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Mission, Vision and Objectives

Strategy is a plan or action which is designed to attain long- term aim (Porter, 1996). Telecommunication sector is increasing with the increase in the technology. Telecommunication sectors play an important role in connecting the people. Digi Telecommunication Sdn Bhd, one of the Malaysia’s popular telecommunication companies. The company provides large variety and packages to their customers. This company is the growing company in the Malaysia markets (Digi, 2017). The company mainly provides mobile services and wireless telecommunication networks to their customers. This company was started by Telenor ASA who was from Norway, DiGi was the first telecommunication company in Malaysia who launched and operated a digital cellular network. Further the report talks about the strategic plan of the company, this includes Pestle analysis, porter’s five forces, value chain etc.

Vision

The vision of the company is to be the No. 1 mobile internet provider for the market. Desire of the company is to inspire internet content which is engaging and infectious (Digi, 2017).

Mission

The company provides mobile connectivity and wireless services to approx... 12.3 million Malaysians. The mission of the company is to become Malaysia’s preferred digital partner that provides personalized and attractive digital services. Company offers customers the right combination of prices with the product that bring best experience for the customers.

Smart objectives

Specific: - Company wants to be the Malaysia leading company that provides mobile connectivity.

Measurable: - Revenue of the company or sales of the company helps company to measure the no. of subscribers (Zahorsky 2017). Finding the increase in the subscribers company can come more closure to the goal (being a leading company).

Attainable: - The goal that company has set for to be the leading company is achievable for the company. The performance of the company is good so the company can achieve the goal.

The goal should be passed on the considering the current condition and situation of the company. So Digi telecommunication has taken a right decision related to the goal.

Time-based: - Time needs to be specific, time period of completing the goal. DiGi Company should make the goals considering the time.

In Malaysia most of the businesses are either controlled by the government or they have equity shares in businesses (Baines, Fill & Page 2013). Malaysian government banned the practice of cell phone by kids. This creates an impact on the working of the Digi telecommunication. The sales of the cell phone and wireless telecommunication decreased.

Pestle Analysis

At the time of the recession and downturn in the economic, telecommunication companies started providing attractive packages even the competitors of the Digi telecommunication Maxis and Celcom. Digi have good market share that is the reason company is provide attractive packages in the worst economic situation.

 In Malaysia there are many foreign workers who want to stay connected with their family and loved ones. Taking the advantage of this digi telecommunication provides attractive packages to them so that they can grab the whole market of the foreign workers. Even foreign workers want to get connected with their loved ones but by paying fewer amounts.

Advance technology helps the telecommunication companies to expand their business. Telecommunication created SMS, MMS, GRPS, 3G and 4G services with the help of technology. Digi telecommunication uses technology to provide innovative products to the customers.

Telecommunication companies can face problem with the change in the policies of the company. Malaysian government can bring a change in the policies and plan which can affect the working of the company digi. Importing and exporting business also get affected with the amendment of the changes in the policy.

In the telecommunication company, company tries to hire employees who have good knowledge of technology. For bringing change in the products company need to use technology. But workers who are not aware about the technology digi company will not be able to hire them.

Bargaining power of buyers is very high in telecommunication industry. Large no. of people needs the telecommunication services. Customers who buy the product and services from Digi telecommunication can switch to other company (matrix) if they find better availability of the packages and safety with the services.

The bargaining power of suppliers is another element which says that the suppliers from whom company buy the product (Xu & Quaddus, 2013). Digi telecommunication consists of few suppliers and if digi switch from one supplier to another the cost of switching is quite high.

In the market there is increase in the competition which can make the customer to switch to the other. If maxis launches new product with the new packages in the market, customer will buy use maxis services which affect the revenue and sales of the digi. In this case company needs to provide an innovative service that helps in attracting customers.

In the business of telecommunication there is need of huge amount to open a new business considering the government policy and regulations. The new private companies need to face the competition and they have to provide quality services to the customers. Over here, Digi telecommunication has medium level of threats because customer can easily switch.

Porter’s Five Forces

Digi faces a huge rivalry with the company maxis, because there is hardly any difference in the services provided by both the companies. To face the rival company, Digi Company has to bring a change in the packages. The company needs to follow different strategies to maintain customer loyalty towards the brand.

Sim cards packets and reload coupons (used for recharge) need to be distributed to the dealers. This logistics also include producing and keeping DiFi mobile numbers. The generation of the serial number is a complex program which is done by the intelligent system.

