* Continue to provide cutting-edge telecommunications and information technology services, data communications and other value-added services including 3G technologies to meet customer needs in all Palestinian areas.
* Achieve significant returns on investment, and protect Jawwal shareholders' investments, whilst striving to meet their expectations and aspirations and constantly communicate with them.
* Offer a broader package of services to a never-expanding subscriber's base in all Palestinian areas.
* Contribute to the development of the Palestinian society by means of supporting numerous activities: social, educational, health, and economic.
II. CORPORATE GOVERNANCE
* Ammar Aker, Chief Executive Officer
Ammar Aker is the Chief Executive Officer of Jawwal. He was named to this position in October 2005. Aker is responsible for managing the company's operations and developing the corporate policy on an international level. He is the driving force behind Jawwal's campaign to possess the largest market share and increase the number of subscribers despite the illegal competition of four Israeli mobile operators in the Palestinian market and the obstacles planted by the occupation.
Aker holds a BS degree in Accounting from Edinboro University of Pennsylvania, USA and an MS degree in Accounting from Kent State University, Ohio, USA.
* Kamal Al-Ratrout Engineering Manager
Kamal Ratrout is the Engineering Director. He was assigned to this position in 2005. Ratrout is responsible for the strategic planning, set-up, operation and quality control of the cellular system. He is the leader of JAWWAL's engineering team, which also ensures high quality cellular communication and high level functioning of JAWWAL's technological infrastructure.
Mr. Ratrout and JAWWAL's Engineering team work in one of the most challenging cellular environments in the world. JAWWAL has been assigned the minimal frequency in the GSM 900 MHz band under which any mobile operator can function. Therefore more investment, both financial and technical, in the network is essential to accommodate JAWWAL's growing subscriber base and to compensate for the shortage in the assigned frequency.
Mr. Ratrout earned his BS degree in Electrical Engineering from Jordan University of Science and Technology. He has also participated in intensive training programs in cellular systems planning, dimensioning, operation and maintenance in Stockholm, Sweden.
* Sumayeh Hind Financial Analysis Manager
Sumaya Hind was promoted to Director of Corporate Finance in May 2006 and became the first woman at JAWWAL to achieve Director status. She is responsible for preparing reports on the company's finances and excels at effectively allocating JAWWAL's financial resources and adjusting budgets and projects to coincide with the uncertainty that comes with life under occupation. She also serves as a liaison between the company and ministries, investors and other mobile operators.
Hind has a BA degree in Economics and Accounting from Jordan University and an MBA degree from Keele University in England
* Abdelrahim Abu Zaydah Accounting Manager
Abdel-Raheem Abu Zaida has served as a Financial Controller since the beginning of 2005. He is responsible for developing the accounting system, work policies and procedures to cope with JAWWAL's rapid development. In addition, he is in charge of supervising monthly and annual reports.
Abdel-Raheem has a BA degree in Accounting from Jordan University. He also participated in several courses in Finance, Administration, Cost and Analysis; mainly CMA, Financial Analysis and Effective Budgeting and Cost Control
* Abdel MAjeed Melhem Sales Manager
Abdel Majeed Melhem began his career as a Director of Sales at the beginning of 2006. He supervises the operations of Enterprise and VIP Subscribers' Sales Department, Exhibitions Department, Dealers' Sales Department and the Sales' Operations Department. His strategic planning provides JAWWAL products and services to all classes of the community; both individuals and institutions.
Mr. Melhem has a BA degree in Accounting and Finance from Hebron University. He was granted various certificates in administration and sales.
* Imad Al-Laham Customer service Manager
Imad Lahham has served as the Director of Customer Care since the beginning of 2006, where he directs and oversees all aspects of JAWWAL's customer service policies, objectives, and initiatives. He is also in charge of establishing procedures and policies governing customer correspondence and handling customers' complaints.
Mr. Lahham graduated from An-Najah National University with a BA in Business Administration
.
* Maen Melhem Marketing Manager
Maen Melhem is the Director of Marketing since the beginning of 2006. He plays an integral part in shaping and communicating the company's business strategy. He manages all aspects of the development and implementation of JAWWAL's marketing initiatives, including internal and external communications, brand marketing and marketing strategy.
