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Description Saudi Telecom Company Saudi Telecom Company (STC) is a provider of coverage solutions and telecommunications services headquartered in


Saudi Telecom Company
Saudi Telecom Company (STC) is a provider of coverage solutions and telecommunications services
headquartered in the Kingdom of Saudi Arabia (KSA). The entity offers a wide range of primary services,
including but not limited to mobile and data services, landline fixed infrastructures, cloud computing, and
breadboard services. The organization is widely recognized as the preeminent telecommunications
provider in the Middle East, boasting an impressive mobile subscriber base exceeding 50 million and an
all-encompassing revenue of SR 77 billion. STC has experienced significant growth and expansion in the
global market for the past decade, amassing an extensive subscriber base of 53 million mobile lines, 2.54
million fixed broadband lines, and 4.8 million fixed telephone lines. The organization has established
operations in Saudi Arabia, Kuwait, Bahrain, as well as other telecommunications markets in Asia and
Europe, where it employs an estimated 17,000 individuals.
What method of international growth did the STC Company use?
From the standpoint of international expansion, Saudi Telecom Company implemented various
globalization strategies, which in turn led to its international expansion. One could argue that the
organization was cognizant of the significance and discernible distinctions between European and Asian
cultures. Through cultural competency, the organization had established a diverse workforce at each of
its operational bases. Furthermore, the organization incorporated culturally aware characteristics and
regulatory measures into its telecommunication infrastructures with respect to various target
demographics (Ahmad, 2014). By implementing cultural competency, the organization created unique
consumer experiences while protecting the cultural values, beliefs, and perceptions of its users. For
example, the incorporation of sharia law into Islamic law facilitated the company’s integration into Arabic
countries, thereby accelerating STC’s internationalization. Consolidation of global leadership facilitated
seamless market penetration, particularly in Europe. By employing strategic leadership and management,
the organization has successfully integrated culture-centric service attributes that garner substantial
patronage from the target demographics.
What source of competitive advantage does the STC have, and how do its resources and
capabilities support that position?
By virtue of its technological innovation, diversification, cultural competence, and strategic leadership,
STC maintains a competitive edge over rival brands. Through the establishment of a diverse workforce,
the organization promotes cultural competency and diversity. The organization successfully caters to the
interests and requirements of its customers by maintaining a diverse workforce (Sharma, 2014). As a
result, its adherents’ trust and loyalty are enhanced. Conversely, technological advancements enhance
telecommunication platforms, privacy, and security, thereby protecting consumer interests and ensuring
the dependability and accountability of the organization’s infrastructures (El Emary et al., 2012). Strategic
leadership inspires novel managerial methodologies with the objective of satisfying consumer demands
and delivering optimal experiences to subscribers across various geographic regions. In general, the
objectives of all entities are to optimize customer satisfaction, which consequently impacts STC’s market
How does the STC deal effectively with its external environment?
The external environment significantly influences the external perception, image, and attributive
consumer beliefs of an organization. These factors collectively constitute the brand reputation. STC
describes a variety of strategies for stratifying and managing interactions with the external environment.
Significantly, various interventions such as sustainability, effective communication, feedback, and
diversification are implemented to establish and maintain external relations and environments (Ahmad,
2014). To begin with, the organization employs efficient communication strategies to resolve consumer
issues and transform negative feedback into positive ones (El Emary et al., 2012). The implementation of
grievance address systems enhances the organization’s reputation for reliability, openness, and
responsibility with regard to consumer welfare, safety, and global benchmarks. Furthermore, the
organization fosters a diverse culture by employing a locally sourced workforce that embodies diversity.
Therefore, the workforce offers valuable perspectives on the implementation of creative ideologies that
benefit the organization as a whole.
What recommendations would you make to the STC concerning this or future expansion?
From a personal standpoint, the effective implementation of several recommendations would significantly
enhance STC’s market influence and generate additional revenue sources. To begin with, the integration
of global communication standards will enhance the international acceptance of STC’s services.
Additionally, by actively participating in corporate social responsibility (CSR), an organization can
enhance its brand image and profitability while positively impacting its reputation on global markets.
Supplementary suggestions such as allocating resources towards innovation and technology will enhance
the functionality of telecommunication infrastructure, ultimately leading to an improved user experience
(Sharma, 2014).
Ahmad, S. Z. (2014). Partnering toward internationalization at four Arabian mobile telecom firms. Global
Business and Organizational Excellence, 33(6), 51-68.
El Emary, I. M., Alsereihy, H. A., & Alyoubi, A. A. (2012). Towards Improving the performance of STC
Saudi using knowledge management strategies. Middle-East Journal of Scientific Research, 12(2), 234242.
Sharma, R. B. (2014). Customers satisfaction in telecom sector in Saudi Arabia: An empirical
investigation. European Scientific Journal, 10(13).

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