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ACKNOWLEDGEMENT

It gives us immense pleasure and privilege to present the report on “Market Entry”. The
formulation of this report could not have been completed without the kind support of our
faculties and we extend our sincere gratitude for their unconditional support.

Projects are an excellent way to learn and develop ourselves and we consider ourselves
fortunate to have had the opportunity to work with industry professionals who guided our
team throughout and assisted us in this successful completion of the report. We would like to
express our heartfelt gratitude to our faculty mentor Dr. Deepak Gupta, for his guidance and
valuable insights throughout this project.

We extend our sincere thanks to our institution for providing our team an opportunity to work
with non-profit organizations and constantly motivating us to work hard with sincerity and
dedication. We would also like to thank our seniors and friends for their continuous
motivation, love, and support.

We would like to give special thanks to Venky Sir and Vivek Sir for their insights and
support throughout the project.
Table of contents
COX COMMUNICATIONS MARKET ENTRY EVALUATION REPORT

This report evaluates UAE telecom industry, CAGE distance, market attractiveness, country
risk and opportunities for Cox communications entry in UAE.

Primary contact:

Mr. Vivek Venkatachalam, worked as a Project manager in Capgemini.

Capgemini and Cox communications:

Capgemini is a global leader in consulting, technology services and digital transformation. It

has wide range of verticals. One of them is Telecom. Cox communications is one of the
clients of Capgemini Telecom vertical.

Cox communications:

Cox communications is an American telecommunication company that provides internet,

home automation services and digital cable television provider. Cox delivers faster fiber-
based network which provides stable internet connection. Cox is the third largest cable
television provider in the United States.

Cox also provides separate set of services for business. Some of the services that it provides
to business are business internet, cybersecurity to protect business from cyber attacks and
back up internet. It has collaboration with Webex and Microsoft Teams which will help the
business to easily connect with colleagues, vendors and clients.

Telecom industry in UAE:

Telecommunication network in UAE is very fast and efficient. Telecommunications and

Digital Government Regulatory Authority (TDRA) is responsible for the management of
telecommunications and information technologies in UAE. The UAE has achieved significant
progress in the Telecommunication Infrastructure Index (TII). It moved up from the 24th
position in 2016 to the 2nd position globally in 2018.

TRDA has set up committee to achieve 5G at the earliest because they want to stay ahead of
other countries.

While the world is waiting for 5G, Etisalat is working on 6G, which is 100 times faster than
5G.
Licensed telecom providers in UAE:

Etisalat and Du are the two licensed telecom providers in UAE and they provide telecom
services like landline, mobile phone, internet and satellite TV connections. Some of the other
telecom providers who provide mobile radio services and satellite services are Nedaa,
Thuraya telecommunications company and Al Yah satellite communications company.
I. MARKET ATTRACTIVENESS

INTRODUCTION

 The UAE telecommunications sector is among the strongest and advanced in the Arab
world. The government's programmes and enacted laws provide operators with strong
support.
 The Telecommunications Regulatory Authority in the United Arab Emirates is in
charge of and oversees the country's telecom industry (TRA). It was established in
accordance with the 2003 Telecom Law, which calls for the granting of licences, the
enforcement of rules, the promotion of e-government initiatives, the establishment of
access management policies, the resolution of conflicts, and the assurance of service
quality and access equity.

MARKET SIZE

The United Arab Emirates (UAE) telecom services market size was valued at $8 billion in
2021.

MARKET GROWTH

Telecommunication Sector is anticipated to grow at a CAGR of more than 2% from 2021 to

2026.

Total Number of Post Paid Mobile Phone subscriptions in Millions in UAE

Source- Telecommunications Regulatory Authority (UAE)

 Number of internet subscribers in UAE 2020-2022, by month

Source: https://www.statista.com/statistics/1114271/uae-number-of-internet-subscribers-by-
month/

Number of broadband internet subscriptions per 100 inhabitants in the United Arab
Emirates (UAE) from January 2020 to June 2022

Source: https://www.statista.com/statistics/1114264/uae-number-of-broadband-internet-
subscriptions-by-month/
COMPETITIVE STRENGTH

