Understanding
the Current SWOT Analysis of DiGi
DiGi.Com
Berhad (DiGi) is an investment holding company. The company is engaged in
providing mobile telecommunications services. The company operates through its
two subsidiaries, namely, DiGi Telecommunications Sdn. Bhd. and Pay By Mobile
Sdn. Bhd.
The
company provides voice and data services under the brand names DiGi prepaid,
DiGi postpaid, horizon postpaid, and beyond prepaid. DiGi’s service offerings
include messaging, wireless application protocol (WAP) and content provider
access. It also provides international services such as international direct
dialing (IDD), international messaging, international roaming, and a prepaid
IDD/STD calling card - chatz. Its voice and data services are offered through
DiGi dealers, DiGi centers, and DiGi service counters across Malaysia. DiGi is
headquartered in Selangor, Malaysia.
This
comprehensive SWOT profile of DiGi.Com Berhad provides you an in-depth
strategic SWOT analysis of the company’s businesses and operations. The profile
has been compiled by Global Data to bring to you a clear and an unbiased view
of the company’s key strengths and weaknesses and the potential opportunities
and threats.
STRENGTHS
Faster, cheaper and easier browsing
experience for non-smartphone users with DiGi co-brands Opera Mini to drive
higher mobile Internet penetration.
DiGi
Telecommunications Sdn Bhd (“DiGi”) is driving higher mobile Internet
penetration by partnering with the world’s leading web browser developer, Opera
Software, to become the first Malaysian mobile operator to co-brand Opera Mini.
The non-smartphone users among DiGi customers will enjoy the full mobile
Internet experience at a faster and cheaper rate through the DiGi-Opera Mini
browser, which was launched yesterday.
The
advantages of the public version of the Opera Mini browser still apply to the
DiGi-Opera Mini version. Its compression technology of up to 90% creates a
faster surfing experience, including for those who own EDGE-enabled mobile
phones. DiGi customers will enjoy much faster browsing speed than other native
mobile phone browsers. By using the DiGi co-branded Opera Mini browser,
customers are free from mobile Internet charges when surfing DiGi sites,
generating substantial cost savings for the total browsing experience compared
to using other browsing platforms.n conjunction with the launch of the
DiGi-Opera Mini browser, there will be no mobile Internet charges when
customers download the DiGi-Opera Mini browser directly to their phones from
m.opera.com from March 23 – May 31, 2011. To sweeten the campaign, DiGi prepaid
customers will stand a chance to grab a FREE 1MB if they download the
application during the campaign period.
Retain Mobile Phone Number
Introduction
should be made first about mobile number portability since I assume at least
60% of us still need to be enlightened. This so-called implementation is not
something new in the UK and some other countries. It is an opportunity given to
any mobile phone user to opt to switch to other server or carrier without
losing his or her current mobile phone number. For instance, if you are now
using Maxis Hotlink with 017 prefix numbers, you have the chance to switch to
another carrier such as DiGi and as you all know that DiGi’s prefix are 016,
you can still retain your mobile phone 017 number though the ownership of the
service now belongs to DiGi.
Money Saving
Switching
to DiGi is a breeze and once you have installed your DiGi SIM card into your
mobile phones, you should start to realize that you will actually save more of
your money when you use DiGi. Yes this is true since you can enjoy more savings
of your calls usage as well as SMS without any conditions since DiGi has kindly
offered the service to everyone. Either you choose prepaid mobile phone plan or
standard contract-based mobile phone plan, you will still save more than other
mobile phone service providers.
With
DiGi you will enjoy the lowest flat rates for all calls nationwide. The rate is
also cheaper when you use SMS or Multimedia Messaging Service (MMS). The best
part is the rate is also applicable when you call someone that is using other
networks such as Maxis Hotlink or Celcom Malaysia. If I choose to switch, then
in my humble opinion this is going to make me easier to communicate with anyone
on any network.
Another
good thing about switching to DiGi is their transparent policy on their fees.
No hidden fees are charged without our consent. Speaking about this, I think
this is almost true for some people that are using contract-based plans with
other networks. they were always charged ridiculously without them even knowing
about why they were charged. I’m not sure why this is possible and if I may put
my two cents in, only here, in our country, that companies can get away with
scam like this.
Customer Friendly
In
fact, you can always switch your mobile phone plan online without having to
queue at the counters and waiting for your turn to be called. This convenience
service is currently being offered by yellow DiGi that claimed that they will
deliver the SIM package to our home address if we choose to switch to DiGi
online.