The operations of the DiGi Company include the production and the procurement of the product and services. The main operations of the company is to creation of the DiGi mobile with the use of the technology, innovation and the participations of the prepaid and the postpaid services. Proper billing of the product, distribution of the sim cards and reload coupons is necessary this helps the company in identifying the actual profit earned by the company.

The distribution of the products and services to the dealers and the distributions is the major component of the outbound logistics, to make the services easy available and accessible to the customer of the DiGi telecom.

To identify and analysis the needs and requirement of the customers is essential work of marketing and sales; which ultimately help the company to increase the number of the customers and result in the increase in the sales of the company.  

Selling the product or make it available to the customer is not the only aim of the company. DiGi Company believes in the good customer services and customer delight. This activity include the after sales services include 24-hours call center and Digi service centers.

With the change in the demand and requirement of the customer there will be change in the working of the company. The organizational structure includes tower base stations which is the part of the infrastructure of the DiGi Company.

Employees play an important role in the working of the company (SZ & SAHb, 2010). This activity includes hiring, selection, recruitment of the talented candidates. Digi needs to provide training and development activities to the employees.

Technology development is essential for the DiGi mobile services. As the company provide innovative products to the customers into the market for which company needs technology.

The procurement of the resources is important for producing products and services (Barney, 1991). DiGi Company procures raw material, resources and technology which help the company do work in the systematic way.

Value

If the activity taking place adds worth to firm and customers.

Rareness

This part says that the same activity is acquired by any other company.

Imitable

If any other company imitate the activity that need to be carried out.

Organization

This part if the firm is well organized and ready to use the resources or capabilities.  

Value chain analysis

Is it valuable?

Is it rare?

Difficult to imitate?

Is the organization capable?

Competitive consequences

Inbound Logistics

Yes

No

No

Yes

Temporary

Operations

Yes

Yes

Yes

Yes

Sustainable

Outbound logistics

Yes

No

Yes

Yes

Temporary

Marketing and sales

Yes

No

No

No

Competitive

Services

Yes

Yes

No

Yes

Sustainable

Procurement

Yes

No

No

Yes

Temporary

Technology development

Yes

Yes

Yes

Yes

Sustainable

Human resource management

Yes

No

No

No

Competitive

Infrastructure

Yes

Yes

Yes

Yes

Sustainable

The VRIO model shows the value, rare imitate and organization framework on the basis of the porter fiver forces. The implementation is clearly shows the Sustainable competitive advantage. 

The company should make maxis as a benchmark considering the margin of the maxis is quite higher than the digi telecommunication. The company has the capabilities to achieve the benchmark with the use of proper resources.

TOWS analysis is similar to the SWOT analysis, but in TOWS analysis threats & opportunity are going to be analyses first then the strength and weakness of the DiGi telecommunication. The analysis of the threat and opportunity is based on the strengths and weakness of the company.

Traditional SWOT analysis

Strength

• DiGi company strength is innovation; by providing innovative products company is able to fulfill the demand of the customers.

• Company provides rewards or bonus to the subscribers of the DiGi. These include extra bonus credit on the birthday of the user.

• Company performance is increasing that is the reason why investors want to invest in the company.

Weakness

• Dependency is increasing in DiGi telecommunication, the company is depended on the product development team.

• The involvement of the ambassador of the company matter a lot for the company. DiGi ambassador have lack of involvement in promoting product and services.

Opportunity

• With the increase in the demand of the product there is rise in the telecommunication field. DiGi can easily think for the expansion of the business considering the demand of the telecommunication facilities. Company can offer attractive packages to the customer this is an opportunity to compete with the customers.

• In Malaysia, with the increase in the living standard of the people there is the increase in the use of the best the telecommunication facility provider.

Threat

• Technology advancement is one of the big threats for the company, with the change in the technology customer start demanding new products with the new technology (Taghizadeh, et. al., 2014). For fulfilling the demand company needs to overcome from the dependency.

• Bargaining power of the customers is increasing day by day; in malyaisa DiGi Company have threats from the rival companies Maxis, Celcom, Telekom. The subscriber of the DiGi Company easily shifts from DiGi to other companies if they find attractive packages.