 Multiple Flatform Offering - Cox provides content across a number of platforms. The
business provides television (TV) and video services via a variety of platforms, including the
internet, tablets, and mobile devices. Under the On-DEMAND brand, Cox also provides
video on demand content. Customers of digital cable have access to more than 7,500 movie
and entertainment titles attributable to this technology.
 Building options to drive customer retention -Over the years, Cox has developed a
robust product range, which has allowed the business to capitalize on the rise in demand for
packaged services. Cox Bundle is the trade name used by the corporation to market their
bundle service. Cox was the first business to provide a three-product bundle over a single
broadband network, including high-speed internet, digital cable TV, and phone. Through a
joint venture, Cox offers Verizon Wireless services to its consumers in addition to the
services it already provides. The associated proposition of receiving multiple services from a
single company will enhance the customer retention

https://cdn.uconnectlabs.com/wp-content/uploads/sites/82/2020/01/CoxCommunications.pdf

TRENDS IN TELECOM INDUSTRY

 The UAE has one of the world's fastest median download speeds on 5G networks and
one of the highest fixed broadband speeds. This is the outcome of recent expenditures in
infrastructure that prioritized fiber over updated copper networks and 5G.
 The development of new mobile features and technologies, such as millimeter wave
in 5G and terahertz (THz) spectrum in 6G, would fuel industry expansion.
 Dubai is on track to become one of the world's smartest cities due to technological
developments, innovative projects, and programs including the Dubai Data Strategy, Dubai
10X, Smart Dubai 2021, Dubai Blockchain Strategy, and Dubai Pulse Platform.
II. CAGE DISTANCE: (UAE AND INDIA)
a. Cultural distance

UNITED ARAB EMIRATES INDIA

Power Distance 74 77
Individualism 36 48
Masculinity 52 56
Uncertainty Avoidance 66 40
Long Term Orientation 22 51
Indulgence 22 26
https://www.hofstede-insights.com/country-comparison/germany,india,the-united-arab-
emirates,the-usa/

b. Administrative distance:

 According to World Bank data, United Arab Emirates is ranked 16 in ease of doing
business while India is ranked 62. It shows that UAE has most friendly regulations
and environment to start and do the business.
 Government expenditure on education in UAE 11.7% while in India, it is 16.5%
 UAE is the least corrupted country in the Middle East region, severe punishments will
be given if someone tries to take or give bribe whereas in India, corruption is the
common thing.
 In Corruption Perception Index, UAE is ranked 24 among 180 countries while India is
ranked 85 which indicates that UAE is very less corrupted than India.
 Military expenditure as a % of GDP in UAE is 5.6% while in India it is 2.7%

C. Geographic distance:

 India is 1 hour 30 minutes ahead of UAE.

 UAE is covered with mountains and barren desert.
 The natural resources available in UAE are petroleum and natural gas.
 Time taken to ship goods from UAE to India depends on the origin port and final
destination. If the port is in North of India, then it taken 8 to 10 days. If the port is in
South, then it takes 13-20 days.
d. Economic distance

UNITED ARAB EMIRATES INDIA

GDP per Capita (US$)-2021 44,315.6 2256.6

GDP growth annually (2021) 3.9 8.7

GINI index 26 35.7

Life expectancy at Birth 79 70

Source: https://data.worldbank.org/
III. COUNTRY RISK ASSESSMENT

a. Political risk

UAE have a relatively volatile business environment that can affect corporate payment
behavior, according to the risk assessment rating. On average, the risk of corporate default
remains acceptable.

UAE is 'at risk' due to cyber-security lapses caused by hybrid working. Employees would
bring work devices, contact information for co-workers, customer contact information, and
planning materials. As a result, it is critical for businesses to discuss and resolve data loss
issues, as well as implement preventive measures.

There is a lengthy and complicated dispute resolution processes.

Corruption:

Corruption is a low risk for businesses in the United Arab Emirates, the Arab world's least
corrupt country. Anti-corruption and anti-fraud legislation is strictly enforced, and bribery
and petty corruption are rare.

b. Economic risk

Inflation in the UAE averaged 5.5% year on year during the first nine months of 2022, and is
expected to average 5.6% for the entire year.

