The Strategic Evaluation of Omantel - Essay Sample

Omantel is a government-owned company which the country's primary provider of the telecommunications services and it has established itself as a major international hub. In Sultanate of Oman, the company is the pioneer of communication solutions. It provides the broadest choice of state of the art services ensuring the widest network coverage. Since the 1970s, the company has provided a full spectrum of telecommunications solutions to its consumers (Al-Kharusi, H. 2014). Some of the consumer segments include wholesale clientele, individual consumers and enterprise, and government. This essay will entail the strategic evaluation of the Omantel Company.

Purpose in an Organization

The organizational purpose helps in giving a business its existence and acts as a guiding force to which the decisions of a business can be rooted. The purposes usually set the tone for the clientele the business exists in serving (Craig and Snook, 2014). It also dictates how the business uses its time, attention and resources in serving the niche market. One, there is the purpose of organization theory which explains the fundamental parts of the company and how they correlate. This helps in the prediction of how the components can behave under various conditions. There is also the classical theory of organization which views the organization concerning its purposes and formal structure (Parra and Marengi, 2014). This theory focus in the planning of work, the technical requirements, the assumption of rational and logical behavior in addition to principles of management.

Omantel Business Ethics

Business ethics entails the development of sense whereby business practices are ethically ensured concerning the employees, suppliers, and customers among other stakeholders (Moriarty, J. 2016). There have been innovations in the company in which it can interact with the customer by using innovative means to ensure increased responsiveness. According to utilitarian theory, Omantel must focus on using ethical actions in the promotion of the most good or value in the society while minimizing harm. This means that morals are essential in the achievement of the end goal without the mistreatment of any stakeholders (Sadler, G. 2017). There is also the virtue theory that explains that an organization must follow ethical principles that are evident in the society (Riley, J. 2015). This means that Omantel must implement principles that are evident and have a positive effect on the society.

Bowman's Strategic Clock Position

Figure 1. Bowman's Clock of Business Strategies (Jamal, J.2014)

The Bowman's Strategy Clock can be described as a diagrammatic representation of the various strategic options that can be utilized by a business (Simister, P. 2011). This entails moving in the customer value map which is about the correlation between the price willing to be paid by a client and the perceived value of the product (Al-Zubaidi, A. 2002). The customer value map outlines the respective positioning occupied by the businesses who are competing in that particular market (Al-Kharusi, H. 2014). Omantel uses differentiation strategy to ensure they provide their consumers with the highest level of perceived added value. In this the utilization of this strategy, branding plays a critical part in addition to high product quality (Khadr and Shabayek, 2011). Omantel offers superior and innovative products, services and tariffs. Differentiation strategy is used in creating value and enhancing customer loyalty (Omantel.om. 2015).

Strategic Recommendations

Strategic Recommendation Explanation

Development of strategy of internet use Previously, there has been traditional methods focused on the provision of internet, training people on applications. This new strategy will entail reflecting on social changes that the company wishes to produce and then make considerations on the type of use and access (Al-Zubaidi, A 2002, 43).

Enhance internet awareness and knowledge It should be the aim of Omantel to improve the knowledge concerning internet through the increment of marketing forces.

Building-up on the existing foundations Omantel can be considered a technology-driven organization who has worked to become a leader in Oman market. Additionally, it is the recommendation that focuses on building upon the foundation to ensure the provision of high-quality services.

Privatization of Omantel and market opening The movement of the market from monopoly to oligopoly will be essential since it has been proven to enhance economic efficiency, improve productivity and enhance innovation (Al-Zubaidi, A 2002).

Conclusion

It is evident that Omantel is the market leader in the provision of telecommunication products and services in the Oman market. The purpose of an organization give the business a sense of direction. Omantel in the market has a sense of responsibility to the stakeholders which can be seen through business ethics. Some of the ethical theories that can explain how Omantel should operate and include utilitarian theory and virtue theory. Additionally, there has been the evaluation of Omantel's differentiation strategy using the Bowman's strategy clock position. In the Oman market, Omantel has been a major player. It, therefore, means the market should be opened up to increase competition and ultimately enhance the quality of products and services.

References

Al-Kharusi, H. (2014). Omantels response on the TRA consultation regarding access and interconnection regulation. [Online] Tra.gov.om. Available at: https://www.tra.gov.om/pdf/draftinterconn_omantel.pdf [Accessed 12 Dec. 2017].

Al-Zubaidi, A. (2002). Critical Assessment of the Internet Development in Oman. [Online] Minerva.leeds.ac.uk. Available at: https://minerva.leeds.ac.uk/bbcswebdav/orgs/SCH_Computing/FYProj/reports/0102/al-zubaidi.pdf [Accessed 12 Dec. 2017].

Arsal, K. and Yaici, K. (2016). Omantel Telecommunication Summit 2016: Building Blocks for Successful Operator Strategies. [Online] Analysysmason.com. Available at: http://www.analysysmason.com/contentassets/09a7f876bead4557aac8d1be8d434bfe/monetising-mobile-data-omantel-kerem-arsal-and-karim-yaici.pdf [Accessed 12 Dec. 2017].

Craig, N. and Snook, S. (2014). From Purpose to Impact. [Online] Harvard Business Review. Available at: https://hbr.org/2014/05/from-purpose-to-impact [Accessed 12 Dec. 2017].

Jamal, J. (2014). Bowman's Clock of Business Strategies | the Business Professor. [Online] Thebusinessprofessor.com. Available at: http://thebusinessprofessor.com/knowledge-base/bowmans-clock/ [Accessed 12 Dec. 2017].

Khadr, K. and Shabayek, S. (2011). Superior margins and sustainable yields. [Online] Mec.biz. Available at: http://mec.biz/term/uploads/OTEL-23-06-2011.pdf [Accessed 12 Dec. 2017].

Moriarty, J. (2016). Business Ethics (Stanford Encyclopedia of Philosophy). [Online] Plato.stanford.edu. Available at: https://plato.stanford.edu/entries/ethics-business/ [Accessed 12 Dec. 2017].

Omantel.om. (2015). Management Discussion & Analysis. [Online] Available at: https://www.omantel.om/wps/wcm/connect/51fa1cdd-6b48-4c5d-ad66-050c9763a2e8/Management+discussion+and+Analysis.pdf?MOD=AJPERES&CONVERT_TO=URL&CACHEID=51fa1cdd-6b48-4c5d-ad66-050c9763a2e8 [Accessed 12 Dec. 2017].

Parra, R. and Marengi, J. (2014). Approaches to Organization and Management. [Online] Available at: https://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplechapter/0273757342.pdf [Accessed 12 Dec. 2017].

Riley, J. (2015). The Exam Performance Specialists | tutor2u Business. [Online] tutor2u. Available at: https://www.tutor2u.net/business/reference/strategic-positioning-bowmans-strategy-clock [Accessed 12 Dec. 2017].

Sadler, G. (2017). Five Ethical Theories: Bare Bones for Business Educators. [Online] Academia.edu. Available at: https://www.academia.edu/1702607/Five_Ethical_Theories_Bare_Bones_for_Business_Educators [Accessed 12 Dec. 2017].

Simister, P. (2011). Bowmans Strategy Clock Your Strategic Options. [Online] Differentiateyourbusiness.co.uk. Available at: http://www.differentiateyourbusiness.co.uk/bowmans-strategy-clock-your-strategic-options [Accessed 12 Dec. 2017].