Identify a Sector which is a major service provider for any of the mass marketed services in Bahrain operations and prepare a project on the following lines:
- The title of the project would be “As an entrepreneur, how to startup a new business and encourage investors to invest in any sector of your choice”.
- Take any sector of your choice and motivate the investors to invest in that sector in the kingdom of Bahrain.
- Please do a SWOT and PESTLE analysis regarding that sector of the Bahrain markets with respect to the country’s Internal and external environment, Marketing Mix and provide a justification in terms of its appropriateness
- Suggest changes in the business and marketing of the company to make its business better.
Innovation and Entrepreneurship-Telecommunication Operation in Bahrain
Introduction
Starting a new business in the new market is always compelling for the company management. However, using strategic management tools and shaping appropriate strategies is a practical approach to put the business in the right direction. In the competitive landscape, the management of the company has to use multiple strategic management tools such as SWOT and PESTLE to derive several internal and external business insights. Based on these insights, the marketing strategy is to be shaped expertly. In this study, the emphasis is on the telecommunication sector in Bahrain, as a particular company is looking to enter or start a new business in this region. Two primary strategic management tools, such as PESTLE, which includes political, economic, social, technological, legal, and environmental factors, will be used for macro analysis. SWOT analysis, which includes strengths, weakness, opportunities, and threats, are to be used to derive insights regarding internal and external business environment. Finally, an extended marketing mix tool, which includes the product, price, place, promotion, physical evidence, process, and people, will be used to make a separate strategy for each element. Of course, Bahrain is a potential market for investors, and being an entrepreneur, there is a need to motivate them to make better investment decisions
Telecommunications Sector Bahrain
Bahrain is in the limelight due to its telecommunication sector. It has been considered as the best telecommunication market in the Middle East. It is a fact that this country has the highest mobile and broadband penetrations. It can be affirmed that digital growth is increasing in this country, and it always makes it a potential region for investment. Interestingly, for many years, Bahrain has become a market leader in terms of telecommunication. Unlike other Arab or Gulf countries, Bahrain is one of those countries, which reduced or eliminated its dependency on oil through telecom infrastructure (Consultancy-me.com, 2018).
It is a fact that the telecommunication sector in this country depicted more revenues. The growth has been driven by broadband service, as the whole industry contains 110,000 subscribers. The mobile industry has also experienced growth in 2008, as the mobile penetration rate has become 131% (Field, 2009). At the end of 2008, the fixed line reached almost 220,000, as it was increased by 8% as compared to previous years. It is also to be mentioned that there is fierce competition in this market. Batelco, Silah Gulf, Glory Telecom, MENA Telecom, Stc Bahrain, and Zain Bahrain are leading telecommunication companies in this market (Budde.com.au, 2019). However, some international companies, such as Huawei, is also operating. Thus, the telecommunication battle is quite visible, and all these companies or competitors have created some key measures to gain success and sustain the competitive advantage.
Encouraging Investors to Invest in the Telecommunications Sector
When intending to enter Bahrain or start a new business in this region, there is a need to attract boost or motivate investors. It seems imperative to ensure that adequate or promising to retrain on investment, which can compel investors to make effective investment decisions. The company intending to start a new business in Bahrain has to define the profit margins. The company must know or understand the potential of doing business in this market, and accordingly, it can present financial forecasts or predictive analysis for investors. The most important thing is to show margins clearly, and therefore, having promising margins can create a positive impression.
For instance, company management can make investors understand how they can get an adequate return on investment despite having fierce competition. The telecommunication industry or market is growing in Bahrain, and by showing the potential of an investment, better investment decisions can be made. It is a fact that investors, especially those who are interested in the telecommunication sector, want to invest in a market with an immense range of customers and tech-savvy population. As mentioned, Bahrain has become one of the key leaders in this region. Growth potential can be depicted by possible expansion opportunities and rapid customer response. Being an entrepreneur in the telecommunication sector, there is a need to portray the right, pertinent, and transparent business model. For instance, in Bahrain, the investor will be looking to have a better and relevant business model to justify their investment in the market. In Bahrain, there is a need to have a scalable business. The business model of the telecommunication company must have to enable the support for expansion, and it is one of the most prominent or critical factors of investors.
