Push based email is relatively new to China , which is the largest telecommunication market in the world . RIM had expressed high hopes for it’s Blackberry launch in China but the new announcement of Redberry will damage it’s prospect .(1)
- Motornet
China Mobile itself has introduced another product which is non - Blackberry push mail system . The product is designed on Motor net platform .
However , some sources at RIM ( which has launched Blackberry in collaboration with China Mobile ) says “ China Mobile views Blackberry as it’s key higher-end enterprise email and date offering that is trusted by global corporations, while it’s domestic email solution is offered as a basic service for the lower-end segment “( 2 )
Basically any PDA device can be considered as Blackberry’s competitor , below is some of the biggest name in PDA devices :
a) Palm Treo 500 V
Palms is one of the devices that has been targeting the same segment of the market that Blackberry does . The device runs window 6 and offers 3G connectivity . There is also a strong focus on pre-installed applications such as Google Maps , a mobile eBay and instant messaging via Microsoft live .Palm supports most of the email accounts software such as Outlook and Lotus Notes . The device also has additional features such as Camera and Arabic Keyboard .(3)
b) HP ipaq hw 6925
The ipaq is a windows Mobile 5 pocket pc phone edition device that marries a PDA with a GSM mobile phone .It has EDGE and GPRS for wide area data and WiFi for use with hotspots , home and work wireless local area networks. The mobile messenger has Bluetooth and camera with flash . It is not easy to find a smart phone with integrated GPS but ipaq has one . The ipaq runs windows mobile 5.1 with support for push email . HP also includes a link to get Good , which is another popular push email solution. (4)
c) Nokia e90 communicator mobile phone
Nokia has announced the e sreries mobile phones on Feb, 2007 that blur the lines between business and lifestyle use . The e 90 is the company’s latest version of communicator handset that has been around in different forms for a fare few years. The handset is a bit big but the features justify the size . A 3.2 megapixel camera , GPS receiver , 512 MB mMicro SD , two colour screen , 3G , Wi-Fi , HSDPA .The keyboard is probably one of the best and very easy to use .Email is incredibly easy to use backing up Andrew Hawking’s , head of e series in UK , statement that Nokia wants “ to make email as easy to use as voice “ .The emails system supports all types of services from Balckberry to POP3 .Although , the Nokia e90 is a phone , it should be seen as a miniature laptop with phone built in . (5)
d) Apple iPhone
Apple iPhone was launched in July 2007 . The new mobile phone from Apple is a thing of beauty . Apple has created a device that many will lust after .There is no doubt that the iPhone will change the industry’s approach to how users interact with their mobile for the better .The advantages of the iPhone are the large crisp bright touch screen , the 8 GB hard drive for MP3 tracks and movies , the Wi – Fi connectivity and the software interaction including YouTube , Google maps and Apple’s Safari internet browser .However , there is no 3G connectivity and against Blackberry 8800 you don’t get the same email satisfaction . (6)
Market Analysis (Methods):
PEST Analysis
PEST analysis is a tool for understanding market growth or decline, and as such the position, potential and direction for a business. PEST analysis is a business measurement tool and is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit in the Macro Environment See figure 1 (Jobber, 2007).
Figure 1.
Blackberry – Etisalat
Political/Legal
Political and legal forces can influence marketing decisions by setting the rules by which business can conduct (Jobber 2007).
Since the 1960s the then political leadership in Abu Dhabi have played a crucial role in boosting the economy and the welfare state for the federation. Administratively, the is a of seven , each with its own ruler. The pace at which local government in each emirate evolves from traditional to modern is set primarily by the ruler. Under the provisional constitution of , each emirate reserves considerable powers, including control over mineral rights (notably oil) and revenues. In this environment, federal powers have developed slowly. The constitution established the positions of president (chief of state) and vice president, each serving 5-year terms; a Council of Ministers (cabinet), led by a prime minister (head of government); a supreme council of rulers; and a 40-member National Assembly, a consultative body whose members are appointed by the emirate rulers (wikipedia 2007).
Since achieving independence in 1971, the UAE has worked to strengthen its federal institutions, each emirate still retains substantial autonomy, and progress toward greater federal integration has slowed in recent years. A basic concept in the UAE Government's development as a federal system is that a significant percentage of each emirate's revenues should be devoted to the UAE central budget.
