Free Essay on the International Readiness of Saudi Telecom Company

Published: 2022-04-19
Free Essay on the International Readiness of Saudi Telecom Company
Type of paper:  Critical thinking
Categories:  International business
Pages: 5
Wordcount: 1314 words
11 min read

Strategy, Organization, and Opportunity Assessment

In essence, the international readiness of a particular firm indicates the propensity of an organization to shift to the global market and export activities in contemporary society. The overall view of an individual company prior to the internationalization process gives a proper insight especially for the managers to determine whether they are ready to come up with a market penetration and development technique on international perspectives. Additionally, such insight allows managers to decide on a proper strategy in entering international markets. This paper proposes to discuss the international readiness of Saudi Telecom Company (STC) in Saudi Arabia as well as the method that one might use in estimating its market potential. Apparently, organizations get to know their level of preparedness for various global commitments through measuring international readiness.

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Saudi Telecom Company (STC) Readiness to Internationalize

It is no doubt that STC top-class products and services delivery has been the driving force for the company's ambition to diversify through venturing into a foreign trade. Notably, the company has been doing a lot of research in determining whether its products and services appeal the buyers in other countries (Augustyniak, 2017). Essentially, this has created product viability in countries such as India, Malaysia, Indonesia, South Africa, and Kuwait while it tries to offset a rather declining subscriber growth locally and other competition within the Arab's biggest economy (Augustyniak, 2017). For many years, the company has realized that production and selling of ordinary merchandise that is widely available does not work especially in widening its market. Apparently, the firm's decision to modify its products through the provision of mobile, broadband connectivity, IPTV services to specific customers, and landline services have helped in meeting foreign tastes and other relevant regulatory standards.

Company's performance is a critical aspect while considering the readiness to explore an international market. This is because a solid cash flow together with fair and comfortable profit margins which is sustained by an operational business plan always creates an exceptional launching pad for an export scheme (Augustyniak, 2017). Marked with 14 percent increase in net profit during 2017 financial year, STC managed to make a name for itself and therefore leads the niche market of enhanced communication services. Higher profit margins that were made by the company was attributed to rather positive results especially to a SAR10.3 billion (USD2.7billion) compared to SAR8.9 billion that was reported in the year 2016 (Melissa, Francesca, & Fahad, 2017). Such a positive performance has helped the company particularly in attracting foreign and local investors who are willing to fund the organization. Notably, this has therefore proven to be a strong foundation for STC to explore the international market. Conversely, exporting from a weak domestic foundation tends to increase strain on a particular company's resources.

Primarily, human and managerial resources of a particular company may be enough in meeting domestic needs. However, if the export business happens to be focused on the international market, it is no doubt that more people will be needed to handle a higher level of workload (Weerawardena, Mort, & Liesch, 2017). STC is not exceptional, and with its large human resource which is well equipped with the necessary skills, the company is on a higher notch of entering the global market. Additionally, the firm has corporative human resource managers who are willing to collaborate with all the senior leaders who are based in Saudi and those who are across the Middle East region in identifying the necessary HR priorities and make sure the delivery of necessary merchandise is complete (Weerawardena, Mort, & Liesch, 2017). This has been one of the main reasons STC focuses on internationalization. Additionally, having well-trained and skillful human resources assures the company of meeting the international export standards.

Methods One Can Use To Estimate Industry Market Potential As Well As Any Data Sources One Might Use for Sampling

Many business organizations understand the concept of market size but find it difficult to achieve it. Apparently, many firms get stuck on creating boundaries or rather defining a particular market before they analyze their data and the imminent implications regarding their research. Estimating the market size or market potential of a given company is critical in defining its future endeavors (Isa, Saman, & Preece, 2017). By establishing the market size of a business allows one to understand the potential market opportunity in regards to size and volume, and is therefore appropriate to a firm's strategy and overall decision making.

Defining the market of a particular organization is crucial in understanding its potential. Notably, this will help one know the level of various details that are necessary for approaching a firm's strategic questions which are the key to a proper scoping of the market size (Pucihar, 2017). Defining the market size is always the initial step in determining the market potential of an individual company. Market potential is often viewed in terms of the available, served market, and the share of the market. To come up with a reasonable assessment of the potential market of an organization, one has to determine the products and the service that has to be included as part of the term available market.

Primarily, determining the firm's approach towards the available market is crucial in designing the market potential. Apparently, there are two basic approaches that one can use in determining the market size of an industry: top-down and the bottom-up. The selected approach is often based on the available market information. However, using both approaches is important has it is likely to build a higher confidence index of a given estimation. Additionally, this will be important as it will define the steps a business has to take when meeting the customer's expectations in a competitive market (Isa, Saman, & Preece, 2017). Moreover, the market potential of a given organization lies on the human resource available to undertake an increased burden and the willingness for a business to adjust to the needs of the prevailing market. This will determine whether an industry can satisfy a market and therefore makes maximum profit.

Data Source One Might Use For Sampling

Industry report. The industry report is regarded as one of the main data sources one can keep track of the market potential of a firm. Apparently, this depends hugely on the available market and maybe a research an individual firm has already done in the past or in the current financial year (Isa, Saman, & Preece, 2017). The extensive industrial report gives details of the profit or losses that a firm has encountered. Additionally, it gives fine details of the size of the market a particular organization has been in a position to cover.

Competing websites. While this method does not work for every individual industry, it is apparently, one of the main sources to use when assessing the market potential of a firm. Notably, such websites indicate the amount of traffic a company is getting and therefore one can get to estimate the market size it can serve. In case a competitor registers at least 100, 000 website visitors, one can, therefore, estimate his or her company's market potential to be about 100,000 as well (Augustyniak, 2017).


Melissa Hathaway, Francesca Spidalieri, & Fahad Alsowailm. (2017). Kingdom of Saudi Arabia cyber readiness at a glance. Potomac institute for policy studies, 901(2), 2-29. Retrieved from

Pucihar, A. (2017). Organizational factors for successful entering to e-marketplace: case of large organizations in Slovenia. Management: journal of contemporary management issues, 8(2), 49-75.

Weerawardena, J., Mort, G. S., & Liesch, P. W. (2017). Capabilities development and deployment activities in born global b-to-b firms for early entry into international markets. Industrial marketing management.

Augustyniak, D. (2017). Sources of value creation in born global companies. International Journal of Management and Economics, 53(2), 7-22.

Isa, C. M. B. M., Saman, H. B. M., & Preece, C. N. (2017). Development of OLI+ S entry decision model for construction firms in international markets. Construction Economics and Building, 17(4), 66-91.

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