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Business environment report
1. Rennes International School of Business
ESC RENNES
Executive Master of Business Administration
EMBA
COHORT 1 (2003 - 2004)
Business Environment
Conductor by :
Dr. Serge Oreal
Business Environment
By
Magdy A. Sattar
January, 2003
Cairo, Egypt
2. Table of Contents
Introduction & Objective II
Chapter 1. Presentation of Menatel 1
1-1 About Menatel 2
Chapter 2. Menatel Situation 3
2-1 Environment 4
2-2 Results 4
Chapter 3. Macro-Environment 7
3-1 Factors 8
3-2 Actors 10
Chapter 4. Micro-Environment 11
4-1 Industry and Competitive analysis 12
4-2 Market Analysis 15
Chapter 5. SWOT Analysis 18
5-1 External Environment Analysis 19
5-2 Internal Environment Analysis 20
Chapter 6. Internal analysis 21
6-1 Strategic profile 22
6-2 Organizational profile 23
6-3 Resource & Competencies 24
6-4 Competitors Analysis 26
Chapter 7. Menatel Responding for Identified Trends 28
Refrences 30
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3. INTRODUCTION & OPJECTIVE
First I would like to thank Dr. Serge Oreal whose help led my steps in the field
of Business Environment and Modern Management. Also, I would like to thank
all Menatel executives for their strong support in providing all the necessary
data needed for this report.
Few years ago and as a result of the Egyptian Government policy towards
stimulating the efficient roll of Privet sector in the economical growth of the
country and its trend towards an effective partnership between the privet
sector and the public sector, The Egyptian Government encouraged the privet
sector to invest in some of the fields which were confined to the public sector
only aiming to improve the quality of these services to be able to compete on
an international scales.
One of these fields is the pre paid telephone card business (Home cards,
Public phone cards G.S.M. cards) .
Through the 7 chapters of this report we shall explain and analyze the
circumstances affecting (positively or negatively) on this business. Taking
Menatel, one of the leader firms in this business as our module in a try to
measure how much its existence and success has been affected by the
surrounding business atmosphere.
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5. 1. FIRM PRESENTATION
Egypt ‘s emerging market has been a major motivation for France Telecom
(FCR) to establish a shareholding company with powerful partners to offer the
Egyptian citizen their public pay-phone service at top international quality.
Managing Director Statement (Dec.1999)
1-1. About Menatel
Menatel is a joint stock company under Investment low # 8/1997 registered in
1998 under # 314030, Menatel is granted a ten years renewable license, to
install, operate and manage a telecommunication network of at least 20,000
public pay-phones.
Menatel is determined to achieve this target in less than three years. Egyptian
shares are 51 % and foreign shares are 49 % the company’s shareholders
are:
1-France Telecom (FCR) 44 %
2-National Bank Of Egypt 18 %
3-Egytel 18 %
4-Orascom Telecom 10 %
5-Ascom Monetel 5%
6-Adcom 3%
7-Telecom Egypt 2%
company's shareholders
T/E
ADCOM
ASCOM
ORASCOM
FCR
EGYTEL
NBE
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7. 2. MENATEL SITUATION
2-1. Menatel Environment
Egypt has 67,273,906 inhabitant (July 1999 official estimates) distributed
over 27 Governorates.
GDP per capital = $ US 1200.
Inflation rate (consumer prices): 4.3 % (2002).
Two multinational public pay-phone companies licensed in 1998.
Telecom Egypt maintains its actual network of 5000 pay-phone cabins,
out of which 3300 one coin pay-phones and 1700 magnetic card pay-
phones.
Two multinational mobile companies, which provide prepaid, mobile
cards.
Prepaid scratched cards for International (MCI, Global one and AGIT
Telecom) and for long-distance (Telecom Egypt).