Mr. Melhem has a BS degree in Accounting and Finance from Hebron University and an MBA from Al-Quds University. He completed an Executive Business Marketing Strategy Program at Northwestern University's Kellogg School of Management and has participated in many professional seminars in the mobile service industry including Motorola/Dubai, Sony Ericsson/Athens and Alcatel / Dubai.
.
* Walid Ftaiha Procurement Manager
Waleed Fteiha was named Director of Supply Chain and Facilities Management in May 2006. Mr. Fteiha is in charge of planning, implementing, and controlling the operations spanning from the movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption as well as managing the Administration Department.
Mr. Fteiha has BS degree in Communications and Electronic Engineering from Jordan University of Science and Technology. He has also participated in extensive training courses in Shipping and Customs Clearance, Professional Salesmanship and Purchasing and Warehouse Management.
* Younis Abu Samra Regional Manager- Gaza
Younes Abu Samra is the General Manager of the Gaza region. He was named to this position in 2003. In this role, Abu Samra is responsible for the management of JAWWAL operations, supervising strategies, product roadmaps, product development and marketing plans for Jawwal processor roadmap and operations, in the Gaza Strip.
Mr. Abu Samra has a BS degree in Electronic Engineering from Al-Mounefea University in Egypt.
III. EXTERNAL ENVIRONMENT
(EFAS see Exhibit 1)
A. Societal Environment
1. Economic:
* The cellular telecommunication industry was booming and the economy was growing in general in the world, but the economic situation in Palestine is bad because of occupation and closure on the new government.
* The income and salaries are low in Palestine, unemployment is high, and no spending is available for not necessary goods and services.
* Inflation rate was high and the income was stable so that gave the opportunity for people to take less care about luxury goods and services, it also drive the attention of the people to be preserve and aware about their spending
* Unemployment rate was high and the discretionary income was stable which it means that the economic condition for the people was bad and so they would hesitate to search for new service to save their money for more valuable and necessaries goods and services.
* The internal war between the Palestinians themselves destroyed the economy.
* Decrease number of companies whom may invest in Palestine because of unsafe economic conditions.(no attract for foreign investments)
* Lack of international economic support.
* The immigration for highly skilled employees and expertise out of Palestine.
2. Technological:
* There was no government spending for R&D cellular telecommunication filed.
* Jawwal use and implant new technologies that guarantee safety and high quality services for Jawwal customers.
* ERP systems was purchased and implemented in jawwal such as CRM and financial Oracle.
* Expanding Jawwal call center systems to satisfy customer's needs 24 hour daily with high security standards for Jawwal customers.
* Computer and communications technology was enabling jawwal to compete effectively against larger rivals (Israeli illegal companies).
* Improving and supporting for jawwal dealers systems and quality control on services provide through jawwal dealers network.
* E-top up systems to charge without scratch cards.
* Jawwal make huge investment in systems and cellular network.
3. Political-legal:
* The political situation was and still bad and there was no stability for the government.
* Lack of governmental power so many illegal Israeli competitors work in the Palestinian market illegally.
* Jawwal sponsored a radio program that communicates with Palestinian detainees in Israeli prisons and another TV talk show that discusses issues of importance to the Palestinian people, "the allowed talk". In commemoration of the children who were killed in the Palestinian Intifada, Jawwal established "Al-kholoud Park" in Ramallah governorate.
* Cellular telecommunication industry is essential and very important in all fields in the Palestinian market.
* Frequencies for cellular networks are highly related to political and legal power.
* Israeli forces forbid Jawwal from expanding its network in the areas out of PNA control as C areas; this will affect Jawwal capacity and quality of services out of C areas but Jawwal planning and optimizing do the pest to satisfy customers need where and when customers are.
* Israeli forces forbid Jawwal from inserting BSCSs and MSCs to expand its network for security purposes as they claim.
4. Sociocultural:
* The lifestyle has been changed since every person is trying to hold its own cellular mobile. for example from 13 years old try to own its own mobile.
* The variety of services provided throw mobile network increase the importance of mobiles in the recent society.
* The culture of strong relationships among the Palestinians people expands the use of mobiles .