Motivating potential investors to invest in this business or market development is a big challenge, as already, many companies are operating in Bahrain. The investor may question how the company will contain growth, expansion, and competitive advantage in the presence of many other telecommunication companies. The company management has to tell investors that it is going to solve the problems of customers. It has never been experienced before. Interestingly, the new company will come up with a differentiation strategy to make the business and its outcomes different from other companies to solve problems. Consequently, it is a significant motivating factor, which may compel them to make effective investment decisions. In this new market, the company management has to prove that it is quite different from other companies or investors. The company management has to come up with one or two factors or business elements, which can be depicted to justify the difference in the competitive landscape.
One of the most critical factors that the company can portray for investors is the connectivity with customers. The company has to show the investors how it can connect with customers in the telecommunication industry or market. Of course, connectivity with customers is a crucial factor, as it is directly associated with sales and revenues. Accordingly, investors can also predict how they can gain a return on investment due to incredible customer connectivity. Just selling internet connections, broadband services, and mobile connections, the company has to see a large picture for the investor in Bahrain. By connecting with social responsibility, investors can be motivated in this regard (Newlands, 2014).
SWOT Analysis
SWOT is strategic management for the company, which can be used to derive both internal and external business insights and make effective business decisions. For instance, if the company aims to expand or start the new business in Bahrain, it has to investigate or examine the internal environment by evaluating strengths and weaknesses. However, on the other hand, company management can also investigate the external business environment by exploring opportunities and strengths. This strategic management tool can open new ways for the company to put the business in the right direction in Bahrain.
Strengths
Vodafone, which is aiming to start the business in Bahrain, can get the benefit due to its go-to-market strategies. This company has a history of business expansion in different countries, and the same experience can be used to make the right market decision. The strength of the company is a highly skilled workforce. The company always intends to come up with some solutions to customers’ problems, and it has become one of the prominent strengths. The brand image has become one of the vital strengths. Extensive market coverage, premium cost, and increasing subscriber base are also strengths of the company, which may also lead to a competitive advantage. Now, in Bahrain, the most important thing is to utilize these strengths effectively to get an edge over other rivals.
Weakness
Recently, Vodafone Company is dropping the subscriber base in the global telecommunication market, and it has become the most significant weakness. Of course, it is due to the Chinese company’s interventions in the worldwide markets, including Bahrain. It is a fact that brand valuation is also dropping. In many companies, it has been revealed that the company is also losing market share. Due to the limited-service portfolio and lack of advertising and promotion in many countries, the number of subscribers and market share is declining, and it has been considered one of the prominent weaknesses. The company also contained poor performance in Europe, which put the investment in Bahrain in significant jeopardy. It can be said that the perception of investors has been changed with time, as they need a solid motive to make further investment decisions.
Opportunities
It is an excellent opportunity for the company to expand in developing countries instead of just focusing on Europe. Return on investment in India is incredible, and it also provides a motive to make decisions for Bahrain. Thus, investing and expanding in rural markets is an excellent opportunity to generate revenues and increase market share. In the global telecommunication market, the dependency of the company is expanding on cellular networks. Thus, the development of adequate services for customers can help to create a surge in the market. Apart from improving the network coverage in Bahrain, the company must focus on ion 5G technology to make the brand more appealing in the market. Network coverage and integration with advanced technology are great opportunities, which can also lead to a competitive advantage.
Threats
The biggest threat to any company, especially in the telecommunications industry or market, is competition. In almost every country, including Bahrain, the completion is getting tight, as people contain more bargaining power and substitutes in the competitive market. In the competitive market, the company has to keep the low-profit margins and can also hit the financial capability of the company in the long run. Market saturation has been emerged as a critical threat for the company, as spending on customer acquisition is currently not working for this company, and it can create problems in Bahrain as well. Sluggish economic conditions, security threats, and current Coronavirus pandemic have also emerged as significant threats. These threats are linked with business expansion, employment, service operations, and usability. Therefore, there is a need to examine the business and general environment of Bahrain to set the foundation for the business expansion (Emarketer.com, 2020).
