PESTEL Factors for Etisalat

NABEEL BADURDEEN GREAME GOMEZ MAFAZ MUSTHAKEEN AQEEL SATHUK THOOZA SAEED

Company Overview •Etisalat is fully owned and operated by the giant Emirates Telecommunication Corporation in UAE. •Etisalat officially commenced its operations in Sri Lanka on the 25th of February 2010. •Etisalat, acquired 100% stake in Tigo Sri Lanka •Etisalat is consistently providing not only the widest coverage and an unprecedented service, but also a host of other Value Added Services. We are dynamic and treat our customers as our own, and consider customer service as our first priority

Company Vision •A world where people's reach is not limited by matter or distance. People will effortlessly move around the world, staying in touch with family, making new friends as they go, as well as developing new interests. •Businesses of all sizes, no longer limited by distance, will be able to reach new markets.

Innovative technologies will open up fresh opportunities across the globe, allowing the supply of new goods and services to everyone who wants them.

Company Mission •To extend people's reach. •At Etisalat, we are actively developing advanced networks that will enable people to develop, to learn and to grow

PESTEL Analysis Political •

Economical •Positive market growth

Political instability •Government to simplify the tax

•

Wars & conflicts

structure

•

Government Policies

•Growing Economy

Social

Technological

•

Life style trends

•Competing technology development

•

Consumer attitudes and opinions

•Advancement of technology

•

Brand, company and technology image

•Innovation potential

•

Advertising and publicity

•Global communications

•

Major events and influences

Legal

Environmental

•

•Corporate Social Responsibility awareness and

•

Labor Legislation

expectations Consumer Laws

•Consumer buying patterns and satisfaction •TRCSL setting up communication towers.

Political Trends Trend

The impact on Etisalat

The extent of the The likelihood of impact the impact

20% of

Growth in after

Consumers will be

Increased market

telecommunication tax

tax income,

attracted to the

share for etisalat with

got reduced till by

Decrease in price service. The demand

an increased number

50 % in the start of

of the service

curve will be

of users.

2013

Demand for

increased in certain

powered by (TRCL)

telecommunicati

extent.

Resource : (Sunday

on would

observer economy

increase with the

today)

tax cuts

Economical Trends Trend

The impact on Etisalat

The extent of the impact

The likelihood of the impact

economic growth of 7.5 – 8.5% has assumed for next 3 years in the mobile service provider. (Ministry of Finance and Planning of Sri Lanka, 2012)

GSM calls internet packages and dongle markets will be increased due to new business scale and consumers

Market value and single market share of etisalat will be more valuable in the prediction of economy growth, on upcoming year

Possibilities of economy growth on mobile providing service industry etisalat can achieve a good level of economy and can break through their competing partners res: TRSL

Shares from head office of etisalat UAE investment

Will keep the economy Whenever the shares level average on the were low in the market economy scale of etisalat, the head office of etisalat does their investment on the top makes their gross market steady

In the future was assumed to capture the major market. Get more customer get them into under one roof

Social Trends Trends

The impact on Etisalat

The extent of the The likelihood of impact the impact

Growth in the

Connecting rural and

Increase in disposable

Due to the increased

computer literacy rate

urban areas, changes

income, increases

disposable income,

from

requirements of

demand for etisalat.

etisalats customer base

20. 3 % in 2009 to

people.

75% in 2016

should rise where then they could expect a higher profit margin.

Technological Trends Trend

The impact on Etisalat

The extent of the The likelihood of impact the impact

Surpassing Rival firms Due to this, they look

Internet service a long

Fastest internet service

are exhibiting

to surpass rival firms

with the

in Sri Lanka provided

advancements in

with the advancement

telecommunication

by Etisalat.

technology

of technology.

service they provide.

Legal Trends Trend

The impact on Etisalat

The extent of the The likelihood of impact the impact

Labor Legislations

This would solve any

Less labor issues

Labor turnover rate

disputes within the

within etisalat, where

would thereby be

industry, also solve

then the labor work

reduced.

any problems with

force would be

wages and salaries of

stronger and more

employees.

efficient.

Environmental Trends Trend

The impact on Etisalat

The extent of the The likelihood of impact the impact

Telecommunications'

Adhere to strict rules

To make sure that the

Being able to capture

Regulatory

of the TRC in setting

environmental

a wider in the industry,

Commission of Sri

up communication

standards are met to

improving the market

Lanka (TRCSL) in

towers.

its requirements.

share of Etisalat and

putting up signal

also as an

towers and other

environmental

telecommunication

protector.

work

Conclusion & Recommendation •

Currently in Sri Lanka, Dialog is the only threatening competitor for Etisalat as a

telecommunication network service provider. But Etisalat has a competitive advantage over Dialog since it provides the fastest internet service in the country, whereby then etisalat will be able to capture the market through this as well , being able to compete effectively with its rivalries.

•

This PESTLE Analysis on this company has its positives and negatives but as etisalat is a very fast moving service provider , they could surely use this to their benefit since it allocates all macroeconomic factors which could effect the company.

References • Etisalat [home page of Etisalat] [online] Available on : http://www.etisalat.lk/about-us/#.UU4WYRdmiSo [Accessed on 16th March 2013]. • http://www.trc.gov.lk/functions-a-responsibilities/