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——4 Up

Dizz Case

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Overview1

Issues and Recommendations 2

Conclusion3

Q&A4

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Overview

Since 2000 the industry has undergone tremendous changes.

Competition is increasing among service providers.

The mobile industry makes a positive contribution to the growth of economies.

Overview of Market

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Europesaturated

competitive

potential

growing

Africapotential

growing

Asia

Overview

Overview of Market

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Facing global finance crisis5

Overview

Overview of Dizz

Planning investments4

An international company1

Good service3

High revenues2

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1

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Issues and Recommendations

1 Closing Profits Gap

3 Raising Finance

4 Designed Handsets

5 Outsourcing Issue

7 Ethical Issues

6 IT System

2 Foreign Investment Proposal

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Closing the profits gap

1 What’s wrong with the profits?

2What are the factors resulting

in the profits gap?

3 How to close the profits gap?

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• delayed impact of the global financial crisis

• Dizz’s 5-year plan looks optimistic in the current “credit crunch” climate

What’s wrong with the profits?

Closing the profits gap

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profits gap

What’s wrong with the profits?

Closing the profits gap

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What are the factors?

Closing the profits gap

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What are the factors?

Closing the profits gap

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the fall of European market’s customer numbers

the fall of European market’s ARPU

profits gap

What are the factors?

Closing the profits gap

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It’s not a wise choice to cancel advertising campaign in Europe, which can

boost ARPU and brand awareness to increase profit.

BCG MatrixWhat are the factors?

Closing the profits gap

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In current saturated markets, especially Europe, Dizz should follow the

market penetration strategy, focusing on increasing ARPU and

customer base.

Closing the profits gap

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1.advertising campaign

2.designing more flexible pricing structures

3.improving the overall customer experience

4.inovation

Recommendations

How to close the profits gap?

Closing the profits gap

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Foreign Investment Proposal

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• Whether to investment or not?

Foreign Investment Proposal

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Foreign Investment Proposal

Analysis:

Positive NPV

CF(t)=cash flow each year

P(m)=prosperous probability

i=discount rate=15%.

In accordance with long term’s goal

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Foreign Investment Proposal

Recommendation

This investment proposal is acceptable.

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Raising Finance

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Raising Finance

proposals

1. New loan

2. Cut dividends

and use cash

reserves

3. Share rights and

use cash reserves

Analysis

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3 proposals’

features

General

infor(million)

Drawback&

risks Example

New loan 279,048 High risks

Texas

Utilities

&

Microsoft

Cash reserves

and dividends

2744

3256

High risks

and

insufficiency

Share rights

and cash

reserves

91,200

High risks

and negative

influence

Raising Finance

Analysis

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1 Cutting dividends

2 Using share rights

Recommendation

Raising Finance

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Cash from share rights

Cash from cutting dividends

Original shares being exercised,3.6% of total

2744 m 3256 m407

shares

Raising Finance

Recommendation

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The Other Four Issues

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The Other Four Issues

Designed Handsets1

Outsourcing Issue2

IT System3

Ethical Issues4

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Designed Handsets

What’s going on?

Competitiveness

Asia market

Recommendation

Designed handsets should be introduced

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Outsource Issue

What’s going on?

Fre and Mre

Customer service

Recommendation

Negotiation to retain them.

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IT System

What’s going on?

Vital

1,500 million

3G standards

Recommendation

It is recommended that the IT capital expenditure shouldn’t be delayed.

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Ethical Issues

What’s going on?

Training and development cost

Community support

Recommendation

CSR

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Conclusion

Core aims of Dizz

To Increase

profits

To Be

innovative

To

develop

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Conclusion

There is an old Chinese saying: special time can make a real hero.

We believe that, special time can also create a successful company.

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C l i c k t o e d i t c o m p a n y s l o g a n .

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Rank in United Kindom

rank operator technology Subscriber

(in millions)

1 T-Mobile

(merging with

orange)

GSM,GPRS,

UMTS,HSDPA

32.615

(Sep,2008)

2 O2 GSM,GPRS,

EDGE,UMTS,

HSDPA

20.669

(Jun, 2009)

3 Vodafone GSM,GPRS,

UMTS,HSDPA

18.557

(Jun, 2009)

4 3 UMTS,HSDPA 4.4

(Dec,2008)

5 UK01 GSM Not yet

available

Return

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Vodafone’s investment in Asia-pacific

Return

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The 3G evolution

190 3G networks were

operating in 40 countries

and 154 HSDPA networks

were operating in 71

countries

2001

2001

2002

2007A brief history

A broader availability was delayed

by an apparent concern over

Reliability.

The first pre-commercial demonstration

network was built in the southern

hemisphere .

The first pre-commercial

3G Network was launched

by NTT DoCoMo in Japan.

Return

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Dizz - Growth in customer numbers

Return