NABEEL BADURDEENGREAME GOMEZMAFAZ MUSTHAKEENAQEEL SATHUKTHOOZA SAEED

Company Overview

Etisalat is fully owned and operated by the giant Emirates Telecommunication Corporation in UAE.Etisalat officially commenced its operations in Sri Lanka on the 25th of February 2010.Etisalat, acquired 100% stake in Tigo Sri LankaEtisalat is consistently providing not only the widest coverage and an unprecedented service, but also a host of other Value Added Services. We are dynamic and treat our customers as our own, and consider customer service as our first priority

Company VisionA world where people's reach is not limited by matter or distance. People will effortlessly move around the world, staying in touch with family, making new friends as they go, as well as developing new interests.Businesses of all sizes, no longer limited by distance, will be able to reach new markets. Innovative technologies will open up fresh opportunities across the globe, allowing the supply of new goods and services to everyone who wants them.Company MissionTo extend people's reach.At Etisalat, we are actively developing advanced networks that will enable people to develop, to learn and to grow

PESTEL Analysis

PoliticalPolitical instability

Wars & conflicts

Government Policies

EconomicalPositive market growth

Government to simplify the tax structure

Growing Economy

SocialLife style trendsConsumer attitudes and opinions Brand, company and technology imageAdvertising and publicityMajor events and influences

TechnologicalCompeting technology development Advancement of technologyInnovation potentialGlobal communications

Legal Labor Legislation Consumer Laws

EnvironmentalCorporate Social Responsibility awareness and expectationsConsumer buying patterns and satisfaction TRCSL setting up communication towers.

Political Trends

TrendThe impact on EtisalatThe extent of the impactThe likelihood of the impact 20% of telecommunication tax got reduced till by 50 % in the start of 2013 powered by (TRCL)Resource : (Sunday observer economy today) Growth in after tax income,Decrease in price of the serviceDemand for telecommunication would increase with the tax cuts Consumers will be attracted to the service. The demand curve will be increased in certain extent. Increased market share for etisalat with an increased number of users.

Economical Trends

TrendThe impact on EtisalatThe extent of the impactThe likelihood of the impacteconomic growth of 7.5 8.5% has assumed for next 3 years in the mobile service provider. (Ministry of Finance and Planning of Sri Lanka, 2012)

Shares from head office of etisalat UAE investment GSM calls internet packages and dongle markets will be increased due to new business scale and consumers

Will keep the economy level average on the market Market value and single market share of etisalat will be more valuable in the prediction of economy growth, on upcoming year

Whenever the shares were low in the economy scale of etisalat, the head office of etisalat does their investment on the top makes their gross market steady Possibilities of economy growth on mobile providing service industry etisalat can achieve a good level of economy and can break through their competing partners res: TRSL

In the future was assumed to capture the major market. Get more customer get them into under one roof

Social Trends

TrendsThe impact on EtisalatThe extent of the impactThe likelihood of the impactGrowth in the computer literacy rate from 20. 3 % in 2009 to 75% in 2016

Connecting rural and urban areas, changes requirements of people.Increase in disposable income, increases demand for etisalat. Due to the increased disposable income, etisalats customer base should rise where then they could expect a higher profit margin.

Technological Trends

TrendThe impact on EtisalatThe extent of the impactThe likelihood of the impactSurpassing Rival firms are exhibiting advancements in technology Due to this, they look to surpass rival firms with the advancement of technology.Internet service a long with the telecommunication service they provide. Fastest internet service in Sri Lanka provided by Etisalat.

Legal Trends

TrendThe impact on EtisalatThe extent of the impactThe likelihood of the impactLabor LegislationsThis would solve any disputes within the industry, also solve any problems with wages and salaries of employees.Less labor issues within etisalat, where then the labor work force would be stronger and more efficient. Labor turnover rate would thereby be reduced.

Environmental Trends

TrendThe impact on EtisalatThe extent of the impactThe likelihood of the impactTelecommunications' Regulatory Commission of Sri Lanka (TRCSL) in putting up signal towers and other telecommunication workAdhere to strict rules of the TRC in setting up communication towers.To make sure that the environmental standards are met to its requirements.Being able to capture a wider in the industry, improving the market share of Etisalat and also as an environmental protector.

Conclusion & RecommendationCurrently in Sri Lanka, Dialog is the only threatening competitor for Etisalat as a telecommunication network service provider. But Etisalat has a competitive advantage over Dialog since it provides the fastest internet service in the country, whereby then etisalat will be able to capture the market through this as well , being able to compete effectively with its rivalries. This PESTLE Analysis on this company has its positives and negatives but as etisalat is a very fast moving service provider , they could surely use this to their benefit since it allocates all macroeconomic factors which could effect the company.

