Chapter 1: Introduction, Management Issue, and Thesis Objective

Introduction

The penetration view of the telecommunication services in Middle East, and Iran in particular implies that there is a need for services, such as repair and maintenance of the telecommunication services to allow for usage of the increasing numbers of the telecommunication equipment among users. As of September 2010, the penetration rate in Iran was estimated to be about 91.9% over a population estimated at 78 million. With the increased population and increased awareness of the community on the importance of telecommunication, there are high chances that the penetration will increase further.

Other Middle East countries such as Israel and Iraq have also seen a tremendous increase in population and greater penetration of the telecommunication services. For instance, Iraq has a penetration rate estimated at 74.2% over a population estimate of 30.4 million. Most of the middle east countries have an annual population growth of 2.7% due to reduced mortality rate and increased healthcare. The Middle East, and Iran, in particular, have witness exceptional rise in population. Such extraordinary growth in population of service globalization and new subscribers together with the increasing penetration of the telecommunication services implies that there would be a need for the availability of repair and maintenance services in the area.

There is a notable increase in population in the Middle East countries namely as Iran, Bahrain, Jordan, Iraq Qatar, and others have registered a tremendous rise in population. From previous researchers, the population has increased from 127 million in 1990s to over 205 million in 2010. This is a clear indication that there is a positive rise in population. With the rise in population, there are high chances that the population will lead to increased demand for the telecommunication gadget.  Many studies conducted so far have presented Middle East as being the core of the ever increasing penetration of the telecommunication services because of the increasing establishment of the telecommunication firms in the area. The growing penetration of the telecommunications services, in turn, would increase the need, as well as, the availability of telecommunications gadgets in the area. Therefore, since such gadgets are always subject to failure, there would be a need for the availability of repair and maintenance services to keep the devices operational.

Telecommunication gadgets are prone to breakdown thus necessitating the need for expertise in repair and maintenance. It will be significant to have organizations with a great reputation as far as offering information technology is concerned.  It is for this reason that this research is essential for COMTEK B. V to understand the potential market for its services.

Company’s History

ITECS is an international company established in the Netherlands in 2006, which facilitate the trading of Iran and the world. The firm commenced its activities in the Netherlands with the hope of making a substantial stamp on the local market scene. Efforts towards the realization of this interest extended to the eventual desire to command a larger market population. The extension of their service to the larger European market was considered ideal for the promotion of the expansion intents shared by the firm. This was further fixed on the increased penetration of the telecommunications service delivery in the region. Europe has had a recommendable cellular penetration. Additionally, the rest of telecommunication services, such as the information generation and transmission services have been included to its widespread in the region.

The use of services such as the internet ant mobile cellular services has been linked to the target population extensively in the area. However, the facility of functional or substantial repair and maintenance services has not been linked extensively. This was considered the extensive purpose that drove the implementation of the ITECS idea of expansion in the region. The referred firm, ITECS, narrows its purpose on the facility of services that are considered to have a business angle. This implies that the purpose of the company towards the implementation of the considered business idea remains official to the facilitation aspect. ITECS regards consultation and business partnership as its ideal model of operation. It partners with other firms towards assisting in the realization of the business agenda. Among the projects under consideration includes the pairing with the COMTEK B. V in the delivery of telecommunications maintenance services in the Middle East, focusing on a central position with Iran.

This business agenda is guided by the positive market respond related to the region, as well as the potential role of Iran in commanding the Middle East market. The project partners with COMTEK B. V, which has expressed remarkable expertise in the repair and maintenance of telecare systems. The experience credited to this firm remains considered essential for the success of the project. The firm prides on the capacity to undertake extensive and comprehensive repairs to both telecommunication and networking products. This implies that the eventual services are meant to be enjoyed by the entire market.

Current Facilities and Geographical Positioning

COMTEK has established four repair centers across the European markets. These include centers in Netherlands, Germany and England. The services in these destinations allow for the consideration of the experience gathered during the period of service. The experience relates to the fields of operation that has mapped the services adopted by the firm. The years of service allow for the consideration of the potential boost it stands to impact on the success of the proposed center. ITECS, on the subsequent response, has had a positive relation to the various markets in both the European and Middle East markets. This includes the ages of expertise in Iran. The incorporation of the two firms towards the realization of the eventual business objectives remains rather viable by consideration. Additionally, the potential of the respective firms in achieving their ambitions in the respective fields of specialization allows for the implementation of effective market command initiatives. This further implies that the involved firms stand to gain enormous strides of development in the new territory.

Management issue

The penetration of telecommunication services in the Middle East has been widespread. This may be described to be in response to the ever increasing population of new subscribers and service globalization. The Middle East has been presented as an ideal destination for the various telecommunication firms. However, the penetration into this market has been impaired by the lack of essential services that allow seamless usage of the service. This includes services such as repair and maintenance of the equipment, as well as the eventual delivery of updated devices for communication.  Penetration into the productive Middle East market allows for the adoption of strategic measures that would enable the exercising of the entire privileges associated with this system. Apparently, the scale of the concern related to the usage of telecommunication devices in the region remains fixed on the inability to access sufficient maintenance services for the entire set of devices available in the market. The Effect of such an observation amounts to the existence of obsolete devices in the market. This allows for the consideration of effective measures to address the concern. The start of a repair and maintenance center in a central location in the region may allow for the review of the challenge as an ideal source of a business idea.

Thesis Objective

• The general objective of this research is to determine the feasibility of setting up a repair center in Iran.

Specific Objectives

1. To study the feasibility of setting up a repair center in Iran
2. To identify the most appropriate marketing strategies needed to market the repair center in Iran
3. To investigate whether there is available skilled labor in Iran
4. To identify the existing competitors in the industry and analyze their strengths and weaknesses in the industry

Main research questions:

• Is it possible to set up a repair center in Iran and run it successfully amidst the existing competition in the industry in the country?
• What are the possible challenges that the business is likely to face as it establishes its base in Iran?

Specific research questions:

1. Are skilled laborers in Iran to provide the services at the maintenance and repair center?
2. Where should the maintenance and repair center be set up in Iran?
3. What is the most effective marketing strategy that the repair center management can employ to achieve its goals and objectives?
4. Who are the main competitors who are likely to challenge ITECS and what are their strengths and weaknesses.

Research Goal

This research study is intended to determine the practicability of establishing a repair and maintenance center in Iran. The ever increasing penetration of the telecommunication services in Middle East implies that introducing a repair and maintenance center in Iran can form a potential business venture. Therefore, this research is limited to the study of the feasibility of establishing a repair and maintenance center in Iran.

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