In other words, the company’s reach was not one hundred percent in the UAE. Some clients did not have access to Etisalat’s services. The communications sector is imperative because it can facilitate greater transmission of oral and written information in voice and data services.īusinesses now require greater convergence between data and voice, and since the Telecommunications Regulatory Authority in the UAE allowed this convergence, then Etisalat needed to respond by giving clients an integrated network. However, in order to achieve these benefits, the country must have a strong infrastructural base. The UAE is a high-growth state it works on developing its economy through different sectors and channels. However, it had to increase flexibility in a way that would not strain the consumers’ telecommunications budgets. The organization needed to meet these needs promptly. These needs applied to almost all product segments television services, broadband services and fixed voice services. This company now needs to guard it market share as it has been losing it to the new entrant (George-Cosh, 2010).Ĭustomers also required greater flexibility in connectivity arrangements. Five years ago, a key service provider entered the market, and nothing has remained the same. Increased competition also emanated from the fact that Etisalat was no longer a monopoly in the UAE telecommunications market. The need to increase its voice revenue was also a force for change. Many rivals dwelt on smart phones, and this meant that the company’s voice revenue reduced dramatically.
Competition was not just limited to international tariffs it also grew rapidly in the mobile data sector. Therefore, the organization needed to respond to these alterations in country regulations. The prevalence of rigorous regulations in the international calls sector created these changes. The company’s competitors and other VoIP providers are causing the company to revisit its international tariffs.
Etisalat faces a lot of competition in its international tariffs. The degree of competition is a force for change because the company needs to innovate in order to ensure its survival. It is quite difficult for the firm to increase its penetration levels because of this fact. Forces for change and the obstacles to change in the organizationĬurrently, the telecommunications sector in the UAE suffers from an oversupply. Shown below is an organizational chart for the firm. It can also identify the non core or unproductive business services that it can eliminate.
The company chose this approach owing to the need for greater standardization and specialization. Some of them include data services, telephones, mobile network services, internet, sim-card manufacture, training services, financial management and many more (Etisalat, 2011). The firm also has a product structure that splits resources on the basis of service portfolios. Through such an approach, the firm can analyze the profitability of each area and thus curve-out a strategy to correct cases of non-delivery.
Under the area division model, the organization divides its entities on the basis of their geographical regions. The company has a combination of the area-division structure and the product structure. Learn More Structural arrangement of the organization
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