2-2. Results
Commercial Results:
Results Indicator Dec.9 Dec.0 Dec.0 Dec.0
9 0 1 2
Number Of locations (Thousand). 15.3 22.1 37.8 43.3
Sales points (Thousand). 12 20 35 45
Lines Return (Million). 7.1 17.3 25.6 30.6
Cards Sales (Million). 80.3 191.4 361.66 425.75
Total Revenue (Million). 76.9 184.5 338.74 402.57
Average Revenue/Pay-phone (LE). 31 38 40 38
50 50
No. Of Location Sales Points
40 40
30 30
20 20
10 10
0 0
Dec.99 Dec.00 Dec.01 Dec.02 Dec.99 Dec.00 Dec.01 Dec.02
40 500
Lines Returen Cards Sales
30 400
300
20
200
10 100
0 0
Dec.99 Dec.00 Dec.01 Dec.02 Dec.99 Dec.00 Dec.01 Dec.02
50 500
Average Revenue / pp Total Revenue
40 400
30 300
20 200
10 100
0 0
Dec.99 Dec.00 Dec.01 Dec.02 Dec.99 Dec.00 Dec.01 Dec.02
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9. Financial and Administration Results.
Human Resources
Staff Overlook.
Human Resources Dec.99 Dec.00 Dec.01 Dec.02
Managers 21 27 28 28
Employees 102 203 307 363
Total 123 230 335 391
400
350
300
250
200
150
100
50
0
Dec.99 Dec.00 Dec.01 Dec.02
Managers Employees Total
Key Financial Ratios:
Dec. 99
Earning before interest, tax, depreciation & 2,925,510 L.E.
EBITDA
amortization
P/L Net profit or loss - 3,074,112 L.E.
Liquidity Ratios
Current Ratio Current Assets/Current Liabilities 137 %
Quick Ratio (Current Assets-Inventory)/Current Liabilities 114 %
Activity Ratios
Gross Profit Margin Sales-Cost of goods Sold)/Net sales) 26.7 %
Return on Equity Net profit/Stock holder’s equity - 6.2 %
Return on Investments Net profit after taxes/Total Assets - 3.8 %
Leverage Ratios
Debt to Assets Total debt/Assets 65.6 %
Leverage Assets/Stock holder’s equity 161.7 %
Debt to Equity Total debt/Stock holder’s equity 73.7 %
Profitability Ratios
EBITDA / net income 7.4 %
Net Profit / net income - 7.7 %
Dec. 2002
EBITDA % 21 %
Return on Equity ROE % 57 %
Return on Investments ROI % - 15 %
Net Profit % 12 %
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11. 3. MACRO ENVIRONMENT
3-1. Factors
Demographic factors
The first force which we monitor is population characteristics, the size and
growth rate of population (in cities , regions, and nations), age distribution &
ethnic mix, educational levels, household patterns and regional characteristics
& movements. The Egyptian population characteristics is highly attractive for
the prepaid telephone cards business as the core of Egyptian population is
class “ C “ , with it’s attractive characteristics, big size, high growth rate
distributed all over Egypt, and includes all educational level.
Economic factors
The available purchasing power in an economy depends on current income
and consumer - spending patterns. Egypt has accelerated it’s ambitious
structural reforms, In 1991, the Egyptian Government launched a
comprehensive economic stabilization and reform program.
The primary objective of the program was to achieve sustainable economic
growth in order to boost employment opportunities for Egypt’s ever growing
population, successful implementation will reduce income disparity and
ultimately improve the welfare of all Egyptians, In 2000 the inflation rate in
Egypt was 3.1 % and it is close to inflation levels of Egypt’ s EU trading
partners. Egypt has made great strides in privatization, in this respect Egypt
has been ranked among the top four countries privatizing approximately 1.2 %
of GDP per year.
Natural factors
The availability of raw materials, cost of energy, pollution levels, and the
changing role of governments are the main trends in the natural environment.
