Case Study Of Omantel Company: Services, SWOT Analysis, And Implications

SWOT Analysis

Discuss the Case Study of Omantel Company.

Omantel is the most trusted and reliable telecommunication company which has a major international hub for providing internet services in Pakistan. The main headquarters of Omantel is in Muscat. Omantel has also brought very innovative communications services in- postpaid and prepaid plans for mobile phones, fixed lines, internet connection, using ADSL technology, data transfer, roaming, etc. The main focus of the company is to provide telecommunication services at a larger scale and also maintain the operations of the company. This company aims at providing the services to the residential consumers, the government and the commercial group of consumers. In june 1996, Omantel started its business by introducing first payphone and named WorldCall Payphones Limited. It was a fundamental shift in technology and industry, which developed the wireless broadband after shifting from cable broadband, Video Conferencing was launched after the cable TV and also launched wireless local loop telephony after the LDI services, which all helped the company in gaining advantage over others. The Omantel offers a variety of services like, Data services, Voice services and Entertainment services. (Oman Telecommunications Company , 2017). Then in 1998 prepaid calling cards were launched. After that in the upcoming years, the company provided the users with the services of internet dial-up through WorldCall.com. Soon in the year 2000, Hybrid Fiber Coaxial network was established by WorldCall in Lahore and was soon known as the First Mutli – operator across the globe. WorldCall then established the HFC network operations in Karachi in the year 2003, it was launched under the WorldCall broadband limited operator. In April 2008, Omantel had purchased  65 % shares of WorldCall Telecom Limited worth for $200 million. Currently,  Oman has 4 mobile networks offering internet services around the globe. Oman, Renna, Ooredoo and Friendi are the networks that provide 3G coverage. Oman telecommunication is striving to be the third telecommunication provider across the globe in order to uplift the competitiveness of the telecommunication sector.

Strength

1. Omantel has a strong financial performance with top line growth of 6.9%, which was also the highest in the last four years.
2. Omantel is the leading telecommunication in Oman in mobile network in both in subscriber and revenue.
3. With the Government support Oman being a major stakeholder they have a lot of resources available to confirm that they have the best and latest infrastructure.
4. The investment in the Oman data park extends its level across the other areas.
5. Quickly enhance your understanding of because it has a wide area of external and internal resources(Linton, 2017).
6. Gain information for better understanding of internal and external factors which can give the best impression on the industry.
7. Increase business criteria by understanding competitor’s businesses better which is very essential to understanding industry challenges and competitors.
8. Recognize potential partnerships and suppliers.
9. Major innovations in the IT and telecom industries have played a vital role in setting the telecom industries. Major developments have taken place.(Maguire & Ojiako, 2010).
10. In the technology field, the main desire and demand is about the true information whatever we get, it should be reliable to any organization to be successful.

Weaknesses

Weakness in any the strategy of any organization can make difficult for an organization to face the threats that pertain in the business environment. To find any weakness in the organization, the company caters to the risks that may cause serious problems. 

• The Omantel company has posted a low subscriber growth of just 1.3% in year 2015.
• The Omantel communication has limited market because it currently offers services only in Oman. Also, has not been able to expend in other regional countries.
• Omantel offered weak customer service, which led to poor reputation of the organization.
• High staff turnover is also a weak point, as this loses the ability of the company to face the competitive world.
• A weak supply chain often forces the customers to cancel the orders which is another major weakness.
• The cost structure which is poorly determined may cause problems.
• The company has weak strategies of franchising.
• The basic strength required in franchising was missing.
• Long term strategies lacked proper guidance and formulation(Perkins, 2016).

