DiGi.

com Berhad Group Presentation

Strategic Management Presented by Team Members :
Siti Aisyah Bt. Abd Razak Nur Liyana Bt. Muhammad Hussen Nur Amira Bt. Mohammad Suhaimi N.Eizatul Shazwanie Bt. Mohd Zaki Mugilan A/L Balan Muhd Shafiq B. Jamaludin ED 083170 BF 084253 BF084474 BF 083215 ED 083101 HR 083114

SWOT Analysis : Strength

1. 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

Weakness
1. 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 & Threats

Opportunity 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 Malaysias plans to achieve industrialized nation status by 2020.

Michael Porters 5 Forces

Customer Bargaining Power

Threat of New Entrants

Industry Competitors

Threat of Substitutes

Supplier Bargaining Power

1. Industry Competitors
Wireless Market Digi own 21.7% in Malaysia market share

Maxis

Celcom

Digi

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

HIGH

Revenue ( RM $ B ) CoDigi Maxis Celcom Total 2009 4.909 12.291 6.292 23.492 2008 4.814 11.234 5.576 21.624 2007 4.362 9.765 2009

Profit After Tax 2008 1.190 (0.101) 1.294 2007 1.062 2009 Market % 21.07% 52% 26.93% 100%
Source: Celcom, Maxis and Digi report 2009

2009 Margin 20.37% 12.83% 24.09%

1.000 1.577 1.516

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2. Customer Bargaining Power

Lack of differentiation among Service Providers Cut throat Competition
HIGH

Low Switching Costs

Number Portability will have Ve Impact

Businesses & Consumers

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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-house 4. Information System : IBM, Huawei, Nokia Siemens
LOW

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4. Threat of Substitutes
Landline CDMA
DIMINISHING MARKET HIGH

MVNO TuneTalk, OKTel, XOX

Redtone

Mobile Operator

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

BROADBAND SERVICES

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5. Threat of New Entrants

Huge License Fees to be paid upfront & High gestation period Entry of MVNOs & WiMAX operators
LOW

Spectrum Availability & Regulatory Issues

Infrastructure Setup Cost - High Rapidly changing technology

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