Digi Com Berhad Organization Chart Marketing Essay

DiGi is wholly-owned subsidiary by Telenor Group which is a pioneer in mobile

communicationin 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 to2002, 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 tolaunch MMS. Moreover, in August 2008, DiGi announced Deep
Green and aims to reduce the companys 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.
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 Malaysias 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
DiGiLIVEZero. 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 experienceand 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
TermEvolution) 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 LTEmobile 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.
2.3 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
DiGis 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
DiGis 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 3Gnetwork 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
DiGis product and services. This means that there will be more and more demand on a hi
gh speedconnection 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 entre 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 DiGis 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 3Gwhich 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 race track,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 Planfamily 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 tag lined DiGis 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 its 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, DiGis 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 DiGis GPRS network, call waiting, call divert and multiparty conferencing.
Apart from that, in year 2012 they also promo DiGi WWWOW Internet for all Awards
2012. They are Malaysias 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, DiGiEasy Prepaid and DiGi Best Prepaid which save the
cost to the user when chat with their family and also buddy.