As a result of the growth and development of Dubai and the UAE the wealth that has been generated leads to the growth of a middle class independent of the state, as well as to rising levels of education, a growing number of mass media’s and means of communication and therefore a larger spread of information. Despite this the UAE still seems to far beyond the emergence of any meaningful political life. The rulers hold power on the basis of their inherited position and their legitimacy in a system of tribal agreement. Rapid modernisation, enormous strides in education, and the influx of a large foreign population have changed the face of the society but have not fundamentally altered this traditional political system.
Given the high revenue derived from oil, the UAE government like many in the Persian Gulf region collect very low taxes, if any at all. As a result, these governments including the UAE's, face very low levels of accountability and representation demands from their people, and even when they exist the governments are highly resistible by nature to pressures from below and have shown their ability to contain them. Oil wealth makes possible a fairly high standard of living for the people, but enables the government to keep the public politically demobilized, oil wealth can have a strong negative impact on the level of democracy.
As a Muslim country, one of the fundamental principles enshrined in the Constitution provides that Islamic Law is the main source for legislation in the UAE. The Federal Government is entrusted with the task of spreading legislation and regulating the principal and central aspects of the Federation. These include foreign affairs, defence, security, the federal judicial system, federal finance and loans, postal and communication services, federal public works, civil aviation, education, public health, currency, electricity services, nationality and related matters, management of federal possessions, census and federal information.
In the UAE the establishment of the Civil and Criminal Courts resulted in diminishing the role of the Sharia Courts. Nevertheless, the competence of the Sharia Courts in some Emirates, particularly Abu Dhabi, was substantially expanded later on to include, in addition to matters of personal status, all types of civil and commercial disputes as well as serious criminal offences. Therefore, in addition to the Civil Courts, each of the seven Emirates maintains a parallel system of Sharia Courts which are organised and supervised locally. (wikipedia 2007)
The legislation for the business in the UAE is very different to other parts of the western world notably Europe and the US, those wanting to setup a business within Dubai are permitted to do so as long as UAE nationals hold 51% of the shares. This ownership law may present a potential barrier to some investors who want to own there own business and for those who do not have contacts with potential sponsors within the U.A.E. There is however an alternative and that is to setup an office inside one of the many Free zones such as JAFZA, where there is no need for a local partner and the business is 100% foreign owned.
Economic
The UAE has one of the highest per capita incomes in the Arab world, due in part to the fact that it claims the world's third largest proven oil deposits. In the past several decades, however, the UAE has introduced new industries such as trade and tourism, and by 1998 oil-based industry accounted for only one-third of the UAE's GDP. This diversification has helped to cushion the impact of oil price volatility over the past several years and continued stable investment policies generated real GDP growth through 2002 despite a drop in oil revenues then. Today oil is approaching $100 a barrel and with this comes a large injection of extra revenue for development and investment.
To encourage continued economic growth, the UAE is in the midst of a 20-year economic diversification plan, and the government has allotted roughly $13 billion toward the development of the non-oil economy. The emirates are pursuing economic liberalization in various sectors including hydrocarbons, petrochemicals, tourism, aviation and airports, power generation and telecommunications. Free trade zones have been quite significant in contributing to economic growth, with Dubai becoming a central hub for regional trade and finance, accounting for about 70 percent of the emirates' non-oil trade while Abu Dhabi has lead the privatization drive. (arabdatanet 2005)
Construction and tourism are key non oil drivers, property related spending remains high and international and regional interest in Dubai's The Palm, Dubai Land and The World is strong. Work on the world's tallest tower, Burj Dubai is well under way, other Emirates, such as Ras al Khaimah, have also announced major real estate schemes. The scope of existing projects does raise the risk of oversupply but it will ensure that growth remains strong in Dubai and the UAE in the near term. Tourism has also continued to thrive, despite the regional backdrop. Industry figures suggest that Dubai hotels have enjoyed occupancy levels over 90%. (emirateseconomist 2006)
The UAE's GDP grew by 8.5 per cent in real terms in 2005 due to strong growth in non-oil sectors, according to the International Monetary Fund. The numbers reflect the real GDP for 2005 after accounting for a rise in prices due to inflation. The IMF estimated inflation at 8 per cent but noted it may be higher. The UAE Ministry of Economy recently said the country's nominal GDP grew by 26.4 per cent last year. Local economists suggesting the inflation rate to be between 15 and 20 per cent and the rise in costs has led to increasing questions about the sustainability of current growth levels (emirateseconomist 2006).