PESTLE Analysis
PESTLE analysis is also a primary strategic management tool, which can be used by the company management to derive insights regarding the external business environment. The most important thing is to illustrate the search components of this tool separately to discuss possible issues and problems. The comprehensive analyses of these macro-environmental factors are described below.
Political
In Bahrain, the political system is quite stable, and it goes in favor of the telecommunication company. There is a constitutional monarchy, which can also hit the business in terms of regulations and legal implications. Due to constitutional monarchy, the country is struggling due to many human rights violations, especially in corporations. Nonetheless, overall, the political system is organized well, as there are fewer political interventions for businesses, especially telecommunication companies. The big solution for the Vodafone Company is that it should standardize the structure or culture of the company. In short, if the company manages to regulate the culture, it can be sidelined from a hectic political culture in Bahrain.
Economical
Bahrain is one of those countries, which decreased or eliminated the dependency on oil production and sales. Systematic diversification of multiple revenue streams is quite visible in this country, and it goes in favor of this telecommunications giant. As mentioned earlier, the telecommunication industry has become one of the main contributors to the telecommunication sector. Thus, there is a need to come up with a solid plan to enter this market, depict its contribution to the economic system. According to 2019 economic reports, the gross domestic product of the country is $39.30 billion (Tradingeconomics.com, 2019).
However, it contains a declining rate due to oil price turmoil in the international markets. The inflation rate in Bahrain is 2.8% (Statista.com, 2019). It is to mention that the unemployment rates are quite low as compared to other Middle East countries, as the foreign direct investment is quite apparent. The income level of people is moderate to high, and it always creates a positive impact on the buying decisions. Thus, the solution to these issues or problems is that the company has to make some adequate pricing adjustments to serve an immense range of customers. The economic dynamics must be understood to be relevant and lucrative in the Bahrain telecommunication market.
Social
Bahrain is associated with Islamic laws and traditions, and it can also be reflected in the business models of local companies. For Instance, Bahrain has become the hub of Islamic banking. The literacy rate is improving in the country. The global workforce and young native population have contributed to the increasing working population. Bahrain invests in education, which has contributed to the higher literacy rate as compared to other countries. Social or religious intervention may emerge with the passage of time. For instance, in Ramadan, businesses are triggered by some limitations, and Vodafone may also be hit hard. Therefore, the best solution for the company is to contain localization or internalization to be relevant to the domestic population and social norms. If the company manages to integrate with religious or social norms or values, brand exposure, essence, and value can be increased quite dramatically (Gulfbusiness.com, 2018).
Technological
People in Bahrain have become tech-savvy due to the interventions of many telecommunication companies. High-speed internet and many other mobile services have become ordinary in this country. Therefore, research and development and differentiation in terms of technology are always appreciated in this country. Technological infrastructure and well-organized transportation processes are two significant opportunities for the company, like Vodafone, to further contain some critical technological interventions. It is an era of advanced technology, and the company can only survive if it maintains the innovative culture and delivers creative technical outcomes (Buller, 2019).
Legal
The sharia, Islamic law and common law are two different things. These laws apply to many businesses. However, in 2012, Bahrain introduced the labor law, which is triggered by global labor or employment standard. Women’s rights and anti-discrimination laws are also in the spotlight in this country (Bahrain Center for Human Rights, 2014). The strategic intention of the government or regulator is to bring international standards or laws in the country, which are not contradicting with the Islamic norms or values. The standardization of the business, according to global regulations, is the best way to Bahrain to become the business hub.
Environmental
Dust storms, periodic droughts, oil spills, coastal degradation, and increasing industrial discharge are some prominent ecological issues, which may hit the new telecommunication company in Bahrain hard (GDN Online Desk, 2020). The big solution to this problem is to integrate global and local environmental standards. The most important thing is to stimulate the capacity to contain corporate social responsibility and sustainable business practices. The extreme weather condition in Bahrain seems inhuman, and it is also a big concern for the company. Therefore, when it comes to employment or employee operations, the company has to adopt local standards and remain flexible. These environmental factors must be integrated to be relevant and sustainable in this country (Gibbon, 2019).
