Annual Report for 2024 NEXT GENERATION NETWORK FOR YOUR PRESENT

Assessment of Company Development Prospects (SWOT Analysis)

GRI 2-6

The SWOT analysis is a versatile strategic planning tool that provides a visual overview of the Company’s development prospects. It identifies both internal and external factors that influence the organization, categorizing them into four groups: Strengths, Weaknesses, Opportunities, and Threats.

SWOT Analysis of Kcell JSC’s Development Prospects

Internal Factors

Strengths
S
Strengths
  • Kcell is among the top-tier telecom providers in Kazakhstan
  • Holder of a 5G license and an active developer of next-generation 5G networks in Kazakhstan
  • Customer-centric retail: Kcell stores are designed in sync with digital platforms, enhancing overall user engagement
  • Advanced use of technology and innovation ensures high reliability and quality of services
  • Strong development of digital solutions, including data centers, cloud technologies, IoT, and Big Data
  • Implementation of best practices in corporate governance, with well-established operational and business processes
  • Long-standing industry experience contributing to a strong and positive market reputation
  • Highly qualified workforce
  • Flexible HR policies with competitive compensation
  • Strong culture of corporate ethics, with regular employee training
  • Robust internal control and audit systems
  • Comprehensive anti-corruption framework with internal regulations, regular risk monitoring, and analysis
  • Anonymous whistleblowing hotline for reporting violations of the Code of Conduct, including corruption, discrimination, unethical behavior, and other misconduct
Weaknesses
W
Weaknesses
  • Rapid technological advances in the telecom sector require significant investment in equipment and software upgrades
  • Bureaucratic procedures remain complex and time-consuming
  • Regulatory constraints limit tariff flexibility and may negatively impact profitability
  • nability to eliminate all potential risks despite mitigation efforts

External Factors

Opportunities
O
Opportunities
  • Greater flexibility in tariff development and pricing strategies
  • Diversification of services offered to customers
  • Continued improvement and standardisation of operational processes
  • Strengthening customer relationships through effective communication and engagement
  • Adoption of technological innovations, automation, and artificial intelligence
Threats
T
Threats
  • Decline in demand for traditional voice services due to the growing use of internet-based messaging apps and social networks
  • Customer migration away from prepaid plans
  • Adverse impact of legislative changes on pricing and tariff policy
  • Breach of contractual obligations by unreliable suppliers or contractors
  • Shifts in political or economic conditions
  • Growing technological and cybersecurity threats