Strategic Report
Transforming Risks into Opportunities
Our Company has grown significantly over the past few years and we believe it’s critical to have an in-depth understanding of the risks we face. Identification of risks helps to strategize and modify our systems and processes.
In the table provided below, we unpack the risks we face and discuss how these were mitigated or transformed into opportunities.
| The risks we face | The aspects it covers | How we responded/ transformed them into opportunities |
| Increased competitiveness within the market | Increasing footprint of international players and local players continuously striving to gain market share, additionally the increased number of start-ups in the Saudi Arabian IT market will make the market more fragmented. |
solutions by stc is continuously focusing on building and enhancing its digital and IT offering with entry into new business lines and expanding its portfolio to cover customer needs across the IT value chain.
In addition, the Company is continuously expanding its partnership ecosystem to bring complementary offerings to the market. solutions by stc has embarked on bundling/cross-selling initiatives to improve customer stickiness and protect itself from competitive threats. |
| Technology partner relationship risks | solutions by stc partners with global technology vendors and integrates them into the Organization’s IT offerings to customers. solutions by stc’s ability to work with different partners and provide attractive pricing is valued by customers. Losing access to partner products or squeezing margins on partner products could impact business. | solutions by stc maintains an approach to simultaneously work with multiple partners to expand its portfolio and have less dependency on a single partner, effectively mitigating the risk of losing access to its partners’ offerings. Additionally, with the value it creates for partners, the Company has nurtured stronger partnerships and lasting relationships with vendors. |
| Changes to data localization, data protection and other regulations | Data localization requirements and data protection regulations impact the ability of international cloud/analytics providers to serve the KSA clients. solutions by stc and local cloud service providers obtain a competitive edge by having local data centers and are able to command better market positions and margins. Any relaxation to localization regulations could impact solutions by stc, due to international players competing for business. | The Company actively monitors regulations, and plans to participate in public consultations to discuss the regulations, and ensure its products adhere to them. solutions by stc is continuously strengthening its offerings and client relationships by partnering with international providers to sustain its leadership position in the market. |
