Arab Academy of Science and Technology MBA program Date: 21-12-2011

International Competitiveness
1st assignment Telecommunication industry
Submitted To: Dr. Raafat Youssef Submitted By: Eman Rashed Mohamed

1-What are the competitive areas to be monitored? 1- Pricing Strategies Example: Customer value-based pricing uses buyers perceptions of value, not the sellers cost, as the key to pricing. Value-based pricing means that the marketer cannot design a product and marketing program and then set the price. Price is considered along with all other marketing mix variables before the marketing program is set. 2- Customer Service 3- Network/Coverage
4- Mobile Broadband

Targeting Youthful Segment [Internet users in Egypt is more than 27,000,000 million] Vodafone - Worldwide Company Its success relies on its superior network, privileged customer service, innovative products and a determined goal-based strategy Vodafone sees that the quality offered is the most important component of success, but it must be offered with competitive prices.
Postpaid Deals- Competition in this area is currently hot.

Some of the Cheapest Deals around currently seem to be coming from Vodafone [Targeting corporate and high class]

Mobinil- Egyptian Company Mobinil offer competitive price and many offers specially in regions [e.g. Upper Egypt] Good Coverage
Current Deals on Prepaid seem to be coming from Mobinil " Mobinil slogan

2- Suggest one main Strategy for Etisalat to beat them and explain why? Etisalat adopt Differentiation (Competitive advantages) strategy Unique selling point The customer must feel that the extra features compensate for the price premium (value add)

Etisalat Egypt: Changing the Rules of the Game 1- It built a new network that was different to other networks, providing mobile 3.5G technology. It was the first to introduce 3.5G and has the widest and strongest coverage of 3.5G across Egypt. Moreover, it provides HSPA_ applications, which offer high Internet speeds for downloading and transferring data. To attract customers to its network, Etisalat Egypt offered new services that were different from what was already available in the market, including video calls and mobile TV. It succeeded in this effort and consequently achieved the highest growth rates in the history of the mobile market in Egypt. Etisalat Egypt presented new subscription schemes and call prices, and it aligned Internet offerings with its customers needs for innovative services and lower prices. In Egypt, mobile phones are considered necessities. In fact, it is easier to access a mobile phone than it is to subscribe to landline phone service, one reason being the poor infrastructure in rural areas.

2- Etisalat Egypt offered the lowest price per minute for calls, including 1 cent per minute for local calls. It was the first service provider to offer international roaming rates: 1 LE pound for incoming calls, and a flat rate for international calls of LE 1.99 per minute. This, and the many other offers and services provided, allowed Etisalat Egypt to distinguish itself from its competitors. Today Etisalat Egypt is considered not only a strong competitor but also a proactive company in terms of launching services and making offers to individual and business customers.

3- Identify the Key sources of information for Etisalat to consult regarding Mobinil and Vodafone ?
1- Mystery shopping 2- Distributors 3- Customers 4- Ex-Worker 5- Survey and Questionnaire

Marketing Research: Primary research consists in research to collect original primary data. It is often undertaken after the researcher has gained some insight into the issue by collecting secondary data. This can be through numerous forms, including questionnaires, direct observation and telephone interviews amongst others

Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all

Secondary data 1- Internal data which is available inside the organization 2- External data ( Governmental Non Governmental such as internet )

Examples of required data: Market share and relative Market share Operation Distribution Channels Major Shareholders Investment Segment Analysis