Social
The United Arab Emirates as well as Dubai is a very mixed country with many different nationalities and religions all living and working together, the UAE is primarily Muslim and as with any religion any criticism or mocking to the Islamic religion or local culture would cause very serious reactions. According to the 2005 UAE census the UAE population is 4,104,695, of which 20.1 per cent are UAE Nationals, this compared with 2,411,041 in the last census conducted in 1995 is a 70% increase, the total number of non-nationals is 2,944,159, which is 78.1% of the total population that were counted in the reference period, and it is 79.9% (3,279,774) of the total UAE population. The total number of non-national males is 2,128,986, which is 72.3% and the total number of non-national females is 815,173, which is 27.7% (emirateseconomist 2006).
This is a very large imbalance in the social make up of the country and could cause social issues for the country, if there are so few women it could lead to an imbalance in relationships and marriage which form part of the natural human cycle and with an average age of around 30 it also has a very young population, therefore low-status young adult men with little chance of forming families of their own are much more prone to attempt to improve their situation through violent and criminal behavior in a strategy of coalitional aggression (Baculinao2004).
With such a diverse and mixed culture in terms of race, religion and ethics the UAE and Dubai faces many issues of integration and social acceptance. The UAE is in the top bracket of countries that take in migrants from the developing world. That is despite the country having a low population in comparison with others who were placed high in the same league table. Overall it showed that in a 12-month period almost three million people migrated from the developing world to industrialised nations. The UAE receives more than a quarter of a million of them – the fourth highest in the world behind the United States, Italy and Spain. The country is placed ahead of the United Kingdom despite the population here being 55 million less.
With regard to telecommunications Dubai has more than 2.71 million telephone lines, of which 2.3 million are mobile telephone lines and 535,995 land phone and fax lines. The number of Internet lines is 173,155 in addition to 482 telex lines, this shows that people are more mobile and want the flexibility that a mobile phone offers, especially as the pace of life in Dubai is so very fast (uaeinteract 2006).
Technological
Technology can have a substantial impact on peoples lives and companies fortunes, technology break throughs have given us the body scanner, robotics, mobile phones, camcorders, computers etc (Jobber 2007). There is no doubt that technological change brings about social change but it can also have a negative impact, in the beginning the Industrial revolution saw many people displaced from their land, to find work in crowded city factories and with advent of the computer and robotics many people in the modern age also found them selves out of work. The UAE and especially Dubai are at the forefront of technological development in this region, the GITEX exhibition is growing year on year attracting many top international brands from around the world. And with the modern development of Dubai and the UAE the boundaries of what is possible are being pushed back all the time, such as the construction of the World and Palm which are man made Islands and the Burj Duabi the tallest tower in the world.
Technology can provide opportunities for new products and also threats to existing markets, technology also affects the way the way in which marketing is conducted. The internet and mobile phone have allowed companies to use new channels of communication and distribution, technology can be used to improve the efficiency and effectiveness of their marketing operations (Jobber, 2007).
The effects of e-commerce, communication and the internet will have an impact on almost every society. The barriers of trade between individuals in different countries are falling. Company contact details are searchable through powerful search engines, and trade can commerce between two individuals who would otherwise never have met. The internet dissolves national boundaries, and the consequences for cities that have developed as centers of administration and trade could be disastrous, if they do not embrace the technological advances in communication and trade that the internet brings. While at the same time, free trade means fierce competition without the protection of award wages (Passioncomputing 2007).
References
(Jobber, 2007)
Jobber, D,. 2007. Principles and Practice of Marketing. 5th Ed. UK: McGraw Hill Publishers.
(Baculinao2004) > [accessed 02/12/2007]
(uaeinteract 2006) <>[accessed 04/12/2007]
(Passioncomputing 2007) <> [accessed 03/12/2007]
(wikipedia 2007) [accessed 03/12/2007]
(HSBC 2003) <> [accessed 03/12/2007]
(arabdatanet 2005) <> [accessed 03/12/2007]
(emirateseconomist 2006) [accessed 04/12/2007]
(uaeinteract 2006) <ults-begin-rolling.html> [accessed 04/12/2007]
PEST Analysis of the U.A.E.:
- Political & Legal Factors:
The United Arab Emirates (UAE) is a politically stable and secure country. It is known for adopting a neutral stance when it comes to international politics and hence maintains good relations with all countries. It currently has diplomatic relations with dozens of countries, yet hosts foreign companies and workers from all over the world. It is indeed a secure environment for present and future entrants.
