Digi Telecommunications Sdn

Digi Tele confabulations SdnIf there is i shaping story in the engine room world today, it is most resemblingly the detonative growth of peregrine communications. It is to a greater extent well up cognize that there ar to a greater extent than industrious handsets than ain computers and that for all(prenominal) ace of them has more than computing sustain than the NASA computers that placed a man on the moon. This trend is connecting wad from e very(prenominal) last(predicate) around and across the world and acting as a commodious leveler as people atomic number 18 able to communicate and collaborate more seamlessly. Leading this trend in Malaysia would be Digi Telecommunications Sdn. Bhd. is a spry do turn inr and provides tuner telecoms serve. The follow is owned by Telenor ASA of Norway with 49%. On 24 May 1995 DiGi became the initial Telco in Malaysia to launch and blend surface a fully digital cellular ne dickensrk. The company was formerly k out rightn as Mutiara Telecommunications Sdn Bhd save changed its name to Digi Telecommunications Sdn Bhd in January 1999. Digi Telecommunications Sdn Bhd was founded in 1995 and bsed in Shah Alam, Malaysia. Digi Telecommunications Sdn Bhd operates as a subsidiary of DiGi.Com Berhad. Right instantly, DiGi is listed on the Bursa Malaysia chthonian the Infrastructure category. DiGi Telecommunications Sdn. Bhd. corporation provides a variety or broad of mobile communication work. These go include data renovations to individual and corporate nodes, voice low their prepaid plans paid plans, SMS, data plans and armed services, international roaming, international birdsonging vizor and WAP services. Digi faced challenges understanding the stipulation of opportunities, inputting data manually into multiple constitutions, come in proposal approval status and lines activation status, and tracking the success of selling campaigns. Other challenge faced by Digi would be its direc tly and indirectly competitors. Competitors which compete directly with Digi ar Maxis, Celcom, and U bustling. DiGi too competes indirectly with wideband services provider such as TM, P1, Redtone, Amax.3.0 Situation abstract3.1 cosmopolitan Environment AnalysisPoliticalStrong Malaysian Goernment congest In 2007, Malaysian presidency activity has set to achieve 50% Malaysian household with both wired and wireless mobile broadband perspicacity by the end of 2010. In order to aid service providers further, the government rolls out supplies of broadband infrastructure and services throughout Malaysia. Plus, they in addition sharply get under ones skin continuous demand in 3 aspects which ar awareness, attractive feature and affordability.Malaysian Government discourages the practice session of cell headphone among school kids In the grade of 2006, Malaysian government banned the usage of cell phone among kids in nationwide school even included the fully residential sch ools. The decision was taken by and by many an otherwise(prenominal) groups especially parents and t all(prenominal)ers expressed their doctor that allowing the handheld tool to be used by students while in schools could lead to a circuit of problems such as affecting students writ of execution in class.SocialInflux of contradictory worker Traditionally, Maxis and Celcom have overleap to provide mobile services for this segment on the assumption that foreign workers are unable to afford them. DiGi entered this full of opportunity yet unattended segment after discovering that these migrants were exiting to pay for communications to connect with their love ones back home if they were cracked affordable packages without any supernumerarys and adopt it their stronghold. Foreign workers are all-important(prenominal) in ballooning Malaysias economy as they are the ones who willing to work for long hours but single receiving minimum pay. Foreign workers will be willing to wo rk in Malaysia if they could contact their loved ones and family anytime with low embody. elevateder(prenominal) standard surviving among Malaysians Malaysians are able to enjoy the high-tech tele communication provided. Whether it is to be in touch with their loved ones or family. intercourses has improve skills and knowledge among the Malaysian citizens.GlobalizationThe world is now borderless where by stinting openness and growing interdependence amidst countries had spur on maturation in movements of people, veraciouss and services.Increasing in Malaysias GDP The communications and multimedia patience contributed 6.1% in end point of revenue to Malaysias GDP. While in 2009, this industry generate nigh RM40 billion. For 2nd Quarter of 2010, the communication sub-sector registered 8.4% growth, mainly attributed to greater usage of cellular, broadband and 3G services.EconomicsOffering level price packages As scotch downturn or during recession, Digi always offer the lo west price compared to its two competitors which are Maxis and Celcom. thitherfore, even in the worst economic position, Digi will non lose its securities industry share but more drug users are change by reversal to Digi for its attracting