ReferencesEtisalat [home page of Etisalat] [online] Available on : http://www.etisalat.lk/about-us/#.UU4WYRdmiSo [Accessed on 16th March 2013].http://www.trc.gov.lk/functions-a-responsibilities/

*Etisalat is owned and operated by Giant Emirates Telecommunication Corporation in UAE. It has extended operations in Middle East region & Asia region, recording over 100 million subscribers across 18 countries,Etisalat officially started its operations in Sri Lanka on .5th February 2010. Etisalat bought Tigo Sri Lanka. Togo Sri Lanka started their operations in 1989, was Srilankas second largest mobile phone operators at that time.Etisalat provides wide variety of services like Post paid, prepaid, broad band services, 3G on mobile & many other value added services.

*To extend people's reach.At Etisalat, we are actively developing advanced networks that will enable people to develop, to learn and to grow.A world where people's reach is not limited by matter or distance. People will effortlessly move around the world, staying in touch with family, making new friends as they go, as well as developing new interests.Businesses of all sizes, no longer limited by distance, will be able to reach new markets. Innovative technologies will open up fresh opportunities across the globe, allowing the supply of new goods and services to everyone who wants them.

*Political instability in the country & Wars & conflicts; After the war political situation of the country seems to be more stable, but still there are news that some international forces who were against the current government during the war are still not appreciating the current government. They are very much pressurizing & forcing to change the government.Government Policies; TRCSL has recently introduced a unique icon to distinguish national speed testing facility, they will tackle low speed providers & penalize them to increase speed.

Positive market growth; Expansion & provision of infra structure that is capable of providing a sophisticated level of telecommunication service to the population through out the whole country is a positive note.If we look into countrys mobile telephone growth; we can say that it has appositive growth path. In 2011 there were 18.3 million mobile subscribers & in 2012 it has increased to 20 million.In 2011 the total no of Internet subscribers was 509000 & in 2012 it has increased to 600000.Government to simplify the tax structure; Government to simplify tax structure with regard to Telecom sector will be a positive move. It favors mobile subscribers which will lead to high mobile usage.Growing Economy; Researches are showing that Sri Lankas economy to grow 6.8 percent this year & strengthen to 7.2 percent in 2015

*Life style trends- eltisalat sponsors and organizer's social events for the society and the usage of mobile phones for purposeful reasons.Consumer attitudes and opinions- cost conscious , network coverage , internet speed as well loyalty Brand, company and technology image-Advertising and publicity- marketing the product by sponsor's , commercials and promotionsMajor events and influences- one of the major events that etisalat organizes is the royal thomian big match encounter competing technology development- etisalate as reach there customers by introducing fast internet connection such as 3G, 4G and WI MAXAdvancement of tecnology-Innovation potential- etisalat recruits employees who are highly innovative by giving them the opportunity to put forward there innovative ideas Global communication- such as idd services

*Labor legislation safety regulations , working hours , adequate remunerations Consumer laws mobile phone usage such as packages Corporate social responsibility awareness and expectations- etisalat finds rural schools and provides equipment's and rebuilds the schoolsConsumer buying patterns and satisfaction TRCSL setting up communication towers -

*With effect from 1st January 2011, government imposed 20% of telecommunication levy in lieu of VAT (TRCSL, 2011) whenever the telecommunication levy reduced 20 % from 50 % (plan has taken effect from 2013 of jan.)Whenever seeing the effect after the rapid reduce of VAT on telecommunication, can be seen the sales of market in etisalat has been increased, and also economically etsialat takes second place in srilankan telecommunication industry(TRSL). while the taxes and levys has gone reduced in the certain extent the demand for the mobile service provider will be high-level, finally these factors which made etisalat to get more users and more market shares .

*Sri Lankan economy is expected to grow 6.8% in the year 2013 with steady economic growth of 7.5 8.5% for the next three years (Ministry of Finance and Planning of Sri Lanka, 2012).due to this discussion etisalat has made their market strategy basement strongly lining up to provide their new internet connections GSM call facilities and features. According to their long term plan due to strategy growth, planned up their new customers and new business. Etisalats main vision to make their single share most value than their competing partners. While etisalats face the economy raise on their objective in srilanka the head office of etistalat which located in uae who helps to make the value chain in steady way and not let their international market go low.

*Mobile internet users are increasing at a larger pace than increase in fixed internet subscribers. However, it is to be noted that more Mobile Smart phone owners stick to Wi-Fi Broadband rather than 3g. *Due to the advancements in technology in the country over other rival firms, etisalat looked to take a step ahead of these firms with a competitive advantage over them, now becoming the fastest internet service provider in the country. *Various Labor legislations govern the Employment and Employee Employer relationship (Department of Labor, 2010). Thereby due to this, employees and employers working at etisalat would be protected against any labor issues. This would be a positive effect for etisalat, because then their labor workforce would be motivated to work as a whole building up better relationship, where this reduces the rate of labor turnover.

*Telecommunication towers that are built by the TRCSL will improve the network service which etisalat will provide to their users all over the country which thereby would increase their customer base along with improving the brand image of the company. But the only problem that may arise is if there is a dramatic weather issue where these towers are to be disturbed in a very extensive manner. Environmental standards are to be standardized with regard to this.*