Thesis: Research on Saudi Telecom Company

Sample Thesis Paper

Rationale for the Research

STC has a subscriber base of more than 22.5 million mobile and landline subscribers in the Middle East. The Saudi government owns 80% shares of STC and 20% is free stocks owned by investors. The net profit of STC in 2010 was 1.5 billion GBP. The firm has operated in a monopolistic market until recently and has huge revenues. The firm has plans to expand into international markets and it has formed strategic partnership with telecommunication firms in Indonesia, Malaysia, Turkey, Kuwait, Bahrain South Africa and India. Among all these nations, football is popular only in South Africa, Kuwait and Bahrain. Manchester United has a huge popularity among fans in UK, Europe and some other nations. Therefore, the rationale as to why STC agreed to become one of the sponsors for MU needs some clarification.
According to Hassan (2008), football is the first national sport in Saudi Arabia and people there love football. It is also becoming popular in the Middle East and the 2022 FIFA football World Cup would be hosted by Qatar, a country from the Middle East. STC is sponsoring three local football teams in Saudi Arabia, which are Alnassr – Ettihad – Alahli. Man United is a popular team in the UK and it is one of the popular teams in Saud Arabia after Barcelona and Real Madrid. VIVA Bahrain and Kuwait has the same identity of STC. VIVA Bahrain shares the rights of Manchester United. By sponsoring MU, STC will be allowed to have a presence in the MU stadium and advertise the STC logo. In addition, 50 fans from Saudi Arabia will be sent annually to the MU club to enjoy the dreams journey.  STC has the right to choose any three of Man United players to promote STC services and products. MU will have access to lucrative games in Saudi Arabia and the club can sell its merchandise and play there. Therefore, this would possibly create a win-win situation.
There is also the proposal that by associating itself with a leading brand, STC’s efforts at international expansion will be much smoother. This concept and theory will be investigated by the research. On the other side, sponsoring UK club teams that play in UK and Europe seems far-fetched. The perceived benefits will be investigated by obtaining the views of marketing people and officials at STC and MU and other people that are aware or unaware of the sponsorship. This is a very important question and it would have an impact on all future sponsorship programs that firms in the Middle East may take up.

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