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Egypt Brand Equity & Positioning
Introduction
Where are Egypt now? and Where we would like Egypt to go?
Before we start anything we need to set a strategic plan; Evaluate the current
situation, Unify country vision, Setting objectives with solid directional strategies,
then to control and evaluate constantly.
Without strategic planing and clear directions; Egypt will continue to wander
aimlessly through the long night of stagnation, won't succeed and will keep going
nowhere (Standing is no longer a viable strategy)
Situation Analysis
Egypt's economy was highly centralized during the rule of former President Gamal
Abdel NASSER but opened up considerably under former Presidents SADAT &
Moubarak.
Egypt from 2004 to 2008 aggressively pursued economic reforms to attract foreign
investment and facilitate GDP growth. Despite the relatively high levels of
economic growth in recent years, living conditions for the average Egyptian
remained poor and contributed to public discontent.
After unrest erupted in Jan11, the Egyptian Government drastically increased
social spending to address public dissatisfaction, but political uncertainty at the
same time caused economic growth to slow significantly, reducing the
government's revenues. Tourism, manufacturing, and construction are among the
hardest hit sectors of the Egyptian economy, and economic growth is likely to
remain slow at least through 2012. The government is utilizing foreign exchange
reserves to support the Egyptian pound and Egypt may seek a loan from the
International Monetary Fund.
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New Vision
All Egyptians will understand their vital role-play in a democracy, and their own
personal stake in the National improvement. Our resources and treasures will be
available to more people than ever before through modern technology, dynamic
partnerships and fairness. We want to be inspired to MENA region strategies
New Mission
Change our mindset to treat all citizens as a number one stockholder who deserve
the optimum welfare and enhance their satisfaction level beyond their expectations
(Citizen is the King)
New Objective
Overstepping the current bottleneck stage through enhancing our inferior
economic status
Strategy Formulation & Alternatives
As per my briefly SWOT analaysis (Exhibit1) I think it will be impossible to address
all strategies, tactics and sloutions required to get out the bottleneck, however, we
want to be more focused on prioritizing our strategies through two main factors;
first is our capabilities, competencies and second is rapid tangible enhancement
for citizens welfare.
From my point of view the most important objective that we need to focus on is the
citizen walfare, if we succeed to enrich and enhance the citizens walfare and
satsfuction that will avoid us too many internal and external crises.
The only way to achive this objective is to enhance our ecenomic performance
which really suffaring long time then now its shifting to be in the sarviving stage
(after 25th. Jan revolution) “find the ecenomice performance trend (Exhibit 2)”
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Strategy Selection (Egypt Branding)
In recent years there has been a spectacular rise in the prominence of nation
branding. Almost every country in the world is now engaging in nation branding or
is considering how to approach the challenge of developing an effective nation
branding strategy. In some respects, there is little that is new about nation
branding, given that nations have historically always branded themselves through
national icons such as flags, military uniforms, currencies, anthems, and so on.
However, what is new is the borrowing of branding techniques from the
commercial sector and the application of these techniques to whole countries
rather than merely to product or corporate brands. The key objectives that nation
branding usually aspires to achieve include export promotion, the attraction of
inward investment, tourism promotion, and an increase in international influence
on the global stage.
Diefiantly if we adapted this strategy and implement it efficiently with high nation
synchronize involvment and dynamically we will pass the bottleneck.
It’s using a combination of all our strengths (Natural Recourses (S1), Human
Resources (S2), Geographical Wealth (S3), Traditions & Culture (S4), Brand
Heritage (S5)) to overcome most of our weaknesses (All) because it will generate
the required fund for the government required to enhance all weaknesses and
avoid any threats.
The relevance between our “Vision, Mission, Objective” & Strategy
The challenge of national economic development has gone beyond the limits of
public policy. The new economic order has transformed economic development
into a market challenge as well. Nations compete with other nations and strive to
devise sources of competitive advantage. Thus today there are more reasons why
nations must manage and control their branding. The need to attract tourists,
factories, companies, and talented people and to find markets for their exports
requires that countries adopt strategic marketing management tools and conscious
branding.
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Managing Egypt Brand Image
Country images are likely to influence people’s decisions related to purchasing,
investing, changing residence and traveling. Country image can be understood as
‘the sum of beliefs and impressions people hold about places. Images
represent a simplification of a large number of associations and pieces of
information connected with a place. They are a product of the mid trying
to process and pick out essential information from huge amounts of data
about a place.’
