STC VS AT&T Harvard Case Solution & Analysis

STC vs. AT&T

Introduction to STC

STC is known as the most competitive, consistent and largest company of the kingdom.The company provides different services including landline service, internet service, and mobile phone connections services.

The company started operations in 1998, and then it started its internet service in 2000.Later itentered in the market of mobile services and started providing mobile services in 2002. The company started its operation initially by hiring two consultants and 10 employees and now it isthe largest company of the kingdom. (Alwagait, 2013)

It has been observed in the past by many analysts that the company possesses very strong market image, strong brand loyalty, strong financial position, consumer trust and healthy cash flows, as indicated by its balance sheet. The company’s strong feedback system allows it to gather quick responses from its consumers to take quick and effective strategic decision. The company provides best fit and needappropriate products, which enhance its market reach frequency, also it enhances its consumer satisfaction.(Alwagait, 2013)

The company also promises to provide best quality solutions in reasonable prices and provides the same in order win customer confidence and to make a good profit.Moreover,it enables the company to make good relations with its investors.
STC’s major share has been owned by Saudi Government by the Saudi Arabia Public Investment fund, which is 70%, 6.6% in the pension fund, and 7% in the General Organization for Investment Fund, other holdings include the 5% share and will not exceed with it. In 2014, STC showed the market capitalization of 150 billion SAR (USD 40 billion), which made it the largest company all over the Middle East.(n.d, 2014)

Introduction to AT&T

American Telephone and Telegraph (AT&T) is a telecommunication company, which was founded in 1983 in USA.Thecompany is providing all of the telecom services including the mobile services, landline services, broadband services, 3G and 4G services across the world.(Reuters, 2015)

It offers its services to local and foreign customers and businesses as well.The company provides its services to individuals and other businesses to support them to take work through connectivity and make them enable to stay connected. The company also provides high speed broadband services and high speed video calling services, which are known as U verse, these services are especially designed for high tech businesses. (Reuters, 2015)

The company sells handsets, personal computers, notebooks, and tablet computers through its own retail stores and through third party and retailers.The company also deals in wireless connected computers. Moreover, the company deals in accessories such as hands free devices, batteries and batteries chargers etc.

(Reuters, 2015)

History of STC

Saudi Telecom Company (STC) was formed in 1998 as a state owned organization and enjoyed a lot of monopolies in its early start in the private sector, since there were no competitors in the Saudi region to threaten STC.The company was partially privatized in 2003 and then threatened with the increasing competition in the market.

The company set its target to get its operation spread all across the world and the company would have to earn 10% of its total revenue from international operations in 2010. The company achieved this target in 2008 which was 2 years earlier than the said target........................

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