TOWS Matrix

Internal/external

Strength (S)

Weakness (W)

Opportunity (O)

S-O

Facilities provided to customers are outstanding, company need to work on the after sales services which helps the company to increase the subscribers. This brings an additional opportunity for the company.

W-O

Company is having huge dependency this might create a huge threat in the near future for the company. So company should make strategies to reduce the dependency. This weakness can reduce the future opportunity of the companies.

Threat (T)

S-T

Company may find competition with the competitors such as Maxis, Celcom, and Telekom. These rivals can be threat for the company’s reason being these companies are also providing same services like Digi telecommunication. By bringing diversification company can reduce the threat.

W-T

Company weakness can be a threat for the company. The ambassador of the company should promote the product and services that company is offering, rival companies ambassador promote their company which may influence the customers. This may hamper the sales of the DiGi company.

In the year 2010, DiGi has invested huge amount on the advertisement just to promote the product that the company provide. The image of the DiGi telecommunication shows the amount spends on the advertisement.

Market development includes the introduction of the new products and services in the market (Balde, 2016). The company brings change in the product development considering two markets (two markets include new foreign workers or potential and rural communities). Hence, company brings change in the products development considering the two markets.

Product development is essential for the company to increase profit and sales of the company by making the changes in the product and services for the existing and the new markets. Joint venture with companies like Apple helped the DiGi to provide latest technology in the mobile phones. That may attract more and more customers.

Diversification helps the company in managing the risk of the company. DiGi Company needs to bring something new to reduce the weakness of the company and to prevent the company from the upcoming threats. This helps the company to decrease the risk by decreasing the probable harms to the company.

The companies usually don’t choose this strategy to compete in the market (Collis & Rukstad, 2008). Digi should not choose this competitive strategy currently; as this strategy is chosen by those companies whose product lacks differentiated value.

To face the competitors company needs to provide low price packages to the customers at the economic recession in Malaysia. DiGi telecommunication provide normal package to the customers at the time of the recession which help the company to attract more and more buyers towards it. Example- Company believes in offering quality services with normal prices and this is only mission of the company. Low price proposed strategy is linked with the mission and objectives of the company.

Company prefer hybrid competition strategy when provide products and services to the customers at the low prices (Peters, 2015). DiGi telecommunication is adapting this strategy by providing attractive packages to the customers. Company also provide bonus on the occasion which is not provided by their competitors which make this company different. Example- Freedom to Internet daily with Malaysia’s best Prepaid Internet packs! Is the slogan followed by company, and company provides attractive postpaid, prepaid packages.

In this strategy, company offers different products to the customers at normal prices. The company should have high perceived value than its competitors. DiGi is one of the well-known brands in Malaysia; Company is continuously trying to bring innovative products with the use of the latest technology. By offering different products customer can fulfill the vision of becoming No. 1 Company.

In this kind of strategy company provides high perceived value products but on high prices (Oladipupo, 2012). Though the product value doesn’t matter than the perceive value. The brand value matters to the customers and this strategy is followed by the big brand companies. This strategy DiGi can follow but only for particular segment peoples.

With the implementation of the strategy companies sets high prices without contributing anything. With the increase in the prices of the product company can easily earn high profit but later there is a possibility of switching of customers from one company to other (Yan, n.d.). DiGi telecommunication should not follow this competitive strategy as this can be harmful for the company.

Monopolist Company doesn’t have to be worried about accumulation value in the product and services. As if customer wants to buy the product from that company then the customer will pay for it. DiGi telecommunication cannot face monopolistic as there is availability of many other companies in competition.

Many companies’ peruses this kind of marketing strategy in which company has a low value for the products and services company sell. DiGi telecommunication quote prices at a time and them sell in the market. If there is change in the situation them company can bring a change in the prices. So company has to sell the product at its own prices.

Yes, the given proposed strategies are linked with the initial mission, vision, objective of the company. The bowman strategy clock shows that the strategy which company follows and as per the value chain framework of the company there is no need to bring changes in the strategy which company is following.

With the implementation of this strategy the company can reduce the cost of the delivering product and services (Mintzberg & Waters, 1985). Producing product on the large scale can provide company a cost benefit of production. DiGi should provide the products on the average or on low cost which increase the sale of the company and helps the company to maximize the profit.

In this strategy the industry need to focus on the target market to which they want to offer the products and services (Rahim, n.d.). DiGi telecommunication provides products in the Malaysia market and considering the foreign workers and the target customer the company keep an average or low price for the subscribers.