Enhancing Egypt Brand Image & Equity will lead to:
1. Foreigner Investment Enhancement.
2. Export Performance Enhancement
3. Tourism Performance Enhancement
4. Political Position Enhancement
Bedrock of Egypt Brand Image
A country’s image results from its geography, history, proclamations, art and
music, famous citizens and other features. The entertainment industry and the
media ply a particularly important role in shaping people’s perceptions of places,
especially those viewed negatively. Not only are product categories such as
perfumes, electronics, precision instruments, wines, cars and software strongly
identified with certain places, but also are societal ills such as AIDS epidemics,
political riots, civil rights violations, attacks on the environment, racial conflict,
economic turmoil, poverty and violent crime
So the Egyptian government should associate it's brand name with any tangible
objects, events, experiences, products, service and so on BUT it should has a
superior competetive advantage in, same like other successful cases such "Greek
mythology to French panache and Russian roulette, from German engineering and
Japanese technology to British rock and Brazilian soccer, and from Brussels lace
to Hollywood movies". The countries and places references are everywhere
around us in our daily life, social interaction and work
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1- Foreigner Investment Enhancement
One of the most interesting facets of place marketing deals with countries’ efforts
to attract new factories and business investments. These are expected to create
new jobs and economic growth, with an overall benefit on the country’s economy.
Because of the dramatic improvements in telecommunication and transportation
services worldwide, global companies are now searching for new locations that
might bring down their costs. This has transformed supply chain management,
logistics and site selection in core competencies within global companies. Egypt
government must understand how companies make their site selection.
So we need to identify the selection attributes that may affect the investors final
decision, those attributes could be countries' labor, information availability,
location, taxes, climate, regulation, energy, communication, business volume and
so on.
Egypt should understand it's location characteristics versus investors seeking to
create it's own sustainable competetive advantage.
Let’s BRAND EGYPT AS AN ATTRACTIVE BUSINESS DESTINATION, that will reduce
our high unempolyment rate (W6), train our menpower to comeup Illiteracy (W1)
and more production will reduce the high inflation Rate (W5)
2- Export Performance Enhancement
Country names amount to brands and help consumers evaluate products and
make purchasing decisions. They are responsible for associations that may add to
or subtract from the perceived value of a product. Research ahs supported the
idea that consumers are more willing to buy products from industrialized nations as
a result of country equity. Products bearing a ‘made in Germany,’ ‘made in
Switzerland’ or ‘made in Japan’ label are commonly regarded as high quality, due
to the reputation of these countries as top world manufacturers and exporters. At
the same time, ‘made in Surinam’ or ‘made in Myanmar’ labels may raise doubts
about the quality of the products due to the low country brand equity.
Increasing export value will overcome Trade deficit (W9), High unemployment
Rate (W5) through motive for more production, Weak infrastructure (W10) through
more governmental fund
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3- Tourism Performance Enhancement
Egypt government should understand that different places attract different tourists.
tourism market can be segmented by the attractions tourists seek, such as natural
beauty, sun, adventure, gaming, events/sports or culture/history. The market can
also be segmented by areas, regions or locations, by seasons, by customers’
characteristics, or by benefits.
Egypt has several unique opportunities for different type of tourism compiled under
the category of alternative tourism, which include coastal tourism, health and
thermal tourism, winter sports, adventure trips, plateau tourism and ecotourism,
conference and expo tourism, cruise ship and yacht tourism, golf tourism and
religious tourism and etc.
To be successful in the tourism industry Egypt must be very specific about what it
wants to market and to whom.
Government has to allocate budget to be spent to build an adequate infrastructure,
safety and services.
The tourist minister should undertake researchs to understand the values tourists
seek as users (performance, social and emotional values), as buyers
(convenience and personalization) and payers (price and credits), The competitive
environment must also be meticulously analyzed. Consumers have literally
thousands of destination choices. They will be drawn to destinations that they
perceive to offer the best value either because they offer the most benefits or
because they are inexpensive or more accessible.
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4- Political Position Enhancement
Throughout history, countries have managed their brand as a means to influence
perception. Often, the objective was to support an internal view that unified
citizens and supported nation-building, as well as to create strong differentiation
amongst neighbors and competitors. Country brands consisted of a historical
narrative that incorporated social and cultural values wedded to political or
religious ideologies. In this way, nations were created and positioned in terms that
transcended geography or tribalism. This was particularly the case in 19th. century
Europe, where national identities, flags, anthems, monuments and holidays were
consciously constructed in the wake of political revolutions and emerging national
independence. This is true for the United States as well, which constructed its
own identity and along with it one of the most significant country brands in the
world. One that started by rejecting the parliamentary authority of the United
Kingdom, unifying a federal system of democracy and developing a powerful
narrative of free agency inspired by classical Greece and republican Rome. The
«stars and stripes» became synonymous with an American dream of freedom,
citizenship and a pioneering spirit values that still drive many to live and work in
the United States today
Branding is a modern coinage, born from advertising and marketing in the
twentieth century, a country’s brand is closely tied to the full spectrum of its
political, cultural and commercial history
Egypt primary goal should be to succinctly capture its narrative and assets for
internal and external audiences to identify and support Egyptian government
objectives.
