King Fahd University Of Petroleum & Minerals

College of Industrial Management

Mobily
(Etihad Etisalat Co.)

MKT - 513

Submitted To:
Dr. SOHAIL, M

Prepared by:
Reda Al-Jaroudi 200365010

TABLE OF CONTENT

INTRODUCTION3
I-

SAUDI MARKET...3

II-

BACKGROUND.4

III-

VISION, MISSION AND OBJECTIVES .......4

IV-

THE STRATEGIES TO GROWTH....5

1- Sales channels
2- Network Coverage.
3- Offers

V-

FUTURE LOOK6

CONCLUSION.7
REFERENCES.8

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INTRODUCTION
In this short report, I am going to talk about one of the most successful telecommunication company in
Saudi Arabia and even in Middle East which is Etihad Etisalat know in the market as Mobily. I choose
this company because of its rapid growth in the market within short period. This company used many
marketing tools to get this growth in the market. I will recite some of the technique used by Mobily to
overcome any barriers that affect its growth.

I- SAUDI MARKET
Saudi market is one of the biggest telecommunication markets in the Middle East and is characterized by
rapid growth. The increased number of young population is one of the factors that led to strength the
telecommunication market in Saudi Arabia. Saudi Arabia denominated by approximately 60% of young
people which mean that new demand for mobile services will be added to the existing demand.
Furthermore, the liquidity in Saudi Arabia that mainly came from selling Oil is another factor that led to
the growth in the market. Mobile telecommunication services witnessed significant development during
past few years in terms of penetration, quality and prices of services due to the entering new competitor
(Zain). The number of subscriptions to mobile communications services stood at 44.8 million at the end
of 2009, with an average annual growth rate of 43%. Thus, the penetration ratio went up to 175%, with a
growth rate of 25% over the end of 2008. The prepaid subscriptions represented the bulk ratio which
stood at 86%

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As we can see from the chart above that this market has increased dramatically after Mobily enter the
market. Mobily gets more market shares every year due to many thinks it did and its long business
strategy.

II- BACKGROUND
Etihad Etisalat (Mobily) was established in 2004 by a consortium led by Etisalat, the UAE based telecom
conglomerate. Mobily is the official brand name of Etihad Etisalat, renowned as the second mobile
service provider in the Kingdom of Saudi Arabia.
The awarded 25-Year telecommunication mobile license was complemented by a subsequent purchase of
a 3G license. Mobily is the 1st Saudi communications company to get an operation license for 3rd
generation services and beyond. In December 2004, Mobily was listed on Tadawul Stock Exchange.
Today, Mobily equates to 40%+ market share of the mobile subscriptions in the Kingdom. In March
2008, Mobily was granted approval by CITC (Communication and Information Technology Commission)
to acquire Bayanat Al-Oula which was a licensed Data Service Provider for a price of SAR 1.5 Billion. In
November 2008, Mobily acquired absolute majority stakes in Zajil, the leading Saudi ISP (Internet
Service Provider).
Mobily owns vast majority shares in the Saudi National Fiber Network (SNFN) composed with 12,800
KM of structured fiber cable, panned into 7 fully protected rings covering 35 Saudi cities plus access to
60 major hub sites for telecommunications prime points of presence, and complimented with 20 intermetropolis fiber loops in major Saudi cities. Furthermore, Mobily is a lead investor in prime global
submarine cable projects that are expected to be operational in the near future.

III- VISION, MISSION AND OBJECTIVES

The vision of Mobily is "To innovate and lead in telecom services to add value to your life". This vision
leads to a meaning that describes what Mobily intend to do in the market. As we will see later how
Mobily adapt its vision in the market to reach what they want.
"We enrich the life of customers and employees by fully leveraging our capabilities to exceed their
expectation" is the mission of Mobily. With this mission, Mobily put on itself that it will provide easier
life, luxury life for both the employees and customers. For employees, it will provide an excellent work
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environment and motivation to encourage them to work hard and to be loyal to the company. As a result
of this, the customers will get better services and after sales services that provided by the employees of
Mobily.
The objectives are:

To be the best work environment in the region by caring for employees first.

To be number one at delighting our customers.

Maintain leadership in data applications and services.

