Digi Com Berhad Organization Chart Marketing Essay

DiGi is wholly-owned subsidiary by Telenor Group which is a pioneer in mobile communication in Norway. It was established in May 1995 with launching first digital GSM 1800 services, primarily operates in Malaysia with its headquartered in Shah Alam, Selangor. Besides, DiGi is approximately RM4.9 billion with a subscriber base of 7.7 million.

In December 1997, DiGi became the first Telco to be listed on Bursa Malaysia. From 1999 to 2002, 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 to launch MMS. Moreover, in August 2008, DiGi announced Deep Green and aims to reduce the company’s carbon footprint towards 50%. After that, DiGi offers iPhone 3G services in December 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 My Branded 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. For example, 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 of communication between the functional groups within an organization. This situation makes the organization slow and inflexible.

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As a whole, a functional organization is best suited for DiGi as they are a producer of standardized 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 services efficient and predictable.

Planning and Strategic Management

2.1 Basic strategies used to respond to uncertainty

DiGi. 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 in driving progressive and responsible business practices in the provision of mobile voice and mobile internet services.

The Group is committed to driving Malaysia’s growth by building a mobile internet environment that enables true connectivity and creates socioeconomic development.

Digi practices prospector strategy in developing new market.

Digi focuses on delivering “Internet for All” as part of their commitment to building a connected Malaysia, 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 “DiGiLIVE Zero”. Digi has developed a special portal, “DiGiLIVE Zero” to encourage more people across Malaysia to enjoy mobile internet for free when surfing on the Opera Mini browser. Customers can browse the sites listed on “DiGiLIVE Zero” without the need to pay data charges. The sites reflect the many different interests of customers to further enrich their mobile internet experience and encourage them to use the browser platform.

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 (Long Term Evolution) 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 LTE mobile 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 mobile network 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 platform and 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 us to significantly reduce our time-to-market in rolling out new products. With improved 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 deeper economies of scale.

2.2 Establish mission and vision

DiGi is committed to building a connected Malaysia by driving access to the internet for all 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 All as part of their commitment to building a connected Malaysia, 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.

DiGi’s Vision

DiGi has a vision of being a company that is always ‘Changing the Game’. They do this by constantly pushing the boundaries, defining new standards, and ensuring continuous improvements in all parts of our business.

DiGi’s Values

Keep Promises

DiGi take ownership for delivering on their goals and responsibilities, and pride themselves on driving quality in everything they do.

Make It Easy

DiGi aim for simplicity in the way they work, and in offering products and services that are easy to understand and easy to use.

Be Respectful

DiGi are open-minded and professional in their conduct, and appreciate differences in cultures, opinions and outlook.

Be Inspiring

DiGi bring passion, energy and creativity into everything they do, and make every effort to constantly drive change and continuous 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. Innovation is one of our greatest advantages to be proud of, they have been always standing in front of the 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 is wider 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 rewards system 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 DiGi

Dependency on Strategic Sharing between mobile producer, application writer and others

DiGi’s dependency on Strategic Sharing between mobile producer, application writer are considered 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 writers and 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

DiGi’s 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 indirectly “give away” potential customers to competitors. Despite the new 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 seldom reaches end users.

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 to other 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 from customer and also will affect the quantity of customers. All of this is proved when there got people saying that DiGi have the worst 3G network 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 DiGi

Higher Standards of Living Among Malaysians

It is an important indication that most Malaysian can afford minimum one mobile and broadband 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 DiGi’s product and services. This means that there will be more and more demand on a high speed connection 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 entrée 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 factor affecting 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 DiGi

High Switching Cost (to other suppliers for DiGi)

High switching costs are important because supplier relationship management can make or even break DiGi’s product and services’ selling 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 and highest quality switch to consumers due to non-existent of information asymmetry.

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 still trailing 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 company

As 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 the world 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 shares off 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 3G which 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 DiGi customers 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 DiGi communication service garnered positive review and feedback on the racetrack, 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 in Malaysia 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 Plan family of bundled services, targeting consumers who prefer a more data-rich package with worry-free plans and value-for-money services for their Smartphones. 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 company

Competitive 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 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 of them 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 their advertisement 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’s advertising agency. Entitled “DiGi Yellow”, and taglined “DiGi’s WIDEST Coverage. “Always with you”, the commercials incorporated an upbeat theme song “I Will Follow You”.