They may have no direct force that shape opportunities or pose threats for the
prepaid telephone cards business ,but they have indirect force on the
business by shaping opportunities and posing threats to suppliers, as
suppliers contribution to prepaid telephone cards business quality is high.
Technological factors
One of the most dramatic forces shaping people’s lives is technology.
Technology has released wonders, horrors, and mixed blessings. Every new
technology is a force for creative destruction. Smart cards hurt the coin
payphone business forcing the payphone companies to move into the new
technologies, which is the price of progress.
Smart cards or the prepaid cards shaping payment style, today many people
make their payment with credit or debit cards, the consumers of payphone
have no need for coins any more when making a phone call and the
payphone companies can invest the prepaid money into earning assets.
Political-legal factors
The political and legal environment is composed of laws, government
agencies, and pressure groups that influence and limit various organizations
and individuals. The Government of Egypt has it’ s first step in the last ten
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12. years to improve the business environment by establishing a road map for it s
long - term development through deregulation, capital market reforms, and
it’ s attempts to give special concessions to both domestic and foreign
business. Such as prepaid telephone cards business that was motivated
Social-Cultural factors
For prepaid telephone cards business we need to understand people’s views
of themselves, others, organizations, society, nature, and the universe also
the business services or products must be corresponding to society’s core
and secondary values, and address the needs of different subcultures within
the society, as the core of success in prepaid telephone cards business is
customer satisfaction and trust.
Mildly unattractive
Highly attractive
Mildly attractive
FORCES
unattractive
Neutral
Highly
Demographic forces
Production Growth
Population age mix
Ethnic and other markets
Educational Group
Household patterns
Geographical effects on population
From amass market to a micro market
Economic
forces
Income distribution
Savings, Debt and Credit availability
Natural
forces
Changing role of governments
Technological
Accelerating pace of change
forces
Unlimited for innovation
Varying R&D Budgets
Increased regulation of technological change
Political &
forces
Legal
Legislation regulation of business
Growth of special interest groups
Cultural
forces
Social
High persistence of core cultural values
Existence of sub-cultures
Effects of secondary cultural values through times
C ______________
F ______________
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13. CURRENT FUTURE
Low Medium High Low Medium High
Attractivene Attractivene Attractivene Attractivene Attractivene Attractivene
ss ss ss ss ss ss
Demographic factors * *
Economic factors * *
Natural factors * *
Technological factors * *
Political & Legal
factors * *
Social Cultural factors * *
Overall
* *
assessment
3-2. Actors
Consumers
Consumers are one of the important forces affecting business in general. Also it
affects the Demographic, Social, Culture and Technological force. The nature and
the qualities of the consumer affect almost any aspect of any business being the
core for all businesses.
As for prepaid telephone cards business the qualities of the consumer such as
his ability to use this technology, his financial state, his culture, trends, needs and
believes are all factors which determine whether he will be able to use and
benefit from this technology or not.
Suppliers
Usually imposed a clear effect in the quality and efficiency of the business they
supply. Whether the suppliers supply services, raw materials, or accessories the
higher the efficiency and expertise allowing them to understand the nature of the
final product the more they participate effectively in improving the quality of this
product. Also his response to the needs of this business shall be faster, accurate
and better. By which he is a factor in the success and profitability of this business.
On the other hand suppliers can be an inactive force or even an obstacle if not
functioning properly.
Competitors
Competitors and competition are one of the actors which determine the general
framework of the business and its market. Strong and experienced competitors
push the business forward. That is other competitors are impelled to reach up to
his level or even imitates his example. The strong experience competitors can be
an accelerating actor in the business. On the other hand the weak competitors
can harm the quality of the business or even form a threat to its existence.
Governments
Governments are a direct effective force in any business as the orientation of the
Government affects the profitability of different business. It even affects the
competitive atmosphere in which they operate. The Government trends towards
business determine the laws needed to be legislated.
For example Governments which imposes excessive taxes has no appealing to
sum businesses but to some local businesses it might have an appealing factor.
