Emirates Telecommunications Corporation which is also known as “Etisalat” was well known UAE-based telecommunications services provider (Etisalat, 2011). The corporation was currently operating in 18 different nations around the globe and of 2009 of November, the company became the 13th largest Mobile network operator in the world. Currently, a total of 100 million customer base makes the company more impressive. Actually, the company earns net revenue of USD .4 billion (AED 30.831 billion) and net profits of USD .407 billion (AED 8.836 billion) on January 2010 (Etisalat, 2011).
Perhaps, the rapid growth of technological advancement like the creation of Etisalat in the society has brought people so much ease in all the things they do. Part of this technological advancement is the emergence of the innovative activities for Etisalat (Etisalat, 2011). Management of innovation is often regarded as the unquestioned cornerstone towards competitiveness in the 21st century. These technological advancements have brought people especially those in the business word to utilise a strategy that would be helpful in enhancing the business value of Etisalat (Etisalat, 2011). Furthermore, this development has made changes and development of the plans and strategies of the management of any organisation especially those in the marketing environment. Within the market place, one of the most important things to consider is to establish a strategy that will be useful for different activities of the organisation and enhance the value of the business as a whole. Part of the changes brought by the competition of these industries globally is the new economics, new market structure, new marketing strategy as well as the new structures of each and every industry within this field.
In the company’s history, Emirates Telecommunication Corporation or the known Etisalat was founded trough a joint-stock company between International Aeradio Limited, a British Company, and local partners in 1976 (Etisalat, 2011). However, the ownership structure changed in 1983 whereas the government of United Arab Emirates held a 60% share in the company. The remaining 40% shares were publicly traded (Etisalat, 2011).
In 1991, the UAE central government issued Federal Law No. 1, which gave the corporation the privileges to give the telecommunications wired and wireless services in the nation and between UAE and other nations. It also gave the firm the right to issue licenses for owning, importing, manufacturing, using or operating telecommunication equipment (Etisalat, 2011). This almost gave Etisalat both regulatory and direct authorities, which finished the domination of the telecom giant in the UAE. With the aim of preserving the country’s economic growth, the law made provisions for the progress of the telecommunication segment in UAE. The boost of trade lines from 36,000 in 1976 to more than 737,000 in 1998 was one of the significant gauges of Etisalat network’s intensification and progress (Etisalat, 2011).
An imperative highlight was Etisalat’s instigation of global operations in January 2001, when under the brand name of Ufone it started working out of Islamabad. Nowadays Etisalat situates 140th among the Financial Times Top 500 Corporations in the globe in terms of marketplace capitalization, and is positioned by The Middle East magazine as the 6th largest company in the Middle East with regards to capitalization and revenues (Etisalat, 2011). Etisalat is the major provider outside the oil sector to growth programmes of the UAE Federal Government. Etisalat has also won praises from across the region for its nationalization programme (Etisalat, 2011).
With regards to the innovations of Etisalat, the consideration of the needs of the consumers is highly recognised. Furthermore, the satisfaction of consumers and company are projected effectively. In accordance to the evaluation of the effectiveness of the innovative services of Etisalat, PEST analysis was illustrated. PEST Stands for Political, Economic, Sociocultural and technological factors that influence Etisalat’s overall performance in the market place with respect to innovations.
Political Sector- A company will not be able to gain success if they will not consider legal and political sector as part of their strategy. Etisalat has observed business ethics. Hence, the company considers legality in all their actions. They make sure that all their services will be useful in response to their social responsibilities. Politically, Etisalat has tried to be helpful in the society. In fact, the company has established Etisalat Research that supports science and technological advancements.
Economic Sector- Economically, it can be said that Etisalat is secured by having continuous growth rate throughout the years. With regards to innovations of services, the company as been able to established an economic stability to continue to serve and offer people from different agencies and sectors private or public, locally and globally.
Sociocultural Sector- Culture is an important factor in understanding an industry, because for any organisation to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. In Etisalat, the management sees to it that they value the opinion of their employees no matter what is their nationality. Since, this company is competing globally; it cannot be denied that they need employees form different cultures to be in the company to help in the decision making. It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees.
Technology Sector – The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry (Luftman et al, 1993). From its history, it shows that Etisalat achieved a tremendous growth. Their technology is built upon the highest quality and functions in order to provide customer’s demands in communication. Herein, the physical resources of the company were being monitored to maintain its efficiency to further enhance the organisation’s position to be the number one telecommunication industry in the global market.
References:
Etisalat (2011). About Us. [Online] Accessed: February 11, 2011. Available at <http://www.etisalat.ae/index.jsp?lang=en&type=channel¤tid=a79a8e621187b010VgnVCM1000000c24a8c0____&parentid=ed38800d1f52a010VgnVCM1000000a0a0a0a____>
Luftman, J.N.; Lewis, P.R; Oldach, S.H. (1993). “Transforming the Enterprise: The alignment of Business and Information Technology Strategies.” IBM Systems Journal 32(1): 198-221.
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