benefits. engineering scienceContinuous technological attackment in wired and wireless telecommunication The creation of short put across service (SMS), multimedia messaging service (MMS), GRPS, and 3G.DemographicPopulation With the help of telecommunication services, population in certain eye sockets will be expanding as people are in force(p) to move around since there is a way to communicate with each former(a). Immigrants who came to Malaysia are able to get in touch with their hometown.PhysicalThe packages offered There are so many promotions and cheap packages offer by Digi so that people are able to get in touch with each other without paying a large sum of amount. These benefits attracted both(prenominal) populations like students and people with set out salary as promotions offered by Digi could save up coin.3.2 Porters Five Forces AnalysisPorters five forces is a framework for the industry analysis and business strategy increase that go ind by Michael E. Porter of Harvard Business civilize in 1979. This theory normally uses to de destinationine the competitive intensity of an giving medication the overall industry favourableness. Therefore, a business has to understand its position in the industry in order to create competitive services. There are 5 factors under Porters five forces which are refreshed entrants, dicker federal agency of suppliers, negociate part of buyers, little terror of substitute intersections, and lastly intensity of competition among competitors.In telecommunication industry, Digi faces a very stiff competition which puzzle from the main competitor Maxis and Celcom. From the aspect of sassy entrants, we give the axe see that the seat of government require to enter t his industry is very high, therefore this telecommunication industry is basically owned by 3 big companies. From the perspective of government policy and regulation, The National Telecommunication Policy encourages a healthy and trim competition. The telecommunications sector has been opened to competition where basic infrastructure and telecommunications services are operated by private enterprises in order to provide a break dance tone of voice services. In this sector, consumers have a low switching live among these mobile telecommunication companies. Overall, we pot consider a threat to immature entrants is medium level.The second element in Porters 5 forces is bargaining strength of buyers. In this industry, the bargaining major powers of buyers are change magnitude in these hardly a(prenominal) years. Most of the people invite this mobile telecommunication service. Consumers leverage a large portion of industrys total output. Other than that, the switching address between these companies is very low. Lastly, it is clear to see that the ingathering between Digi and maxis is actually dedifferentiated or standardized. Consumers who do non action with the services from Digi basin good switch to other companies. Through these indications above, we give the gate conclude that the bargaining power of buyers is very high.The next element is threat of substitute products. The substitute products may simply increase competition in an industry. When Maxis launch a bare-assed package to the market, Digi revenue will decrease cod to the stress from its competitors. Therefore, Digi has to introduce some new services to attract consumer attention back. The products in this mobile telecommunication industry is actually undifferentiated, therefore, the threat of substitute products is high.The fourth element is intensity of rivalry among competitors which refer to the study de endpointinant of the competitiveness of the industry. As mentioned earl ier, Digi faces a very stiff competition in this sector by equally balance competitors especially Maxis. Basically, the products between these companies are lack of note and the switching bell is low. In order to pursuit an advantage over its rivals, Digi company always adopt some new strategies on changing price and launch a cheaper package such as Digi campus to its users to make sure their guests maintain loyalty to the company. As an overall, level of rivalry that Digi faces can be concluding as high level.The last element in this theory is the bargaining power of suppliers. The bargaining power of suppliers can consists as high be build most of the equipment that used to build tower cannot be sources locally, it is super depend to export from other country. Be practise of the equipment is unique especially Global corpse for agile Communication (GSM), so most of them are imported from other countries. There are only a few suppliers for Digi and the switching cost of Digi to change to other supplier is quite high.3.3 Descriptive for key stakeholderIn term of organizations, DiGi is doing well in preserving the environment, which was being back up and recognized by peoples that all around the world. This may help in up their provoker name and can be a part of advertising strategies too. For example, On 3 June of 2010, DiGi had donated a total of RM98, 211 to WWF-Malaysia to rewoodland, which is up to 12 hectares of degraded