This assignment is about DIGI Telecommunications Sdn. Bhd. (DIGI) company’s strategic analysis of its daily operations. Segmenting, targeting and positioning will clearly show that how DIGI company segments its customers to different types of segments, then they targets those market that will provide profits to the company than lastly positioning them. Then SWOT analysis will provide clear details information about the company’s main strengths and exploit them through opportunities, then understand the company weakness to avoid incoming threats to the company. Just to survive within the competitive market, DIGI should also learn competitors marketing strategy as well so that they can counterattack them just like chess strategy.
A situational analysis is where the DIGI Telecommunication Sdn. Bhd. (DIGI) provides the operation of searching an important factor to accommodate the external contingency and internal capability. Then a choice should be decided to overcome all weaknesses and threats along with maximizing the company’s strengths and business opportunity.
SEGMENTATION TARGETING & POSITIONING (STP)
In order to survive running a business, it is crucial for DIGI to know their market segmentation, targeting and positioning so that DIGI can target their customer accurately and efficiently. After segmentation, targeting and positioning, management will then uses the most appropriate strategies to achieve the company’s goal even faster.
At this stage, DIGI will have to differentiate their customer into different segments based on their common need or their response to marketing action taken by DIGI.
Each of these response will them decide which strategy mix will be used by the company.
There are a few ways to differentiate market segments, like demographic, psychographic, behavioral and geographical location. For DIGI, is best to use either psychographic and geographical location segmentation. In psychographic segmentation, customers will then based on the social lifestyle like their daily lifestyle, social class and individual attitudes. DIGI in this section can differentiate customer to high income or lower income customer. In geographical segmentation, customer will then based on their behavior like prior purchases and brand preference. In this section, DIGI may provide phone packages along with well-known brand hand phone like Samsung, Apple and Sony.
After segmenting customer into different groups, DIGI now will have to choose their targets. There is no strategy suits all kinds of segments, so in order to be effective and efficient, development of the correct strategies is very crucial. There are three general strategies for target marketing and they are undifferentiated targeting, concentrated targeting and multi-segment targeting.
In this situation, the appropriate targeting for DIGI to be used is multi-segment targeting. In this target is being used because DIGI has to focus more than two segments and for each of the segments, different strategies must be applied. In this targeting, there are many benefits, but it also quite costly, as it needs more efforts from management, market research and also new promotional strategies to attract more customers.
In this stage, positioning is where DIGI will have to develop a product and provide brand image into the minds of the customers. It also involves advancing customer’s perception to know what does customers experience. DIGI always reminds their customers that choosing DIGI is the smartest choice. DIGI is also well known for yellow man and the logo sign is yellow. To show the unique of DIGI, even the store is painted yellow and it really strikes out the customers view.
An effective positioning includes a deep understanding of the competitors’ products as well. DIGI should differentiate their advantages to excel among the competitors.
DIFFERENTIAL ADVANTAGES/WEAKNESSES (SWOT ANALYSIS)
SWOT analysis is where helps DIGI to understand their strengths and weaknesses, find business opportunities and prevent those upcoming threats. A successful SWOT analysis helps DIGI to seek opportunities and then accomplish them, knowing company’s weakness and then manage them nicely can avoid any up coming threats. SWOT analysis for DIGI is as below:
DIGI always remind their customers that choosing DIGI is always the smartest choice. DIGI always provide smart plans based on customer affordability. Whenever a new electronic device launched into the market, just to catch up with the digital era, new packages will be introduce. Just like when LTE has been introduced to the world, not long then DIGI introduce LTE package to customers. DIGI also has its own customer loyalty. As nowadays, teenagers or even fresh graduate will choose DIGI for its reasonable and affordable rate along with DIGI rarely network failure happens compare to other network communications company.
