DIGI

DiGi.com Berhad Group Presentation Strategic Management Presented by

Team Members :Siti Aisyah Bt. Abd Razak ED 083170

Nur Liyana Bt. Muhammad Hussen BF 084253

Nur Amira Bt. Mohammad Suhaimi BF084474

N.Eizatul Shazwanie Bt. Mohd Zaki BF 083215

Mugilan A/L Balan ED 083101

Muhd Shafiq B. Jamaludin HR 083114

SWOT Analysis : Strength1. Market• Mobile Broadband and Mobile Network service provider• Retail – digi Family plan• E-Commerce • Go to market strategy base on LAS likely average speed-promised customer

enjoy stable mobile internet connection.

2. Material• Low cost calling and high quality voice to their own associates partners, ie.

Bangladesh .Telenor network.• Broadband Done right and Internet Done right

3. Machinery• Mobile Virtual Network transmission system - Provide domestic roaming• Facilities– auto reloads online payment

Weakness1. Men• Lack of manpower and Increased HOD workload

2. Money• More training needs to provide to upgrade and continuous improvement,• More money needs to invest and maintain and upgrade their network with latest

equipments.

3. Market• Market is saturated ( 106% ) and need to find innovative ways to acquire new subscribers.

4. Material• Lack of contents and value added services for their subscribers. 5.Machinery• lack of base station compared to other operators/competitors

Opportunity & ThreatsOpportunity• Higher Living Standard in Malaysia• Globalization• Increasing of foreign worker Threat• High inflation – increase price• High bargaining power of customer• Malaysian Government discourage cell phone usage among school

kids• Continuously technology advancement in wired & wireless technology

PEST Analysis : Political• Malaysia government has limits the palyers in the

telecommunication industry.

• The Malaysia government controlled incumbent telecommunication operator ( TM and Celcom ) and compete with Maxis Mobile and DiGi.

• Number Portability which enables mobile telephone customers to retain their existing mobile telephone numbers when they switch from one service provider to another.

• Government initiate the policy for lower the price for university students.

PEST Analysis : Economic• Malaysia economy is growing and encourages more investments.

• According to Informa Telecoms & Media 2008 revealed : Malaysia is one of the fastest growing telecommunications companies in the world.

• Celcom, Maxis and DiGi are sharing the RM23.4 Billion mobile telecom revenue.

• Globalization bring in more travelers and businessmen into Malaysia.

• The government of Malaysia launched 2 economy stimulus package worth RM100Billion.

• Malaysia will reach high income nation with USD15k per annual by 2020

• The Government expects the population grow up to 50 million by 2020.

PEST Analysis : Social • Demographic :• Family income : 1000 ~3000 • Age: 16 and above• The current population of Malaysia is expected to rise from 25.6

million to approximately 28.96 million by the year 2010 with a projection annual average growth rate of 1.6%.

• The Malaysian is getting advancements towards the era of High Definition digital distribution of contents, consumers demand greater bandwidth capacity for their internet connectivity.

• With incomes rising, Malaysian have more disposable income, which enables to more selective with their choice of mobile phone.

• Social factors are getting important in Malaysian telecommunication industry as the increasingly using the mobile phone became a society culture even become a personal culture.

PEST Analysis : Technology

• Digi is still trailing behind Maxis and Celcom in continue technology advancement in wired and wireless telecommunication

• 2010 is the broadband year of Malaysia, Digi need to upgrade plenty of new device and package flooding the market place tense rivalry

• Communications and information technology infrastructure is a key element in Malaysia’s plans to achieve industrialized nation status by 2020.

Michael Porter’s 5 Forces

Industry Competitors

Customer Bargaining

Power

Threat of Substitutes

Supplier Bargaining

Power

Threat of New

Entrants

1. Industry CompetitorsWireless Market – Digi own 21.7% in Malaysia market share

10

• Maxis

• Digi

Celcom

Competitor Analysis

Revenue ( RM $ B ) Profit After Tax

Co- 2009 2008 2007 2009 2008 20072009

Market %2009

Margin

Digi 4.909 4.814 4.362 1.000 1.190 1.062 21.07% 20.37%

Maxis 12.291 11.234 9.765 1.577 (0.101) - 52% 12.83%

Celcom 6.292 5.576 - 1.516 1.294 26.93% 24.09%

Total 23.492 21.624 100%

11

Celcom gain highest margin, however, Digi maintain stable sales and profit margin

Source: Celcom, Maxis and Digi report 2009

HIGH

2. Customer Bargaining Power

Lack of differentiation among Service Providers

Cut throat Competition Low Switching CostsNumber Portability will have –Ve

ImpactBusinesses & Consumers

12

HIGH

3. Suppliers Bargaining Power

1. Network Outsourcing maintenance : Nokia Siemens, Ericsson, Huawei

2. Passive Infra-structure : Base Station, TelcoTowers

3. Call Center : outsourcing and in-house4. Information System : IBM, Huawei, Nokia

Siemens

13

LOW

4. Threat of Substitutes Landline CDMA

MVNO – TuneTalk, OKTel, XOXRedtone

4G WiMax players – P1, Yes Video Conferencing VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites

14

Mobile Operator

BROADBAND SERVICES

DIMINISHING MARKET HIGH

5. Threat of New Entrants Huge License Fees to be paid upfront & High

gestation period Entry of MVNOs & WiMAX operators Spectrum Availability & Regulatory Issues Infrastructure Setup Cost - High Rapidly changing technology

15

LOW