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15. 4. Micro Environment
4-1. Industry and competitive Analysis
Porter’s Framework
Porter’s framework identified five forces that determine the intrinsic long - term
profile attractiveness of market segment, applying this module for prepaid
telephone cards business as follows:
Threat of intense segment rivalry: (Attractive)
Prepaid telephone cards business face no threat in current situation of intense
segment rivalry ,as it is the market leader and no strong competitions ,low
fixed cost , and also it is not expensive to compete.
Threat of new entrants: (Attractive)
Prepaid telephone cards business in a position that have high exit barriers
and high entry barriers which put prepaid telephone cards business in high,
risky returns.
Threat of substitute products: (Unattractive)
For the prepaid telephone cards business the threat of substitute product is
high knowing that technology in this field of business is dramatically changing
fast .
Threat of buyers growing bargaining power: (Attractive)
It is highly attractive segment for prepaid telephone cards business as the
buyers posses weak bargaining power as they are not concentrated or
organized.
Threat of supplier’s growing bargaining power: (Unattractive)
It is unattractive segment for the prepaid telephone cards business as the
suppliers are concentrated and organized ,there are few substitutes and the
supplied product is important input to business.
Highly unattractive
Mildly unattractive
Highly attractive
Mildly attractive
FORCES
Neutral
Economic of scale Small Large
Barriers to Entry
Service differentiation Little Big
Brand identification Low High
Switching cost Low High
Access to distribution channels Ample.
Restricted
Capital requirements Low High
Access to latest technology Ample. Restricted
Government protection Low High
Experience effect Unimpo. V.impor.
Barriers to
Asset specialization High Low
One-time cost of exit High Low
Exit
Strategic interrelationship High Low
Emotional barriers High Low
Government and social restriction High Low
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16. Number of equally balanced competitors Large Small
Rivalry among
competitors
Industry growth relative to metals industry Slow Fast
Fixed or storage cost High Low
Service features Commodity Specialty
Capacity increases Little Big
Diversity of competitors High Low
Strategic stakes High Low
Power of Buyers
Number of important buyers Few Many
Availability of substitutes for industry service Many Few
Buyer switching costs Low High
Buyers threat of backward integration High Low
Industry threat of forward integration Low
High
Contribution to quality or service of buyers products Large Small
Total buyers cost contributed by the industry Large fraction Small fraction
Buyers profitability Low High
Power of Suppliers
Number of important suppliers
Few Many
Availability of substitutes for the suppliers products
Low
High
Differentiation or switching cost of suppliers products
High Low
Suppliers threat of backward integration
High Low
Industry threat of backward integration
Suppliers contribution to quality or service of the industry
Low
High
High Small
product
Large fraction Small fraction
Total industry cost contributed by suppliers
Importance of the industry to suppliers profit
Small Large
substitutes
Availability
Availability of close substitute Large Small
User’s switching costs Low
High
of
Substitute service profitability and aggressiveness High Small
Substitute price/value High
Small
Government Action
Industry protection Unfavorable Favorable
Industry regulation Unfavorable Favorable
Consistency of policies Low High
Capital movements among countries Restricted Unrestricted
Custom duties Restricted Unrestricted
Foreign exchange Restricted
Unrestricted
Foreign ownership Limited
Unlimited
Assistance provided to competitors Substantial None
C ______________
F ______________
CURRENT FUTURE
Low Medium High Low Medium High
Attractivenes Attractivenes Attractivenes Attractivenes Attractivenes Attractivenes
s s s s s s
Barriers to entry * *
Barriers to exit * *
Rivalry among
competitor * *
Power of buyers * *
Power of suppliers * *
Availability of
substitutes * *
Government actions * *
Overall assessment * *
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17. Environmental scan:
With the current situation, the telecommunication market will be effected,
people will no longer afford what they used to before ,the withdrawal of
commodity will create frustration in Egypt, with the increase in prices and the
unemployment rates. Payphone companies on the other hand is safe from this
perception.
