Solution

1.0 Introduction

The purpose of this report is to evaluate the marketing performance of STC Group (Saudi Telecom Company) with a specific reference to the telecommunications industry in the Saudi Arabian market (See appendix 1 for company overview). To determine the strategic issues facing the organisation, this report will assess the external and internal environment of the company. The report will also consider the macro, micro and internal contexts and then present a SWOT analysis and views on strategic issues.

2.0 Macro-Analysis

Macro-environment is the external environment that affects industries in general (Rathburn, 2023). For the STC Group, a company in the telecommunications industry, PESTEL framework helps in analysing such factors systematically. This analysis aims to examine the political, economic, social, technological, environmental, and legal factors that affect STC’s marketing performance within Saudi Arabia.

2.1 PESTLE Framework for STC

2.1.1 Political Factors

Saudi Vision 2030 is a political strategy that has a significant impact on STC Group. This framework emphasises digital transformation, which is relevant to the core business strategies of STC and generates possibilities for investment and partnerships. Government policies and measures that create favourable conditions and incentives for innovation are also a positive factor for the company. However, political risks in the form of geopolitical tensions can threaten operations or investments in the region.

2.1.2 Economic Factors

The economic environment in Saudi Arabia is characterised by dependence on oil revenues and measures to diversify the economy. Although the prices of oil have fluctuated in the recent past, the GDP of the country has remained stable owing to the right investments in other sectors such as technology and telecommunication (STC, 2019). STC’s growth is supported by higher public and private sector investment in digital networks. However, factors like inflation rates, and purchasing power of the consumers affect the demand for the premium telecommunications services.

2.1.3 Social Factors

Technology wise, the Saudi population is relatively young and tech literacy is high with a high smartphone penetration and internet usage. This demographic change is going to drive the use of digital services, mobile applications, and the 5G network with various social network platforms (see fig 1). Family and community-oriented culture can be seen as a chance to address STC marketing strategies to the local consumers. Some of the social issues like income inequality may restrict the adoption of these services by certain demographics.

Figure 1: Social network platforms in Saudi Arabia

2.1.4 Technological Factors

Technological advancement is among the main management factors that define the work of STC. In figure 2 below, we can see that Saudi Arabia has recently embraced 5G and has also been investing in smart cities (see appendix 2), which presents an optimal environment for telecommunication solutions. The adoption of artificial intelligence, the integration of IoT and cloud services enhances STC’s industry leadership in the region. However, this means that in order to sustain technological advantage, a significant investment has to be made in terms of research and development and infrastructure, which can cause a strain on the resources.

Figure 2: Saudi Arabia’s 5G expeience

2.1.5 Environmental Factors

The concept of sustainability is gradually being embraced in the Saudi Arabian corporate world due to Vision 2030 and environmental conservation. For STC, this change entails the adoption of green measures including efficient energy usages in data centres, low carbon footprint and proper disposal of electronics waste. While these initiatives are consistent with current global developments and benefit the company’s image, the shift to sustainable operations is expensive. These costs can be costly in the short term, but they are necessary to improve the company’s ability to sustain itself over time. Additionally, the environment in Saudi Arabia is characterised by a severe desert climate, which affects the stability of structures and requires the use of highly durable and heat-resistant technologies (Teitelbaum, 2024).

2.1.6 Legal Factors

Saudi Arabia has been able to develop its regulatory framework to suit the new shift towards digitalisation of industries. The compliance with the telecommunications laws, cybersecurity standards, and data protection regulations is vital for STC’s business. As a result of the government’s emphasis on competition, changes have been made that allow new market participants, thus forcing STC to improve and diversify its offerings. Additionally, international trade relations and intellectual property rights affect STC’s relationship with global technology partners. Following these rules enhances the credibility of the company; however, this comes with a significant risk of legal implications, which necessitate heightened scrutiny.

3.0 Micro Analysis

3.1 Market Overview

The Saudi Telecom Company (STC)……

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