IV- THE STRATEGIES TO GROWTH

Mobily considered one of the fastest growing mobile operators in the Middle East & North Africa as
GSM Association Newsletter announced in its Dec. 2004 edition. In 2006, Mobily reached more than
4,800,000 subscribers. As of 20 January 2007, Mobily had 6 million subscribers and 0.5 million 3G users.
1-

Sales channels

When Mobily began its operation in Saudi Arabia, Mobily had small number of sales branches that are
located in Saudi Arabia. They use very successful tactic to satisfy all people by using indirect sales
channels that is done through licensing local mobile shop to provide the sales services instead of Mobily.
This great tactic allows the company to reach many customers as it can. But these mobile shops offer only
sales without other customers' services. Now, Mobily have around 36 mega centers, 243 privilege
exhibitions and 5 lady exhibition that are designed to be privet for ladies. Furthermore, Mobily still has
thousand franchising shops, certified sales points and distribution points that spread out in more than 108
cities in Saudi Arabia.
2-

Network Coverage.

Mobily started its operation in Saudi Arabia in 2006 with network that covers only the main cities. Later,
Mobily used one way that led to capture more market shares which done by sign a contract with STC to
use its network for Mobily's subscribers. Then, Mobily started to expand its own network by installing
small network tower on the residential & commercial building around Saudi Arabia. Now, Mobily covers
entire Saudi Arabia by its own network. It covers many cities with the third generation (3G) that allowed
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the subscriber to use video calls and many other services. 92% is the percentage of the residential area in
Saudi Arabia that is covered by Mobily in more than 587 sites from province to governorate which
includes villages and highways.
3-

Offers

Mobily was successfully adopted its offers in Saudi Arabia to attract customers. Also, Mobily was able to
takeover the customers of its competitors by these offers which Mobily was the first operator to offer it to
customers. Some of these offers are:
a) Raqmy: this offer allowed the customers to shift from the competitors (STC) of Mobily to
Mobily itself. As many customers are dissatisfy with STC, they find this offer is very attractive
in which they will get bonuses, like one year free from monthly fee, without giving up their
mobile numbers.
b) iPhone: Mobily was the first mobile operator that iPhone mobile, which is one of the most
advanced smart phones, in Saudi Arabia. Now Mobily offers the latest generation of iPhone
through prepaid & postpaid lines. Moreover, Mobily provides application for iPhone ,through
apple store, that allow the customers to see their invoices and Mobily website which was
considered the first Arabic telecommunication company provides this application for free.
c) Tejwaly Services: Mobily was the first operator in Saudi Arabia that offer free of charge for
Mobily subscribers when they use roaming outside Saudi Arabia. To do this service Mobily
signed one of the largest roaming agreements with selected operators in selected countries.
With this service, the customers can receive their local and international calls for as if they are
still in Saudi Arabia. This service led many people to shift from other operators to Mobily in
order to benefit from this service.
d) Mobily Connect: When internet services are monopole by DSL that is provided mainly by
STC and other company, Mobily came with new products that allowed the customers to use
the internet with their Lap tops and PC without the need of land line. This service use wireless
technique which allowed the customers to use the internet in anywhere and anytime they want.
They need only the laptop and the Mobily connect device to use the internet.
With these exclusive and/or first launch offers provided by Mobily, Mobily increases its market shares
quickly and still enhanced its percentage of the market. Thus, Mobily grow faster year by year with its
successful strategy and goal.
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V- FUTURE OUTLOOK
Mobily adapt a new strategy for future plan called GED "G" for Growth, "E" for Efficiency and "D" for
Differentiation strategy which reveals the future vision of the company for the next five years. This
strategy depends on the expectation of telecommunication sector in Saudi Arabia and also, it depends on
the strategic alliance and provides integrated telecommunication services.
This new strategy focused on realizing Growth with considering the cost of it. This can be done by raising
the rate of use of broad band services. Also, the company will work to achieve the highest degree of
Efficiency through participation in using infrastructure and hiring the best for "frequency spectral" that
available to the company. With regards to the Differentiation, Mobily is working in developing its
customer services programs to be a better working environment and to harness all the abilities to provide
innovative services that enrich the life of their staff as well as their customers.

CONCLUSION
In conclusion we can find that Mobily was an excellent company that use and implement very successful
strategy, achieve its objectives and to satisfy its mission statement. Still Mobily the best
telecommunication company in Saudi Market. Mobily can capture the potential customers by, again,
applying new strategy and innovation of its services and/or invention

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REFERENCES
1. www.mobily.com.sa
2. www.wikipedia.com
3. www.tadawul.com.sa

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