1. CURRENT SITUATION
1.1 Current Performance
As per the full year and the fourth quarter of 2014 report issued 19 February 2015:
§ Annual revenue now tops AED 10 billion.
§ Revenues grew to AED 12.2 billion
§ More than 6.5 million mobile customers
§ Net profit after royalty stood at AED 2.11 billion
§ Almost 50% market share
1.2 Strategic Posture
Mission Statement
We want to delight our customers, be the employer of choice for the best talent, create optimal value for our shareholders through business excellence and innovation, and proudly contribute to the transformation of our community.
We work to deliver our vision by using our talent, skills and energies to connect, inspire and reward all we touch, every day.
§ Where we are now? A very solid and strong telecommunication company
§ Where we want to be?A prestigious International telecom Company
§ How we want to reach?Providing highest standards of business reliability and responsibility
Objectives
§ To secure a major contract with the UAE Federal Government to build and design the environment required for the Government's FEDnet initiative.
§ Ameliorate our share in the data center to deliver both internal and external efficacies.
§ Focus variationfrom growing mobile market share to increasing subscribers to its data package services.
§ Improving customer encounter by employing the latest and innovative resolutions.
§ Initiating tailoredbusiness roaming packs to provide businesses greater elasticity, significance and continuous bond with their staffs when travelling abroad.
Strategies
To meet the above objectives the board of directors adopted the following
Operational strategies:
§ Introducing day-to-day and scheduled social media packages for pre-paid and post-paid customer segments, permitting people to stay connected more easily with their favorite social media apps.
§ Expanding our 3G and 4G system, developing our competence and covering and rolling out our fiber optic network.
§ Proposing larger ease to customers via a new multiscreen aspect that permits watching preferred programs through their mobile devices.
§ Drifting more of our own substructure into the data centerin turn to save considerable operational charges, and augmenting our data centerability to better serve our clients.
§ Offer high-speed connectivity and merging between the various current e-Government structures.
2.Strategic Managers
Board of Directors:
§ Operation department manager: Is accountable for monitoring clients' procedures, any network expansion, IT products trade and operations forecasting and services.
§ Commercial department manager:Is responsible for personnel affairs, Administrative growth, Purchasing and logistics as well orchestrating government relations.
§ Corporate affairs department manager:Is accountable for the company strategies, savings, general sale management, international delivery relations, stock chain and resourcing, regulation Concerns, risk Supervisor and foreign affairs.
§ Human Capital department manager:Is in charge of monitoring employees skills, experience and providing staff with innovative, highly efficient training program that enhance the employees overall performance.
§ Financial department manager:To guarantee the appropriate and ample funds in order to make sure there is enough supply for the company ongoing operations.
3. SWOT ANALYSIS
2.1 Internal Factor Analysis Summary [IFAS]
Strengths
§ (S1)Competitive pricing schemes (Finance)
§ (S2) Broadband connectivity (Operation)
§ (S3)Excellent customer service (Commercial)
§ (S4)Steady increase in mobile subscriber (Commercial)
Weaknesses
§ (W1) incomplete infrastructure to cover some landlineareas (Operation)
§ (W2)Limited roaming service(Production)
§ (W3)Mobile Number Portability (Finance)
§ (W4)Poor visible Du promotions (Marketing)
2.2 External Environment [EFAS]
Opportunities
§ (O1) New technologies Fiber optic network (Operation)
§ (O2) Integrated service digital network (Commercial)
§ (O3)Dubai Smart City (Finance)
§ (O4) Significant growth in mobile data revenue (Finance)
Threats
§ (T1) Voice over Internet Protocol (VoIP)-a revolutionary technology (Operation)
§ (T2) liberalization of the UAE telecoms sector(Operation)
§ (T3) Increasing pricing pressure from competitors such as Etisalat (Finance)
§ (T4)Global financial crisis situation (Finance)
4. PORTER FIVE COMPETITVE FORCES
§ Threat of New Entrants - High: Too many telecom companies strive to enter the UAE telecommunication market, yet the government has put many restrictions to control the number of competitors. However this is not fixed and some other opponents might enterthe telecommunication market.
§ Threats of Substitutes- Low:Du is currently providing two sorts of telephone services the mobile and landline there is no other alternative accessible substitute in the foreseeable future.
§ Bargaining Power of Suppliers- Low:Du has a very strong position to bargain with its suppliers, as there is only one competitor that limits the suppliers' options and gives Du a higher power.
§ Bargaining Power of Buyers- Medium:Since there is one market opponent in the telecommunication field which is Etisalat, the bargaining power of Du's customer is medium. Keeping in mind that Etisalat will work hard to attract customers that may affect Du profitability.
§ Competitive Rivalry- High: Considering the fact that there are only two major telecommunication competitors in the market,Du and Etisalat, this leads to a higher intensity and power level. As they will both work hard to sustain their customers and charm opponents' customer to switch over. The telecommunication industry requires huge ongoing investments as competitors poses real threat.
5. RECOMMENDED STRATEGY
1) [SO] Strategies
[S3] [O1] Increase in the productivity level
[S1] [O1] More financing throughout new government and federal contract
[S4] [O4] Assure effective well-organized responsiveness to customer needs
2) [ST] Strategies
[S1] [T3] Offer better financial credit deals
[S4] [T4] Increase marketing visibility
[S3] [T3] Holding customer loyalty
3) [WT] Strategies
[W1] [T1] Radical improvement to the infrastructure and connectivity level
[W2] [T3] Provide better packages
[W3] [T1] Block Internetphone calls to increase productivity
6. IMPLEMENTATION
§ Huge investment in infrastructure will increase productivity
§ Excellent quality service and responsiveness to customers
§ Implement a strong and aggressive marketing tactics
§ Best quality at reasonable prices