Toyota Cars strategic Analysis in uk.

And the development of customer value,

6.2.

The strategic Audit

6.2.1. Appendix 2: PESTEL Macro Economic Analysis

DETAILS

PRIORITY

IMPLICATIONS

High

POLITICAL/LEGAL

Inclusion of some of the most important global

players in the Colombian mobile market that control

world mobile industry such as Telefonica and

It

is

important

to

maintain

strong

relationships with the government in office.

Government can impose several restrictions

America Mvil.

and changes in its regulation that can affect

Telecommunication operators develop a strong

the revenue of the company.

relationship with the government due to the

Low

This

initiatives

to

remove

VAT

on

regulations of the sector as licenses, authorizations

broadband domestic connections would

for the implementation of infrastructure or special

boost demand

permissions.

Government has initiatives to remove VAT on

broadband domestic connections.

ECONOMIC

Salaries in Colombia are growing faster than the

inflation rate(Visnagar, 2013)

That gives the population higher purchasing

power.

New free trade agreements are having a positive

New

infrastructure

and

FDI

become

effect in the telecommunications infrastructure

telecommunications

through foreign direct investment (BMI, 2012).

competitive in the region and offers higher

Investment rate is increasing from explicit backing

standards for customers.

sector

more

from the International Monetary Fund representing

confidence (BMI, 2012).

SOCIAL

The number of mobile users is everyday growing,

generating

even

more

benefit

awareness in

global trends that make them more exigent

customers. Customers are becoming mature in the

telecommunications sector given the amount of

and that pushes the string of competitors.

Customization of data and mobile plans

information they get.

given the high quality demand of each

Global trends in smartphones and related gadgets

client.

as well as applications that need a state-of-the-art

Colombians are more and more aware of

The dependency on mobiles encourages

device and mobile data provided by network

operators to improve technology as it is

operators.

needed every time, everywhere.

There is a growing trend in digital life fostered to

some extent by mobile operators and the use of
mobiles(Milln, 2008).

TECHNOLOGICAL

This is one of the most important aspects for a

telecommunication company. Thats why massive

As technology is changing, companies as

Claro need to be prepare for constant

investment in modern technologies is made as well

as the maintenance services to the current ones.

change to avoid marketing myopia.

Customers are becoming more exigent

Change from landlines to mobile lines is a global

everyday

trend.

technology,

4G,

which

is

the

ultimate

technology

due

to

the

generation

accessibility

of

pressure

to

companies to be updated.

for

telecommunications is already implemented in the

Colombian market (BMI, 2012).

ENVIRONMENTAL
Every day the eco-trend grows which means an

The company has to be aware of these trends to

important impulse for the telecommunication sector

save the planet.

through the saving of paper and its implications

It use decreases movement of people allowing

The increase in Mobile technology everyday

reductions of CO2 emissions and damaging

gases

6.2.2. Appendix 3: Porter Five forces

THREAT OF NEW ENTRANTS (HIGH)
Details

The barriers to enter this sector are high due to its high cost and special legal regulations by the government.

Product differentiation plays an important role when entering this sector because a huge amount of capital would be
needed in marketing to generate market share.
Implications

Therefore, a new competitor would need economies of scale to achieve low costs and be competitive in the market.

In addition to that, every time that there is a new competitor Claros reaction is aggressive, taking advantage of their
monopoly position.
COMPETITIVE RIVALRY (HIGH)
Details

Strong rivals with almost the same technology and service. Nevertheless, Claro is the market leader with 61.9% of
subscribers in the country (MinTic, 2012).

Price competition is strong among the competitors. Though, Claros prices are the highest.

Broadest mobile network in the country. It has coverage in rural municipalities that the other providers cannot.
Implications

Rivals represent a high risk for the company, threatening its market share.

Claros has a competitive advantage when it comes to the network coverage.

THREAT OF SUBSTITUTES (MEDIUM)
Details

Claro has imperfect Substitutes (given that they are fixed and cannot be transported with the customer): Such as Broadband
Internet through skype for example, landlines, or calling cards.
However, the mayor threat for Claro are internet services such as whatsapp, skype or viber that offer a free or low cost
service. Even though they work as part-substitutes in the sense that they need mobile internet service to be run which is also
provided by Claro.
Implications
Imperfect Substitutes: However, as it has been explained in the company overview, Claros services includes all these, so the
risk is lower since customers can find the substitute inside the organisation.
Mobile substitutes: These internet services or apps make the company lose profitability because the client is not going to

spend more money than the basic contract due to their use.
POWER OF SUPPLIERS (LOW)
Details
Suppliers in this case are:

Mobile phones fabricants like: LG, Samsung, Nokia, Sony Ericson, Motorola and Apple.

Electric network suppliers.

Implications

Due to the numerous companies that produce mobile phones, none of them has a great power. However, that depends of the
technology and demand that they have.
BARGAINING POWER OF BUYERS (MEDIUM)
Details
There are two different types of buyers for Claro: Pay-as-you-go customers and post-paid customers:
Buyers are aware of quality, services and prices in the market.
Implications
The company needs to have a different

MO for each of those segments to target them the right way.

Pay-as-you-go customers do not have high switching costs because of the lack of a contract but post-paid customers have
high switching costs due to the contracts signed that are usually from 12 to 24 months.
As customers have lots of information about the market it implies a risk for switching to the competitors.

6.2.3. Appendix 4: SWOT Analysis

STRENGTHS

Great amount of money invested in advertisement

Financial muscle. America Mvil which is its parent company is a key player in the Latin-Americas mobile sector

Diversity of mobile Plans

Market position. Largest operator in the market

Advanced technology. Broadest mobile network in the country. It has coverage in rural municipalities that the other
providers cannot.(semana,2013)

Know-how with 19 years of experience within the Colombian market as they were the first network operator.
WEAKNESSES

High prices

High rate of complaints from customers

Intermittence of mobile network

Hiring of personnel and coaching: High staff turnover and lack of proper coaching in the customer service department

Most of its growth has come from the pay-as-you-go segment

OPPORTUNITIES

Mobile number portability policy from Colombian government

Robust demand of mobile phones and need of a mobile operator.

THREATHS

High level of rivalry among current competitors

New competitors emerging in the market and are moving forward quickly with innovation.

Its market share is decreasing given that its rivals are strengthening

Is the target of the government due to its dominant position (BMI, 2014)

Subject of economic sanctions for over-charging its subscribers(BMI, 2014)

6.2.4. Appendix 5: Companys Figures

6.2.5. Appendix 6: Colombia Mobile Market Share Q1 (2013)