competitive performance for the company ) is important as it allows firms to focus their efforts on building their capabilities to meet the CSFs, or even allow firms to decide if they have the capability to build the requirements necessary to meet critical success factors (CSFs).
Here are lists of the critical success factors which STC enjoy and they are trying their best to keep it in order to gain more and more competitive advantages: 1. Completed capital increase: And the Capital Market Authority approved the request of the Saudi Telecom Company increased its capital (15,000) million to (20,000) million and granting one bonus share for every three shares owned by shareholders enrolled a record of the shareholders by the end of trading on the Extraordinary General Assembly. To be paid the value of the increase in capital through the transfer of $ (5,000) million of retained earnings item, thus increasing the number of shares of (300) million shares to (400) million shares, an increase of (100) million shares. 2.
Zajil acquisition : On the heels of the Bayanat Al-Oula acquisition, STC made a strategic investment in Zajil International Telecom, a licensed and leading Saudi Internet Service Provider (ISP) that has a foothold in the public sector and corporate marketplace. It provides a wide array of customers with a variety of applications and solutions that will complement STC service offerings. 3. Infrastructure expansion and data network : The company continued expanding its 4G network to reach new areas. The broadband market 4G sites with more than 40 cities, towns and villages covered by 3. 5G by the end of the year. To date, STC infrastructure carries a daily average of 30 terabytes of data transfer and has been described as the busiest mobile data network in the world. 4.
Roaming in 60 countries (Tejwali): STC now offer customers, while roaming in 60 countries around the world, the advantage of receiving all local and international voice calls and SMS messages free of charge through agreements with more than 100 operators. 5. Hawyyati :During the year the Communications and Information Technology Commission(CITC) issued a directive to all GSM operators to have customers update their personal data. Mobily chose to turn this straightforward task into a reward effort and, as a result, the “Hawyyati” campaign was introduced that encouraged prepaid subscribers to provide the necessary data. 6. Following the entry of Zain, Saudi Arabia’s mobile sector has become more competitive. So far, STC with its strategically calculated promotions has managed to lure new mobile subscribers as well as maintain its existing ones without sacrificing margins. 2.
3 COMPETITIVE ADVANTAGES : Is a company or a group of other companies that have the same competitive nature of the work and try to gain customers; and also can be devoted to the possibility of the existence of substitute products or new companies entering the market. If there is no competitor for a product or service, Fbalogelb that there is no demand and the success of this type of product, and this demonstrates the importance of the competitive environment in trade. 2. 3. 1 Competitive reasons 1. The magnitude of the market and the multiplicity of opportunities in the global market. 2. The abundance of information about the market and its variables. 3.
Ease of communication and exchange of information. 4. Multiple alternatives in front of decision makers. 5. The flow of research results and technological developments. 6. Low impact parameters and constraints of traditional. 2. 3. 2 The impact of competitive 1. Shift the market to a buyers’ market. 2. Become competitive is the only way to ensure survival in the market. 3. Became the acquisition of the ability of “feature” competitive (Competitive Advantage) is the biggest challenge for the management of contemporary. 2. 3. 3 The concept of competitiveness Set of skills and techniques, resources and benefits management to coordinate and invest to achieve two things: 1. Production values ??
and greater benefits to the customer (Customer Value) 2. Different from competitors (Differentiation) The competitiveness in the following models: 1. The highest quality of products and services. 2. Time at least in the production and delivery to the customer 3. Care service and solve customers’ problems 4. Flexibility in production, marketing and customer relations. 5. Relations with the most efficient distribution chain. 2. 3. 4 Analysis of competitive forces Necessary to know the components of the main institutions and future trends; even can influence and determine its negative effects. Institutions are no longer facing the competitors operating in the same sector of activity, but
also covered other forces could influence the cost-effectiveness of the sector a positive or negative; these forces are called the forces of competition. The five competitive forces by Michael Porter: 1. New entrants and potential. 2. Suppliers. 3. The intensity of competition between institutions. 4. Customers. 5. Alternative products. 2. 3. 5 Steps of excellence in the competitive environment Maintaining customers is crucial and fundamental in the business, the need becomes necessary in a competitive environment to make the big difference and distinction from competitors, and by providing services to customers beyond their expectations and higher than what competitors offer services to their clients.
