Monopoly to Competition: The Case of the UAE’s Etisalat

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CASE STUDY. The telecommunications sector in the UAE has seen major changes since 2006, with the entry of a second operator, du, putting an end to the monopoly of Etisalat.

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Summary

The telecommunications sector in the UAE has seen major changes since 2006, with the entry of a second operator, du, putting an end to the monopoly of Etisalat. The arrival of du brought widespread fear that competition would lead to lower market share and profitability for Etisalat. On the contrary, however, Etisalat has managed to increase its overall market share by venturing into different markets. Moreover, Etisalat has diversified into various related areas within the UAE and across different countries, a strategy that has paid rich dividends to the company. The case discusses important concepts such as the benefits of diversification, restructuring and competition in an industry. This case is suitable for postgraduate students of economics and strategic management. It highlights how Etisalat, a monopoly player in the telecommunications sector, deals with competition from a new player.

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Teaching notes are available for teachers only. Contact HEC’s Case Centre for more information.

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