Telecom, Inc.by : Banzon, Joshua Neil

Reyes, Janny Ann

University of the PhilippinesInstitute of Management

BA 190 - Strategic ManagementProf. Mita Angela M. Dimalanta

THE COMPANY

Globe Telecom, Inc., is one of the leading companies in the Philippines’ telecommunication industry. It is the #1 mobile brand that offers cellular, mobile data and broadband services enriched to cater to customers’ penchant for different multimedia platforms through various mobile devices and screens.

Ernest L. Cu is Globe’s President and Chief Executive Officer (CEO)

Vision and Mission

• VISION We see a Philippines where families' dreams come true, businesses flourish, and the nation is admired.

• MISSION We create wonderful experiences for people to have choices, overcome challenges, and discover new ways to enjoy life.

SWOT Analysis

Internal Environment

STRENGTHSTechnology, wider coverage and profitability

WEAKNESSESWeakness on signal reception, aspects in customer service and late adaption of latest technology

External Environment

OPPORTUNITIESNew acquisitions, mergers, joint ventures or associates, globalization, increasing demand for internet services, and network expansion

THREATSIntense competition, government regulations, and environmental risks

External Factor Evaluation (EFE) Matrix

Total Grade of 2.95 pertains to a relatively excellent external position for Globe Telecom.

Internal Factors Evaluation (IFE) Matrix

Total weighted score of 2.95 pertains to a relatively excellent internal position for Globe Telecom.

Competitive Profile Matrix (CPM)

Globe and PLDT are very tough competitors as their accumulated scores only differ by 0.1 and both companies excel with respect to their performance in the telecommunications industry in the Philippines.

Globe Telecom’s Strategies (Actual and Proposed)

• Globe is improving in all aspects with the strategy that they pursued and implemented. .

• Mr. Gil B. Genio, former Chief Operating Officer (COO) and still Chief Strategy Officer (CSO), as the company’s Chief Technology and Information Officer (CTIO), allows Globe Telecom to respond to dynamic business and market demands. .

• Alberto de Larrazabal, who was Globe’s Chief Finance Officer (CFO), is the new Chief Commercial Officer (CCO) to ensure effective implementation and execution of strategies across all commercial units of Globe Telecom.

• Globe can opt to offer more economic bundles or promos to bring in more customers

Strategic Positioning and Action Evaluation (SPACE) Matrix

• Globe Telecom falls on the Aggressive quadrant which means their strategy can capitalize on their internal capabilities in dealing with their weaknesses, avoiding threats that may hinder success and take advantage of the opportunities that come in the way of Globe Telecom being one of the top companies in the telecommunication industry in the country.

• Some strategies that are best applicable to the company are Market Development, Product Development, Integration and Diversification.

Boston Consulting Group (BCG) Matrix

• Globe Telecom’s Fixed Line division falls under the Question Mark quadrant. Therefore, Globe maintains a relatively low market share position in a high growth sector of the fixed line business. They can either pursue market penetration, market development or product development to improve their fixed line division and attain high market share position, or just sell this division and focus more on their strengths.

• Globe’s wireless division falls under the Stars quadrant. This means that Globe Telecom has a relatively high market share position in this high-growth sector of the telecommunications industry. Globe shall strive to protect this competitive advantage by investing into it. Market development and product development are the most advisable for Globe Telecom to pursue to address some weakness issues that they are facing.

Quantitative Strategic Planning (QSPM) Matrix

• Globe could implement the prevailing strategy of product development which got the highest score among the three options of strategies to be implemented by Globe. This allows the company to capitalize on the strengths and address their weaknesses, and to take advantage of opportunities that they face and dodge the threats

SWOT Matrix

Globe Telecom’s Organizational Chart

Product-Positioning Map

Based on the Product- Positioning Map, Globe is better than PLDT in terms of the quality of customer service while PLDT outshines Globe Telecom in delivering high quality telecommunications services. Although Globe has a larger subscriber base in SMS department, PLDT’s internet services are said to be better than that of Globe’s.

Strategy-Evaluation Report

• Business strategies are driven by Four factors: The Customers, Operations/Processes, Community/Social Responsibility, and Financial. Key strategies that they have implemented, and reason for their existing reign as the leading telecommunication provider, are investments on improving the quality of their key growth areas by improving the speed, capacity and reliability of their core network, improve their customer satisfaction by minimizing corporate hierarchy, increase management visibility and putting clear procedures in dealing with customer issues.

Code of Business Ethics

• Globe Telecom adopted a Code of Conduct and these aspects of their business ethics stands out because they all indicate devotion to the components of their mission and vision. The Whistleblowing is for abiding to laws, and rules and regulations for their customers, Conflict of Interest policy is for their internal environment and their employee’s safety and interest, Related Party Transactions Policy is for their stakeholders and other parties involved in their operations and products.

Focus Location for Globe

• Due to the threat the government once imposed on the competing telecommunication companies, it would be advisable to focus on expanding the reach of their networks in geographic areas in the Philippines where there are no means or signals for any communication or areas where they have spotty or lousy signals. As part of their vision in steering the Philippines to be a digital nation, they need to establish more cell sites and strengthen capabilities of the country’s mobile and wireless networks through different technological and digital advancements in the Philippines before they expand the reach of their services to other countries.