The goal of business processes to build a bridge of trust between the client and the business in the first class to form a long-term relationship built on a solid base of loyalty and hard to influence them to meet or imitated in any competitive environment. 1. Determine what makes the business provided by the special and distinctive. Through the study of competitors, and compare the services provided to their customers with the services provided to customers in your business, and asked the following question: what can be offered to customers better than competitors? There must be many of the ideas featured work and that attracts the customer, in particular, for example: If your business specializes sale, Serving free delivery or courier is a unique service that can help and effectively to maintain the loyalty of the customer.
With the observation that the process of reducing the price can not be classified within the services. 2. Study of the ideas put forward to determine the usefulness and feasibility of their application. Service was provided must be guaranteed in 100% and not temporary or related to the application possibility to the customer, the relationship that develops between work and the customer must be on a solid base of mutual trust. Must study the ideas from this perspective, and if access to any idea can be applied non-persistent or non-fixed Basttnauha advised of the application and the search for ideas only secured application. 3. Choose one or two of bright ideas for their application.
When talking about the process of applying ideas distinctive does not mean that application, but must be accompanied by the application to inform the client of this service and deployed to reach non-customers up call to join the customer base, and comes here the role of media in all available means of newspapers, magazines, advertisements in public places , e-mails and many more. Must be accompanied by this service with the name of the business Just hearing the name of the customer business sophisticated surely his mind to the service or services provided. During the promotional process for the services provided must take into account not to mention “we provide a new service” or “we have developed our services,” These words give the suggestion that the problem was what was changed. 4. Maintain the creativity and progress through the creation of new ideas For customer service. By listening to customers and their needs to come out with new ideas and the great work and serve the customer alike.
There is no doubt the interaction with their complaints will help in the development of the product and the services provided; services are deals that will lead to business customers and keep them in the competitive environment. 4. The Ten Critical Decisions Of Operations Management: 1. Products And Services: The STC is latest player in the mobile market in the Kingdom of Saudi Arabia, and strive to become the preferred choice for voice, messaging and multimedia, call management, data and other services in the Kingdom. Based on the tremendous expertise enjoyed by the STC Group, and insight of our local team, we are building a strong company and reliable to provide mobile services in the largest country in the Middle East. some of its products and services details:
Adopted the company “STC” an ambitious program aims to transform its business in accordance with the principles of trade accepted, where the company developed clear strategies interested in re-structuring of the Interior, and the rehabilitation and development of its employees, and review and improve its internal procedures, and study the requirements and needs of its clients, with the need to continue to carry out the duties of the company and responsibilities of national and social development. The “Saudi Telecom” Company national leader in providing integrated communications services in the Kingdom of Saudi Arabia, where the company operates, and continuously to respond to market demands, and keep up with developments and technological developments in the field of communications, and to meet the needs of its clients, bearing in mind that this is the way of which established the company’s status and identity, especially in light of changing world of growing role of communications and their uses.
And the belief of the company the importance of its customers and the need to meet their needs and desires, the company adopted the strategy of “vanguard” which works to support and strengthen the position of the company’s competitive position, where the company is seeking through the implementation of its strategy to promote a culture of concentration on the customer in all of the company, which was reflected in the design administrative structure of the company, which consists of the Center for the company, and a number of functional units, and four major business units focused on the master slides to customers, namely: – Services sector individuals. – Services for the residential sector. – Services businesses. – Sector vectors and operators.
Has exceeded the company “STC” in the past few years local borders to the world to establish a network of businesses and investments in a number of Gulf countries, Asia and Africa, where present in Kuwait, India, Indonesia, Malaysia, Turkey and South Africa, which enabled it to service a larger number of customers , who is seeking to increase externally through the study and evaluation of the favorable investment opportunities in the future, according to the company’s strategy (Vanguard). 2. Quality Management : Safety Training & Consultant Center(STC), is one of the leading Health & Safety Training providers in saudi established in the year 2002.