* The cellular telecommunication industry was benefiting from people's desire to facilitate their life and to use mobile services to do their work effectively and efficiently since time is money.
* The Israeli occupation and the unsafe environment Palestinians live increase the use of mobile services.
* Jawwal's greatest achievement was winning the ISO 14001 for its application of all scientific standards of environmental quality throughout its operations. Jawwal believes in its societal responsibility, especially those related to raising the awareness of the Palestinian youths concerning the environment and health hazards resulting from wrong environmental practices. Therefore, Jawwal organized "more beautiful country" campaign, sponsored by "Dardish" in cooperation with Sharek Youth Forum in the West Bank and Gaza Strip. Over a three-month period, starting from 22 September 2006, Jawwal organized 46 workshops, which focused on the environment in all governorates. The activities included days of play and joy for children, sports days and volunteer activates in universities and schools.
* At the social level, Jawwal has been keeping up with social, environmental, scientific and political events, to activate its role in the Palestinian society. In doing so, Jawwal endeavors to provide the community with the rights and privileges it has been deprived from by the Israeli occupation. Since its establishment, Jawwal has been keen to support sports activities, education and environmental events, in addition to assisting people with special needs.
* Concerning education, Jawwal has been giving grants to Rafah schools that have been demolished because of repetitive Israeli shelling; it channeled its assistance in cooperation with the Ministry of Higher Education. On the other hand, in an attempt to relief Tawjihi students from exam stress, Jawwal, being the official sponsor of results, handed out gifts and organized other events related tawjihi students. Moreover, Jawwal organized various activities in universities of the West Bank and Gaza Strip, including a number of campaigns like "back to school", giving away school bags and stationery to a large number of students. It also organized "Alquds in our memory" festivities. The event included a presentation on the history of the Holy City and a competition that targeted children in 1300 schools in all governorates. In 2006, Jawwal also helped organize the Medical Science Conference in Jerusalem. To communicate with students, Jawwal sponsored numerous students' campaigns and newsletters published by universities' media departments. In Ramadan, it organized Ramadan group fast breaking event with cultural contests, in addition to sponsoring a number of "Employment Day" events at Palestinian universities.
* In the area of health, Jawwal assisted numerous health organizations, most importantly the Friends of Thalasemia Society and the Palestinian Red Crescent. It also provided support to people with special needs by offering breaking news services to the deaf and dumb to keep them up-to-date with news in light of the difficult conditions in the Palestinian Territory
* Youth related activities also caught the attention of Jawwal with the sponsoring of sports competitions in ten Palestinian governorates, in cooperation with the Ministry of Youth and Sports. To add some joy to the hearts of children under siege in Nablus, Jawwal organized, with the participation Motorola, a carnival for children.
B. Task Environment
1. Threat of new entrants:
* Jawwal cellular company has the advantage of variety of its services and packages offers that can satisfy all customer needs.
* Jawwal cellular company has its large and loyal customer base during its operation life.
* The capital requirement for the entry is high and the Palestinian market is not attractive since it small compared to other markets since Palestine population is not too high.
* Jawwal built its strong infrastructure during the past 8 years.
* The PNA gives the second operator license during the 2006 but until now the second operator is still not working and not to build any of its infrastructures because of no frequencies is available for the second operator.
2. Rivalry among exciting firms:
* There second operator expected to start work during 2008 or 2009.
* There are four illegal competitors in the Palestinian market.
* The competition between Jawwal and the new competitor is expected to be high.
3. Threat of Substitute products:
* For now there is no specific substitute for Jawwal cellular telecommunication company and Jawwal expected to be the leader in the Palestinian market when the second operator starts operation.
* In a business like cellular telecommunication industry, competitors have to compete based on the service and prices they offer.
* 3G technology is expected to inter the Palestinian market during 2008 and 2009.
* Jawwal tries to make long term contracts and commitments with its customers through strong promotions and loyalty programs and free handsets and air time promotion.
4. Bargaining power of buyers:
* The most of Jawwal customers are committed and loyal for Jawwal as a result of promotion system Jawwal offers and free services and handsets related to customers different segments and packages.
* Alternative suppliers are plentiful because Jawwal prices will be lower than new competitor prices because of its strong financial positions thus will increase Jawwal ability for strong completion.