Highly unattractive
Mildly unattractive
Highly attractive
Mildly attractive
Neutral
FORCES
Market size
Market factors
Market growth rates
Product differentiation
Price sensitivity
Cyclicality
Seasonality
Captive markets
Industry profitability
Competitive factors
Competitive intensity
Degree of concentration
Barriers of entry
Barriers of exit
Share volatility
Degree of integration
Availability of substitutes
Capacity utilization
Inflation
governmental factors
Foreign exchange impact
Economic and
Currency transfers
Wage level
Raw materials supply
Manpower supply
Legislation
Regulation
Taxation
Government support
Technological
Maturity and volatility
factors
Complexity
Patents
Product R&D requirements
Process R&D requirements
Social factors
Ecological impacts
Work ethic
Consumer protection
Demographic change
Degree of unionization
Personnel adaptability to international markets
C ______________
F ______________
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18. CURRENT FUTURE
Low Medium High Low Medium High
Attractivenes Attractivenes Attractivenes Attractivenes Attractivenes Attractivenes
s s s s s s
Market factors * *
Competitive factors * *
Economic and
governmental * *
factors
Technological
factors * *
Social factors * *
Overall
assessment * *
4-2. Market Analysis
For prepaid telephone cards market we have three groups:
1. Home scratch cards
Egypt telecards
Telecom Egypt cards
2. Public phone cards
Menatel
Nile telecom.
Ringo
3. GSM. Cards
Click super
Mobinil ALO
Brand Shares on Volume base :
Total prepaid telephone cards 100 %
1. Total home scratch cards 28.8 %
Egypt Telecards 98.8 %
Telecom Egypt cards 1.2 %
2. Total public phone cards 68 %
Menatel 77.5 %
Nile Telecom 20.3 %
Ringo 2.2 %
3. Total GSM cards 2.8 %
Click Super 47.6 %
Mobinil ALO 52.4 %
Brand Shares on Value base:
Total prepaid telephone cards 100 %
1. Total home scratch cards 29.6 %
Egypt Telecards 98.2 %
Telecom Egypt 1.8 %
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19. 2. Total public phone cards 54.3 %
Menatel 86.8 %
Nile Telecom 10.9 %
Ringo 2.4 %
3. Total GSM Cards 16.1 %
Click super 46.6 %
Mobinil ALO 53.4 %
The Growth-Share Matrix:
This simple model through the knowledge of the Market growth rate and
relative market share we can divide the business market into four regions.
Questions Marks:-
Business that operate in high growth market but leave low relative
market shares.
Stars:-
The market leaders in a high growth market.
Cash Cows:-
Stars with a falling growth rate.
Doges:-
Business that leave weak markets shares in low growth markets.
Firm’s Position
10 % Stars Question Mark
Prepaid PP
9%
Cards
8% 1. MENATEL
2. NILE TELECOM
7% 3. RINGO
6% Scratch Cards
1. TELECARD
5%
Cash Cow Dogs
2. TELECOM EGYPT
4%
GSM Cards
1. MOBINIL ALO
3% 2. CLICK SUPER
2%
1%
10 8 6 4 2 1 0.5 0.4 0.3 0.2 0
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20. S.B.U. Strategies
The next step for Firms is to determine S.B.U. strategies that are appropriate
to their position in the market.
Building Strategy:-
For Firms in the question marks position, they need to spend money on
business to keep up with the fast growing market.
Holding Strategy:-
For the Firms in strong cash cows position if they are to continue yielding
large position cash flows.
Harvesting Strategy:-
For the Firms in weak cash cows position if the firm has a dim future and
more cash flow. In general this strategy is to increase short-term cash flow
regardless of long-term effect.
Divest Strategy:-
Is to sell or liquidate the business because resources can be better used
elsewhere, and it is appropriate for dogs and question marks.