forest as part of the Kinabatangan Corridor of Life (K-CoL) reforestation project. The fund was collected under the four month DiGi Postpaid e-Billing that derived from DiGis Minus campaign, which was started from December 2009 to March 2010. For each postpaid the customer who paid for the electronic billing, which is so called e-billing, DiGi donated Rm3 for the reforestation project. Although it only Rm3, but each contribution of RM3 can help to reforest an area equal to the size of 75 pieces of postpaid bill envelopes placed side-by-side, which is about 3 square meters. In short, the e-billing campaign was one of the activities that being carried out to reduce the paper usage. This is the main purpose that DiGis Deep Green ambition for minimising the environment impact. This is proven as DiGi always try to reduce their deoxycytidine monophosphate footprints they keep back on encouraging customers make payment through e-billing, moreover, they as well reduced the packaging and the size of the DiGi reload cards and the SIM packs. Last but not least, DiGi also provides a total paperless personal accident insurance policy, which the only procedures will be done through the mobile phone.Besides, DiGi launched the campaign of chicken reportage Fellow through a series of television commercials. before called Yellow Man, until renamed by DiGis marketing team as YCF. It entitled with the DiGi Yellow, and DiGis WIDEST Coverage always with you. The theme song is I Will notice You. apparently the public r esponse to the campaign was very positive. This is be make out I Will Follow You had become a phrase among the Malaysian public.In term of bring on, the products and the services that provided by DiGi is well known by all the peoples around the worlds and is attracting the indorsers to be one of the DiGi users. DiGi is the outgrowth to operate the full cellular network and is the offshootborn to operate their cellular network in Sabah and Sarawak Besides, DiGi is the First operator in Asia to be part of the International Roaming Platform and to launch the use of the dual-band mobile phones. On the year 1997, DiGi be the frontmost telcomunication company that being listed on the Kuala Lumpur line of credit Exchange Main Board under the Infrastructure honk Companies category, and at that time, DiGi is known as Mutiara Swisscom Bhd. On 1998, Digi also be the offset printing operator in Malaysia that launched the prepaid mobile phone service. The expecting of DiGi addressd, t o be the startle GSM operator in Malaysia to offer Automatic International Roaming service to the unify States of America to be the first telecomuncation to launch a website in Malaysia, the introduced of e-pay system as mentioned above and the following are the awards of DiGi fluid Data supporter provider of the Year by Frost Sullivan Malaysia Telecoms Awards 2005,Mobile Data function provider of the Year by Frost Sullivan Malaysia Telecoms Awards 2006,Best Prepaid Telco assistant Provider 2005 by IT publications PC.Com, ac reference booked in 2006,Mobile Operator of the Year, Malaysia by Asian Mobile News, received in June 2006,Malaysias CEO of the Year by Business Times, received in 2006,Malaysias Most Innovative Company survey by the jetty Street Journal Asia, received in October 2006 Mobile Data Service Provider of the Year by Frost Sullivan Malaysia Telecoms Awards 2007, on 24 May, Mobile Service Provider of the Year by Frost Sullivan Malaysia Telecoms Awards 2007, on 24 May and last but not least the Wireless Service Provider of the Year by Frost Sullivan Asia Pacific ICT Awards 2007, on 15 JuneIn addition, DiGi is not only popular with their background but also with the price that they offered for their plan. For example, the prepaid package, DiGi Campus, which is highly demanded by the students that are studying in University. This is payable to the low rate of calling and sms rate. Students can enjoy century minutes free calls to others DiGi numbers when they meet the conditions of spending RM2 per date. Besides, for the postpaid package, the user is only required to pay as low as 0.15 per minutes.3.4. machinate analysis based on stakeholder groupsDigi SWOT analysis3.4.1 Strength3.4.1.1 merchandise revolutionInnovation is important because it exploiting new ideas to create a new product, process or service. Innovations become study capacity because their research and reading had always exceeded customer expectation so that increas ing the customer joy toward Digi. For example, innovation product such as Digi Campus for university student and Digi broadband services. retaliate systemA good reward system can impress current subscribers and potential subscribers. uncorrupted reward system become a strength because Digi have a completely, effective, and efficiency system to service their subscriber. For example, natal day bonus for subscriber, a user can enjoy 50% extra bonus credit when reload before 3 days and after 3 days on the user birthday.3.4.1.2 brass sectionAffiliationTelenor ASA now is Digi.Com Berhards first majority foreign-owned telecommunications service provider. Keeping good