Strategic Management

For this BLOG, I decided to look up for an article that is related to my country. I found an article which talks about the competition of telecommunication service in Kuwait. The article is about two telecom companies Wataniya and MTC-Vodafone and how each has a high market share in the post-paid and prepaid services. The article also talks about how each competitor has its competitive advantage in its services. According to Porter, when firms are equal in size and have high competition, they believe that they can make moves without being noticed. By looking at the article, MTC-Vodafone has been declining in market share for the past three years because of certain approaches Wataniya has achieved. When Porter explained that there is a lack of differentiation in service or product, he explained that the buyer’s choice is largely based on price and service. That is why the article mentions that Wataniya telecome has 81% market share of the prepaid service, and MTC-Vodafone has 80% market share of the post paid service; this is probably because MTC-Vodafone is better in service for the postpaid subscribers and Wataniya is cheaper than MTC since it has a greater market share of prepaid subscribers. It is interesting to see how things can be based on this region and competition is quite strong with high rivalry in the telecommunications market in Kuwait.

Article site: http://www.hatiftelecom.com/news/kuwait.html