In this strategy company focus on the other segments which is not included in the cost focus. In this segment the buyers having casual needs are included. Apart from the cost focus digi company need to focus on the other buyers as well.

The company needs to bring a change in their product which makes their product different or unique from other products to attract the customer (Wirtz, Nitzsche & Mory 2014.). Facing the competition DiGi telecommunication always tries innovative ways to bring a change in their product and services. This makes their product unique and attractive for the buyers.

The strategy made by the company considering the economy of the Malaysia is quite good. DiGi Company offer competitive prices and considering the requirement and needs of the customer company bring change in the prices as well. The low packages made by the company for foreign workers.

DiGi Company maintains a good relationship with the stakeholders (including employees, shareholders). Company want to be the leading company for that company need to be maintain a good working environment in the office and with the employees.

Feasibility includes all the resources that are required by the company for fulfilling the strategy, that resources include funding, time, etc. Digi Company always maintains resources so that it will be easier for the company to achieve the strategy.

Conclusion

The report shows the analysis on the digi telecommunication strategies include the external and internal factors. The company should follow different strategies to maintain the smooth working in the organization. Digi telecommunication is the leading telecommunication company in Malaysia. The competition with the other rival companies is increasing day by day. As company has decided to make a benchmark to reach above the maxis popularity and increase the revenue of the company. For that company need to bring more attractive products and services which helps the company to increase the sales and the goodwill in front of the Malaysia people.

References

Ahmed, G., 2014, Bowman’s Strategy Clock Model & its eight Competitive Directions for Edge, viewed on 7th July 2017, https://www.studylecturenotes.com/management/bowmans-strategy-clock-model-its-eight-competitive-directions-for-edge

Baines, P., Fill, C. & Page, K., 2013. Essentials of marketing. Oxford University Press.

Balde, B.I.S., 2016, Project of Penetration strategy for Chosen Company in Senegalese market.

Barney, J. B., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1), pp. 99-120.

Chong, L.C, 2015, DIGI – Fundamental Analysis, viewed on 7th July 2017, https://lcchong.wordpress.com/2015/07/21/digi-fundamental-analysis-21-jul-2015/

Collis, D. J. & Rukstad, M. G., 2008. Can you say what your strategy is? Harvard Business Review, 86(4), pp. 63-73.

Digi, 2017, About Us, viewed on 7th July 2017, https://www.digi.com.my/aboutus/corporate_overview/information.html

Digi, 2017, Mission, vision, values, viewed on 7th July 2017, https://www.digi.com.my/sustainability/page-vision.html

IfM, 2017, Porter's Generic Competitive Strategies (ways of competing), viewed on 7th July 2017, https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-strategies/

Mintzberg, H. & Waters, J. A., 1985. Of strategies: deliberate and emergent. Strategic Management Journal, 6(3), pp. 257-272.

Oladipupo, G.A., 2012. Telecommunication Market and Business Opportunities.

Peters, J.D., 2015. The marvelous clouds: Toward a philosophy of elemental media. University of Chicago Press.

Porter, M. E., 1996. What is strategy? Harvard Business Review, 74(6), pp. 61-78.

Rahim, S.A., n.d. SUPPLIER SELECTION IN THE MALAYSIAN TELECOMMUNICATIONS INDUSTRY.

SZ, A. & SAHb, B.M.,2010, The Relationship between Sales Skills and Salesperson Performance, and the Impact of Organizational Commitment as a Moderator: An Empirical Study in a Malaysian Telecommunications Company.

Taghizadeh, S.K., Jayaraman, K., Rahman, S.A. & Malkifar, S., 2014. A glance on service innovation scenario: case of leading telecommunication companies in Malaysia. Int J Bus Innov, 1(5), pp.4-22.

Wirtz, B.W., Nitzsche, P. & Mory, L., 2014. 14 Cross-Media Marketing Strategies. Policy and marketing strategies for digital media, 19, p.218.

Xu, J. & Quaddus, M., 2013. Managing information systems: Ten essential topics. Springer Science & Business Media.

Yan, K.S. n.d., Firm Risk And Performance: The Role Of Corporate Governance Of Digi Telecommunication Berhad.

Zahorsky, D., 2017, 5 Elements of a SMART Business Goal, viewed on 7th July 2017, https://www.thebalance.com/elements-of-a-smart-business-goal-2951530

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