Digi Is A Cost Leadership Company Marketing Essay

October 18, 2017 Marketing

This study was authorised by Henrik Clausen and Ole Martin Gunhidsbu, the both of Chief Executive Officer of DIGI Telecommunication Company, Malaysia in May 1995. The aims of this study is to show the findings of the strategic analysis conducted for DIGI telecommunication company and urge the key schemes that the administration should ship in order to stay competitory. Besides that, the range of this study shall cover the operations of DIGI Telecommunication Company in headquartered in Shah Alam, kuala Lumpur, Malaysia. The restrictions of this study is the uncomplete set of fiscal informations that the squad had entree to and the short continuance for the analysis to be completed.

In telecommunication, the significance of telecommunication service is that any service provided by a telecommunication service. Besides that, it is besides can specify that a specified set of users information transportation capablenesss provided to a group of users by a telecommunication system. In Malaysia telecommunication industry, there are many telecommunication companies such as Maxis, DiGi, Celcom and U-mobile. These telecommunication companies are provided good telecommunication service in our state. In add-on U-mobile is rather new in telecommunication industry.

The background of DiGi Telecommunication Sdn.Bhd

DiGi Telecommunications Sdn.Bhd is known as Mutiara Telecommunications Sdn.Bhd. The company was once known as Mutiara Telecommunications Sdn Bhd and changed its name to Digi Telecommunications Sdn Bhd in January 1999. Digi Telecommunications Sdn Bhd is a nomadic service supplier based in Malaysia. DiGi is a nomadic communicating company that engaged in the constitution, care and proviso of telecommunication and related services. The company was founded on 24 May 1995 and headquartered in Shah Alam, Malaysia. Besides that, DiGi is the first telecommunication industry to launch and run a to the full digital cellular web in Malaysia. So, Digi can be acquiring more market portion on Malaysia to vie with others rivals. Digi has provided a assortment of nomadic communicating services including Voice under their prepaid programs & A ; postpaid programs, SMS, informations programs and services, international roaming, international naming card, WAP services and so on.

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DIGI vision, mission and long term aim

Digi vision is to be seen as stars in first-class client experience by heightening communications to better clients ‘ quality of life, at place, work and drama.[ 1 ]Digi has good statement of their vision. Digi strategians believe that the Vision attracts committedness and excite employees to endeavor for an constituted criterion of expected excellence. Besides that, the mission of Digi is supplying clients specific solutions to run into single demands for communications, connectivity and entree to information and security.[ 2 ]It has provided an environment where our employees can turn and be fulfilled in place. However, Digi has provided superior returns to stockholders and contribute to bettering life in Malaysia. So, this is what a vision and mission set by Digi telecommunication industry. DiGi long term aims is to make long-run stockholder value through supplying advanced, easy-to-use and best value telecommunications services in the Malayan market. Besides that, it has to seek to acquire market portion in Malaysia.

General environment


In demographic in Digi, we found that the population alterations in a state can take to large influence on telecommunication service industry. Harmonizing to the statistic from Central Intelligence Agency ( CIA ) ( 2009 ) , the1.723 % population growing rate of Malaysia in 2009 and 3 % one-year rate[ 3 ]of alteration in urbanisation had lead more people expose to engineering. Besides that, it created higherA telecommunication web coverage in urban country as nomadic phone had become really of import in urban country. The increasing in population and urbanisation in Malaysia had lead to increasing figure of people utilizing telecommunication service. Therefore, telecommunication service suppliers such as Digi will increase their telecommunication web coverage in urban and rural country and supply cheaper services to react the increasing in competition due to the increasing of population.


Economic sector in competitory market of Digi

The execution of authorities policy and promoting competition on telecommunication service industry has caused the industry under an aggressive competitory market. The aggressive competitory market has created a competitory in pricing between the telecommunication service suppliers.[ 4 ]The competitory in pricing between the telecommunication service suppliers has conveying immense benefit to consumer as it will led to take down naming monetary values for consumers and more people will afford to acquire telecommunication services.[ 5 ]In add-on, the clients can acquire cheaper program for the services. Furthermore, the competitory market will caused invention in merchandises and services, hence, more new and advanced merchandises and services will present to the market. In order to vie in the pricing competitory market, telecommunication such as Digi will supply cheaper services and bettering on theirA merchandises and services to react on the competitory market and to derive more market portion in telecommunication sector.

Economic recession

The continuous of economic recession in Malaysia presents is conveying tremendous consequence on telecommunication service industry. This is rather bad state of affairs in Malaysia. Due to the economic recession, the investing to telecommunication service is cut downing and it has lead to diminishing in the demand forA telecommunication services because people income has been affected by the economic recession. Besides that, it may take to increasing in fight between the telecommunication services suppliers because they want to derive the market portion during the economic recession, hence, more inexpensive bundle of services will be introduce to the market to pull more consumer, such as DiGi Friend & A ; Family bundle and Digi campus.

