digi com berhad organization chart marketing essay (1)

8/9/2019 Digi Com Berhad Organization Chart Marketing Essay (1)

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Digi Com Berhad Organization Chart Marketing Essay

DiGi is wholly-owned subsidiary by Telenor Group which is a pioneer in mobile

communicationin Norway. It was established in May 1995 with launching first digital

GSM 1800 services, primarily operates in Malaysia with its headquartered in ShahAlam, Selangor. Besides, DiGi is approximately RM4.9 billion with a subscriber base of7.7 million.

In December 1997, DiGi became the first Telco to be listed on Bursa Malaysia. From1999 to2002, DiGi also became the first Telco that introduce an e-payment system, offer

Automatic International Roaming and General Packet Radio Service (GPRS) as well as

becomes the first tolaunch MMS. Moreover, in August 2008, DiGi announced Deep

Green and aims to reduce thecompanys carbon footprint towards 50%. After that, DiGioffers iPhone 3G services inDecember 2010 and it ranked top performer in Malaysia by

Carbon Disclosure Project 2011.DiGi has also gained some company recognition and

award like CCAM Awards 2009, CIMA Enterprise Governance Awards 2009 and MyBranded Services Award 2009.

1.2 Organizational chart

DiGi. Com Berhad Organization Chart

The organizational structure used by DiGi is functional structure. The top of the structure

is the chairman, followed by the management team.

A functional structure is useful for relatively big company like DiGi. Employees within

the functional structure are differentiated to perform a specialized set of tasks. Forexample, the technology department would be staffed only with technicians responsible

for the technology of the company's products and this can leads to operational

efficiencies within that group. However it could also lead to an absence ofcommunication between the functional groups within an organization. This situation

makes the organization slow and inflexible.

As a whole, a functional organization is best suited for DiGi as they are a producer ofstandardized goods and services at large volume and in a low cost. Efficiencies can

further be realized as functional organizations integrate their activities vertically so that

products are sold and distributed quickly and can get the feedback faster from their

customers. Moreover, coordination and specialization of tasks are centralized in a

functional structure, which makes producing a limited amount of products or servicesefficient and predictable.

Planning and Strategic Management


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2.1 Basic strategies used to respond to uncertaintyDiGi. Com Berhad is listed on Bursa Malaysia Securities Berhad, and is part of global

telecommunications provider Telenor Group.

DiGi continues to be a game-changer for the Malaysian telecommunications industry.

DiGi have a solid history of product and service innovation, and they are a leader indriving progressive and responsible business practices in the provision of mobile voiceand mobile internet services.

The Group is committed to driving Malaysias growth by building a mobile internetenvironmentthat enables true connectivity and creates socioeconomic development.Digi

practices prospector strategy in developing new market.

Digifocuses on delivering Internet for All as part of their commitment to building aconnectedMalaysia, enabling access to mobile internet services and applications by

offering customers the right combination of devices, value pricing, and the best usage

experience of mobile internet.

On 16 October 2011, Digi is the first in Malaysia to offer free mobile surfing via

DiGiLIVEZero. Digi has developed a special portal, DiGiLIVEZero to encourage

more people acrossMalaysia to enjoy mobile internet for free when surfing on the OperaMini browser. Customerscan browse the sites listed on DiGiLIVE Zero without the

need to pay data charges. The sitesreflect the many different interests of customers to

further enrich their mobile internet experienceand encourage them to use the browserplatform.

For the future plan, DiGi is developing a new mobile internet service with rolling out a

brand-new mobile network, which is LTE (Long Term Evolution). With the LTE (LongTermEvolution) mobile network, DiGi is able to serve fibre-like speeds with larger

capacity, more consistent speeds, and the ability to deliver the best mobile internet

experience to upcoming LTEmobile devices.

DiGi practices defender strategy in order to maintaining a secure and relatively stable

market.In order to maintain a secure and relatively stable market, DiGi has applied the

defender strategy in their business. The company will be upgrading their entire mobilenetwork to provide the best experience for all customers, with better quality and faster

voice and internet connections, across a wider coverage area.

This modernisation involves a complete swap of every electronic element, to create a

brand-new unified network with a single Radio-Access Network (RAN) platform capable

of delivering 2G,3G and 4G/LTE (Long-Term Evolution) services from a single base

station site Besides, DiGi is modernising their current information technology platformand processes also are one of their defender strategies. They try to modernising their

information

technology platform to drive more efficiency in our core processes, which will allow usto significantly reduce our time-to-market in rolling out new products. With improved


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cost and operational efficiency, DiGi will be better able to respond to the increasing

demand for high-quality internet content and applications, leveraging on standardised

business processes, a simplified information technology vendor landscape, and deepereconomies of scale.

