Detailed SWOT Analysis of STC – The Saudi Digital Enabler Of Telecommunications Services

Quick Stats on STC

Founder	Ministry of Saudi Arabia
Year Founded	1998
Origin	Saudi Arabia
No. of Employees	17,000+
Company Type	Public
Market Cap	$60.47 Billion (2022)
Annual Revenue	$15.7 Billion (2020)
Net Income/ Profit	$2.93 Billion (2020)

 

Products Of STC 

• Mobile Computing
• Internet Services
• Television Services
• Digital payment and provider

Competitors of STC

• Altitude infra
• Touch
• Mobily
• Unitel
• MBNL

Now that we have taken a glance at what STC is, let’s take a look at the SWOT Analysis of STC.

SWOT Analysis of STC 

SWOT Analysis is a useful technique for developing business strategies for both new and current businesses. This simplified methodology is used to assess a company’s competitive standing. SWOT analysis of STC can help the organization develop effective and efficient business strategies.

To better understand the SWOT analysis of STC, refer to the infographics below:

Below is an explicit guide to the SWOT analysis of STC.

Strengths of STC

The brand’s competence gives an edge over capturing the maximum market in the industry and earning more profits. Hence here we go with the strengths as follows:

• Wide Spread Distribution Network: It has a well-established market in the middle east and the kingdom of Saudi Arabia considering it has been in business for 24 years now. It is expanding in various other regions as well and looking to grow its market.
• Range of Services: It offers a wide variety of services to its customers such as internet services, broadband, pay app, network services and much more.
• Brand Value: It has a strong brand value in the global and Arab markets and the value is increasing. Saudi Telecom Company is a reputable brand in the middle east and in the kingdom of Saudi Arabia when it comes to telecom services and internet services.
• Advantage Over Competition: It has a number of old and new upcoming competitors. It has a strong advantage over its peers due to its good service quality and the wide range of services they offer.
• Longevity: It was started in 1998 and has been serving customers now for almost 24 years with plans to go global it has a long term vision for years to come. As recently it announced to establish a company specializing in data centre hosting, regional and international connectivity.

Weaknesses of STC

STC’s weakness is an area where he can improve. Strategy is about making important decisions, and weaknesses are areas where a company could improve with the help of a SWOT analysis.

• Limited Presence: The company has a limited global presence. It has not yet cracked the global market. Currently, Saudi Telecom Company is mainly based in the middle east and in the kingdom of Saudi Arabia.
• Assets Line: The company has a declining bottom line reducing assets liquidity can be a problem for the company and may impact its profit-making.
• Moderate Success Beyond its Core Business: Even though STC is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
• Reliance on Saudi Arab Market for Major Revenue: As STC has its main headquarters in Saudi Arabia and it is providing the services more efficiently and gets major revenue from Saudi Arabia. It is mostly dependent on the Saudi Arabian market and hence lacks revenue from worldwide.

Opportunities for STC

Opportunities are possible areas for a company to consider to improve results, sales, and, ultimately, profit. STC includes the following opportunities:

• Global Expansion: The company can expand more in the Asian as well as African countries where the population is more, which could result in a bigger customer base.
• Technology: Rapid evolving technology helps in developing better, faster and more efficient services. Saudi Telecom Company should be on board with the latest technologies and develop products that would help them offer better services and products and gain an edge over their competitors.
• Modernisation: Increasing the number of smartphone users provides a major opportunity to increase business. This could be done by rolling out cheaper smartphones for the general public to buy or by raising awareness of the benefits of smartphones.
• Rise of 5G: A rise in the adoption of 5G technology from the 4G and 3G technology is a major opportunity for the company to expand its business. With 5g rolling out by major telecom providers around the world, this could be a turning point to increase their customer base and offer faster services.
• Affordable Prices: The company can offer more flexible plans to get lower-income customers and also compete with its rivals to be the market share leader. They could also offer a variety of attractive packages and make people more interested in their services by offering better services at affordable prices.

Threats to STC

External environmental factors that can harm an STC’s growth are known as threats. STC’s threats include the following:

• Termination Charges: The impact of the reduction in termination charges can affect the sales of the company.
• Global Prices: An increase in prices for data globally can affect the company’s customer base. With power surges and an increase in the prices of data, offering cheaper plans become hard for the companies as their profit cuts down.
• Competition: An increase in the number of competitors is a big threat. New competitors mean better offers for the customers. New competitors bring about newer technology for the customers and that could pose a threat to the older companies in the market like Saudi Telecom Company.

This ends our detailed SWOT analysis of STC. Let us conclude our learning below.