* The byres have to think deeply before leaving Jawwal network.
5. Bargaining power of suppliers:
* Jawwals have its unique and committed suppliers (long term agreements with suppliers).
* Jawwal treats with strong national and international suppliers.
6. Relative power of other stakeholders:
* Jawwal tries to maximize its stakeholder wealth through increase net income and growth in its subscribers and inventing new programs to retain its customers.
External Strategic Factors Weights Rating Weighted Score Comments
Opportunities
Growth expectation.
1
5
0.2
The new technology and facilities that can be supported through mobiles network.
Growth expectation.
0.6
4
0.15
The increasing number of youth segment in the Palestinian market.
Growth expectation..
0.3
3
0.1
The trend towered use wireless and data services through mobiles.
Facilitate Jawwal mission
0.03
1
0.03
Increase customers' knowledge in new technologies.
More frequencies
0.1
2
0.05
The expected stability of the government and the political situation
Threats
Strong competition
1
5
0.2
Intensive rivalry in the business.
Difficult mission
0.24
3
0.08
The culture related to cancer and mobile network in the minds of people.
Less spending for cellular services
0.48
4
0.12
The low income customers earned.
Growth barriers.
0.1
2
0.05
Lack of security in the Palestinian market because of Intifada and occupation
Growth barriers.
0.02
1
0.02
The continuous bad economic and political situations.
.
3.87
1.00
Total Score
Exhibit 1: EFAS table
IV. INTERNAL ENVIRONMENT
(IFAS see Exhibit 2)
A. Corporate Structure:
* Its divisional structure that provides cellular calling services with a wide variety of packages and options for Palestinian market.
* At first Jawwal started as small project inside Paltel Company but lately in 1999 started as separate company within the Paltel group and started to establish its own strategy and objectives that are consistent with Paltel group strategy, objectives and polices.
* The company is organized on the combination of functions, projects and geography.
* The present structure is consistent with corporate objectives, policies, programs and the firm strategies.
* Jawwal owns it organized and provisional structure that divided according to international standards that will be explained later.
B. Corporate Culture:
* There is a well-defined or emerging culture composed of shared beliefs, expectations, and values among Jawwal environment and employees called Jawwal family.
* Jawwal has its own culture and strategy toward society to make people near to Jawwal culture and values so increase customer's loyalty and commitment for example, every Thursday is considered as casual day.
* Jawwal has its organized work and planning.
* Jawwal culture is seen from other companies in Palestine as a leader in the Palestinian market.
* Most of employees in Palestinian market wishing to be part of Jawwal team work to share them the same culture.
* Jawwal has an environmental culture toward health and clean environment, at the environmental level, Jawwal attained the ISO 14001 certificate, being the first in the Middle East and the fourth in the world to attain such international certificate. This is an important indicator of Jawwal's keen commitment to global environmental policies and demonstrates that Jawwal applies the best technical standards throughout its operations.
C. Corporate Resources:
1. Marketing
* Jawwal has the trend to" think global act local".
* Current marketing objectives is:
o To increase postpaid and prepaid customers to increase the firm profits.
o Bundling sales(multiple products at the same time)
o Extended there sales to rural and upscale areas, areas where Jawwal coverage is not available.
o New programs for achieving customer satisfaction and loyalty.
o New promotions programs.
o New and wide variety of programs related to all customers segments and suitable to customers' level of income and needs.
* Dominate and prepare dealers stores presence with store resets, product display layouts.
* Clear marketing analysis and feedback about the results.
* Competitive advantage for Jawwal.
* Wide and specific benchmark to compare Jawwal performance.
* Intensive and continuous marketing campaigns
2. Finance
* Jawwal realized an increase of 33% in its profits in 2006, in comparison with 2005, thus being able to meet its projected budget for 2006.
* Jawwal's operational revenues reached JD104 millions, which represents a rise of 31% in comparison to the previous year.
* Jawwal's operational revenues represent 51% of Paltel Group's income.
* EBITDA reached JD54 million, representing an increase of 41% in comparison to the year before.
* Increase in the number of subscribers by 45%, arriving to 820,000 during 2006 and more than 1 million during 2007.