2.3 Perform SWOT analysis2.3.1 Strength of DiGiInnovation, World Class R&D (Research & Development)

DiGi is now one of the leading telecommunication companies in Malaysia. Innovation is

one of our greatest advantages to be proud of, they have been always standing in front ofthe market to bring the latest best product for their dear and loyal consumers.

Besides that, they have a group of top innovative team which will be analysed and

inventing the latest product, bringing the most valuable package and also moving towards

the future technological.

Affiliation with Telenor, experienced management personnel from overseas

Besides being excellent in local, DiGi is also providing the overseas coverage which iswider than before. With the affiliation between DiGi and Telenor, they now can access

even more countries. The customer can even experience managing personnel from

overseas. Therefore, they have no worries even they travel to overseas .

Stable increasing number of subscribers, good rewards system toward them

Moreover, the number of subscribers for DiGi has always been increasing, this is due to

the good services which DiGi has provided for several years. They have a better rewardssystem toward the subscribers who has been supporting us for so long. DiGi will be doing

their best to provide the best services for their subscribers and accept any feedback.

2.3.2 Weakness of DiGiDependency on Strategic Sharing between mobile producer, application writer and others

DiGis dependency on Strategic Sharing between mobile producer, application writer areconsidered as one 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 did highly depend on the

product development through joint ventures with mobile producer, application writersand others to serve customers better. Thus, this cause them needs to always be contingent

on the mobile producer and lack of improvement due to the highly dependency.

Latest info on new technologies seldom/late to reach end users

DiGis latest info late to reach end users is considered as one of its weaknesses. Low

customers awareness towards DiGi products and services not only reduce its

consumption but indirectlygive away potential customers to competitors. Despite thenew technologies being put on the market, many users still haven get the latest

information from the company. Besides, the major weakness of DiGi is because they

seldom promote new offerings compare to competitors. Hence, latest information seldomreaches end users.


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Lack of base station as compared to others operator

DiGi can only expand its coverage area by building or share base station with their

competitors. This situation leads them have a shortage of base stations as compared toother competitors. Lack of base station cause the line reception of DiGi become poor and

the coverage area also will be affected. Besides, the poor line reception will decline the

customer satisfaction and loyalty toward them. This may reduce the subscribing of fromcustomer and also will affect the quantity of customers. All of this is proved when theregot people saying that DiGi have the worst 3Gnetwork in the country because their poor

coverage in many parts of Kuala Lumpur which is the capital city of this country and

even at popular locations does not have 3G.

2.3.3 Opportunities of DiGiHigher Standards of Living Among Malaysians

It is an important indication that most Malaysian can afford minimum one mobile andbroadband as the living standards and demand among Malaysians increase. DiGi can do

more promotion to prove their services are better than the other competitors and

strengthen their position in the local market

Rising Telecommunication Penetration and Demand

As the statistic shows a higher penetration, that means there will be higher demand for

DiGis product and services. This means that there will be more and more demand on a high speedconnection of internet service to the global. DiGi can make this opportunity to

expand their market not only in the local area, but also to the overseas and upgrade their

service in order to attract more consumers to choose their products.

High Capital Investment

This is an important factor as entry barrier when high cost for new entre to compete with

existing giant in the industry. This doesn't mean for the existing service that DiGi have,but is important when seeking for new market. Besides, high capital investment is also a

factoraffecting the development 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 Threat of DiGiHigh Switching Cost (to other suppliers for DiGi)

High switching costs are important because supplier relationship management can makeor even break DiGis product and servicesselling price. For example, if close supplier

partners such as, Ericsson and Trilsilco Folec increase their product price, then it will

increase the cost of product price and services.

High Bargaining Power of Consumers

Any company in the consumer services industry must contend with the force of its buying

power. Thus, it is important for DiGi because the power to bargain for lowest price andhighest quality switch to consumers due to non-existent of information asymmetry.


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Continuous technology advancement in wired and wireless telecommunications

As the technology advanced every day, DiGi has to follow up and renew their

advancement in technology. Therefore, it is important to DiGi because DiGi is stilltrailing behind Maxis and Celcom plus once out-dated, it is hard to bounce back in a

short duration.

