Saudi Mobily SWOT & PESTLE Analysis

Strength

1. First mover advantage in Saudi Arabia. In 2005, when Mobily was launched in Saudi Arabia, it basically entered into a monopolistic market of wireless industry and became the first company that is providing the mobile telecommunication services across the nation. Initially it had a RISE strategy to grow its customer base and achieve visibility among customers. It delivers integrated services for three customer segments – individuals, corporates and carriers. Ever since it was launched, Mobily was known to be the fastest growing mobile operator in 2006. Mobily also took part in acquisitions in Bayanat and Zajil to increase its network and approach. By 2020, Mobily owns 66% stakes in the Saudi National Fiber Network (SNFN).

2. Strong geographic footprint of industry leading network, data centers and retail outlets: Saudi Mobiliy services 99.5% of the Saudi population providing access to 2G network and 98% and 89% with 3G and 4G access respectively. The field-to-the-home connectivity expands to 33,000 km all across the Kingdom. Mobily has also established a state-of-the-art data centre to facilitate tracking and connecting various hospitals with the government by providing advanced technologies. By 2020, Mobily owns 662 outlets including retail stores and data centres with a strong nationwide network consisting of over 3,900 third-party retailers in Saudi Arabia.

3. From RISE strategy to GAIN strategy. Initially, Mobily followed its RISE strategy which focused on regaining commercial strength, igniting customer experience and digital excellence, striving to gain efficiency and agility, and enabling world-class execution. Due to this corporate strategy, Mobily has established an outstanding position in the market with a strong foundation. Now, they are moving to their new strategy that is GAIN corporate strategy which will give the company a faster and profitable growth. Now that they are out of their growth phase, they are focusing on increasing revenue. GAIN expands with growing core revenues, accelerates digital revenue, implements and optimizes efficient delivery and nurtures a positive experience for all.

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Weakness

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Opportunity

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Threats

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Political

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Economic

1. Impact of pandemic on economy and Hajj, Umrah pilgrimage to impact telecom industry: Hajj pilgrimage in Saudi Arabia shares a big part of the Saudi economy. The Hajj Pilgrims strength consecutively increases by 0.8% year on year and touched 2.37 million in fiscal 2018, as per a study by Jadwa Investment (the Saudi Economy of 2018). Due to the COVID19 pandemic, there is a precipitous fall in the number of Hajj and Umrah pilgrims, which indirectly dents the usage of telecom services used by the tourists.

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Social

1. Favorable demographics suggesting potential for telecom growth: Saudi Arabia is the most populated country in entire GCC region. The population is mainly consisting of youth and young generation. With developing technology, the demand for ICT (information communication technology) services is increasing. The telecom sector and the government is highly focused on ICT solutions which will open up new horizons for the telecom industry as well as the consumers. This really helps in improving their ARPUs. Mobily is looking forward to providing connectivity in every nook and corner of Saudi Arabia. It has also partnered with Nokia to boost the digital economy in Saudi Arabia.

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Technological

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Legal

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Environmental

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