Political/ legal

Mobile figure portability ( MNP ) in Malaya

On 15 October 2008, the execution of Mobile Number Portability ( MNP ) by Malaysia authorities is caused some consequence to the telecommunication service industry. MNP is a service that allows clients to retain their bing telephone figure when exchanging from one Mobile service supplier to another.[ 6 ]Because of the execution of MNP would caused more competition in telecommunication service industry, every telecommunication service supplier competes to pull more user switch to their service and retain their bing clients. Therefore, it will do addition aggressiveness in advertisement and publicity. For illustration, Digi have to take down its monetary value and supply cheaper bundle and attractive advertizement to pull people to exchange to their services. Furthermore, new advanced merchandises and services will be offering to the market as service suppliers seek to distinguish themselves in the market topographic point.

National telecommunication policy ( NTP )

The National Telecommunication Policy ( NTP ) is a policy that formulated by Malaysia Government. This policy formulated is to guarantee that the growing of telecommunication services and its usage of engineering support national development, in line with national aspirations.[ 7 ]It besides promoting fight between the telecommunication services provides in order to accomplish efficiency and to supply first-class and choice service. Besides that, the aim of NTP on telecommunication service is divided into macro and micro aims. In divided to the macro aim, these are to promoting interaction between the races and parts and making an educated and information-rich society through telecommunication services. However, the micro aims are to guarantee that the quality of telecommunication services is at sensible cost, enlargement of telecommunication services to the rural and urban population and encouraging research and development ( R & A ; D ) for more progress engineering in telecommunication sector.

Social cultural

Tendency of life style in societal

Presents in Malaysia, telecommunication services have becomes a necessity for many people as the cell phone has become a necessity for many people. This is really common in society today as one people utilizing many different type of telecommunication service. For illustration, there have Maxis, Digi, Celcom, and U-mobile. That is why a tendency of life style would alter. Besides that, every people are want to acquiring cheaper program for their called. So, the Digi would upgrade their program as good. For test, Digi campus has provided the free call, free samarium, and free cyberspace if the clients can hit the bound in one twenty-four hours.[ 8 ]It created impregnation in telecommunication service market because telecommunication service has becomes a necessity by many people. However, it can pull more the client to utilizing Digi line every bit good. In such concentrated market, the competitory in telecommunication service market will be more aggressive and it may do trouble for telecommunication to accomplish high rate of growing unless they are upgrade they merchandise and services.


Presents, the universe is altering twelvemonth by old ages and more borderless now. Economic openness and turning mutuality between states had spur on addition in motions of people, goods and services. Besides that, Digi has completed 3G licence in market.[ 9 ]It can derive more market portion in telecommunication sector. However, Digi has joint concern enterprises. Digi Company truly hopes that can be spread outing their concern more in future. As planetary citizen exogamy, work in transnational companies ( MNC ) , study abroad or travels for concern and leisure, effectual telecommunication tools for communicating plus cognition seeking, sharing and becomes more indispensable.


Presents, the engineering is widely recognized as a portion of organisation and industry. Besides that, merely the engineering can be give more benefit in the telecommunication sector. Technology significantly improved many industries with their installation and simpleness. It can give assorted installations and convenience to their users. Technology is the most of import facet in telecommunication industry ; engineering is playing a critical function in this industry. It helps the industry to pull more clients with many technological installations. The most recent engineering is 3G and 4G this sort of engineering all released in telecommunication sector.[ 10 ]We besides know as DiGi broadband, which provides users with nomadic cyberspace which able to upload images, ticker picture, and picture conference on their nomadic phone.

Besides that, authorities besides influences the industry in developing the new engineering on telecommunication sector. In order to back up the program of Vision 2020, Malaysia ‘s authorities had issued “ TheNational Telecommunication Policy ” for the 1994-2020 periods. Harmonizing to Pusat Maklumat Rakyat ( 2010 ) states that the policy formulated to guarantee that the growing ofA telecommunications services and its usage of engineering support national development every bit good as national aspirations.[ 11 ]The telecommunications sector in Malaysia is the fastest turning sector and it turning quickly with the innovation of the latest equipment and engineering. A So, The national telecommunications policy provide guidelines for the development of the telecommunications sector in Malaysia as it faces future challenges and back up the attainment of the aims of Vision 2020.

Physical environment

The physical environment of the Digi, we found that more communicating tower or base station to be physiques in future. It is to enable cellular operators to spread out their coverage to 97 % national population by 2011.[ 12 ]This sort of building normally requires land clearance or sometimes built near the residential country doing edginess among citizens. Besides that, the tower will be on-going argument on whether exposure electromagnetic radiation airss risk to wellness. So, it would convey some harmful to the citizens.


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