Marketing Mix
The marketing mix strategy is one of the integral parts of the business plan, especially when intending to start a business in a new market. The marketing mix plan is to be shared with potential investors, as they must know how the company can make the immense range of customers responsive. The illustration of the different elements of the marketing mix is below.
Product
High quality and differentiation are to be maintained in this market when it comes to the telecommunication service for customers. The appropriate product strategy for the company is the combination of high quality, differentiation, expensive product portfolio, and continuous improvements with time. In the telecommunication sector, services must be evolved with time to be relevant. Based on several customer segments in the telecommunication market, products or services are to be shaped. The most important thing is to mitigate customer demographic and behavioral patterns in Bahrain, which can help to come up with some reliable product decisions or solutions (Richter, 2012).
Charge
Vodafone Company has to improvise in the telecommunication sector in Bahrain in terms of pricing strategies. For instance, after starting the business in Bahrain, the company may come up with a penetration pricing strategy. The company plans to offer telecommunication services at low prices to facilitate middle-income customers. For ordinary services for the general population, the penetration pricing strategy is the better choice, as it can increase customer traffic, sales, and revenues. The penetration pricing strategy can enable low-priced services along with sustained quality, and eventually, it can help to increase the brand essence and exposure. On the other hand, for business customers or a corporation, which is a crucial segment of the business, a skimming pricing strategy is to be used. By streamlining this pricing strategy, the company will be able to keep its reasonable profit margins. So, for different customer segments, various packages, or prices will be adequate in Bahrain (Marcopolis.net, 2011).
Place
Vodafone Company will use a direct marketing method to swerve customers, including the general population and corporate clients. Both brick and mortar and e-commerce business models will be used to enhance customer interaction. For instance, the company will be operating through multiple franchises in different parts of the country, especially in urban areas. On the other hand, the official website for Bahrain business will be a launch to distribute services quickly along with a little customization (Baker, 2014).
Promotion
Vodafone has done incredibly well kin different countries when it comes to advertising and promotion. In Bahrain, the company will use both traditional and digital media channels to enhance the visibility of attraction and position. Traditional media channels such as television, radio, billboard, and newspaper will be used to get the telecom services in the limelight. The purpose of using these media channels is to grab senior citizens who rarely use digital media channels. When it comes to young or millennial customers, particularly in the business sector, social media channels such as Facebook, Twitter, and many others will be used to boost interaction. Social media interaction seems valuable, as feedback of customers will help to make effective decisions in terms of product involvement or development. Apart from channel selection, local celebrities can be used as a brand ambassador in both traditional and digital media channels. Sales promotions can be depicted in different social and Islamic events such as Eid, Ramadan, and many other activities.
Importantly, the brand can be promoted if the company comes up with compelling content. The ultimate purpose of this business is to enhance the positioning, and content marketing is also a robust tool on these selected media channels. Sales promotions will be based on modern trends in the telecommunication industry. For example, when launching new services, it can be provided or offered free for a while. Call and data packages can be offended at discount rates, and it is an appropriate trait to convert customers. In short, improvisation is needed or required when it comes to sales promotion, as it can facilitate in making customers responsive (Kaser, 2012).
Justification in Terms of its Appropriateness
The market mix strategy is appropriate because it is quite pertinent to local culture or trends. Existing companies in the telecommunication industry have grabbed customers due to their high-quality services. Now, Vodafone can make a difference through his differentiated marketing plan. This plan or strategy is relevant because it contains a separate policy for every element of the marketing mix. The product portfolio is the appropriate strategy because it needs and wants in Bahrain in the industry are evolving with time. As a result, becoming flexible when it comes to product strategy is the right approach. The pricing strategy is also relevant because people will not accept higher prices or premium services initially. Depending on the income level for people, including households, students, and business customers, pricing decisions have been made (Ferrell & Hartline, 2007).