DiGi’s
famous value-added service is its Friends and Family. When you activate this
service from DiGi you will have more time to communicate to your close friends
and families. The call rates are even lower with this value-added service and
eventually this would lead to more healthy and quality communication with your
BFF or your family. Mind you though that this wonderful feature from DiGi
however is only applicable if both numbers subscribe to DiGi. It does not
matter if your number is 017 and your girlfriend’s number is 018 as long as
both have been switched to DiGi
DiGi
Malaysia may not be the major player in mobile phone service industry here in
Malaysia but in terms of continuous exceptional services, they should be voted
as the best one. DiGi has always been the innovative market leader with
introductions of flat call rates not just to within the network but also to all
other networks. The yellow guy you always see in TV as well as in papers are
actually symbolizing the uniqueness of DiGi and how it always strive to serve
its customers better.
Anything
and everything you spend with DiGi is always rewarded such as monthly
surprises, birthday bonuses and even free insurance coverage. Those are just
some of them and there are still other surprises and rewards that you will
receive when you switch to Digi online.
DiGi’s
customer care center can always be called and their representatives are more than
capable to assist you with your issues. Furthermore, DiGi has also introduced a
chat service where you can have a chat online with its customer service
representatives anytime of the day, seven days a week. Again, it’s free.
Anyone
in this world would be much happier if we were given a chance to be in control
of anything. Well, DiGi realized this nature and therefore they are giving us
full control of what we spend and how we spend at all times when we switch to DiGi.
For example, you may pick your own preferences when it comes to bill statement
date or maybe you opt to get immediate usage updates through e-billing (yes
they have this service). With DiGi, you can also enjoy free automatic credit
alerts so you know exactly how much credit balance you still have in your
mobile phone. Even the grace period is quite generous compared to other
network’s plans and you can always keep your mobile phone plan active with
automatic bill payments.
‘I
will follow you….everywhere you go…’ a line of the song that we hear it almost
everyday everywhere. DiGi strives hard to ensure it can provide better service
for its clients. There are currently eight thousands DiGi outlets nationwide to
serve its clients. The reception has also improved from time to time in other
words you can now count on DiGi’s widest data coverage in the country. No
worries if you always travel abroad as DiGi has international roaming coverage
in over one hundred and sixty countries around the world and they are planning
to add more.
Post-Paid Mobile Phone Plan
Benefits
In
short, DiGi is making things easier for us every day if we choose to switch to
any of DiGi plans online. Let’s go deeper now into DiGi’s mobile phone plans. DiGi
is offering both prepaid mobile phone service plans as well as the standard
post-paid plans. Several packages available in each of the plans and we will
take some time to ramble more about it in our future post. For now, let us
check out the Digi post-paid mobile phone plan benefits and advantages.
DiGi’s
post-paid plans offer you the simplest price plans and each one of them has
been designed to suit your needs. All of the plans in DiGi’s post-paid mobile
phone service share the same unbeatable service; flat call rates nationwide.
When
it comes to switching the mobile phone service provider and still retain the
mobile phone number, DiGi could be the easiest one to sign-up with. Well first
of all you can register and get your mobile phone plan to be switched online
and then just for your information, DiGi does not charge you any deposits or
up-front payments when you switch to their services, without incurring any
cost. In other words, DiGi is absorbing the fees at this moment and that is
actually a relief for many people.
DiGi
has been promoting its 1 low flat rate of 36 cents for calls nationwide for
quite some time. Furthermore, just like Maxis Hotlink prepaid mobile phone plan
or Celcom Blue prepaid mobile phone plan, DiGi’s prepaid plan also has the
value-added service where you can register up to eleven DiGi’s numbers to enjoy
lowest call rates and SMS rates whenever you call these eleven numbers.
One
special promotion from DiGi when you switch from your prepaid mobile phone plan
to DiGi prepaid mobile plan. You may enjoy free one year validity as well as
the flat rate for calls will be activated immediately with zero conditions.
There are three different options when you choose DiGi prepaid mobile plan; DiGi
Super FnF, DiGi Super SMS and also DiGi Super Talk. You can easily switch
between all these plans anytime and you may also enjoy free activation.
OPPORTUNITY
With
the strength that DiGi had in their businesses and products, they can create a
lot of opportunity from the existing strength by improving their weaknesses.
Since their focus on future growth is to increase growth opportunities by
bringing the internet to the people. They have taken the leadership positions
through series of innovative value propositions, simplicity and excellent
execution in telecommunication businesses.
This
year, DiGi is focusing more on giving value to their customer by offering DiGi
360 degree, and selecting the most appropriate cutting edge technology so that
their customer will be benefitted from products and services that giving them
choices, convenience, and control.
Taking leadership position, DiGi will exploit any new or incoming
technology that they can to maintain their position as a market leader.