The legislation for the business segment is quite clear: those wanting to setup a business within Dubai are permitted to do so as long as UAE nationals hold 50% of the equity. This ownership law may present a potential barrier to entry for some investors who do not have contacts with superior and honest potential investors within the U.A.E. An alternative is to setup a branch inside one of the many freezones, where there is no need for a local partner (100% foreign ownership guaranteed). The branch will then appoint local distributors to disseminate the product to the end users.
- Economical Factors:
The United Arab Emirate’s superb location and infrastructure make it ideally suited for the role of a key centre in the global transport and distribution system: Strategically located mid-way between the Far East and Europe.
It is witnessing a profound transformation from an impoverished region of small desert principalities to a modern state with high standard of living. It has an open economy that enjoys a high per capita income and a sizable annual trade surplus. From this, it could be deduced that the U.A.E. is a strong and economically secure country filled with prospects for new entrants, such as Artcoustic, to invest.
There is an economical boom in the construction industry which in turn opens doors of opportunity for Artcoustic in targeting the Turn Key projects.
With the GDP per capita around $45,200, it is ranked second among Arab nations after Qatar. About 1.22% of its 4,100,000 population are millionaires while the growth in the number of millionaires exceeds that of the U.S. and the U.K. according to the World Wealth Report in 2005. 7
Import duties are 5% (GCC import tax), there is no taxation on profits or incomes, no foreign exchange controls and a currency artificially pegged to the dollar which in turn facilitates business transactions for international organizations.
- Social Environment:
Being a part of the Middle East, the UAE shares many of the region’s cultural characteristics. For example, it is a high context society with strong emphasis on non-verbal behaviour (i.e. body language, facial expressions) and verbal agreements.
In addition, a lot of time must be invested in building strong business relationships, and this should be taken into consideration by Artcoustic when planning to set up a business partnership.
Officials said Dubai city recorded one of the highest growth rates in urban population because of a business upsurge that has turned the city into the region’s main commercial hub. Growth is set to remain high as more visitors are attracted by the city’s business opportunities, prompting plans for expansion in population centres.
It also hosts a society where tastes change all the time and there is quite a strong demand for variety. The U.A.E. is trying to bring the world to its backyard, literary.
The Muslim community in the United Arab Emirates make up a vast majority of the population, therefore, any political criticism and mocking to the Islamic religion or local culture may cause intense reactions against the offenders.
- Technological Factors:
The UAE is becoming a leader in the region where technological developments are concerned. Many of the exhibitions, currently taking place in the United Arab Emirates, demonstrate the growing interest towards technology. Example: Gitex, Palme, and CABSAT.
The newest and most recent technologies are always found in this region. The technological market is fast growing and the consumers’ interests and attitudes towards technology are changing drastically. Consumers are becoming more technologically conscious.
Porters Five Forces:
Competitors to Mobile Email Communication in the UAE
Etisalat was the only company within the UAE, offering telecommunications network services until the celebrated recent launching of Du (Owned by Emirates Integrated Telecommunications Company PJSC). Du opened an Independent Public Offering (IPO) on 4th March 2007 Du, with a starting capital of $1.1 Billion.
Etisalat is the most significant operator in the UAE. It boasts being the world’s number one in terms of mobile penetration – over 6.3 million mobile customers across Asia, Africa and the Middle East, announcing third quarter results in 2007 of Dh 15.38 Billion, and declaring growths of 30% compared to the same period in 2006. Etilsalat demonstrated its success by announcing third quarter net profits of Dh 5.534 in Quarter 3. Within the UAE, it controls over 78% of the UAE population and its networks cover over 98% of the populated areas within the country.
By contrast, Du is very small but nevertheless growing rapidly. It announced year to end of third quarter sales revenues of Dh898m - an increase of 196% compared with the similar period last year (9mths to 30 September 2006- Dh303m). In terms of customers in the UAE, Du recently reported reaching the milestone of 1 million subscribers on the 15th November. This represents 22% of the UAE population.
Du and Etisalat are not presently promoting their products to the same market segments in the UAE. Du are focusing more on promoting cheap pay as you go mobile packages for 1 Dirham, and whereas Etisalat are focusing on promoting their substantial range of latest technology services. Du are not presently offering Blackberry mobile services, but are focusing on expanding their existing 2G and 3G networks across Dubai, Sharjah, Abu Dhabi, Umm Al Quwain, Ras Al Khaimah, Fujairah and Khor Fakkan..