Opportunities

• The Omantel is taking a step for the widest coverage network.
• Omantel can improve their services in partnering with promising technology area. The partnership will help for smart manufacturing across industries.
• It should also offer ICT within the organization to facilitate solutions in such areas for connectivity.
• To expand their business, the online market offers a great opportunity with little expense.
• The products and services of Omantel can be improved by using the new technology sustaining in the market.
• In order to diversify and increase the customer base, new improved products and services must be launched.
• International markets offer to expand the business and also the sales of Omantel.
• New markets help with diversification of products and services(Team, 2017).
• The company can take over the small business and industry to expand their business. So they can increase their customers and sales in this way. And also can make very different strategy through it no one can reach beyond them.
• New inventions in telecom industry will help in gaining the market share.
• The customers can be retained by providing free installation of the products.
• To attract more customers, various promotional strategies pertaining in the market can be adopted.

Threats

• Competitive advantage is the major threat that is faced by Omantel from the international competitors which are strong enough.
• Drastic fall in oil prices will have an impact on business.
• The higher interest rates in the Sukuk market forced to cancel its Sukuk offers.
• Omantel has to increase its market share in order to sustain and grow as the mature markets are highly competitive.
• Strong competitors persist in the market which can lower the profits of Omantel by providing better products to the customers (BMI, 2017).
• The customers can be lost as the substitutes of the products are easily available which may drive the customer to switch to the other product.
• Frequent changes in information technology will cause problems in updating the business on a daily basis.
• Increase in the various designs and methods of telecom industry, poses a threat to the organization.

Marketing threats are the factors that persist in the external environment that can pose problems to an organization in achieving its marketing as well as organizational goals. To overcome such threats or challenges, the organization performs the SWOT Analysis which helps in analyzing the strengths, weaknesses, opportunities and threats pertaining in the business environment. The organization must develop strong strategies which help in facing the competition as well as helps in sustaining the market share. To also maintain the profit levels, the organization must follow the cost advantage approach, where the prices of product are lowered by gaining profits. After sale services help in gaining a competitive edge over the rival firms.  In addition, New products that offer superior performance and development plans it should be in your long-term strategy(Linton, 2017).  The organization must provide the customer with better services in order to retain the customers, which leads to customer satisfaction and customer loyalty. Strong strategies must be developed in order to devise the plan for recruitment, investment and training programs in the organization. Proper planning must be done to build the strengths and use the potential, whereas, plan to overcome the weaknesses must also be ascertained.(Mcleod, 2017).

Action Plans to Overcome Weakness and Threats of Company

In June 1995,  a conference was held in order to devise the plan for future perspective. The main objective of the conference was to identify and articulate the policies that are necessary to understand the vision of Oman’s economy.

• To aim at Sustainable development with the help of Macroeconomic Framework.
• To develop diversified, globalized and dynamic economy.
• Human resource development with upgraded skills.
• The private sector must be efficient and productive

The main goal of the of Oman’s Vision 2020 strategy is to connect to electronic networks in the major parts of the sultanate. The strategy also aims at providing the training and development programs with the human resources in order to develop and build an effective communication network as these are the core elements in an organization. The strategy also outlines the necessary policies to establish the information and communication technology to enhance the company’s image and gain the competitive edge.(Omantel, 2014)

• By applying Oman’s vision 2020 strategy, the telecom industry will face a major transformation which may affect certain other industries as well.
• This sector will face high competition level, which may drain out some companies who will not be able to face the competition.
• Effective communication system will enhance the image  of the sector as well.
• By building highly dynamic framework, the goals of the industries will be achieved very frequently and easily.
• The development of human resources will pace the growth of this sector and lead to high employment levels.

Major features which they launched in world call cable. The WorldCall is the first step that they took in their initial period.

• Portability & Mobility is a great feature in the worldcall cable.
• Plug & Play makes it easy to use.
• No power required for this world call cable broadband.
• Everyone can unlimited downloads on this internet service which makes successful to win attraction of people.
• Unlimited express upload & download service available.
• Always on never off(Limited, 2017).
• Does not need a telephone line because it provides all essential needs.
• According to economical packages it was very reasonable.

World Call offers variety of services under the major 3 categories:

• World Call Data services
• World Call Voice services
• World Call Entertainment services.

Lack of maintenance of receivables: The cost is decreased by 41% and this often happens by paying the old debts.