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22. 5. SWOT ANALYSIS
In general, a business unit has to monitor key Microenvironment forces and
significant Microenvironment actors which affect the ability to earn prophet.
Also each business needs to monitor its internal strengths and weaknesses.
5-1. External Environment Analysis
Attractiveness Success Probability
Opportunistes Low High Low High
1. Barriers to entry
2. Rivalry among competitor
3. Power of buyers
4. Political & legal factors
5. Demographic factors
Seriousness Probability of Occurrence
Threats
Low High Low High
1. Power of suppliers
2. Barriers to exit
3. Availability of Substitutes
The above tables show a notable interaction affects among all the actors. As
the available opportunities could turn to business threat if not seized properly,
and vise versa. For example, The Lake of strong competitors can form an
opportunity to gain more market shares and consequently more profits to
those in business. On the other hand it might lead to a state of malfunction on
the business, as there will be no incentive factor.
So it is very important for any business to study how to identify and seize
opportunities and face market threats.
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23. 5-2. Internal Environment Analysis
PERFORMANCE IMPORTANCE
Strength Weakness High Med Low
MARKETING
1- Company reputation
2- Market share
3- Customer satisfaction
4- Customer retention
5- Product quality
6- Pricing effectiveness
7- Distribution effectiveness
8- Promotion effectiveness
9- Sales force effectiveness
10- Innovation effectiveness
11- Geographical coverage
FINANCE
1- Cost or availability of capital
2- Cash flow
3- Financial stability
TECHNICAL
1- Service quality
2- Booth shape maintenance
3- Payphone technology
4- Card technology
ORGANIZATION
1- Visionary, capable leadership
2- Dedicated employees
3- Entrepreneurial orientation
4- Flexible or responsive
In the same manner firms should identify its internal strength points to
optimize it, its weak points to neutralize it. It is this way or method of
identifying and analyzing the strength or weak points that determine the firm’s
chances of operation and success.
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25. 6. INTERNAL ANALYSIS
6-1. Strategic Profile
Menatel Vision.
To be the leaders in Egypt in the field of public pay-phone service as well as
the leader as smart card issuer.
Menatel Goals.
Exceptional customer satisfaction.
Inspired, Innovative and Empowered Employees.
Superior Financial Results.
Menatel Values.
Customer First:
In order to achieve total customer satisfaction, we anticipate, perceive, fulfill
and exceed our customer’ s needs and expectations.
Integrity In All We Do:
Our actions and decisions aspire the highest professional standards.
Excellence Through Quality:
We individually and collectively use Menatel quality in our daily activities to
achieve excellence as a company.
Respect For Others:
We care for our company, our work, and our customers as well as we care for
each other. This caring is the unique source of our company’s energy,
strength and excellence.
Respect For Our Environment:
We do not pollute. We maintain perfect cleanliness for our equipment and use
energy saving technology.
Growth through change:
We will grow as a company, as individuals and as professionals by aspiring
towards change, and responding to it creatively.
Menatel Commercial Strategy
Payphones: Everywhere needed
Point of Sales: Around each payphone and in main public areas
elsewhere.
Top Customer Service.
Top Technical Service Quality.
Brand Loyalty through Major Advantages To The End Customer:
Discounted rates and tariffs
Charging per ten seconds for international calls.
Special tariff plan for promotional events.
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26. 6-2. Organizational profile
Head Quarters
Logistics offices
Distributions offices
Branches: -
1. Alexandria Branch
2. Canal Branch.
3. Delta Branch.
4. MUE Branch
5. SUE Branch
Managing Director
(FCR)
Office Manager
Technical Director Commercial & Administrative & Logistic Director
(FCR Executive) Marketing Director Financial Director
Payphone Management External Communication. General Reporting & Security Management.
system. Advertising. Payments. Premises Management.
Payphone installation. Payphone Location Accountings & Balance Purchases.
