Oman Telecommunications Company: SWOT Analysis

Oman Telecommunication Company commonly referred to as omantel, is arguably the biggest communication service provider in Oman. Succinctly, Omantel provides a wide assortment of products and services with its flagship being fixed line, Internet services, mobile, and communication services across the country. The companys fixed-line service provisions incorporate national and global fixed line voice, prepaid cards, and payphones through prepaid and post-paid plans under various brands. Omantel offers a scope of mobile services through post-paid and prepaid arrangements and other value-based administrations. It offers 3G and 4G networks crosswise over Oman for private and individual utilization. The organization gives a scope of business services including mobile and fixed line services, Internet access, connection services, as well as wholesale services.

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The company takes pride in being the first telecommunications company in Oman and hence the primary internet services provider in the country. In 2008, Omantel became the largest shareholder of WorldCall Telecom Ltd. Over the years, Omantel had built up its brand and reputation as a significant international hub and a force to reckon with the internet services industry. Along these lines, in 2015, the company launched a project that would see it implement FTTH Technology in Oman CITATION Tim15 \l 1033 (Times of Roman, 2015). Today, the company has approximately 2600 employees with an average annual revenue of close to 1,300 million dollars CITATION Goo09 \l 1033 (Google Finance, 2009). Subsequently, the companys performance mirrors the prevailing social, economic, and political environment in which it operates. These constructs are both local and international. Oman's telecoms market is exceptionally dynamic, and its mobile and internet services division specifically is established. This profoundly competitive market, however, implies the administrators are confronting a number difficulties which are having an effect upon general performance and profitability. The internet services market in Oman is currently characterized by high infiltration and numerous different memberships. While this is prompting to help in mobile broadband development, in the meantime the various OTT suppliers have disturbed the market. This development has brought about a decrease in income from streams, such as SMS and additionally voice for the customary administrators. To battle this pattern, the significant administrators in Oman are concentrating on enhancing the customer experience through both settled and versatile system overhauls. In light of this comprehension, the leading organizations are investing immensely in extending and enhancing versatile systems so as to keep up with the developing interest for information. Furthermore, the progression of rapid fixed broadband services is heightened in Oman.

SWOT Analysis and their Effects

Strengths

The companys progressive development over the years can be attributed to an array of strengths such as but not limited to technical infrastructure, reputation, reliable wireless broadband, a cohort of products and services, among others. First, the government-owned company has progressively developed to be a leading communication services provider in the country. Be that as it may, the immense success could be attributed to the fact that Omantel was the primary internet services provider hence enjoying a monotony. Over the years, the companys endeavors have been bolstered by continuous Omans government efforts and dedication to developing telecommunication in the country CITATION AlH11 \l 1033 (Hashimi & Sultan, 2011). For instance, in 2002, the government enacted The Telecom Act which saw the establishment of TRA (Telecom Liberalization Policy). Soon after, Omantel was awarded the first public telecommunication network license CITATION TRA14 \l 1033 (TRA-Oman, 2014). With the establishment of TRA, there was heightened efficiency in the telecommunication sector. Moreover, having been awarded the first telecommunication network license, Omantel was in a better position to further its operations and bolster is profitability.

Subsequently, the company has managed to develop a dependable technical infrastructure that enhances a smooth provision of its services. The last decade has seen the company lay down sustainable technological infrastructure that is telecom industry significant. Such infrastructure includes but is not limited to network equipment and the underlying software framework. Some of the most significant developments undertaken by the company include the market development of HFC cable, wireless broadband, B2B internet and data services, and FTTH technology. These developments coupled up with Omantels initial revolutionary efforts in the Oman telecommunications industry over the years, have enabled the company to build a reputation for itself, becoming a force to reckon with. As a result, the company enjoys a competitive advantage in an overly competitive market.

Given the fact that Omantel was the first telecommunications in Oman granted it a strong market position in the country. Thus, the company has been able to develop a strong geographical diverse position with a great employee and task force base. In so doing, the company has also produced a strong operational efficiency and performance in light of its dynamic technological infrastructure. A blend of the operational efficiency and market position has enabled the company to adopt and implement a technology-driven framework that has proven to immensely valuable in cost minimization and heightened profitability.

Weaknesses

Be that as it may, the company battles a cohort of weaknesses and challenges that limit its efficiency and business operations. First, the establishment of Telecommunications Regulatory Authority saw more organizations entering the telecommunications sector from 2007 which increased the competition in the industry. CITATION TRA14 \l 1033 (TRA-Oman, 2014). After awarding omantel the first telecommunication network license to Omantel, The Telecommunications Regulatory Authority invited more applications for mobile re-sale services which resulted in increased competition in the mobile sector. The market that was previously dominated by Omantel was now flooded with more service providers. For instance, shortly after the first license issuance, the second public network license was awarded to Omani Qatari Telecom Company CITATION TRA14 \l 1033 (TRA-Oman, 2014). With new entrants in the market, Omantel was no longer the dominant telecommunications service provider. It is, therefore, imperative for the company to increase marketing and technological strategies in a bid to remain competitive and profitable.

