XYZ communication as a mobile operator wants to enter one of the countries in the GCC

1. CASE STUDY : XYZ TELECOM ORGANIZATION ENTERING INTO UAE SUBMITTED BY: PRATEEK SIGH DHILLON prateekdhillon@gmail.com

2. AGENDA Three objectives : 1. Secondary research for the XYZ organization. 2. Create a Methodology for successful entry. 3. Provide a sustainable solution for business.

3. GCCCOUNTRIES

4. GCC COMPANY COMPARISON

5. Mobile Penetration Rates in Middle East

6. Major Operators in GCC

7. Assumption XYZ is an Indian organization with a good financial for the development of infrastructure. Is looking to invest in UAE. Has considered all the legal consequences that are applicable in UAE. Company is looking for quick launch within 3 to 6 months time span. Research methodology used for the firm would be according to current scenario and it can have secondary data research. Company is having Approx $ 70 million for marketing Budget Company has a brand name that consumers perceive as value for money, quality, innovation and an aspiring degree of fun and competitive challenges.

8. U.A.E

9. UAE (Major City)

12. Subscriber 4-year CAGR by segment (2004-2008)

13. UAE mobile subscribers and YoY growth

14. Operators net additions and market share (quarterly)

15. MARKET OVERVIEW

16. Market Positives Negatives Mobile Fixed-line

17. Positives Negatives Internet

20. Porter analysis :

21. Pest Analysis

22. Competitive Analysis of Rivals

23. Market Share

24. SPACE Matrix Strategic Management Method

25. SPACE MATRIX Y Axis Suggested Strategy Type 2.75 3 25 X Axis

27. Desire for personalization.

28. Love for Music.

29. Dynamic change of taste.

30. “They are the household chief technology officers” (enjoys figuring out new feature)

32. Access to branded accessories andphones like Iphone, Google and BlackBerry and Brand accessories like MTV which represent hip-hop and youth culture.

33. Text messaging: this should be free between XYZ Customers.

34. Rescue Ring : A fake call at any time the customer wants with what ever massage the customer want to hear from us.

35. Online Real-time Billing

37. The Hit List.

38. Fun Clips : Cartoon clips, youtube clips, Uploading clip to youtube.

39. Social networking Site features for the customer like facebook any myspace.

40. Music Messenger .

41. Movies : Online movie viewing on their Mobile set.

44. May drive margins down if additional features are costly

45. Reduces competitive advantage

46. Difficult to penetrate saturated market with similar offer as competitors

47. Competitive with other cell phone providers and packages; does not support strong market differentiation

48. Pros

49. Give customers more features for the same price

50. Easy to promote, use current models

51. Limited spending power on promotion may be a justifiable factor

53. Drive sales and market share

54. Accounts for limited spending power of target market

55. Cons

56. Margins and profitability will be driven down

57. Inconsistent with company goal of profitability

58. Cannot compete in price wars

60. Differentiate from competition

61. Cater to the needs of target market

62. Flexibility is attractive to target market

63. Profitability is key

64. Eliminates risk of missed payments

65. Cons

66. Risk of limited returns and loyalty

68. Pricing Objective:

69. Sales Maximization

70. Demand Estimate:

71. Current market penetration of target market.

72. Create Demand amongst remaining.

73. Capitalize on Highly Elastic Demand of Target Market.

74. Cost Estimates:

75. Monthly Cost to Serve per Customer

76. Networking Cost

78. Penetration Pricing

79. Costs per Unit is inversely related to Number of Subscribers

80. Reduce CCPU by increase in Number of Subscribers

81. Increase in Margin will followLTV=Life Time Value. ARPU= Average Revenue Per Unit. CCPU=Cash Cost Per Unit= 45% of ARPU. M=Monthly margin =ARPU-CCPU. AC=Acquisition cost. r=Retention rate= 1- churn rate. i=interest rate.

82. Advertisement Marketing budget $70 million. Quirky and offbeat advertising, different from the competitors. Street marketing. Teens to be used for marketing. Youth magazines like The Complex, Vibe,…etc are to be used to publish “advertorials.”

83. CONT. Advertisement Example

85. References http://www.citc.gov.sa/NR/rdonlyres/ECC196FF-D3C1-4C88-B793-685C96CA0309/0/ICTSectorinKSA2009English.pdf http://www.tra.ae/annual_ICT_industry.php http://www.reportlinker.com/p0131813/Saudi-Arabia-Telecoms-Mobile-and-Broadband.html?request=news http://www.tra.gov.om/newsite1/Portal/Upload/Documents/398_Q4-2009.pdf http://www.tra.gov.om/newsite1/Portal/Upload/Documents/337_08AnnualReportEn.pdf

86. http://www.globalinv.net/research/GCCTelecom-112009.pdf http://www.zawya.com/printstory.cfm?storyid=ZAWYA20091228053738&l=053700091228 http://www.tra.org.bh/en/pdf/TelecommunicationsmarketsindicatorsintheKingdomofBahrain.pdf http://www.tra.org.bh/en/marketstatistics.asp http://www.gulfbase.com http://www.mckinseyquarterly.com http://www.escwa.un.org/popin/members/uae.pdf https://www.cia.gov/library/publications/the-world-factbook/region/region_mde.html http://www.zawya.com http://www.ptc.com.sa

87. http://www.ft.com/home/middleeast http://www.gulfbase.com/site/interface/SpecialReport/Qtel_15102009.pdf http://www.reportlinker.com/p0189736/Saudi-Arabia-Telecommunications-Report-Q2-2010.html http://www.reportbuyer.com/telecoms/country_overviews_telecommunications/kuwait_telecommunications_report_q2_2010.html http://www.nbkcapital.com/BR/Research/MER/Telecom%20Sector/Kuwait/Wataniya%20Telecom/NBK%20Capital-Wataniya%20Telecom%20Initiation-02July2009.pdf http://www.itu.int/ITU-D/ict/newslog/Qtel+Subscriber+Base+Exceeds+Countrys+Total+Population+Qatar.aspx