Laboratory & technical help determination. sheet. Custom Clearance.
desk. Payphone Location Business Plan & Budgets. General Procurement.
Maintenance supervision. Authorization. Billing Invoices & Suppliers. Warehouse.
Payphones maintenance. Sites owner management. Cash & Contract Card Distribution.
Value added services Cards Direct Distribution Management. Transportation.
development. management. Internal Network Vehicles Management.
Subcontractors coordination. Cards Indirect Distribution Management.
Branches Management. management. Recruitment & Training.
Telecom Egypt relationship. Payroll & Salary Policy.
Customers hot-line. Social & Legal matters. 1. Logistic Manager
1. Production Manager Commercial reporting. Legal affairs & Legal 2. Security Manager
2. PMS Manager matters. 3. Poseur & Delivery
3. Maintenance Manger Manager
4. SI Manager 4. Warehouse
5. PR Manager 1. PP Distribution Manager
Manager 1. Accounting Manger
6. Alex B. Manager
2. Card Distribution 2. IT Manager
7. Canal B. Manager
Manager 3. Personal Manager
8. Delta B. Manager
3. Advertising & 4. Recruitment &
9. MUE B. Manager
Marketing Training Manager
10. SUE B. Manger
Manager 5. Eternal Audit
Manager
164 144 28 27
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27. 6-3. Internal Resource & Competences
Resources
The key success of Menatel is that Menatel manage all its resources tangible
and intangible in a way that optimize maximum use of all the resources to gain
maximum efficient use of them.
Tangible Resources
Financial Assets
Menatel managed to maximize the use of its negative working capital situation
by conducting a very aggressive approach that lead to breaking even 8
months ahead of plans. This in turn yielded in a remarkable high ROE of 57
%, as the source of investment was the mere recycle of excess cash flow.
Physical Assets
As Menatel successfully managed to optimize the use of its physical
assets (LAN, Payphones Network, Branches) to achieve effective
communication between all employees which facilitate running the project in a
productive and efficient way. Also, Menatel managed to optimize to use of its
database (Menaprod) achieving full management of the business, which
means conducting and analyzing its results.
Intangible Resources
Human Resources
Menatel recruitment policy is to recruit self-motivated and business oriented
stuff to ensure quality and productivity in the workflow. Also, Menatel conducts
a semi - annual employee’s objective - appraisal by which Menatel aims to:
1. Measure employee’s skills and performance in coherent with Menatel
objective.
2. Determine whether new or different tasks are needed to be added or
adjusted.
3. Nominate the needed courses, training or workshops in coherent with
the new tasks added or modified.
Technology
1. Menatel System Technology
Menatel use on-line payphone management system (Centralize Management
Network) unlike the off-line system provides a remote monitoring of
equipment, which allows on site maintenance in real time by Menatel
employees.
2. Smart Card Technology
Menatel use smart cards, which are the heist existing technology for cards not
only for Payphones but also, for Banks and Mobiles.
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28. Reputation
Through its lifetime in the Egyptian market Menatel to have and obtain a good
reputation through a very distinctive services to its customer:
1. Using the most advanced technology in the market.
2. Dedicating 6- customer service-centers targeted to achieve total
customer satisfaction.
3. Guaranteed high quality service to its payphones in field by
Menatel highly- trained team of technicians.
4. Safeguard environment by a high quality of cleaning and
maintenance to Menatel booths in field on daily basis by a sub-
contractor.
5. Adhered to its financial commitments towards Governmental
Institutions , subcontractors and suppliers.
Competences
Sales & Distribution Policy
Menatel Policy for sales & distribution based on main three trends:-
1. Card distributed through Main Distributors (7 Main Dis.)
2. Card distributed through Sub Distributors (12 Sub Dis.)
3. Card distributed through Menatel Sales Force (130 Sales Rep.)
This allows Menatel to cover 26 Governorates and 4500 sales point to insure
availability of Menatel Card everywhere.