relationship with Telenor is a major strength of Digi. Affiliation with Telenor is important because Telenors will bring bodied strength to Digi such as development of advanced technologies and services and maintaining the Digi status as a leader player in telecommunication sector. For example, Telenor intends to expand D IGIs business and further strengthen and improve the companys market position, with a particular emphasis on mobile product and services. (Arve Johansen, CEO Telenor mobile)FacilitiesFacilities are important because it bring convenience to customer and save time and cost. Facilities of Digi become strength because it provided many methods to let subscriber easily get what they want. For example, Digi center, reload credit through online banking, online payment and many more. It brings a super convenience to subscriber and will increase the customer satisfaction. Another reason is because too many competitor go same services, so that Digi must offer facilities that other competitor dont have.3.4.1.3 CapitalStrong fiscal processStrong financial performance in Digi becomes strength because Digi have stable number subscribers. An increasing and stable number of subscribers can lead strong financial performance in Digi, Digi are focusing in customer satisfaction, excellent customer ex periences and keep attract new subscribers by promoting their product and services.3.4.2 Weakness3.4.2.1 ProductLate to reach customer in latest information up-to-the-minute information late to reach end user becomes a major weakness because Digi seldom promote their product and services in society. current information late to reach end user will cause lose a lot of potential customer and the gross sales will start to dropping down. For example, when new product or services release, if no any promoting activities like open booth, promotion to promote product, all the customer will dont know the latest information in Digi.3.4.2.2 Organizationdependence on strategic manductionDependency on strategic communion becomes major weakness in Digi because Digi are still highly depending on product development and RD. They think try through product development can serve the customer better but it may not effectively, too focus on product development will cause the relationship between Digi and customer becomes not strong, they may will make out the customer feeling and customer satisfaction. miss of involvement of Digi ambassadorsAmbassadors is important because they can lead a company toward successful and process the telecommunication market. Lack of involvement becomes weakness because Digi ambassador lack of involvement in promoting product and services. Once the ambassador did not showing their responsibility, the latest information cannot be retrovert to customer therefore the performances of company will be affected.3.4.3 hazard3.4.3.1 ProductRising telecommunication demandHigher demand for Digis product and services become an opportunity in Digi because it can lead Digi to produce more product and services to improve their sales and revenue. More people demand for the Digis product and services meaning that the quality of product and services offer by Digi is good and customer willing accept due to larger satisfaction. For example, low cost broadband inte rnet services bring larger demand.Higher standard of victualsRecently, the Malaysia higher(prenominal) standard of living also becomes an opportunity for Digi Company. Higher standard of living in Malaysia cause the demand for telecommunication increase, many people will start need the surmount telecommunication industry to be their communication tool due to the convenient. For example, even nowadays a 7 years old missy has their own mobile phone.3.4.3.2 OrganizationAdvance technology in man resourceAdvance technology in humankind resource are become an opportunity in Digi. Digi must focusing on recruiting new employee and provide training to them so that can maintaining a competent human resources in Digi.3.4.3.3 CapitalHigh big(p) investingHigh capital investments become an opportunity in Digi because of the ultimate holding company, Telenor. Telenor was investing a large amount of capital to expand their business to achieve profitability and enhance shareholder returns.3 .4.4 Threat3.4.4.1 ProductHigh bargaining power of consumerIn telecommunication industry there have a lot of company like maxis, celcom, telekom Malaysia. Consumers are easily to choose and switch to another industry to use. In this case, Digi can offering higher quality of telecommunication services to customer at a lower price so that Digi wont lose their customer.Technology advancement in telecommunicationTechnology advancement such as in wired and wireless telecommunication becomes a threat in Digi Company. Current level of technology perchance very fast outdated because of other competitor restrains offering new product with new technology. So, Digi can keep continue in improving the RD and keep at the lower price of product to compete them. For example, the lower cost of Digi broadband internet services brings a lot of business.3.4.4.2 OrganizationHigh