Posted at 11.16.2018
DiGi is wholly-owned subsidiary by Telenor Group which is a pioneer in mobile communication in Norway. It had been established in May 1995 with introducing first digital GSM 1800 services, mainly runs in Malaysia with its headquartered in Shah Alam, Selangor. Besides, DiGi is around RM4. 9 billion with a customer basic of 7. 7 million.
In December 1997, DiGi became the first Telco to be detailed on Bursa Malaysia. From 1999 to 2002, DiGi also became the first Telco that create an e-payment system, offer Automatic International Roaming and Standard Packet Radio Service (GPRS) as well as becomes the first ever to launch MMS. In addition, in August 2008, DiGi announced Deep Green and is designed to reduce the company's carbon footprint towards 50%. From then on, DiGi offers iPhone 3G services in Dec 2010 and it placed top performer in Malaysia by Carbon Disclosure Task 2011. DiGi in addition has gained some company identification and award like CCAM Awards 2009, CIMA Venture Governance Honors 2009 and My Branded Services Prize 2009.
1. 2 Organizational chart
DiGi. Com Berhad Group Chart
The organizational framework used by DiGi is efficient structure. The most notable of the composition is the chairman, followed by the management team.
A functional framework is useful for relatively big company like DiGi. Employees within the practical structure are differentiated to execute a specialized set of tasks. For instance, the technology section would be staffed only with technicians responsible for the technology of the company's products and this can causes functional efficiencies within that group. However it could also lead to a absence of communication between your functional groups within an organization. This example makes the business sluggish and inflexible.
As a complete, a functional company is most effective for DiGi because they are a maker of standardized goods and services at large size and in a low cost. Efficiencies can further be realized as useful organizations assimilate their activities vertically so that products are sold and distributed quickly and can have the feedback faster of their customers. Furthermore, coordination and expertise of duties are centralized in an operating structure, making creating a limited amount of products or services successful and predictable.
Planning and Strategic Management
2. 1 Basic strategies used to react to uncertainty
DiGi. Com Berhad is listed on Bursa Malaysia Securities Berhad, and is part of global telecommunications supplier Telenor Group.
DiGi continues to be a game-changer for the Malaysian telecommunications industry. DiGi have a good history of product and service invention, and they are a leader in driving intensifying and accountable business procedures in the provision of mobile speech and mobile internet services.
The Group is committed to driving Malaysia's expansion by building a mobile internet environment that allows true connectivity and creates socioeconomic development.
Digi practices prospector strategy in developing new market.
Digi targets delivering "Internet for all those" within their determination to building a connected Malaysia, enabling access to mobile internet services and applications by offering clients the right mixture of devices, value rates, and the best consumption experience of mobile internet.
On 16 Oct 2011, Digi is the first in Malaysia to offer free mobile browsing on via "DiGiLIVE No". Digi has developed a special portal, "DiGiLIVE Zero" to encourage more people across Malaysia to take pleasure from mobile internet for free when browsing on on the Opera Minuscule internet browser. Customers can see the sites stated on "DiGiLIVE No" without the need to pay data charges. The websites reflect the countless different passions of customers to help expand enrich their mobile internet experience and encourage them to use the internet browser platform.
For the future plan, DiGi is creating a new mobile internet service with rolling out a brand-new mobile network, which is LTE (PERMANENT Evolution). Along with the LTE (LASTING Development) mobile network, DiGi can serve fibre-like rates of speed with bigger capacity, more regular speeds, and the capability to deliver the best mobile internet experience to upcoming LTE mobile devices.
DiGi procedures defender strategy in order to retaining a secure and relatively secure market.
In order to keep a secure and relatively steady market, DiGi has applied the defender strategy in their business. The business will be updating their complete mobile network to supply the best experience for many customers, with better quality and faster voice and internet connections, across a wider coverage area.
This modernisation consists of an entire swap of each electronic element, to make a brand-new unified network with a single Radio-Access Network (RAN) program capable of providing 2G, 3G and 4G/LTE (Long-Term Advancement) services from a single base train station site
Besides, DiGi is modernising their current it platform and techniques are also one of the defender strategies. They make an effort to modernising their information technology platform to drive more efficiency in our core processes, which will allow us to significantly reduce our time-to-market in moving out new products. With improved upon cost and functional efficiency, DiGi will be better in a position to respond to the increasing demand for high-quality internet content and applications, leveraging on standardised business procedures, a simplified it vendor surroundings, and deeper economies of level.
2. 2 Establish quest and vision
DiGi is focused on building a linked Malaysia by generating access to the internet for everyone Malaysians. They believe the key to accelerating adoption is best expressed in their Internet for All mission.
