International Journal of Information Technology and Business Management
29
th
August 2013. Vol.16 No.1
© 2012 -2013 JITBM & ARF. All rights reserved
ISSN 2304-0777 www.jitbm.com
83
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
(SWOT) ANALYSIS ON GLOBACOM LTD
Nura Abubakar
a
& Garba Bala Bello, PhD.
b
a
Department of Business Administration,School of Management, Kano State Polytechnic, Nigeria
b
Department of Business Administration and Entrepreneurship,Bayero University, Kano, Nigeria
a
nuraab1@gmail.com,
b
bello_garbabala@yahoo.com
ABSTRACT
This paper is on applying SWOT analysis in the Nigerian Mobile Telecommunication Industry, which is one of
the most competitive industries/markets in the world, using Globacom Limited as a case study, with a view to
determining its competitive advantage. This study therefore presents a SWOT analysis from an independent
observer’s view on a private organization in a very competitive industry. The data used for the analysis are
secondary data. The data were collected from magazines, newspapers and the websites of the organization
under study (Globacom), independent media organizations and the industry regulator - the Nigerian
Communications Commission (NCC). In the analysis, some key factors were selected and the strengths,
weakness, opportunities and threats of Globacom in relation to its competitors and environment were analysed.
Among the findings are that Globacom is the second in terms of market share (Subscriber base). Also, having
the most advanced network (technology), fast, robust and cheap excess bandwidth from Glo-1, being the
financially strongest and most innovative telecom operator in Nigeria constitute its competitive advantage.
Thus, some of the recommendations are that the company should continue with its network expansion towards
achieving its vision of becoming the biggest and best network in Africa and that it should try to consolidate and
further its success through continuous network upgrading, being innovative and always keeping abreast of
relevant local and international developments.
Keyword: SWOT Analysis, network expansion, Mobile telecommunication industry
INTRODUCTION
Business environment is known to be very complex
and full of challenges. This is true especially when
we consider the current or today’s business
environment which is characterized by rapid
changes in processes, laws, technology, prices,
consumer taste and so on.
Therefore, for any business to succeed, it must
clearly and correctly understand its position in the
industry within which it operates as well as in the
business world generally. The organization should
consider its relative power and influence vis-a-vis
its competitors and other external factors like
economic, technological, political and social
influences. According to Cole (2006:28)
6
,
“understanding this external environment, or
background, is crucial to strategic decision-makers,
and has to be taken into account alongside any
assessment of an orgnisation’s own internal
environment”. An organization has to consider its
internal resources like financial resources, available
facilities, staff strength and their skills, technology
employed and so on. Cole (2006:36)
6
observes that
“an important element in assessing an
organization’s overall situation is the identification
of the strengths and weaknesses in its internal
environment... These include organizational,
cultural, financial, research and development,
production, marketing and resourcing
perspectives”.