Second, the company lacks a strong brand portfolio. In light of the competitive market in the telecommunication sector, a diverse brand is collection is imperative. The lack of a diverse brand portfolio, therefore, poses a weakness to the company. Whats more, the Oman financial market has been overly unstable. This financial instability is depicted by the continuous fall of the shares CITATION Oma15 \l 1033 (Anon., 2015).

Opportunities

Oman s economy is dependably growing which creates an opportunity for Omantel to further its business operations. The continuous economic growth in the country makes it easier for the company to develop, penetrate new markets, and adopt new strategies. In 2008, the countrys Gross Domestic Product hit an all-time high of 13.10 percent with a projected sustainable growth rate CITATION Tra16 \l 1033 (Trading Economics, 2016). The sustainable economic growth rate, therefore creates a serene environment for the company.

Threats

The most significant threats that the company faces includes but are not limited to heightened labor costs, higher prices, taxations, technological challenges, and reduced profitability CITATION Win09 \l 1033 (Winckler, 2009). The company is likely to battle stringent taxes in future following continuous government regulations and control. The cost of labor is also on the rise which increases the companys operational costs CITATION Mat14 \l 1033 (Smith, 2014). The labor market in Oman is characterized by heightened labor costs and migration which creates an imbalance in the socio-demographic framework which also poses a threat to Omantel CITATION GLM15 \l 1033 \m KDa10 (GLMM, 2015; Das & Gokhale, 2010). Furthermore, as the company endeavors to expand its operations, it is bound to face technological challenges.

Analysis of Findings

The backdrop above depicts the strategic outlook of the company in the present-day competitive business domain. From the SWOT analysis, it becomes apparent that whereas the company is successful and efficient in the provision of its services, it also faces an array of threats and weaknesses. It therefore becomes imperative for Omantel to bolster their strengths to ensure progressive growth as well as forecast, plan, and shield itself from the weaknesses and threats in future. In so doing, Omantel will adopt a comprehensive and sustainable framework that will see the company increase profitability and continue to enjoy a competitive advantage. An in-depth analysis of the strengths and weaknesses mirrors the companys dominance and efficiency in the region given that the strengths and positive opportunities surpass the weaknesses and threats.

Recommendations

In light of the backdrop above, it becomes imperative that the company ought to adopt a sustainable framework. Such a framework will encompass the maximization of strengths, minimization of weaknesses, hence promoting expansionary efforts of the company. With the continued competition in the country should work on expanding its brand portfolio. Moreover, the SWOT analysis of the company plausibly bolsters a 10% increase in sales revenue. This corporate decision would see the company expand and improve the provision of their services as it is within the companys capabilities.

References

BIBLIOGRAPHY Anon., 2015. Oman shares continue fall on weak sentiments. [Online] Available at: http://timesofoman.com/article/71925/Business/Markets/Sharqiyah-Desalination-was-the-most-active-in-terms-of-volume-while-Oman-Telecommunications-Company-(Omantel)-was-the-most-active-in-terms-of-turnover[Accessed 23 December 2016].

Das, K. & Gokhale, N., 2010. Omanization Policy and International Migration in Oman. MEI.

GLMM, 2015. Demography, Migration, and the Labor Market in Oman, s.l.: s.n.

Google Finance, 2009. Oman Telecommunications Company. [Online].

Hashimi, A. & Sultan, S., 2011. The Omani Spring: Towards the Break of a New Dawn. Arab Reform Brief, Volume 52, pp. 5-6.

Smith, M., 2014. Omani government raises $530m from sale of 19% of Omantel. [Online] Available at: http://www.arabianindustry.com/comms/news/2014/apr/23/omani-government-raises-530m-from-sale-of-19-of-omantel-4674618/

Times of Roman, 2015. Omantel bags MENA Excellence Award in Employee Engagement. [Online] Available at: http://timesofoman.com/article/52658/Round-up/Omantel-bags-MENA-Excellence-Award-in-Employee-Engagement

Trading Economics, 2016. Oman GDP Growth Rate. [Online] Available at: http://www.tradingeconomics.com/oman/gdp-growth-annual[Accessed 20 December 2016].

TRA-Oman, 2014. 5 Years at a Glance, Ruwi: Telecommunications Regulatory Authority.

Winckler, O., 2009. Arab Political Demography. Population Growth, Labour Migration and Natalist Policies.. Brighton: Sussex Academic Press.