Therefore, in year 2009 DiGi have created new strategy in which they are
collaborating or joint venture with Telenor, a biggest phone company in Norway
to launch third generation and mobile broadband in Malaysia. As this services
have been widely used in other country in the world by Telenor, via DiGi,
Malaysia will be one of the country that will use the third generation and
mobile broadband in Malaysia leading other telecommunication services. Even
though 3G have been widely used in Malaysia, using it in mobile broadband is
something fresh in which phone users can only use their phone to be online.
Besides
focusing on 3G and mobile broadband, DiGi also find their ways to keep their
company growth by appointing their Head of Service Operations, Technology
Division, Ole Martin Gunhildsbu to the higher position which is Chief
Technology Officer. Since Ole have past experience in 15 years of extensive
experience in various Technology Management positions within both fixed and
mobile business in Telenor.
The
telcos aggressive market promotions and keen competition had successfully
reduce prices in telecommunication products and services (drop 0.4% in 2nd
Quarter of 2010) but telcos kept reiterates that they are keen to avoid price
war. Other expected development in 2010 (dub the broadband year for Malaysia)
will be plenty of new devices and packages flooding the market place, and the
possibility of fixed broadband players stealing some market share from wireless
players. For example, Telekom is expected to deliver its HSBB in some areas
even if it is for trials (launch “UniFi” on 24th March with free
trial until 30th June2010).Then, Maxis re-enter the fixed broadband
market in a way that surprise many.
Also,
in September 2010, there is flying industry rumors that the Malaysian
government will award4G/LTE spectrum to telcos instead of the through bidding
process. The award will puts Malaysia ahead of many countries that are still
grappling with their 3G spectrum awards. LTE is said to be the natural
migration path from 3G and do complement WiMax technologies in many ways. Both
Maxis (with Huawei) and Celcom (with Huawei and Ericsson) are already move
ahead by undertaking trials to test this 4G/LTE technologies to see how they
can deploy richer offerings for their users.
Further,
in October 2010, rumors had it that Celcom will bring in iPhone 4s to Malaysia.
It is unknown whether a contract has been signed. However, it would not be easy
for Celcom to get iPhone4s stocks from Apple. Even right now, Maxis and DiGi
does not seem to be satisfied with the current iPhone 4 stocks that they have. Yet,
in conclusion, high exits barriers of this industry due to the high investment
budget and responsibility towards customer making will make companies strive to
survive. Technology advanced also leads to fast industry growth and
opportunities, thus, ignite further competition.
Bargaining Powers of Suppliers
Generally,
the telecommunications industry in Malaysia is dependent on imports for
majority of itsnetwork components as most of the equipment cannot be sourced
locally resulting in high bargainingpowers of suppliers. The factors
contributing to these are recognized:
Limited (Big Boy) Suppliers
DiGi
networks utilize standard GSM equipment which is available from a limited
number of suppliers. Previously, most of the GSM equipment for DiGi' mobile network
operations are purchased from large international companies size increases
supplier power namely Motorola, Siemens, Ericsson and Trisilco Folec, and DiGi
maintains close working relationships with its key network equipment suppliers.
As there are relatively very few suppliers in this market, DiGi have limited
choices. Since Siemens is now a sub-contractor of Motorola for network
switching systems, DiGi left with only 2 main suppliers: Ericsson and Trilsilco
Folec. Thus, the bargaining power of those suppliers becomes stronger.
High Switching Cost
As
DiGi cannot manufacture in-house, the other viable option 3rd party manufacturing
contracts may post complexity with terms covering cost, quality, and use of
intellectual property; and switching between contract manufacturers may
therefore be a more costly process. In addition, such a supply structure
usually means lower control on the delivery schedules and may cause component
shortages due to manufacturing process issues. Any persistent shortages in
supplies due to capacity issues or manufacturing process issues would increase
the price of manufactured products. If a company is not able to source required
components in adequate quantities, this would affect its business operations
and margins. In the future, DiGi believes that comparable equipment and support
will be available from other established suppliers.
Bargaining Powers of Customers
Information
technology increase the bargaining power of buyer and high availability of
information makes it easier for customers to evaluate sources of materials
about telecommunication. There are many alternatives product such as fax, email,
and internet which enhance the bargaining power of buyer to the mobile service
provider. Customer also becomes more demanding of high speed broadband (which
is less costly but yields wider coverage) and after sale service, creating a
relatively high competitive industry. As consequences, the intense rivalry
among mobile and broadband service providers only benefit the consumers who can
enjoy lower price broadband and mobile services, and eventually making them
more powerful hence, low switching cost.
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