Executive Summary
The Middle East Telecommunications Company (METCO) need to establish new ways of fighting any challenges it is facing now in the UAE. The UAE is a developed country with all market requirements for business success. There is need to establish a clear guidance for the company to grow accordingly. This can be done if it understands its weaknesses, strengths, and opportunities and develop strategies to establish each case.
Company Description
The Middle East Telecommunications Company has been contributing to economic development of many countries in the Middle East, which host the company’s franchises. The company deals with telecommunication services. It has recently launched operations in Dubai. The company offer supplies and operate various telecom solutions to customers and vendors locally as well as within the Middle East region.
Market Analysis (Pinson, 2004)
The market for telecommunication services and electronics in UAE not easy for new entrants since the competition is stiff. Companies like Zain Telecommunications Company challenge the Middle East Telecommunications Company and services. Technology is ever changing and companies are fighting to provide the best in the communication products and service industry. METCO is quickly gaining a good market position against its opponents.
Company’s Management System
The Middle East Telecommunications Company products are largely trusted in other country the Middle East and the same aspect applies the UAE society. The company has decentralized management system with various branches throughout the Middle East region. This management ensures that the company produces based on the demands and needs of the communications consumers. This practice of the management makes its products appealing to the consumers.
The Main Products
The Middle East Telecommunications Company has a good position in the UAE. The company offers supplies many brands and services in telecommunications. It is offering products that are in line with people’s requirements especially in telecommunications services and products. All products are updated to meet the level of the prevailing technology.
Marketing and Sale
The company is quickly advancing due to the increasing demand in telecommunication products. It mainly operates under clear market strategies that make it venture into various markets both locally and regionally. The company is projecting an increase in its sales in the near future.
Cost Information
The venture was started by incurring a significant cost of establishment. There is the cost of capital, labor costs, cost of raw materials, and cost of establishment. After its establishment, the company was running at high operating costs due to low productivity and smaller market. The cost increase is significant, as the company grows larger in scope.
Financial Projection
The Middle East Telecommunications Company projects its financial position to increase by about 50 per cent in the next five years. The current situation and financial position has been faced with challenges due to financial inadequacy. The company’s management is trying to increase the sale of its shares to boost its financial position and make it operations stable. It is also calling for the help of donors and assistant form international bodies in offering financial aid.
Legal / Environmental Analysis
SWOT Analysis
Strengths
The Company has its strength from the regional perception of the company’s products. This makes it more competitive than its communication rivals do. The major rivals are Zain Telecommunications, which offer global services and products.
Weaknesses
The company only relies on the strategies from the brand’s headquarters and all other branches works according to the established strategies. This means that innovation is limited to the main office although it has decentralized management. This makes it difficult to plan according to the structure of its environmental and social characteristics of the UAE industry and market.
Opportunities
UAE is a rich country with high per capita income. This creates a market opportunity where telecommunication expenditure is not limited to buying power but completion. There are many areas to venture and considering the hot climate, the company can grow as much as possible.
Threats
Zain is a global company. METCO on the other hand is regional company with less success factors than Zain. It is therefore faced with more chances of Zain’s growth. Other telecommunications companies in the UAE are as we a threat to METCO.
References
Pinson, L. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Chicago: Dearborn Trade.
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