switching costHigh switching cost becomes a threat in Digi Company. Switching to another supplier the cost is very high, so, switching to another supplier is very hard. To overcome this problem, Digi must keep a closing curtain relationship between the current supplier which is Ericsson and Trisilco Folec. spread over a good relationship with supplier Digi can save more cost in acquiring material to produce product and services.3.5 succinct of situation analysisStrengthInnovation of Digi productGood standstill with Telenor major foreign service providerExcellent facilities convenienceInnovation is very important as every competitor try to precede in a fast pace to compete with each other. Good innovation will lead to successful or failure of a company. Keeping good relation with major foreign service provider will stabilize the investors investment on the company, which will lead to major profiting in the company for now and future. Providing excellent facilities and service will satisfy customers, and because of that, they will subscribe and be loyal.WeaknessSlower in modify latest informationTo o dependent on strategic sharingLack of involvement of Digi ambassadorsSlowing in updating latest information will cause major loss in long term if the competitor knows the weakness of the company. Everything have to be fast when comes to telecommunication and technology. direction or too depending on certain subdivision will influence the environment of the company. It will slowly abandon some important department and cause chaos or blurring of the company organization pattern. Good ambassadors translate good information to customer, and customer deliver profit to company. Choosing a good ambassador will shape up the message of the company and deliver it to customer clearly.OpportunitiesRising of telecommunication demandHigher standard of livingHigh capital investment in expanding businessThere are a lot of opportunities in telecommunication. As the world moving in fast pace, from 3g to 3.5g and now 4g. The rising of telecommunication demand boost up and open opportunities for ex isting company to achieve better and stable their company, so that they would not beat down by the new rising advance company. People demand more and create new opportunities as well as idea to satisfy their standard of living. Fast, convenience, save time, save cost, these are the reason people influence the level of living standard. To expand business, we need capital. When we have high capital investment, it shows the how good is the reputation of the company. High investment will influence the size of business, and of course, the profit, and keeping the customers.ThreatsHigh bargaining power of consumerTechnology advancement in telecommunicationHigh switching cost to another supplierTelecommunication field is full with competitors. Each of the company is very similar to each other. Consumer holds a very strong bargaining power to make their own choice. They choose what they like and what they think it is best for them. They can be switch to A company for today, and maybe tomorro w they will be switching to B company. Current level of technology maybe very fast outdated because of other competitor continues offering new product with new technology. Consumer will go for the company who offer them better technology. Switching to another supplier the cost is very high that makes switching to another supplier is very hard. Keep a close relationship between the current supplier can save more cost in acquiring material to produce product and services.4.0 The strategical Option of an organisation (DiGi)Build a powerful competitive advantageThe strategic option of DiGi is to build a powerful competitive advantage. DiGi became the first telco in Malaysia to launch and operate a fully digital cellular network on 24 May 1995.On the year 1997, DiGi be the first telecommunication company that being listed on the Kuala Lumpur Stock Exchange Main Board under the Infrastructure Project Companies category, and at that time, DiGi is known as Mutiara Swisscom Bhd.On the year 1998, Digi also be the first operator in Malaysia that launched the prepaid mobile phone service. The expecting of DiGi continued, to be the first GSM operator in Malaysia to offer Automatic International Roaming service to the get together States of America to be the first telecommunication to launch a website in Malaysia. This is the main competitive advantage due the often establishment of the first time in Malaysia. Hence it is well known throughout the world.Besides, DiGi provided a cheap Digi Plan, which is Happy Plan. This is targeted to those customers that make a lot of calls and sms, it only be 1sen/second and up to 99sen per call to any number in Malaysia and the in year 2008, DiGi is the first Telco in Malaysia to introduce Mobile tally Selection service. This service enables the users to choose their own number rather than practiced following the traditional way. For example, in the traditional way, the user will purchase a new SIM that has been pre-assign with fix mobile number but now they can choose the numbers that