2.4 Assess the grand strategy of the companyAs one of the largest manufacturer of mobile communication service, DiGi carries out

growth strategy in order to increase its sales revenue and expand its business over theworld at a much more accelerated pace. For the year 1998, DiGi was the first operator in

Malaysia to launch the highly popular prepaid mobile phone service, DiGi Prepaid. DiGi

has been attempting to achieve competitive advantage by preserving what is distinctive or

unique about the company. Through that, DiGi is trying to snatch as many market sharesoff its competitors aggressively while at the same time increasing the quality control level

as a whole from the top to the grassroots level.

First, DiGi begin with basic phone communication. DiGi has a 3G network branded as

Turbo 3Gwhich was launched on December 2009. It started with broadband, 3G, WiFi,

Smart Data Plan in order to attract more buyers. DiGi successful offered a variety of

special packages in this few years has proven to satisfy the expectations of DiGicustomers and fans. Through those successes in the major special offered package, DiGi

had cooperated with iPhone, Blackberry, Android, Window phone and others. Thus,

market sales of DiGi will be expanded greatly. The desire to do better make DiGicommunication service garnered positive review and feedback on the race track,the

connection between DiGi service the everyday lives of its customers and fans will be

strengthened, thus solidifying DiGi brands in every person's heart.

Second, DiGi receives the Highest Excellence Award by a European investor in Malaysia

at the Europa Awards 2011. It was organized by the EU-Malaysia Chamber of Commerce

and Industry(EUMCCI), the award is given to a European Company who has invested inMalaysia and shown exemplary business excellence. Furthermore, DiGi introduces a new

prepaid plan, the DiGi Prepaid Smart Plan for Smartphone users. The new prepaid plan

joins the DiGi Smart Planfamily of bundled services, targeting consumers who prefer a

more data-rich package with worry-free plans and value-for-money services for theirSmartphones. Thus, it can increase its promotion and marketing efforts to try to expand

its market share.

As a conclusion, DiGi will continue to grow in their core market of mobile

communication service successfully as well as developing new plan and services.

2.5 Assess the competitive strategies used by the companyCompetitive strategies used by DiGi

DiGi used differentiation strategies as their competitive strategies to become more

successful. Differentiation strategy is the development of a product or service that offers


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unique attributes that are valued by customers and customers recognize to be better than

or different from the products of the competition and focuses on the wider market.

They compete on differentiation of products and services through improvement and the

introduction of new innovative feature aspects such as call rates, package price and so on.

They try to gain competitive advantage through their different style and pattern. Each ofthem also invests a lot on advertising to promote their product.

In developing their brand they have made their logo and motto of the company to be

simple and effective. They have chosen a yellow colour as their major colouring of theiradvertisement and their logo. As an example at the end of 2006, DiGi launched its brand

campaign after 18 months of absence with Yellow Coverage Fellow (or more officiously

called, YCF) through a series of television commercial. Originally called Yellow Man,

until renamed by DiGi's marketing team, YCF was created by Naga DDB, DiGi'sadvertising agency. Entitled DiGi Yellow, andtag lined DiGis WIDEST Coverage.

Always with you, the commercials incorporated anupbeat theme song I Will Follow

You.

Their recent advertisement which has created a major branding achievement in their

industry asits so simple, attractive, innovative and yet effective in delivering their

message to their customers.

Apart from that Digi has an established presence as a leader in voice and data prepaid

services with a number of first that have set industry benchmarks for creativity andinnovation. These services are offered under the DiGi Prepaid brand name. In year 2003,

the launch of beyondprepaid, DiGis new prepaidmobile service with its intelligent

automatic adjusting rates featuresautomatically reduces call rates. Beyond Prepaid comes

with a host of innovative features whichinclude automatic international roaming, MMS,faster internet connection via DiGis GPRSnetwork, call waiting, call divert and multi-

party conferencing.

Apart from that, in year 2012 they also promo DiGi WWWOW Internet for all Awards

2012.They are Malaysias 1st and only Internet for All awards created with the aim of

showcasing theincredible creativity, ingenuity and entrepreneurialism of ordinary

Malaysians using the Internet in extraordinary ways. Beside that they also promo somepackage like DiGi Smart Plan, DiGiEasy Prepaid and DiGi Best Prepaid which save the

cost to the user when chat with their family and also buddy.

digi com berhad organization chart marketing essay (1)

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