DiGi's Mission: Internet for All
DiGi deliver Internet for those within their determination to creating a connected Malaysia, allowing usage of mobile internet services and applications by offering customers the right mixture of devices, value prices, and the best consumption connection with mobile internet.
DiGi has a eyesight of being a firm that is always 'Changing the Game'. They do that by constantly pushing the boundaries, determining new standards, and ensuring ongoing improvements in every elements of our business.
DiGi take possession for delivering on their goals and obligations, and pleasure themselves on traveling quality in everything they certainly.
Make It Easy
DiGi shoot for simplicity in the manner they work, and in offering products and services that are easy to understand and easy to use.
DiGi are open-minded and professional in their do, and appreciate variations in cultures, opinions and outlook.
DiGi bring passion, energy and creativeness into everything they do, and remember to constantly drive change and ongoing improvement.
2. 3 Perform SWOT analysis
2. 3. 1 Strength of DiGi
Innovation, World Class R&D (Research & Development)
DiGi is now one of the leading telecommunication companies in Malaysia. Creativity is one of the greatest benefits to be proud of, they have been always standing in front of the marketplace to bring the latest best product for his or her dear and faithful consumers. Besides that, they have a group of top progressive team which will be analysed and inventing the latest product, getting the most effective package and also moving towards the near future technological.
Affiliation with Telenor, experienced management staff from overseas
Besides being excellent in local, DiGi is also providing the abroad coverage which is wider than before. Using the affiliation between DiGi and Telenor, they now can gain access to even more countries. The customer can even experience managing workers from overseas. Therefore, they haven't any worries even they travel to overseas.
Stable increasing range of subscribers, good rewards system toward them
Moreover, the number of customers for DiGi is definitely increasing, this is due to the good services which DiGi has provided for several years. They have an improved rewards system toward the readers who have been encouraging us for such a long time. DiGi will be doing their finest to supply the best services for his or her subscribers and agree to any opinions.
2. 3. 2 Weakness of DiGi
Dependency on Strategic Sharing between mobile producer, application article writer and others
DiGi's dependency on Strategic Writing between mobile designer, application writer are considered as you of its major weaknesses. It plays an important role which is DiGi product/services cannot operate without complementary product/services from mobile producer, application writer. For instance, they usually performed highly rely upon the merchandise development through joint projects with mobile producer, application writers while others to provide customers better. Thus, this cause them needs to always be contingent on the mobile developer and insufficient improvement because of the highly dependency.
Latest information on new technologies hardly ever/late to attain end users
DiGi's latest info past due to reach owners is recognized as one of its weaknesses. Low customers understanding towards DiGi products and services not only reduce its ingestion but indirectly "hand out" potential customers to competitors. Regardless of the new solutions being put on the marketplace, many users still haven find the latest information from the business. Besides, the major weakness of DiGi is basically because they rarely promote new offerings compare to opponents. Hence, latest information rarely reaches customers.
Lack of foundation station as compared to others operator
DiGi can only just expand its coverage area by building or share base station with the competitors. This situation leads them have a scarcity of base stations as compared to other competitors. Insufficient base train station cause the collection reception of DiGi become poor and the coverage area will be damaged. Besides, the poor collection reception will drop the customer satisfaction and loyalty toward them. This may reduce the subscribing of from customer and also will affect the amount of customers. All of this is demonstrated when there got people expressing that DiGi hold the most severe 3G network in the united states because their poor coverage in many parts of Kuala Lumpur which is the capital city of the country and even at popular locations doesn't have 3G.
2. 3. 3 Opportunities of DiGi
Higher Standards of Living Among Malaysians
It can be an important indication that most Malaysian can afford bare minimum one mobile and broadband as the living standards and demand among Malaysians increase. DiGi can do more promotion to establish their services are much better than the other competition and reinforce their position in the local market.
Rising Telecommunication Penetration and Demand
As the statistic shows an increased penetration, which means you will see higher demand for DiGi's product and services. Which means that there will be increasingly more demand on a high speed interconnection of online sites to the global. DiGi can get this to opportunity to extend their market not only in the local area, but also to the international and update their service in order to appeal to more consumers to choose their products.
High Capital Investment
This can be an important factor as entry hurdle when high cost for new entre to compete with existing giant in the industry. This doesn't mean for the prevailing service that DiGi have, but is important when seeking for new market. Besides, high capital investment is also one factor affecting the introduction of new services. When the capital is strong enough, they can quickly react to the new technology faster than the others competitors.
2. 3. 4 Risk of DiGi
High Turning Cost (to other suppliers for DiGi)
High moving over costs are essential because supplier romance management can make or even break DiGi's product and services' value. For example, if close distributor companions such as, Ericsson and Trilsilco Folec increase their product price, then it'll raise the cost of product price and services.