Presented To, Presented By,
Dr. Heba Dahshan Ahmed Hamdy Ali
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(Exhibit 1) SWOT Analysis
Strengths
S1 Natural Recourses
Egypt may not be an oil country but still it's not a poor country either; its Suez Canal
& a thriving agricultural export (ever pay a premium for Egyptian cotton?)
S2 Human Resources
We exceed 80 million However it could be considered as a weakness with the
population natural (illiteracy and poverty)
S3 Geographical Wealth
Long Coast, Nile river and Pharaonic monuments which discovered and more didn't
yet
S4 Traditions & Culture
The resolve and the character of Egyptian people, a fun-loving, hospitable and
intelligent bunch who bring high-level skills (like medicine, engineering, technology
and arts) to the free world
S5 Brand Heritage
Has a good positioning inside the Arab countries relying on historical political
positions
Weaknesses
W1 Illiteracy The education level is below the level which introduce educated Illiteracy
W2 Poverty
Increasing dramatically because of loosing government control on income and
welfare distribution
W3 Mismanagement Lack of visionaries & inspirer volunteers to lead this country
W4 Corruption
Unfair opportunities distribution & lack of basic personal values in top management-
leaders
W5 High inflation Rate
Lower focus on productivity and production lead to reduce offering while demand is
increasing
W6 High unemployment Rate
Non-qualified calibers, focusing on services industries and depending on new
technologies
W7 Constant Annual Budget deficit
Government is always incapable of increasing national income while government
expenditure is increasing which lead to constant gap
W8 Population successive increase The illiteracy drive people to increase offspring seeking more safety
W9 Trade deficit Dependence on Importing more than doubles Exporting value
W10 Weak infrastructure Overall weak infrastructure and the governmental services
Opportunities
O1 Financial Capabilities Many organizations & countries is willing to support financially
O2 Developing Country Egypt have a perfect potential to attract the developed countries to invest in
Threats
T1
Internal political fighting Too many factions could compete together in favor of their own favors, that will
defiantly will be against Egypt interest
T2
External political fighting Too many countries are willing to acquire more involvement in the Egyptian internal
issues seeking to increase their control then interest
T3 Worldwide economic recession This will be a challenge to compete and enhance our economy in this world crises
T4
Unstable world political plan Too many countries have their own hidden agendas to expand their interest
however it would harm other countries
T5
New revolution If citizens didn't touch a serious steps from the government toward citizen welfare
that will defiantly will lead to another revolution and unstable period
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Financial Indicators are sourced from
http://www.tradingeconomics.com
Country
GDP Billion
USD
GDP QoQ GDP YoY
Interest
rate
Inflation
rate
Jobless
rate
Gov.
Budget
Debt to
GDP
Current
Account
Exchange
rate
Population
Egypt 230 3.30% 3.30% 9.25% 6.20% 12.60% -7.9 76.4 -1.2 6.1 82.54
Qatar 173 2.50% 5.00% 4.50% 2.60% 0.60% 5 31.5 30 3.64 1.87
Algeria 189 2.60% 2.60% 4.00% 7.20% 10.00% -4 9.9 10.3 79.44 35.98
Saudi Arabia 577 6.80% 6.80% 2.00% 3.80% 10.50% 9.1 7.5 27.5 3.75 28.08
United Arab Emirates 360 3.30% 3.30% 1.00% 0.95% 4.60% -0.6 16.9 8.5 3.67 4.57
Kuwait 177 5.70% 2.00% 2.80% 2.10% 31.04 7.35 41.81 0.28 2.82
Morocco 100 2.30% 2.30% 3.00% 1.00% 8.10% -5.6 54.4 -7.3 8.57 32.27
Oman 72 5.00% 1.00% 2.87% 15.00% 6.3 5.06 13.22 0.38 2.85
Tunisia 46 3.20% 4.80% 3.75% 5.70% 18.10% -4.5 42.4 -7.4 1.57 10.67
United States 15094 1.30% 2.10% 0.25% 2.00% 7.80% -8.7 103 -3.1 119.89 311.59
Euro Area 13076 -0.20% -0.40% 0.75% 2.60% 11.40% -4.1 87.2 -0.6 1.3 332.99
China 7298 1.80% 7.60% 6.00% 1.90% 4.10% -1.1 25.8 4 6.27 1344.13
Japan 5867 0.20% 3.20% 0.00% -0.40% 4.20% -9.7 211.7 2 78.57 127.82
Germany 3571 0.30% 0.50% 0.75% 2.00% 6.80% -1 81.2 5.7 1.3 81.73
France 2773 0.00% 0.25% 0.75% 1.90% 10.20% -5.2 85.8 -2.2 1.3 65.44
Brazil 2477 0.40% 0.50% 7.25% 5.28% 5.30% 2.6 66.2 -2.11 2.04 196.65
United Kingdom 2432 -0.40% -0.50% 0.50% 2.20% 7.90% -8.3 85.7 -1.9 1.61 62.64