Zain is one of the leading mobile and data services operators having a workforce of over 6,600 employees. The company has aimed towards offering a range of mobile voices and data services to over 13.7 million business and individual customers.
The company started its operations in the year 1983 under the title of Mobile Telecommunications Company (MTC) and was the first mobile operator in the region. HTC rebranded towards Zain in 2007 so as to reflect the growing status of the company in a better way and operate as a leading multi-national mobile service provider having global aspirations.
Now Zain operates in Kuwait, Saudi Arabia, Bahrain, Jordan, Iraq, South Sudan, and Lebanon operates ‘touch’ for the Lebanon Government.
The differentiation strategy in the organizational structure of Zain Telecommunications is flexible. This can be attributed to the fact that many times the employees are required to perform multiple tasks for which they are provided with adequate training facilities. Moreover, the manager of the store has the authority to make the decisions for the store; however, attaining the consent of higher management is also important. The employees have the discretion of receiving payments however, they will be required to obtain a receipt from the cash counter and present it to the customer. The daily sales generated from the store are being deposited with the bank and this responsibility is vested within the hands of three salespersons. The training sessions are conducted regularly through which employee performance is increased which has a positive effect on their motivation level.
The stores of the company are engaged in offering telecommunication solutions to their customers however; every store is unique from the other. Their inventory control system has been designed to include all the merchandise coming in and going out of the store. In order to maintain a long term relationship with the suppliers, a vendor development system has been installed. In addition to this, the company has made various efforts in improving its customer relationship program to which it has exceeded to some extent.
The integration strategy in the organizational structure of the company has mixed elements of flexibility and rigidity as the rules and guidelines given to the employees are provided in written form and the management strictly enforces the employees to follow the rules. In addition to this, issues related to customer services along with staff recruitment, training, promotion, salary and wages as well as the marketing and outsourcing decisions are made in the head office. However, the supplier-related issues are handled by the store.
The differentiation and integration strategy in the organizational structure of Zain Telecommunications indicates a mixed structure having a balance between being flexible and mechanistic at the same time.
Goals of Zain Telecommunication
The ultimate goal of the company is to evolve the direction of the company and direct it from a pure mobile consumer player in placing technology in every aspect of life. Moreover, like any other company, Zain has the goal of improving its revenue conditions and grab a huge market share in the industry.
The company provides clear goals in written form to the employees. Some of the goals are team-oriented however, others are individual-oriented. Employees who perform according to the expected standards of the company are also provided with rewards and incentives. These incentives are also given upon the basis of team performance and individual performances which assures that every employee is motivated and works towards making the company a competitive company and a better place to work. With respect to employee satisfaction, Zain believes that employee satisfaction is the key towards attaining customer satisfaction and for this reason; it has devised various plans through which employees are motivated.
The telecom industry in Kuwait is well developed and progressive and Zain telecommunications are among the key players of the industry. This renders the environment to be positive for the company along with having the support of business communities at the same time. The company is operating as a registered company and therefore, no legal issues are outstanding for the company. Also, the level of competition to the business is nominal as there are few key players which drive the telecommunications industry of Kuwait.
The store is situated at a prime location. Having a wide range of mobile communication solutions, the company aims in providing mobile telecommunications to all the family members and which makes the customer base of the company to be strong and loyal. All in all, the environment of the industry for Zain Telecommunication is stable and simple.
The technological aspect of Zain Telecommunication is quite satisfactory and the company has installed an online payment system through which it taps the web world. In addition to this, the company is working to increase the efficiency of the business and obtain profound market knowledge. The company is also operating with an automated product retrieval system through which inventory accuracy and customer satisfaction is achieved.
The company, in order to maintain a high-quality relationship with its suppliers, maintains vendor processing and an automated order processing system through which suppliers’ performance is assessed and actions are taken upon immediately.
Since the products offered by Zain Telecommunications experience changes on a daily basis, there have been employed trained staff which helps the customers in answering their related queries along with explaining to them the features and benefits of the service. Customers are also provided with the facility for testing the service prior to buying it.
The company is operating in the growth stage of the industry life cycle and is, therefore, generating huge profits. The size of the store is fairly large and since it is amongst the key players of the industry, it is in the market for a very long time. Having the employees range of over 6,600 employees, Zain Telecommunications has contributed greatly towards employment rate growth.
Since the company is operating in the growth stage of the industry life cycle, the profits being generated are considered to be huge and sometimes beyond expectations. This can also be attributed to the strong and loyal customer base of the company. Analyzing the profitability level of the company in light of the industry players, the revenue generation of Zain Telecommunications also stands to be satisfactory.
Zain telecommunications is a leading mobile and data services provider and is an international concern that entered Kuwait in 1983. The differentiation and integration strategy within the organizational structure of the company has a combination of both flexible and mechanistic elements. The goals of the company are clear and the employees follow those rules strictly. In addition to this, employees need to work in teams, as well as individuals, and the incentives are provided accordingly which enhances employee morale.
The overall environment for Zain Company is stable as there are few competitors to it. Also, the long presence of the business in the industry has made it create a strong and loyal base of customers who in turn generate revenue for the firm. The location of the store is another benefit that adds to its success factor. Overall, the industry environment is stable.
With respect to technological aspects, the company is operating with various technical implications that are according to the standard requirements. Online payment system along with performance assessments of the suppliers, every aspect handled in a technological manner.
The company is operating in its growth stage and is generating a good amount of profits both as an individual firm and as a collective unit in the industry.
The Zain Company is the pioneer in the telecommunications industry in Kuwait. Therefore, it has a very strong base of customers. The only recommendation for the business is that too much power vested within the top management level and the employees are left at their discretion. The company considers employee satisfaction as the road towards attaining customer satisfaction.
- -. (2012). Zain –. – (-), 27.
- -. (2014). Zain Available: http://www.slideshare.net/ZainGroup/zain-31589745. Last accessed 5th Nov, 2014.
- Glenn Wheaton. (2009). Supplier Performance Management. Available: http://www.epiqtech.com/supplier-performance-management.htm. Last accessed 5th Nov, 2014.
- Rick Nauert . (2011). Employee Satisfaction Key for Customer Satisfaction. Available: http://psychcentral.com/news/2011/06/02/employee-satisfaction-key-for-customer-satisfaction/26623.html. Last accessed 5th Nov, 2014.
- Sree Rama Rao. (2009). Differentiation and Integration in Organizations. Available: http://www.citeman.com/4675-differentiation-and-integration-in-organizations.html. Last accessed 5th Nov, 2014.