C. Financing risk

Due to the fading impact of the Dubai Expo and spill over effects from the World Cup in
neighbouring Qatar, Dubai's growth will slow from 5.5% in 2022 to 4.7% in 2023.

Foreign exchange stability:

Since the early days of the dirham, the UAE has pursued a policy of currency stability
through peg (a fixed rate against the dollar). Exchange rate volatility has serious
consequences for the national economy, ranging from asset price instability to capital flight.
 Foreign debt service as % of exports and imports of goods and services

This is the debt service coverage of the goods and services.

IV. INDUSTRY SPECIFIC DETAILS:

a. Industry size and structure:

During the period 2022-2027, UAE telecom market is expected to grow at a CAGR of 3.5%.
The telecommunication sector in UAE is very advanced due to government initiatives and
policies. The internet consumption has also increased a lot due to Internet of Things. So,
various companies are entering into market with attractive internet plans.

World Economic Forum issued Global Competitiveness report in 2019. In that, WEF has
ranked UAE as 1st in mobile phone subscription, 2nd in mobile-broadband subscriptions.
UAE is the regional leader when it comes to telecommunication infrastructure.

Cox communications provides 1 Gbps speed internet and offers various packages combining
internet, tv, smart home system. It will give heavy competition to Etisalat’s “e-life ultra” plan
which is similar to Cox communications packages.

Types of market segmentation in Telecom industry:

 Mobile
 Fixed line
 Broadband

In this, mobile subscription rate is higher in UAE when compared with fixed line and
broadband.

Source: Telecommunications and Digital Government Regulatory Authority

https://tdra.gov.ae/en/open-data
(Numbers in millions)

Source: Telecommunications and Digital Government Regulatory Authority

https://tdra.gov.ae/en/open-data

As we can see from the graph, the number of internet subscriptions and broadband internet
subscriptions has been increased significantly in the last 10 years.

b. Industry specific tariff and non-tariff barriers:

UAE imposes non-tariff barriers like import licensing and documentation requirements.

First, the company has to register itself as a telecom supplier or manufacturer in UAE and it
has to get Valid Trade License with telecommunication activity or initial approvals from
local department of economy or free zone.

There are separate rules and regulations available in the TDRA website for categories like
Telecommunication cables, Internet of Things, Licensing, Spectrum and radiation etc….

Company should also get a foreign certificate service provider. And to register for that, a
company has to submit lot of documents like Memorandum of Association, Foreign CSP
statement of business activities, availability of insurance, audit report etc…..
V. OTHER STRATEGIC CONSIDERATIONS FOR FIRM

Segmentation of the clients has to be done correctly and based on the marketing research we
have to create effective marketing strategies.

We should consider adopting corporate marketing strategies for market entry in UAE to
maintain brand integrity and maximize the success that also serves in demand execution,
brand integrity, external and internal communications, and positioning.

Another strategy can be employing “Hunters”, who will be a part of Sales team. Hunters are
the deal makers. They search for potential clients and go and talk to them. They also keep an
eye on competitors’ movement.

VI. OVERALL MARKET ENTRY ASSESSMENT FOR THE FIRM

UAE is the best choice for market entry of Cox communications because the telecom
infrastructure they already have will be really helpful in setting up the business. UAE always
wants to stay ahead of the world and the internet consumption is high in UAE and almost
everyone have access to smartphones and internet.

UAE welcomes foreign companies to start their business in UAE because they want to
diversify their business. They don’t want their economy to rely only on the petroleum and
natural gas. They want to have a sustainable growth and UAE have framed many government
policies which will be favourable for foreign business to start its operations.

The United Arab Emirates (UAE) telecommunications market, which was estimated to be
worth $8 billion in 2021, is anticipated to grow at a CAGR of more than 2% from 2021 to
2026. The expansion of broadband coverage by operators like Du will cause a rise in fixed
broadband penetration among the population during the period.