Customer Service
Menatel ensures a customer service hot line, only dedicated for receiving
customer’s calls in order to help the users and receive their comments on
commercial or technical aspects through 6 Customers Centers cover all of
Egypt.
Maintenance
Maintenance is ensured by highly trained groups of Egyptians Engineers
supported by French Experts.
Booth & Pedestal
Menatel Booth and pedestals are in stainless steel, specially designed to
prevent shocks and rust. Mantel’s Booth & Pedestals are locally
manufactured.
Menatel is not required to further dig in order to connect to the light post in
streets, for telephone use. The power needed by the payphones line itself at
low energy thanks to the chip memory used by Menatel. This provides 100 %
safety to our customers since they face no risk of electric shock.
EMBA Cairo 25
Rennes International School of Business
29. 6-4. Competitors Analysis
Menatel & Prepaid Telephones Cards
1. Menatel Volume
Menatel NTC Ringo E. Telecard T/E Card Click S. Mobinil ALO
51.7 % 13.6 % 1.5 % 27.1 % 3.4 % 1.3 % 1.4 %
2. Menatel Value
Menatel NTC Ringo E. Telecard T/E Card Click S. Mobinil ALO
45.1 % 5.1 % 1.3 % 28 % 5.3 % 7.1 % 8.1 %
EMBA Cairo 26
Rennes International School of Business
30. Menatel & Prepaid Public Payphones Cards
1. Menatel Volume
Menatel NTC Ringo
77.5 % 20.3 % 2.2 %
2. Menatel Value
Menatel NTC Ringo
86.8 % 10.8 % 2.4 %
Menatel Coverage (PP Network)
Menatel NTC Ringo
67.4 % 25.5 % 7.1 %
EMBA Cairo 27
Rennes International School of Business
31. EMBA Cairo 28
Rennes International School of Business
32. 7. MENATEL RESPONDING FOR IDENTIFIED TRENDS
Believing that new and creative ideas are important to develop and support its
leadership in the market Menatel embraces The Best Idea project in which
any employee can forward his ideas to develop the business.
Believing that monitoring and analyzing the opportunities and threats of the
market, Also identifying the firm internal strength and weak points are the
way for a successful business , Anew post has been imported in Menatel that
is The Business Development its main focus is to study and analyze Mantel’s
chances of operation and success.
In order to optimize the use of its resources Menatel is adapting a policy of
cost control. Also it re-evaluates the cost of payphones installation among
other costs taking in consideration that the quality and efficiency of the
business is intact.
Achieving a high level of accuracy and efficiency in the decision making
process is obtained by maintaining a strong link with all the actors affecting
the business (T R A, Police, Local Authorities etc.) Menatel being in the heart
of events is able to trace changes or decision taken by the actors thus be one
step ahead.
Menatel is revising monthly its marketing strategy. Tracing and analyzing
market changes and trends in order to decide the most efficient strategy for
card procurement and marketing campaigns needed to support its product
(pre paid phone card ).
In the current state of events which take place in the Middle East Region,
Menatel maintains a good relations with customer, sub contractors, suppliers
and local authorities. Embracing the image of Menatel as a middle-class
product which offers a very distinctive services to this class which is
demonstrated in the visuals of Menatel cards with more native language
(Arabic) less foreign language. And in avoiding the wrongly propagate image
of Menatel being a foreign or a French company.
EMBA Cairo 29
Rennes International School of Business
33. References …
Annual Report, Menatel, 1999.
Annual Report, Telecom Egypt, 1999.
The Statistical Year Book 1994 - 2001, Central Agency for
Public. Mobilization & Statistics – June 2002.
Retail Audit Report 2002, MEMRB.
Marketing Management, Philip Kotler, PHIPE Prentice Hall,
Eleventh Edition, 2003.
EMBA Cairo 30
Rennes International School of Business