* The net increase in the number of subscribers in 2006 was 254,000, the highest increase in Jawwal history.
* Jawwal success was a product of its ability to reinforce its place in the Palestinian market.
* Jawwal revenues increased from JD28 million in 2001 to JD104 million in 2006.
* Jawwal revenues representing an accumulated annual growth of 30%.
* EBITDA also increased from JD8 million in 2001 to JD54 million in 2006.
* Jawwal EBITDA achieving a compounded annual growth of 46%.
3. R&D
* Research in the Palestinian market to know the market needs.
* Clear stated R&D.
* Trend to invest in R&D.
* Use of different techniques for R&D.
* R&D to develop new systems as an implementation to think globally.
* R&D to be the leader on the market.
* R&D to enhance the quality of services provided by Jawwal.
4. Operation and Logistics
* Domestic operations capabilities with international standards of the company.
* Trend for internationally operations capabilities of the company.
* Trend for outsourcing to enhance quality and effectiveness of services.
* Extended sales to rural and upscale outlets, areas where Jawwal coverage is not available (new market opportunities).
* There are high qualified management who can manage and operate day to day activities effectively and put the outline for future plans and investments.
* Use and exploit interpersonal skills of expertise people.
5. Human Resources Management (HRM)
* In general HR is good since the top management try to get the right person for the right Job.
* No problems related to employees satisfaction.
* Use the advice of large specialized senior consultant company specialized in HR fields.
* Implementing new retention plans for employees.
* Use bonuses plans for HR rewards according to known objectives and targets.
* Different rewards plans for every employee according to his or her job responsibility and sensitivity.
6. Information System.
* Jawwal has various IT systems.
* ERP systems.
* Oracle financial system.
* CRM system.
* Quality management and revenue assurance systems.
* Roaming engineering systems.
* Internally developed HR system.
* Environmental measurement system.
* IVR enhanced systems.
Internal Strategic Factors weights Rating Weighted Score Comments
Strengths
Good quality
0.56
4
0.14
Quality of service.
Good productivity
0.48
4
0.12
Satisfied and experts employees
Customer satisfaction
0.28
3.5
0.08
Various packages and programs.
Jawwal image
0.33
3.7
0.09
Dominant and leader in the market.
Fast decisions
0.28
4
0.07
Work diversity
Weaknesses
Coverage
0.27
3
0.09
Frequencies limitations
Quality and control
0.15
2.5
0.06
Closer by Israeli occupations
More restrictions
0.32
2
0.16
Occupation interventions
More restrictions
0.57
3
0.19
Confiscated equipment, BSCs and MSCs.
3.24
1.00
Total Score
Exhibit 2: IFAS table
V. ANALYSIS OF STRATEGIC FACTORS (SWOT)
(SFAS see Exhibit 3)
A. Situational Analysis
1. Strength
* Quality of service.
* Satisfied and experts employees
* Various packages and programs.
* Dominant and leader in the market.
* Work diversity.
* Interest towered environment and health.
2. Weakness
* Frequencies limitations
* Closer by Israeli occupations
* Occupation interventions.
* Confiscated equipment, BSCs and MSCs.
3. Opportunities
* The new technology and facilities that can be supported through mobiles network.
* The increasing number of youth segment in the Palestinian market
* The trend towered use wireless and data services through mobiles.
* Increase customers' knowledge in new technologies.
* The expected stability of the government and the political situation
4. Threats
* Intensive rivalry in the business.
* The low income customers earned.
* The continuous bad economic and political situations.
* The culture related to cancer and mobile network in the minds of people.
* Lack of security in the Palestinian market because of Intifada and occupation.
