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

by | Case Studies | 0 comments

In our previous blog, we did a comprehensive study on the SWOT Analysis of the largest broadband communication company in the United States, Spectrum. Here we will understand the SWOT Analysis of STC.

“Saudi Telecom Company” is a leading telecommunications provider in the kingdom of Saudi Arabia and the middle east. STC offers a wide range of services and thus that makes it an ideal company invested in next-generation networks.

Looking into the brand’s giant reach to the people is because of the marketing strategy and STC’s keen interest in launching digital marketing portals. As the world today stands on the verge of being digitized you should get ready to delve into the new marketing strategies to get your potential customers. if you want to learn more about digital marketing and its different attributes do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.

With the motto to connect as much as people across the globe STC is always striving hard to be the best. In this blog, we will have an elaborate SWOT Analysis of STC. Before we delve, let us discover more about STC Group, its founding, products, financial status, and competitors.

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About STC

SWOT Analysis of STC - STC

Saudi Telecom Company began its journey as a Saudi Joint Stock company and received the transfer of the Telegraph and Telephone division of the Ministry of Post, Telegraph and Telephone with its components and administrative facilities. 

Saudi Telecom Company is a public company and it provides a wide range of services. It has a customer base of over 160 million people worldwide. 

Saudi Telecom Company’s market capitalization and total revenue making it the largest company in the Arab region. It has a staggering number of 17000 employees. STC has been in the market for quite some time considering it has been active since 1998. i.e 24 years. STC has business operations in Saudi Arabia, Kuwait, Malaysia and more countries.

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:

SWOT Analysis of STC - SWOT Infographics of STC

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.

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To Conclude

STC is a well-established telecommunications company with a good number of subsidiaries. In the SWOT analysis of STC, we came to know about their strengths as well as their weak points. The company has a good brand profile as well as manages its consumer base quite effectively. But, suffers from some finance management issues that need to be addressed soon.

One of their greatest opportunities is that they are moving more and more towards the online mode. Which is a necessity in today’s scenario. To stand in the market and to expand globally one needs to focus more on the online part.

Hence, improving marketing skills is very paramount for digital marketing enthusiasts. If you are intrigued with the above piece of information in learning more and upskilling, check out the 3 Months Advanced Digital Marketing Course by IIDE to know more.

We hope this blog on the SWOT Analysis of STC has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of STC, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of STC in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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