Also, social media consideration in advertising and promotion is the right approach, as more than half the population of Bahrain uses a Smartphone and social media channels. When using direct distribution channels such as franchises or websites, these discounted rates or low-priced packages can be communicated to customers to create an influence on the buying decisions (Ferrell & Hartline, 2007).
Suggesting Changes in the Business and Marketing
Finally, some suggestions are to be illustrated in terms of business and marketing. For instance, in terms of the business, the company must consider a merger or acquisition in the Bahrain telecommunication market. With substantial financial capital or condition, the company will be able to find a local telecommunication company to share resources and market share. On the other hand, the marketing strategy or plan can also be changed with time, as change is always mandatory to keep the brand appealing. Sponsorship of social or religious events is highly recommended, and it can create an impact on the brand image and return on investment. Hence, these are two suggestions to make improvements in business and marketing processes, and the management of Vodafone must be aware of it (Dringoli, 2016).
Conclusion
In the end, it is to conclude that Vodafone is a potential telecommunication company, which can start the business in Bahrain successfully. After creating some motivational factors for investors in this market, critical strategic management tools such as SWOT and PESTLE are used to derive internal, and external business insights. These penetrations set the foundation to make effective business decisions for the telecommunication business in Bahrain. After using these strategic management tools, a marketing mix strategy has been shaped for the company to make the brand appealing for customers. These marketing strategies or traits can evolve or change with time due to evolving or changing market conditions. It seems a complete study or source for the company, and hopefully, it can be started successfully in Bahrain.
References
GDN Online Desk. (2020, February 6). Scattered rain and dust storms on way. http://www.gdnonline.com/Details/760509/Scattered-rain-and-dust-storms-on-way
Bahrain Center for Human Rights. (2014, February 10). Discrimination Against Women. http://www.wluml.org/sites/wluml.org/files/Discrimination%20Against%20Women.pdf
Baker, M. J. (2014 ). Marketing Strategy and Management. Macmillan International Higher Education.
Buller, A. (2019, January 21). Bahrain plans to create a world-leading tech ecosystem. https://www.computerweekly.com/news/252456149/Bahrain-plans-to-create-a-world-leading-tech-ecosystem
Consultancy-me.com. (2018, June 8). Bahrain telecom market deemed most mature in Middle East. https://www.consultancy-me.com/news/933/bahrain-telecom-market-deemed-most-mature-in-middle-east
Dringoli, A. (2016 ). Merger and Acquisition Strategies: How to Create Value. Edward Elgar Publishing.
Emarketer.com. (2020, March 14). The Biggest Business Impacts of the Coronavirus Pandemic. https://www.emarketer.com/content/the-biggest-business-impacts-of-the-coronavirus-pandemic-according-to-business-insider-intelligence
Ferrell, O. C., & Hartline, M. (2007). Marketing Strategy. Cengage Learning.
Gibbon, G. (2019, July 9). Bahrain’s June temperature soars to 100-year high. https://www.arabianbusiness.com/culture-society/423546-bahrains-june-temperature-soars-to-100-year-high
Gulfbusiness.com. (2018, May 14). Bahrain announces public sector work hours for Ramadan. https://gulfbusiness.com/bahrain-announces-public-sector-work-hours-ramadan/
Kaser, K. (2012). Advertising and Sales Promotion (1 ed.). Cengage Learning.
Marcopolis.net. (2011, december 5). Top Telecom and ICT Companies in Bahrain. https://marcopolis.net/top-telecom-and-ict-companies-in-bahrain.htm
Newlands, M. (2014, August 25). 7 Ways to Impress Your Potential Investors. https://www.inc.com/murray-newlands/7-ways-to-impress-your-potential-investors.html
Richter, T. (2012). International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-Markets (1 ed.). Logos Verlag Berlin GmbH.
Statista.com. (2019, October 22). Bahrain: Inflation rate from 1984 to 2024. https://www.statista.com/statistics/525458/inflation-rate-in-bahrain/
Tradingeconomics.com. (2019, January 1). Bahrain GDP. https://tradingeconomics.com/bahrain/gdp
