COMPANY PROFILE -Zain
Business Sector :Telecommuniation
Operating Geography :Kuwait, Asia, Global
About Zain :
Zain is a mobile telecommunications company founded in 1983 in Kuwait as MTC (Mobile Telecommunications Company) and later rebranded as Zain in 2007. Zain has a commercial presence in eight countries across the Middle East with 46.9 million active customers as of March 2018. With a vision for building a sustainable and innovative digital communications company is serving consumers and enterprises with a rich and simple mobile experience. Zain group operates with a passion for providing enhanced customer experience and maintaining operational effectivenes. Zain’s strategy is based on six transformational initiatives: Customer Experience; Operational Effectiveness; Value Management; B2B; Digital Frontier and Innovation, and Talent Development. Listed on the Kuwait Stock Exchange, there are no restrictions on Zain shares as the company’s capital is 100% free float and publicly traded. The largest shareholder is the Kuwait Investment Authority with a 24.6% as of December 2017.
Zain Revenue :
KD 1029.5 million – FY ended Dec 2017(year-on-year growth of ~6%)
KD 1087.7 million – FY ended Dec 2016
Ownership / Major shareholders :
Kuwait Investment Authority - 24.6%, Oman Telecommunications - 21.9%, Nohoudh Development Trading & Contracting - 5.05%
Competitive Analysis of Zain
The SWOT Analysis for Zain is presented below:
Strengths | Weaknesses |
1. Consistently profitable operations
2. Market leader in Kuwait, Iraq, Republic Of Sudan, Jordan & Lebanon
3. Focus on cost effectiveness and optimization
4. Strong brand value in Middle East
5. Innovations strengthening the technology platform
6. Reduced debt to equity ratio
| 1. Decrease in customer base |
Opportunities | Threats |
1. Opportunities in business to business segment
2. First mover opportunities in 5G Technology
| 1. Costly license Renewals
2. Increasing risk from Cyber Attacks
3. Falling ARPU and biometric registrations putting a brake on growth
4. Increase in competition from OTT and MVNO
|
On purchase the Zain SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed SWOT Analysis of Zain
Strength
1. Consistently profitable operations: The consolidated financial results for 2017 highlight the positive developments achieved by the several of the Groups key markets in terms of operational performance. In 2017, Zain Saudi Arabia reported USD 3.1 Million net profit turnaround that saw for the first time in its history recording an annual net profit. Zain Sudan recorded exceptional performance in local currency terms, with all its financial indicators jumping to all-time highs. Furthermore, in 2017, Zain Iraq also became profitable again after previously reporting losses. Zain group also witnessed the impressive addition of two million customers and significant growth of data revenues. Even in such challenging environment where businesses are facing increasing pressure on the profit level, Zain group managed to generate reasonable profits on year on year basis for the entire group. In last 3 years, Zain has group has reported an average profit on KD 2,68,073.
2. Market leader in Kuwait, Iraq, Republic Of Sudan, Jordan & Lebanon: Zain is considered as the new global brand for leading emerging markets mobile operator. Zain emerged as market leader in Kuwait, Iraq, Republic of Sudan, Jordan and Lebanon. Zain Kuwait started its operation in 1983 as Mobile Telecommunications Company(MTC) is the most profitable company in the company. Zain Kuwait has snatched a significant market share of 37% for the year 2017. Zain Iraq commenced in the year 2003 has a market share of 41% for the year 2017. The customer base of Zain Iraq grew 16% on year on year basis to reach 14.7 million. Zain Sudan came into the business after the acquisition of a 61% stake in Mobitel for USD 1.33 Billion. As of 2017, Zain Sudan has a market share of 47%. Zain Sudan is serving 13.5 million customers which 2nd largest in the group. Whereas Zain Jordan & Zain Lebanon has also maintained its market share of 36% and 54% respectively in the year 2017. Therefore, such market share will help Zain Group to generate more revenue as compared to its peers.
3. Focus on cost effectiveness and optimization: The telecommunications industry is undergoing a radical transformation and its moving towards digital and cloud services. It is very evident that the profitability levels of telecommunication companies are under increasing pressure in the challenging operating environment. It becomes very difficult for the companies to meet increasing capital expenditure requirements and rising operating costs. Hence, Zain is aggressively focusing on cost optimization programs. In line with this strategy, Zain sold and lease-backed the passive infrastructure of Zain’s mobile tower portfolio in Kuwait for USD 165 million to IHS Holding Limited. The transaction will not only reduce future expenditure but will also allow the company to increase investment in modern technologies and focus on enhancing the mobile experience for customers. In such a way Zain Group is motivated enough to exploit and enhance every cost-benefit opportunity.