Score Comments
Duration
Weighted
Rating
weights
Strategic Factors
L
I
S
Good quality
x
0.56
4
0.14
Quality of service .(S)
Good productivity
x
0.48
4
0.12
Satisfied and experts employees.(S)
Coverage
x
0.24
3
0.08
Confiscated equipment .(W)
Expansion, Growth in customers.
x
0.32
2
0.16
Frequencies limitations .(W)
Growth expectation.
x
0.6
4
0.15
The new technology and facilities .(O)
Facilitate Jawwal mission
x
0.3
3
0.1
Increase customers' knowledge in new technologies .(O)
Strong competition
x
0.48
4
0.12
Intensive rivalry in the business .(T)
Not suitable growth environment
x
0.24
3
0.08
The continuous bad economic and political situations .(T)
Difficult mission
x
0.1
2
0.05
The culture related to cancer and mobile network in the minds of people .(T)
3.32
1.00
Total Score
Exhibit 3: SFAS table
B. Review of mission and Objectives
* I think that the mission statement is clear, and the objectives are very good and enough when achieved to guarantee company growth and expansion.
VI. STRATEGIC ALTERNATIVES AND RECOMMENED STRATEGY
A. Strategic Alternatives
Growth Strategies:
1. Through focusing more on postpaid customers.
Pros: Jawwal will increase its revenues by attaining more profitable postpaid customers since there usage for mobile service is higher than prepaid customers so their profit margin is higher than prepaid margin since most postpaid customers are corporate and business users, so Jawwal has to give more promotions and campaigns for postpaid customers to promote and bring more postpaid customers.
Cons: Focusing more on postpaid subscribers may affect prepaid customers loyalty so this will create bad image in the prepaid customers view point, so this may affect Jawwal in a bad way so may increase the percentage of churned prepaid customers.
2. Through expanding Jawwal services and packages.
Pros: By inserting new services and features Jawwal will attain more and more customers so to increase its revenues and profit so this will help to achieve Jawwal goals.
Cons: Inserting too much of services and packages will make Jawwal subscribers in a mysterious statues when they cant chose the suitable package for customers needs by customers themselves.
Stability Strategies:
1. Pause Strategy:
After several years of continuous growth the company needs to arrange it self, before continuing the growth strategy, and to rearrange the different divisions in order to find economics and create synergies among the different division, and to reassess the different division to see which division is the most profitable and to focus more on developing that department
Pros: Jawwal need to rearrange it self, in order to face the new challenging that are coming (the entrance of new companies like Al-Wataniyah into the market), and to restructure it self, in order to have the maximum synergy between the different division Jawwal working in.
Cons: This pause strategy my delay Jawwal going growth, and this my lead to lose time in facing the tough competition.
2. No change strategy
The company will decide to do nothing new, the choice hear to continue the current operation and polices as it's for the near future.
Retrenchment Strategy
Turn around strategy
To emphasize on improvement of the operational efficiency and to focus most on the profitable operation (hi margin of profit operation) and services, and to reduce the focus on the non profitable services.
Pros: Jawwal will focus more on the profitable packages and the will lead to better net profit, and more focused strategies.
Cons: Jawwal will be focusing mainly on the high profitable packages, may lead to lose focus on the other packages and services so Jawwal must be very careful in dealing with that packages and services.
B. Recommended strategy
1. First
We recommend that Jawwal should grow through expanding its services and packages and also to attain more postpaid customers , but Jawwal should be careful in this way of growth in two ways, first Jawwal should concentrate on prepaid customers satisfaction, and Jawwal should not lose focus on quality of services it provide.
2. Second
We recommend that Jawwal should focus to attain more frequencies.
3. Third
Jawwal has to own its back up solution related to network to be able to satisfy customer's needs because of unsafely environment related to Israeli occupation.
4. Fourth
Jawwal has to give more attention for customer's treatment in Jawwal showrooms
5. Fifth
Jawwal has to open more Maintenance centers in west bank and Gaza to satisfy customers needs.
VII. IMPLEMENTATION
1. To do market research to see which of customers needs are not highly satisfied.
2. Jawwal should start investing more and more in its network and frequencies and systems
3. Jawwal should start focusing on long term contracts with its customers and suppliers.
4. Jawwal should start implementing quality measurement standards in intensive and modern standards
.
5. Jawwal should start expanding its maintenance centers and it showrooms.
VIII. EVALUATION AND CONTROL
A. Jawwal needs to intensify investment in its network and systems related issues.
B. Jawwal need to increase its awareness campaigns to environment and health.
C. Jawwal needs to benchmark its self with other operators.
References:
* Jawwal.2006.annual report.
* Special interviews.
* Personal experience.
Thanks
??
??
??
??
25