At present it is only possible to access emails on a Du networked PDA or equivalent, through the conventional GPRS and 3G networks. However users are extremely limited with this in that emails can only be sent to other users on the same network. This is in addition to the relative disadvantages associated with such connections in comparison to Blackberry – slow speed, no compression, insuperior security, having to connect to receive mails, and poor at handling email attachments.
The UAE’s telecommunications industry is evidently in a rapidly expanding stage of its life. Mobile penetration was reported recently on the 20th November 2007 at 170% with 7.3 million subscribers. With the UAE’s estimated population of 4.3 million, this translates to an average of almost 2 simcards per person.
Potential New Entrants
There are no official reports of new entrants into the UAE’s telecommunications market, however the future possibility of additional entrants cannot be ruled out. According to TRA's director general General Mohammad Al Ghanem. Ghamen told Khaleej Times in October when referring to the plans for the $30 Billion Dubai World Central (DWC) development project, and the existing UAE telecom operators du and Etisalat.
"The target is for both (operators) plus others - it does not mean that a new operator is coming to the market any time soon, but we do not want a conflict”……"We know that in a few years' time a new operator will come (to the market) and he will be stuck. Let us have an infrastructure, which will allow multiple players to operate in the market,"
Barriers To Entry of Du Launching Blackberry
There are some technical aspects that would have to be overcome for Du to enter the Blackberry market. To support the launch of BlackBerry, Etisalat entered into a strategic partnership with Emitac Mobile Solutions (EMS). EMS assisted Etisalat in the vital process of launching, delivering, supporting and selling BlackBerry from Etisalat in the UAE. Such expertise would also have to be overcome from any competitors wanting to offer Blackberry Services.
Significant costs are also involved in implementing the required network technology.
Etisalat has a loyal market segment of customers – since it being the monopolistic service provider in the UAE for almost 30 years. It has always been associated with bringing the latest technology, and has established its reputation on this fact.
Also many of Etisalat’s customers are existing businesses with corporate users, managers, professionals and already established landline and mobile accounts, registered numbers, and all the hardware in place. Such businesses are prime segments for the marketing of Blackberry Etisalat, and these companies are unlikely to want to go with an alternative service provider
In terms of competition for specifically ‘Blackberry services’ on other networks other than Etisalat within the UAE therefore, it is thought there is little present rivalry, and this is estimated to be the case for at least another 12 months, and potentially up to 3 years.
Any competition to Blackberry will be in the form of email on other PDA devices (such as Palm etc. mentioned in Section 3). These however will also be run on Etisalat’s 3G, GPRS and the latest ‘EDGE’ networks.
Consumer Bargaining Power
With little alternative to Etisalat in the UAE, the consumer has little choice for being able to access emails on a mobile telephone.
Bargaining Power of Suppliers
- Industry Competitors (Rivalry):
- Threats of new entrants:
- Threat of Substitution
- Bargaining Power of Buyers/Suppliers:
SWOT ANALYSIS:
- Easy integration to the interior of Residential and Turn Key projects:
- Company Growth:
- Celebrity endorsements:
- Product Price:
- Start up Company:
- General Perception:
- Country Growth:
- Customers design conscious:
-Customers willing to invest into new technologies:
- Denmark Image:
- Low cost branded products (substitution products):
.
-Untrained Labour Force:
Marketing Strategies (Recommendations):
Pay-as-you-go package - Installment scheme
Aim to SME segment - incentives
Aim to consumer segment – incentives
Launch new handset devices – Arabic version handset required.
Possible partnerships with vendors
Promotions, Discounts
Free Trials and Pilot Periods
Advertising Campaigns.
Bibliography:
-
High End Audio News, August 6 2004. “Fab Four fans and those tired of black…” Available from:
- Artcoustic Official Web Site. “250 Word Description of Product”
Available from:
- Artcoustic Official Web Site. – Press Release
Available from:
- Bang & Olufsen Web Site. “Introducing Bang & Olufsen”
Available from:
- Bang & Olufsen Web Site. “Introducing Bang & Olufsen”
Available from:
- Linn Products Web Site – “Linn the Company” History
Available from:
- Gulf News Online, April 24 2006 – “Tapping the pool of private wealth”
Available from:
- Zawya Home, 27 November 2006 – “UAE: Realty projects valued at Dh500bn are in the offing”
Available from:
http://www.du.ae/en/category/about/press-releases/(accessed 29/11/2007)
http://uaeinteract.com/docs/UAE_posts_170_mobile_penetration/27649.htm
Khaleej times, 2/10/2007, cited on (accessed 29/11/2007)
