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The impact of social media on businesses

"Carroll Wemyss" (2019-05-10)


Introduction

This chapter presents the results of the research findings. The two companies are analyzed using case design. The researcher conducted a case study of two companies: Saudi Telecom Company and Alhokair Company.

Saudi telecom company (STC)

Saudi Telecom Company operates through a number of subsidiaries to provide information, telecommunications and media services in the Kingdom of Saudi Arabia, Persian Gulf, Africa and Asia. The companys major segment known as GSM offers mobile, messaging, prepaid card, third and fourth generation and international roaming services. The companys PSTN segment provides telephone cards, fixed line, international and interconnects call services. Its data segment offers DSL and leased data transmission circuits. The firm is also involved in the operation of communications projects such as processing and transmission of information as well as the provision of broadband, international telecommunications, mobile and other related services (STC Telecom Company 2017).

The company also operates and manages fixed and mobile line telecommunications networks. It also provides online and internet services to individuals and organizations. Through its various subsidiaries, it provides call center services and corporate computer, distribution of prepaid, develops telecommunications infrastructure and postpaid calling cards, real estate property investment and development services and ownership and operation of satellites.

Social media is a necessary part of the company as the company has recently adopted a challenging program aiming to transform its government system to the widely acceptable commercial business standards. The firm has developed clear strategies focusing on re-skilling, internal re-organization and development of its staff, studying its customers needs, enhancement of its internal processes and requirements while constantly carrying out its social and national duties and responsibilities. Today, Saudi Telecom Company is the leading national provider of telecommunication services in the Kingdom of Saudi Arabia (STC Telecom Company 2017).

Saudi Telecom Company is working incessantly to fulfill and satisfy the market requirements and satisfying its customer's needs. The company puts into consideration that there are innovative ways to reinforce its position and identity. More significantly, it believes in the importance of customers and the fulfillment of their needs. The company adopts unique strategies that aim at supporting and re-enforcing its competitive position. Based on this strategy, the organization enhances customer- centric culture in its different business aspects.

General information

Founded in 1998, the company operates in the telecommunication services industry. It is headquartered in Riyadh. Up to May 2017, the company had 21316 employees. It recorded a market capitalization amounting to $37.6 Billion and $ 13.82 Billion in sales for the same period. Khaled bin Husain bin Saleh Biyari is the current Chief Executive officer (STC Telecom Company 2017).

Social media to improve business

The company largely uses social media to improve its businesses. Over the last few years, social networks have become the companys primary place where it engages with customers about issues relating to products and services. an effective social media strategy has allowed the company to listen to customers . On twitter, Saudi Telecom Company main twitter feed has millions of followers. It is an active brand on this platform and has specific pages dedicated to products and sub brands. The brand primarily uses facebook and twitter to respond to mentions, complaints, compliment and requests. The company engages customers by posting consistently and frequently. The brand is active throughout and attempts to get its audience excited about upcoming products.

The marketing strategy gives way to multiplatform conversations on social media sites such as Facebook and Twitter. Online conversations become organic as they are driven by consumers rather than the brand itself. This has integrated the brand into the homes of its users, becoming part of their lifestyles. The brand has provided consumers with value on a consistent basis.

This shows that the company buy youtube views social networks as useful tools to better understand its customers as it facilitates analysis of the discussion that takes place online over social networks and forums. The companys brands are more active that the audience at the beginning of the week than at the end of the week. On the other hand, audiences activity is more stable throughout the week. Responding in a timely matter is vital to the company.



Figure 1: Social media engagement



Figure 2: Facebook page



Figure 3: Twitter page

Saudi Telecom Company uses social media in various ways including brand management, customer rewarding, and collection of data, marketing and complaint management. Of importance is how the company treats social media as an information asset. It has been able to derive the benefits of social media by building a modern IT infrastructure. The approach is based on a thorough understanding of social media, latest technologies and multi-channel customer management. The company incorporates information from social media into a complete enterprise information map. New technologies help the company increase its return on investment by implementing a combination of Master Data Management, Service-Oriented Architecture and cloud solutions.

How social media has impacted the company.

With an effective social media strategy, the company has been able to improve customer loyalty, reduce operation and labor cost, achieve greater return on marketing investment, increase IT efficiency, attain effective business intelligence and lead discovery achieve and increase customer lifecycle moments of value.

Saudi Telecom Company employees are able to increase response rates on inquiries, streamline their efforts and perfect companys messaging for optimal performance. Social media has also allowed the company to improve customer service by monitoring comments and feedback on its social media pages hence strengthening customer relationships with the brand. Social media has allowed the company to grow because it is provides a platform for an almost a one-to-one interaction with customers. The company can listen to customers and meet their expectations.

Social media has also allowed the company to improve marketing activities. It can engage with key audience across different social media accounts. Data from audience help the company in formulating marketing messages that appeal to different market segments. Social media provides it provides a number of marketing benefits for the company. The major benefit is that present various kinds of conveniences to the consumers and company.



The User-generated content that accompanies social media channels helps in boosting effectiveness of marketing activities. Additionally, businesses can track customer related interactions so as to target and optimize marketing activities. The paradigm of P's of marketing has been affected by the growth of social media use by the company. Products and services are now service-intensive and designed according to customers requirements and individual tastes. Saudi Telecom Company has constantly innovated because customers can now actively participate in creating products. Saudi Telecom Company has the advantage of quickly adapting to customers requirements as needed. Additionally, through social media, it effectively determines pricing in the dynamic markets. Social media has become increasingly critical for Saudi Telecom Company to use the pervasive tool in one way or another. It has turned out to be an influential tool that it uses to obtain a competitive edge.


How do they attract their customer in social media?

The company attracts customers in social media through content marketing. Consistent messages are delivered on social media platforms. This helps in building a brand using persuasive user-generated content. Todays effective marketing entails creating high quality content and sharing across social media platforms. Quality content means information that is of real value to the particular target customers. Social media brings all the great benefits to the business by supporting the marketing team and leading generation of sales. Creating and distributing such kind of valuable, relevant and compelling information can only be done through the social media as a platform. This way, the company easily turns prospects into buyers and buyers into loyal customers.

Alhokair Group

Alhokair group operates in the hospitality and entertainment industry. It began in 1975 under the leadership of Sheikh Addulmohsin Alhokair. It has expanded to include more than 34 hotels and 79 entertainments in Saudi Arabia and United Arab Emirates (Al-Hokair Group, 2017). The business does not fully utilize Arabia the opportunities that social media provides. The company can go for long without posting anything. The most current update was made on 24th May 2015. They have just 1270 Facebook likes. The reason could be because the brand does not operate an online store. Hence, its social media marketing efforts are mainly focused maintaining brand image and raising awareness of its ad campaigns rather than on driving people to its outlets. While the company has a relatively low engagement on social media, it engages its audience on a more personal level. Given that it draws consumers from all over the world, the brand responds in different languages to engage its bilingual consumers. The brand uses many pictures and videos to capture audiences attention. Since most posts are videos, promotions, hashtags and quotes, it generally attracts a few likes.