Their recent advertisement which has created a major branding achievement in their industry as it’s 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 and innovation. These services are offered under the DiGi Prepaid brand name. In year 2003, the launch of beyond prepaid, DiGi’s new prepaid mobile service with its intelligent automatic adjusting rates features automatically reduces call rates. Beyond Prepaid comes with a host of innovative features which include automatic international roaming, MMS, faster internet connection via DiGi’s GPRS network, 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 Malaysia’s 1st and only Internet for All awards created with the aim of showcasing the incredible creativity, ingenuity and entrepreneurialism of ordinary Malaysians using the Internet in extraordinary ways. Beside that they also promo some package like DiGi Smart Plan, DiGi Easy Prepaid and DiGi Best Prepaid which save the cost to the user when chat with their family and also buddy.

Recommendation

3.1 Utilizing the identified strengths and opportunities

3.1.1 Strength

Innovation, World Class R&D (Research & Development)

DiGi have a group of top innovative team which can provide the latest technology and ideas to have the best product produced. They can always improve and maximizing the outcome of the team to lead in front of the other competitors.

Affiliation with Telenor, experienced management personnel from overseas

The cooperation of DiGi with the overseas company such as Telenor will bring a great advantage of their coverage area. DiGi will have the widest and better coverage in local and foreign countries without having many issues with coverage problems.

Stable increasing number of subscribers, good rewards system toward them

With the increasing number of subscribers, DiGi has a good privilege to improve their customer networking. By providing the good rewards system, there will be more and more new customers using the service provided by DiGi. Thus, the revenue of DiGi will increase.

3.1.2 Opportunities

Higher Standards of Living among Malaysians

Citizens of Malaysians are now having a high standard life style. Almost everyone has the capability of buying a better product which gives them a better pleasure. Therefore, DiGi has a chance to expand their service are to have more customers.

Rising Telecommunications Penetration and Demand

Peoples now are demanding more and more communication services for their social life. Thus, DiGi must also improve their system in order to catch up the rising telecommunications penetration in order to move towards the success.

High Capital Investment

DiGi have high capital investment to improve their system & technology. They will be the leading company with the better facilities compare to others company if they use the fund to invest more on the technical part. The largest shareholder, Telenor is able to contribute the largest capital.

3.2 Overcome the identified weaknesses and threats

3.2.1 Weaknesses

Dependency on Strategic Sharing between mobile producer, application writer and others

DiGi should stop being highly depended on product development through joint ventures with mobile producer, application writers and others to serve customers better. Being independent of product development will ensure the mobility of the company & assurance on profit gain if everything is done in a good way with the proper management.

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

DiGi should have kept promoting the new plans & 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 good promoting ways, the competitors are unable to control the whole market by it owns.

Lack of base stations as compared to others operator

DiGi is advised to build the base stations by its own to expand the coverage area. By doing this by own, DiGi will have a wide coverage area without other parties assist. Customers will be very satisfied with the wide coverage area all around the country.

3.2.2 Threats

High Switching Cost (to other suppliers for DIGI)

DiGi can respond by keeping a close relationship with their existing suppliers: Ericsson and Trilsilco Folec while being optimistic that there will be a new possible supplier in the future. With the good cooperation between each other, it benefits both parties a lot in the present and also the future.

High Bargaining Power of Consumers

DiGi can offer high quality telecommunication services at competitive prices. With the appropriate prices for the plans and packages, competitor will be hard to compete with DiGi as it provides the best offer. Thus, the consumers will more towards DiGi’s services.

Continuous technology advancement in wired and wireless telecommunications

DiGi can respond by continuous Research and Development (R&D) to prevent going outdated overnight and kept selling price low. With the good R&D going on for DiGi, there is an assurance of staying in front of the market rather than being left out by other competitors.

Conclusion

As one of the largest manufacturer of mobile communication service, DiGi has brought a lot of benefits to Malaysians with their products and services. This is not only because of their promises, but also with the wholehearted to give the best service to their customers. This can be proved in their milestone and history they had made. DiGi has also gained some company recognition and award like CCAM Awards 2009, CIMA Enterprise Governance Awards 2009, My Branded Services Award 2009 and Highest Excellence Award 2011 as a proof of their efforts.

DiGi has made a lot of “First” from the beginning until now. For example, first telco in Malaysia to launch and operate a fully 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 Board under the Infrastructure Project Companies category in 1997, first operator in Malaysia to launch the highly popular prepaid mobile phone service, DiGi Prepaid in 1998, first telco in Malaysia to launch a revolutionary mobile service in line with full deregulation in 2000, first operator in the Asian region to commercially launch General Packet Radio Service (GPRS) services on both prepaid and postpaid platforms in 2002 and many other achievements.

Customers will also become driving force to DiGi to continue their journey. The feedback from the customers has often become the essential factors to make improvement or changes for DiGi. From the feedback, they can see what customers want and need from their services. And from the feedback, they know what they are going to step on in the future.

DiGi never stop their step or conceit with the achievement they already gained. Instead of that, they make a hurried journey without stop to gain a much higher achievement and to benefit more people with their products.