High Bargaining Electric power of Consumers
Any company in the buyer services industry must cope with the force of its buying power. Thus, it is important for DiGi because the energy to deal for least expensive price and highest quality switch to consumers scheduled to non-existent of information asymmetry.
Continuous technology progression in wired and cordless telecommunications
As the technology advanced every day, DiGi must follow-up and renew their progression in technology. Therefore, it is important to DiGi because DiGi is still trailing behind Maxis and Celcom plus once out-dated, it is hard to jump back in a short duration.
2. 4 Measure the grand strategy of the company
As one of the largest maker of mobile communication service, DiGi carries out progress strategy in order to increase its sales revenue and increase its business around the world at a more accelerated tempo. For the entire year 1998, DiGi was the first operator in Malaysia to launch the very popular prepaid cellular phone service, DiGi Prepaid. DiGi has been attempting to achieve competitive benefit by preserving what's distinctive or unique about the business. During that, DiGi is wanting to snatch as much market shares off its competition aggressively while at the same time increasing the product quality control level as a whole from the top to the grassroots level.
First, DiGi get started with basic phone communication. DiGi has a 3G network brand name as Turbo 3G which was launched on Dec 2009. It began with broadband, 3G, Wi-fi, Smart Data Plan in order to entice more purchasers. DiGi successful offered a variety of special plans in this couple of years has proven to satisfy the anticipations of DiGi customers and lovers. Through those successes in the major special offered package deal, DiGi got cooperated with iPhone, Blackberry, Android, Windowpane phone yet others. Thus, market sales of DiGi will be extended greatly. The desire to do better make DiGi communication service garnered positive review and responses on the racetrack, the bond between DiGi service the each day lives of its customers and fans will be strengthened, thus solidifying DiGi brands in every person's heart and soul.
Second, DiGi obtains the Highest Excellence Award by way of a European investor in Malaysia at the Europa Prizes 2011. It was organized by the EU-Malaysia Chamber of Business and Industry (EUMCCI), the prize is directed at a European Company who have committed to Malaysia and shown exemplary business brilliance. Furthermore, DiGi presents a new pre-paid plan, the DiGi Prepaid Smart Plan for Smartphone users. The brand new pre-paid plan joins the DiGi Smart Plan family of bundled services, concentrating on consumers who like a far more data-rich bundle with worry-free strategies and value-for-money services for their Smartphones. Thus, it can increase its advertising and marketing efforts to try to grow its market share.
As a conclusion, DiGi will continue steadily to increase in their center market of mobile communication service successfully as well as developing new plan and services.
2. 5 Assess the competitive strategies utilized by the company
Competitive strategies employed by DiGi
DiGi used differentiation strategies as their competitive ways of become more successful. Differentiation strategy is the development of something or service that offers unique traits that are valued by customers and customers identify to be better than or not the same as the merchandise of the competition and targets the wider market.
They compete on differentiation of products and services through improvement and the intro of new innovative feature aspects such as call rates, bundle price etc. They make an effort to gain competitive advantage through their different style and style. Each of them also invests a great deal on advertising to market their product.
In producing their brand they have got made their logo design and motto of the company to be simple and effective. They have got chosen a yellowish coloring as their major colouring of their ad and their logo design. As an example at the end of 2006, DiGi launched its brand advertising campaign after 18 months of absence with Yellow Coverage Fellow (or even more officiously called, YCF) through some television commercial. Formerly called Yellow Man, until renamed by DiGi's marketing team, YCF was created by Naga DDB, DiGi's advertising organization. Entitled "DiGi Discolored", and taglined "DiGi's WIDEST Coverage. "Always to you", the commercials contained an upbeat theme melody "I Will Follow You".
Their recent ad which includes created a major branding achievement in their industry as it's so simple, attractive, impressive yet effective in providing their message with their customers.
Apart from that Digi has an established presence as a innovator in voice and data prepaid services with a number of first which have established industry benchmarks for creative imagination and advancement. These services are offered under the DiGi Prepaid brand name. In time 2003, the unveiling of beyond prepaid, DiGi's new pre-paid mobile service using its intelligent automated adjusting rates features automatically reduces call rates. Beyond Prepaid includes a host of impressive features which include programmed international roaming, MMS, faster web connection via DiGi's GPRS network, call waiting around, call divert and multi-party conferencing.
Apart from that, in year 2012 they also promo DiGi WWWOW Internet for everyone Awards 2012. They are really Malaysia's 1st in support of Internet for any awards created with the aim of showcasing the outstanding creativeness, ingenuity and entrepreneurialism of normal Malaysians utilising the web in amazing ways. Beside that in addition they promo some package deal like DiGi Smart Plan, DiGi Easy Prepaid and DiGi Best Prepaid which save the cost to the user when speak to their family and also pal.