Dubai is one of the smartest cities in the world and other UAE cities is also working on
making them the smartest. Technology like AI, IoT is used in home to make their home a
“smart home”. Cox communications also provides smart home services. So, UAE is a good
choice because there will be a lot of demand not only for internet, broadband but also for
smart home services.
VII. MODE OF ENTRY

Modes of entry to UAE:

Modes considered are:
 Joint Venture: Joint ventures are formed when a corporation intends to enter a market
by collaborating with another company that is already present in the market. Many
businesses utilize joint ventures to investigate untapped markets with the aim of
boosting their sizes. In comparison to other entry methods, joint ventures have the
benefit of lower risk and the possibility for higher revenue. However, this approach
has the drawback of giving the venturing company less control in the new country,
and it can be prevented if both parties are willing to engage in a fair trade.
 Greenfield investment: When a firm establishes its own office in a country by
purchasing property, constructing a facility, and hiring staff from the host nation, this
is referred to as a greenfield venture. Many businesses employ this because it provides
benefits from the government and makes it simple for them to adhere to national
regulations. The corporation will pay significant costs and risks in addition to these
advantages, but it will have complete control in operations.
 Franchising: In a value chain retail setting, franchising occurs when a corporation
grants a person or group of people the right to manage company branches on the
company's behalf in lieu of payment. Customers must be aware of the brand and want
to buy its products in order for a franchise to succeed. It is a method of indirect
management.

Chosen Mode:
We have chosen Greenfield investment in UAE. Even though the country having two
dominant player in the industry we choose this mode of entry because of the support and
subsidiaries offered by the UAE government. They are:

 Make it in emirates, an innate by the government of the country and the emirates
development bank to attract innovators, developers and investors. The bank offers
financial and advisory solutions to the innovators and investors.
 The country offers protection of business from other existing business in the country.
Creating a premium business environment for business to grow.
 The country does on have corporate tax on telecommunication industry.
  The commercial licensing is easly obtained in the country through a online portal
known as Basher.
VIII. INTERNATIONAL MARKETING STRATEGY

Marketing Strategy

 Product Mix: as the company is into telecommunication, we are planning to offer

mobile services, internet services, broadband and videos conferencing services.
 Target segment: Business and Individuals
According to recent research, the majority of adults in the UAE work from home. The
family's recreational activities during lockdown included video calling, watching online
movies, and using the internet. The overall growth in internet usage will create a market for
the organisation. We intend to pursue cost leadership because the product has a sizable
market and plenty of competitors. which will draw customers looking for service providers
with inexpensive prices. Since there are already companies in the market, we anticipate that
cost leadership will be able to draw clients to the business. And in the business sector, if we
continue with the cost leadership plan, the corporation can lower its telecommunications
costs. It may draw customers to the firm.

Marketing Mix:
1. Product: we are offering low priced services to our clients and advanced than what is
existing in the market.
2. Price: the pricing of the services would be done after understand the pricing strategy
used by the competitor and fixing a price that is below the competitors to capture the
market.
3. Place: the services will be available at telecommunication stores, in the shopping
malls, phone store, busy places and where the family comes to shop. The services will
be available to business from the head office where the sales people would approach
the business.
4. Promotion: since the promotion plays a great part in the life of the company, we are
trying to bring in the presence through social media, roadshow and exhibitions. The
company will have hunter for the promotion of the services.
Value proposition: The unique value proposition provided by the company will be ACE
(accelerated solution environment), where the sales representatives from the company go to
the potential customers and identify the problem they never knew existed and offer the
customer a solution. People in the United Arab Emirates always like to be one step ahead of
the game. The team will comprehend the client's needs and requirements and offer them a
tailored solution at a fair price.

IMPORTANT INSIGHTS FROM OUR PRIMARY CONTACT:

 Do market research before entering into a country. Know the types of customers and
competitors in the market
 Know your strengths and formulate your strategy
 Explore the market by exhibition, roadshows
 Know the law of lands
 Understand customer pain
 Capgemini has an Accelerated solution environment where multi-functional teams sit
together and work in a lab like environment. Potential clients will give a problem and
all teams work together and develop instant solution for different problems lively.
References:
https://www.searates.com/blog/post/shipping-from-uae-to-india-documents-ports-routes-and-
everything-you-need-to-know

https://u.ae/en/information-and-services/infrastructure/telecommunications

https://www.capgemini.com/about-us/

https://www.cox.com/residential/home.html

https://www.mordorintelligence.com/industry-reports/analysis-of-the-telecom-sector-in-the-
united-arab-emirates-industry

https://u.ae/en