STC provides Health, Safety and Environmental training to maintain, enhance and promote improvement in public and environmental health in the region. Management of STC is committed to comply with the requirements of Quality Assurance Authority (QAA), saudi, accreditation bodies requirements and International Quality Management System Standard ISO 9001:2008 to provide high quality of Health & Safety Training & Consultancy Services and to meet with customer requirements and exceed their expectations by: STC aims to: • Enhance health & safety through improved physical environment, social environment, lifestyles within a framework of sustainable development. • Develop and maintain competent professionals. • Secure good organizational management
• We ensure implementation and continual improvement of this policy by setting up of appropriate objectives and that are reviewed periodically to ensure appropriateness of the policy. This policy shall be communicated to all our employees, customers and any interested parties. We shall ensure that all our personnel understand and fully implement our Company’s policies and objectives and are able to perform their duties effectively through an ongoing training and development programmers. 3. Process Strategy: Begin to restructure the company to establish an administrative transition its comprehensive customer service and focus on the development of a comprehensive service to various sectors . The idea is the feasibility of this structure and the mechanism of implementation …
More importantly, is the process of “administrative reform” and the administrative structure represented by administrative reform is a management tool methodology is based on the reconstruction of the organizational roots in order to provide real-time services to clients with high quality in service and the “systematization of work” to enhance the ability to face global competition and local . The process of renewal, restructuring and reform dynamism and vitality out of inertia and inaction as it is essential that this change reflects the values ?? and beliefs telecommunications company and achieve its ambitions and hopes. 4. Location Strategy: The corporate strategy of STC is ACE. It was developed to guide our organization towards becoming a global mobile telecommunications company. At the beginning of 2003, STC started its ambitious expansion journey, labeled the “3x3x3” journey.
Through this 9-year journey, STC would expand, in 3-year intervals, from being a local mobile operator, to becoming a regional then international then global force in its industry. This ambitious growth vision is the driving force behind STC expansion from a local operator serving the Kuwaiti market at the beginning of 2003 to a company with a commercial presence in 24 countries by May 31st, 2009. Our Vision: To become a global mobile telecommunications company by the end of the year 2011. Our Mission: To enrich the lives of our global family. Our Aspiration: Become by 2011 one of the world’s ten largest mobile telecommunications companies, serving over 150 Million satisfied customers.
About ACE: ACE is an acronym that stands for Accelerate, Consolidate, and Expand. These are the three pillars of STC growth. Accelerate the growth of its family; Expanding its reach organically and inorganically Consolidate its strengths; Achieving ultimate efficiency in value creation Expand its relationships with its customers; Satisfying more of its customers’ needs and enhancing their lifestyle. ACE’s Drive11 Program: In 2009, STC announced a strategic program on its ACE agenda, named ‘Drive11’, which will enable it to adopt the best-suited business models to sustain its expansion, particularly in the many high-growth markets that it serves.
As a result, STC will put increased focus on customer-facing functions and will enhance its control on other functions by centralizing them or by outsourcing them to strategic partners. This program comes at a vital stage of the company’s expansion vision. It will maximize economies of scale and realize significant efficiencies, providing the company with the necessary thrust to capture the large growth potential in the markets in which it operates. 5. Layout Strategy |Lead in Next-Gen Broadband | |Become the broadband operator of choice, offering ubiquitous access, converged offerings and innovative content an applications.
| | | |Differentiate Through Integrated Customer Experience | |Delight customers with an integrated experience, differentiated sales and service model, tailored offerings and next-generation customer service. | | | |Consolidate International Leadership | |Optimize international investment portfolio, further expand in the MENA region, drive products, technology and supply chain synergies, and build-up | |international management capabilities.
| | | |Invest in People Capital | | | |Invest in leadership and talent development, increase employee empowerment, and foster a winning corporate culture. | | | |Drive Financial Performance and Agility | | | |Provide value to shareholders by continuously driving efficiency in operations and investing in long-term profitable growth.
| | | |Promote Leading Brand and Reputation | | | |Promote a strong brand and reputation that consistently communicates superior value to stakeholders and STC’s role as the catalyst for economic and social | |development. | | | |LEAD Strategy | |STC’s new strategy – LEAD – was developed to focus our collective energy and efforts in capturing the emerging opportunities while managing overall | |challenges over the coming years. | |LEAD covers six key dimensions that are critical for STC.
| | | |Human resources : | | | |Our human resource philosophy consists of the ‘five Fs’: | |Future: We are vigorously pursuing our vision of a leading global company in the telecommunications industry. | |Fitness: We are striving to achieve the agility and the flexibility to adapt to the challenges of new markets and competition and the changing needs of | |expansion. The challenge Zain provides its employees with is to acquire more knowledge and experience through an internal employee development system that | |enhances the employee’s ability to excel. | |Fun: Our corporate culture aims to build an enjoyable work environment for all employees. | |Freedom: Our corporate culture is designed to promote openness – an openness in which employees can work and express their views freely.