3. 1 Using the identified advantages and opportunities
3. 1. 1 Strength
Innovation, World Class R&D (Research & Development)
DiGi have several top innovative team which can offer the latest technology and suggestions to have the best product produced. They can always improve and maximizing the outcome of the team to lead before the other competition.
Affiliation with Telenor, experienced management employees from overseas
The co-operation of DiGi with the overseas company such as Telenor will bring a great benefit of their coverage area. DiGi will have the widest and better coverage in local and foreign countries without having many problems with coverage problems.
Stable increasing quantity of customers, good rewards system toward them
With the increasing range of readers, DiGi has a good privilege to boost their customer networking. By providing the good rewards system, there will be increasingly more new customers using the service provided by DiGi. Thus, the income of DiGi increase.
3. 1. 2 Opportunities
Higher Expectations of Living among Malaysians
Citizens of Malaysians are actually having a high standard life-style. Almost everyone has the capability of buying a better product gives them a much better pleasure. Therefore, DiGi has an opportunity to expand their service are to have more customers.
Rising Telecommunications Penetration and Demand
Peoples now are requiring more and more communication services because of their interpersonal life. Thus, DiGi must also enhance their system to be able to catch up the growing telecommunications penetration in order to move towards success.
High Capital Investment
DiGi have high capital investment to boost their system & technology. They'll be the leading company with the better facilities compare to others company if they use the account to get more on the specialized part. The most significant shareholder, Telenor can contribute the largest capital.
3. 2 Overcome the recognized weaknesses and threats
3. 2. 1 Weaknesses
Dependency on Strategic Showing between mobile maker, application article writer and others
DiGi should stop being highly depended on product development through joint endeavors with mobile designer, application writers while others to provide customers better. Being impartial of product development will ensure the ability to move of the business & assurance on profit gain if everything is done in a good way with the correct management.
Latest information on new technologies hardly ever/late to reach end users
DiGi should have stored promoting the new strategies & packages to all the customers in the market. New services also need to be provided by DiGi to ensure the pleasure of customers towards DiGi. With the nice promoting ways, the competitors are unable to control the complete market by it owns.
Lack of bottom part stations as compared to others operator
DiGi is preferred to build the bottom stations by its to expand the coverage area. Using this method by own, DiGi will have a wide coverage area without other parties assist. Customers will be very content with the wide coverage area all over the country.
3. 2. 2 Threats
High Turning Cost (to other suppliers for DIGI)
DiGi can respond by keeping an in depth relationship with the existing suppliers: Ericsson and Trilsilco Folec while being optimistic that you will see a new possible supplier in the foreseeable future. With the nice cooperation between one another, it benefits both functions a lot in the present as well as the future.
High Bargaining Power of Consumers
DiGi can offer high quality telecommunication services at competitive prices. With the correct prices for the plans and packages, rival will be hard to compete with DiGi as it offers the best offer. Thus, the consumers will more towards DiGi's services.
Continuous technology progress in wired and cellular telecommunications
DiGi can reply by ongoing Research and Development (R&D) to avoid going outdated overnight and kept value low. With the good R&D going on for DiGi, there can be an assurance of residing in front of the marketplace alternatively than being overlooked by other competition.
As one of the greatest company of mobile communication service, DiGi has brought a lot of advantages to Malaysians with their products and services. This isn't only for their promises, but also with the wholehearted to give the best service to their customers. This can be demonstrated in their milestone and record that they had made. DiGi in addition has gained some company reputation and award like CCAM Honours 2009, CIMA Business Governance Prizes 2009, My Branded Services Award 2009 and Highest Excellence Honor 2011 as a proof their attempts.
DiGi has made a great deal of "First" from the beginning until now. For example, first telco in Malaysia to launch and operate a completely digital cellular network in 1995, first digital cellular network to be operational in Sabah and Sarawak in 1996, first telco to be listed on the Kuala Lumpur Stock Exchange Main Panel under the Infrastructure Job Companies category in 1997, first operator in Malaysia to start the very popular prepaid mobile phone service, DiGi Prepaid in 1998, first telco in Malaysia to kick off a ground-breaking mobile service in line with full deregulation in 2000, first operator in the Asian region to commercially establish General Packet Radio Service (GPRS) services on both pre-paid and postpaid programs in 2002 and a great many other achievements.
Customers will also become driving a vehicle pressure to DiGi to continue their trip. The opinions from the clients has often end up being the essential factors to make improvement or changes for DiGi. In the feedback, they can see what customers want and need off their services. And from the opinions, they know very well what they will step on in the future.
DiGi never stop their step or conceit with the achievements they already gained. Rather than that, they make a hurried journey without stop to gain a much higher achievement also to benefit more people using their products.