Charges of royalty: Royalty charges were seen with an increase of 3% in comparison to the year 2013 which was considered to have increased in revenue.

Vision statement:  This statement aims at describing the future position of the company. This statement is prepared in order determine the company’s goals and objectives, strategies and policies.

World Call aims at achieving the dynamic growth by also facing the competitive edge of technological innovation. This organization aims at providing better services to its customers to retain the customers and gain the goodwill of the company. This organization feels pride in showcasing their industry at international upfront which has earned a good name for itself.

• To implement the LDI operations, the company aims at developing an infrastructure which aligns with the establishment of LDI with different designs.
• Expansion of  the wireless broadband network.
• Advertisements can be shared through secure cable TV networks.

Mission Statement: This statement aims at showcasing the organizational goals and objectives. Also the strategies are outlined to achieve the goals and objectives.

World call puts a great number of impacts on Omantel telecommunication industry on some basic which is following-

1. By being more cost effective, the new products and services in telephony must be created.
2. To capture the market share and maintain its position.
3. In order to achieve customer satisfaction, the quality of products will be improved.
4. To fulfill all the needs of the customers related to communication.
5. To develop talent in the environment.
6. Another point is to deliver profitable growth to our shareholders(ESCWA, 2003).
7. Major thing is to make simple, clear, creative and moreover to make flexible and in an organized way so it will make very comfortable and easy to use or understand.
8. Also, unity in ownership, sharing knowledge and exchange their view ideas and value it. Always work in a team. It will make best in all creations related to any innovative ideas.

Conclusion

The Omantel company successfully opened its business in seven major countries and also expanded its industry across the globe. The company also increased its customer base and scale of operations by providing the best products to the customers with better prices and this also led to improvement in the existing facilities.

World Call is the most competent telecom company in Pakistan, which is backed by the Omantel, the parent company has huge infrastructure.  This organization has the potential to face the competition and survive in the telecom industry. In this project, analysis of the strengths and weaknesses of the organization has been thoroughly done and based on such analysis, a devised plan with proper strategies have been stated above in the project in order to succeed in future

References

BMI, 2017. Oman Telecommunications Report, Available at: https://store.bmiresearch.com/oman-telecommunications-report.html

ESCWA, 2003. Profile Of The Information Society In The Sultanate Of Oman, s.l.: Ministry of National Economy, Available at: https://unpan1.un.org/intradoc/groups/public/documents/unescwa/unpan030628.pdf

Limited, W. T., 2017. WorldCall Cable Broadband. [Online]
Available at: https://www.worldcall.net.pk/index?t=t-2

Linton, I., 2017. Strategies to Overcome Marketing Threats, Available at: https://smallbusiness.chron.com/strategies-overcome-marketing-threats-38186.html

Maguire, S. & Ojiako, U., 2010. ERP implementation in Omantel: a case study, Available at: https://www.researchgate.net/publication/220672617_ERP_implementation_in_Omantel_a_case_study

Mcleod, L., 2017. How to Overcome a Weakness & Gain Confidence in Your Skills, Available at: https://www.themuse.com/advice/how-to-overcome-a-weakness-gain-confidence-in-your-skills

Oman Telecommunications Company , 2017. Omantel: Investor Relations. [Online]
Available at: https://www.omantel.om/wps/portal/Omantel/Investors

Omantel, 2014. Management Discussion & Analysis: Oman Telecommunications Company, Available at: https://www.omantel.om/wps/wcm/connect/c627b378-981f-4561-ad7c-b8105cbf3efd/MDA+2014.pdf?MOD=AJPERES&CONVERT_TO=URL&CACHEID=c627b378-981f-4561-ad7c-b8105cbf3efd

Perkins, E., 2016. SWOT Analysis of Oman Telecommunications Company, Available at: https://prsync.com/aarkstore-/swot-analysis-of-oman-telecommunications-company-998749/

Team, U., 2017. The oman telecommunication company, Available at: https://www.ukessays.com/dissertation/examples/management/the-oman-telecommunication-company.p