The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE/STEEPLE/PESTEL Analysis for Zain is presented below:
Political | Economical |
1. Adverse effect of political polices
2. Political conflict and unstability in MENA regions
| 1. Fluctuations in currency markets |
Social | Technological |
1. Social branding and promotion
2. Middle East region registering world’s highest population growth
3. Promoting Inclusivity to help reach out to more customers
| 1. 5G technology on board
2. Digital services to boost revenues
|
Legal | Environmental |
1. Telecom laws and regulations
2. Regulation due to national security concerns
| 1. Focus on sustainability initiatives
2. Energy and site optimization
|
On purchase the Zain SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Zain
Political
1. Adverse effect of Political Polices: Lower oil prices, high youth, unemployment, large budget deficits and civil conflicts are impacting economies. Value Added Tax (VAT) at 5% has already been introduced in Saudi Arabia and United Arab Emirates (UAE) and is set to be implemented in other Gulf Cooperation Council (GCC) countries by no later than 2019. The implementation of expat levies and removal of energy subsidies have reduced the disposable income of consumers in Zain Markets. In tandem, governments continue to seek high spectrum fees, increase in mobile special taxes, excise taxes on usage, higher revenue share or introduction of additional costs through the imposition of universe service obligation. In Jordan, amount of taxes paid on top line sums up to 46.16% in addition to the revenue share of 10%, regulatory levy of 1% and corporate income tax at 24%. Analytical researchers are of the opinion that increasing tax burden will have an adverse effect on telecommunication sector. Further, consumer taxes impact consumer spending consequently lowering Average Revenue Per User (ARPU).
2. Political conflict and unstability in MENA regions: Political dynamics in the Middle East and North America(MENA) and daily events in Bahrain, Egypt, Iran, Iraq and other countries showcase current course of violence and instability in the region. It has been very evident that the region is facing demographic pressures, failures in economic development and the combination of challenges related to income distribution. Current UN, World Bank and others claim that situation in MENA countries is getting worse especially in conflict states. The pace of change and reform in most countries is far behind the actual need for change and reform. Hence, such macroeconomic factors have an adverse effect on the working of the business. Telecommunication companies such as Zain may find it difficult to effectively manage the ill effects of the political conflict and instability caused in the MENA region.
Economical
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
Etisalat, Mobily, Ooreedoo, Du, MTN, Omantel.
Major Brands :
Zain, touch, Paltel, MTC Bahrain.
Recent Acquisition / Mergers / Alliance / Joint Ventures / Divestitures :
Open Table Preview
Name | Business Segment | Year | Type | Objective/Synergy Achieved |
Iraqna | Telecom | 2007 | Acquisition | Helped in becoming the number one telecom player in Iraq |
Mobitel | Telecom | 2006 | Acquisition | Becomes the leading mobile operator in Sudan. |
Source: Company website and other reliable sources. The detailed table is available in the Complete Report.
On purchase the Zain SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of Zain:
-
Zain Porter's Five Forces Analysis |
|
-
-
Zain Value Chain Analysis |
|
-
Zain Covid-19 Impact Analysis |
|
-
-
Zain Segmentation, Targeting and Positioning (STP) Analysis |
|
-
Zain Ansoff Matrix Analysis |
|
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Company Overview Report
This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Competitor Analysis Report
This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Porter's Five Forces Analysis Report
This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
VRIO Analysis Report
This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Value Chain Analysis Report
This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Regulatory Outlook Report
This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Risk Analysis Report
This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Key Performance Indicators (KPI's) Report
This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Environmental, Social, and Governance (ESG) Analysis Report
This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
M&A Analysis Report
This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Subsidiaries, Partnerships and Collaborations Report
This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Stakeholder Analysis Report
This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Technology Landscape and Outlook Report
This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Covid-19 Impact Analysis Report
This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Key News and Events Report
This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
BCG Analysis Report
This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Digital Marketing and Social Media Strategy Analysis Report
This report is shared in order to give you an idea of what the complete Digital Marketing and Social Media Strategy Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Segmentation, Targeting and Positioning (STP) Analysis Report
This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Ansoff Matrix Analysis Report
This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Check Out Analysis of Other Relevant Companies
References used in Zain SWOT & PESTLE Analysis Report
1. Zain Annual Report 2017: https://www.zain.com/en/investor-relations/financial-reports/
2. Kuwait's telecoms sector adapts to increasingly digitised world: https://oxfordbusinessgroup.com/overview/loading-industry-players-look-get-ahead-increasingly-digitised-world
3. Market share of Zain in the Middle East in 2017, by country: https://www.statista.com/statistics/670975/middle-east-zain-market-share-by-country/
4. Kuwait telecoms market report 2018: https://www.analysysmason.com/Research/Content/Country-reports/Kuwait-country-report-RDRK0/
How to Reference This Page?
You can use the following in your reference section in order to give credit to the source. For different referencing styles and detailed guidelines, please click here.
Zain SWOT and PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2023). Zain SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/zain/ [Accessed 29 Nov, 2023].
In-text: (SWOT & PESTLE.com, 2023)
Copyrights and Disclaimer
Zain SWOT and PESTLE analysis has been conducted by
Kushal Shanbagh and reviewed by senior analysts from Barakaat Consulting.
Copyright of Zain SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.