Strategy Planning Saudi electronic university Global Strategy discussion
Global Strategy Saudi Arabia has had significant economic growth in recent years, mostly attributable to its oil reserves and well-timed investments in other industries. The worldwide expansion of Saudi businesses, using the competitive edge to gain access to global markets, has been a significant factor in this rise (Grant, slide 4). The Saudi Telecom Company (STC) is a notable entity that has effectively expanded its operations outside Saudi Arabia’s boundaries. This paper explores how STC extended its competitive advantage to the international market, the mode of foreign market entry it adopted, and how its resources and capabilities contributed to its success in the international market. Company Overview The Kingdom of Saudi Arabia’s largest and most prominent telecommunications business is STC. It was established in 1998 and has Riyadh as its headquarters (Singh, 2020). STC offers its valued clients broadband, fixed-line, and mobile internet services. It has subsidiaries in the UK, Bahrain, Kuwait, etc. This business has been the most significant developer in Saudi Arabia’s telecommunications industry, setting the standard for technology in the field. Expansion of Competitive Advantage STC’s established competitive advantage and strategic investments in critical sectors expanded this to worldwide markets (Grant, slide 6). First, the organization has a solid reputation for reliability and high-quality services because of its strong brand image. Its reputation made it possible to win over clients’ trust and loyalty in its native market, which is a tremendous advantage when expanding internationally. Besides, the STC established partnerships with other international companies, such as iBASIS, to enhance the international communication experience (O’Grady, 2024). This gave STC an advantage over other telecom companies in areas where consumers valued reliability and high-quality services above those offered by competitors. Additionally, pursuing innovation and technological expertise was another significant in STC’s international expansion (Alahmari et al., 2023). The company is at the forefront of the telecommunications industry in terms of technology because of massive investments in research and development (Al-Mansour et al., 2024). This allowed the STC to present high-value-added services and solutions that appealed to the expanding needs of foreign clients, who were now asking for more sophisticated communications services such as 5Gs, cloud services, etc. Transferable and Replicable Competitive Advantages Not all competitive advantages of STC were easy to transfer and replicate in the international markets. Although the brand’s reputation and image might be transferred to some extent, the problem in overseas markets was the cultural differences and market dynamics (AlMansour et al., 2024). Similarly, its technological expertise would be transportable, but it would also need to be customized and adjusted to the competitive environment in global markets. Mode of Foreign Market Entry STC began strategically entering global markets through partnerships and joint ventures with local companies (Grant, slide 17). For example, STC’s international subsidiaries are “STC Bahrain BSCC (VIVA), Bahrain; Kuwait Telecom Company KSCC (VIVA), AXIS Telekom Indonesia (formerly NTS), Indonesia” (Al-Aali & Kamel, 2015). This strengthened its distribution networks and commercial contacts’ capacity to profit from local market expertise. This entrance strategy established a strong footing in those markets by immediately entering the intricate global market. Resources and Capabilities in International Markets The STC needed to rely on its resources and competencies, which included distribution, commercial relationships, political contacts, and local market expertise. Local businesses collaborated with and had access to data on consumer preferences and market trends (Grant, slide 20). This made it possible for STC to tailor its services to clients’ unique requirements on the global market. STC’s alliances and distribution networks also enable them to reach a wider range of customers in the global market. This feature and its outstanding reputation and branding have allowed STC to fall behind in domestic and international competition. Conclusion The key to STC’s successful global expansion has been its ability to strategically leverage its competitive advantages, allowing it to choose the right foreign market entry strategy and efficiently use its resources and competencies abroad. The company’s strategic approach to international growth has allowed it to establish a strong presence in foreign and offshore markets, enabling it to compete on an equal footing with local and international firms. References Al-Aali, A., & Kamel, M. M. (2015). (PDF) Saudi Telecom Company: Rapid International Investments and Divestments. ResearchGate. https://www.researchgate.net/publication/291347900_Saudi_Tele com_Company_Rapid_International_Investments_and_Divestments Al-Mansour, M. A., Saeed, A., Mohammed, Mahmoud, & Tafe. (2024). The Effect of Strategic Partnerships on Achieving Sustainable Development: The Mediating Role of Business Performance in Saudi Telecommunications Corporation. Kurdish Studies, 12(2), 394– 410. https://kurdishstudies.net/menu-script/index.php/KS/article/view/1812 Alahmari, N., Mehmood, R., Alzahrani, A., Yigitcanlar, T., & Corchado, J. M. (2023). Autonomous and Sustainable Service Economies: Data-Driven Optimization of Design and Operations through Discovery of Multi-Perspective Parameters. Sustainability, 15(22), 16003. https://doi.org/10.3390/su152216003 Grant, R. M. (n.d.). Contemporary Strategy Analysis. Eleventh Edition. O’Grady, V. (2024, February 12). Saudi Arabia’s STC signs deal with iBASIS to boost IoT in MENA. Developing Telecoms. https://developingtelecoms.com/telecom-technology/wirelessnetworks/16202-saudi-arabia-s-stc-signs-deal-with-ibasis-to-boost-iot-inmena.html Singh, A. K. (2020). Digital Era in the Kingdom of Saudi Arabia: Novel Strategies of the Telecom Service Providers Companies. Webology, 17(1), 227– 245. https://doi.org/10.14704/web/v17i1/a219
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