DIGI telecommunication actually doesn’t have its own satellite yet they still need to rely MAXIS for renting satellite. It would be more appropriate that DIGI can afford a satellite on its own. Their customer service should be enhance as networking tool its important nowadays, it will cost losses for the businessman who all of the sudden lost contact from the vendor or customers. This will unfortunately causes law cases to the company as the customer will then sue DIGI for network failure causes him all his losses. The customer service staff needs lots of training as well as their have to face many anger customers that have problems with their phone network. It will always be good that DIGI coverage covers more rural areas because they’re its still places where DIGI coverage will not able to covered.
In the network company, due to the enhancing of electronic gadgets, more and more opportunities will automatically come towards DIGI. Once a hand phone gadget like Apple or Samsung launched a new series of smartphones, DIGI will promote along phone packages with the purchase of the hand phone. It wills attracts lots of people who have not owned a hand phone as it includes everything. DIGI telecommunications also provides usage until overseas and they also provide some reasonable overseas rate. Other hand phone supplies will also come to them for cooperation to promote their new series of electronic devices along with providing DIGI telecommunications business opportunities’. On the other hand, DIGI also provides broadband as well and it provides conveniences for businessman to uses DIGI broadband anywhere for their electronic portable computer or even provide Internet line using phone coverage to provide 3G for electronic tablets.
Malaysia has an intense of competition within Telecommunications Company. Many newly entered Telecommunications Company tries to fight for s status within the market but unfortunately fail and ended up bankruptcy. They are MAXIS, DIGI, CELCOM and UMOBILE Telecommunications Company that manage to fight for years within Malaysia and managed to survive. DIGI also frequents faces imitations. When a brand new service or products is launched, a similar service packages will also be provided to the customer from the competitors.
Everyone wants to grab these business opportunities but ended up provide chance for the customer to compare which telecommunication company provides the most reasonable and yet more services for them to enjoy. Because its digital era, all those gadgets staff will obsolete quickly so the market demand its actually very seasonal. When some new stuff is newly introduced, many people wants to get their hand into it, but after a period of time, customer will then gain no more interest in purchasing or even introducing to other people anymore.
RECOMMENDED OBJECTIVES AND GOALS
In order to achieve the objective, it is crucial for the company to find funds for the company operations. DIGI has to get a strong stand in Malaysia/s market share in order to achieve long term business operation. DIGI has to try to improve their telecommunications skills to provide a better quality of life for the customers and also to improve their ways of living to more digital. DIGI already has its vision of its own that an Excellency of service providing will lead to committed and energetic employees that makes the whole company running fluently.
DIGI’s mission is to satisfy customer’s individual needs of requirement for their own communication, connectivity and also their Internet access. The company also successfully bonds its staff together can they grew within a healthy environment and each of them fulfills their duties tremendously. DIGI also provide appropriate returns to their shareholders and they have played am important in improving Malaysian’s lifestyle by providing up to date telecommunications services. In the long term, DIGI will try their best to increase share values by giving innovations and best telecommunication services to the Malaysian’s market.
RECOMMENDED MARKETING STRATEGIES AND PROGRAMS
DIGI telecommunication competitors are MAXIS telecommunication. In order to be successfully within a market, it is also important to study competitors marketing strategy as well. DIGI has successfully established Excellency, so DIGI will continue to make things simple so that they can understand their customers truly. They also can try to balance the cost optimization exercise just to meet higher levels of customer satisfaction. Because this is digital era, it is also important to continue improve the system by relooked at all of the business process and activities that already have been done and try to improve them by making them much more efficient.
In conclusion, the best and appropriate strategy for DIGI Telecommunications is product development strategy. This is because that developing new and improved products in the future or even modifying existing product and services can make them more outstanding appearances compared to the competitors. With the up to date service network provider, DIGI can continue operates smoothly by providing excellent service to the customers. This plays an important role in the long term for DIGI. Unfortunately it will still remain highly competitive due to technology advancement and competitor’s spirit, as long as DIGI keep developing and modifying, DIGI products and services will attract more and more subscriber’s customers. The point is the most important for the global consumer as the usage of mobile network is extremely important in daily life nowadays.
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