they prefer. Sometimes, extra charges are needed for some special numbers, such as with the same digit that repeated twice or more.Operational EfficiencyBesides, Operational Efficiency also is one of the strategic options of DiGi. Nowadays, many companies are focusing on IT Infrastructure .Technology can be either a great source. The applications of technology should be supported by an IT infrastructure that connects a companys users to each other. By connecting the DiGi company to their subscribers, this can help the users of DiGi always alert of the latest information and the promotions of DiGi. In term of technology, DiGi has provided Wireless, 3G and Internet Broadband services. Moroever, Facebook Zero, this is a light-weight, text -only version of the standard Facebook Mobile site and it is free and is accessible by all the Digi prepaid and postpaid users. It brings convenient to the users, as now the users can still stay affiliated with their fellow friends of family just by using their small device. Besides, in term of broadband, DiGi now is offering the quota of 3GB, cost RM38 per month, and the modem is free of charge. The operational efficiency also included the peoples. This peoples is referred to those who working at DiGi departments. A current issue, DiGi Telecommunications Sdn Bhd will continue to invest in customer service amid the economic slowdown to provide better value and build brand loyalty Schnitker, Tom. (2009,February 21). Customer service still tops for DiGi. The Star.DiGi is enhancing their service levelDiGi Telecommunications Sdn. Bhd. provides a variety of mobile communication services, such as voice under their prepaid plans postpaid plans, SMS, data plans and services, international roaming, international calling card and WAP services. Besides that, the users of DiGi is provided with the service of friend and family where the customers is allowed to set 6 Digi numbers that they will call more often. The calling rate and sms rate for these 6 numbers are lower than the normal prepaid rate. Personal Accident Insurance also is one of the services provided by DiGi, which is the competitive advantage that will the others networks do not provided and followed. DiGi provided 1 month free visitation PA insurance for their users. The PA insurance can be categorized into 3 categories which is the RM50000 personal insurance, RM100000 personal insurance and RM100000 Family Personal insurance. Customers can enjoy the 1 month trial of the RM50000 of PA insurance and after one month, they can still continue to purchase the PA insurance at RM2 for 30 days coverage. so you will still be protecting under RM50000 PA insurance plan, but with the term and conditions applied. Moreover, DiGiRemit, this allowed an individual to transfer through mobile phones and has remittanced to Indonesia, Phillippines and with more countries are following soon. Customers can just send 2 text messages to complete their transfer. This brought high convenient to their customers due to this remittance can be transferred to anyone with or without the bank account in the destination country. Besides, it is secured due to the administering of Citibank until the money is being delivered to the beneficiary.greater shares for its stakeholdersLast but not least, DiGi provided greater shares for its stakeholders.DiGi market share is currently 25.00 per share. Which is much more higher than its competitors such as Maxis, only 5.33 per share. The shareholders of DiGi can increase their wealth by invest in DiGi.5.0 Key cream criteriaStrategiesActivities/TacticsKey selection/criteriaBuild a competitive advantageHappy Plan Mobile number selection concentre on customerFocus on low cost of productOperational efficiencyInfrastructure Facebook Zero, broadbandPeoples Customer service.Focus on customerFocus on product quality intensify service levelsFriend and FamilyPersonal Accident InsuranceDiGiRemitFocus on customerFocus on low costFocus on quality of service.Greater market shareRM25.00 per shareFocus on shareholder wealth6.0 RecommendationKey QuestionRecommendation finale criteriaProsCons1. How the Digi be the top in its game?1. More branding and quality product.2. Build up the quality segment3. Potential high dividend-Research and development, innovation, creative.-lowest call rate in different segment, eg. Postpaid segment.-the growth of sales and revenue.-increase sales and revenue-more focus the need of customer in different segment.-increase shareholder wealth-compete with diversification product from competitor-too many segments may cause company hard to focus in one.-capital gains decrease due to the higher profit and tax expense.2. Can Digi maintain strong relationship with suppliers?1. eternally place order on time.2. Setting Digi account on time.3. Communication between Digi and suppliers-The time to deliver the material.-The dateline of payment-t he understanding between Digi and supplier-Supplier have enough time to prepare-clear payment on time can maintain the liquidation of company-establishing the relationship between each others-late submitting order will let supplier not