| |Fortune: We are a ‘company of choice’ for anyone considering a career in the telecommunications industry – this is due to the development and growth | |opportunities we offer employees, which continually add value to all our assets. | |. | |Intermediate and short term scheduling: | | | |Our goal is to build a workplace culture that respects the vital role we play in society and utilizes the talents that individuals bring to the | |organization. For all our employees, we promise the following: Skills development: We demonstrate our commitment to the
advancement of our people through a| |comprehensive range of on-site and external trainings and courses that develop technical and interpersonal skills Creativity: Providing the environment and| |giving people free rein to fully exploit their potential and capabilities Diversity: By utilizing the innovative capabilities of a diverse workforce who | |are capable of appreciating and responding to the uniqueness of our business, an increasingly diverse STC will be more adaptive to the needs of our | |customers and shareholders and better able to reward our employees Satisfaction: | |We have an internal policy of giving each of our workers the ability to be a whole person doing a whole job, and to participate in our commitment to an | |external policy that emphasizes our corporate social responsibility wherever we operate.
| | | |Supply Chain ( the make or buy): | | | |At STC Saudi Arabia we have made the commitment to implement sustainability management and transparent reporting. The first step has been the creation of| |our baseline sustainability report that sets out what sustainability means to us and presents our framework and baseline performance since establishment, | |from an environmental, social and economic perspective. Comparable data is provided for 2008, 2009 and 2010 as available.
| |With this baseline Sustainability Report for 2010, we aim to open a constructive and engaging dialogue with all our stakeholders on the subject of our | |sustainability ambitions, performance, and the overall sustainable development of the Kingdom of Saudi Arabia. | |This report has been prepared using the most internationally recognized and comprehensive sustainability reporting guidelines – the Global Reporting | |Initiative (GRI) G3. We have self-declared this report to have achieved a GRI Level B, demonstrating the level of disclosure achieved. The GRI has checked | |and approved our declaration level. | | |
|Inventory management: | | | |Responsible for maintaining the assets in adequate quantities until the request in stores or warehouses close to the point of use to be available in stores| |this storage method appropriate for the materials stored. | |Where the provision of the needs of the facility and the number of materials and equipment necessary for production processes and semi-finished parts in | |proper condition and quality appropriate to ensure that force and to achieve the continuity of the production process. | |Working to reduce the cost of storage and reduce the amount of capital invested in the asset inventory to the minimum possible taking into account the lack| |of inventory reduction of the limit appropriate to the needs of the facility.
| |We supply, install and support Inventorial, a professional stock management software that efficiently tracks inventory processes, from one small retail | |outlet to a chain of stores and warehouses across several locations. | | | | | |Maintenance : | | | |STC and the other licensed operator will monitor and control the flow and routing of traffic in order to maintain compliance with the measures specified | |(quality of service measures).
| | | |STC will carry out monitoring activities at regular intervals and at various levels of the network hierarchy to optimize use of network capacity and the | |quality of service. | | | |STC will deploy resources to carry out all activities required to monitor and maintain the quality of service, in accordance with the terms of the | |interconnection agreement between STC and the other licensed operator. | | | |STC may also carry out specified monitoring activities on a case-by-case basis at its discretion or in response to a request from an interconnected other | |licensed operator.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4. Conclusion
The “Saudi Telecom” Company national leader in providing integrated communications services in the Kingdom of Saudi Arabia, where the company operates, and continuously to respond to market demands, and keep up with developments and technological developments in the field of communications, and to meet the needs of its clients, bearing in mind that this is the way of which established the company’s status and identity, especially in light of changing world of growing role of communications and their uses. 5. Recommendations o Improve the quality of telecommunications services, competition in lower prices and diversification of services to subscribers. o Allocate 30% of the company’s capital “equivalent to $ 560 million” to subscribe to citizens, improve the network coverage to end the suffering of people with poor mobile network.
o Contract with Japanese engineers and give them the powers and budget of the appropriate working group to improve Internet speed Internet. o Website development in terms of ease of handling and features a customer. o The possibility that the client is a conversation for immediate customer service directly on the Internet within 24 hours. o Connect all the towers with divided through optical fiber instead of the microwave for a few quality. o Increase the number of employees who respond to customer requests, such as technical support, billing, compensation, etc. networks. o Change the IVR system and install the latest system. o Improve the quality of voice and video calls and live broadcast.
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