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ASSALAMU’ALAIKUM
INFORMATION TECHNOLOGY MANAGEMENT


PORTER’S 5 FORCES ANALYSIS
     CASE STUDY : DiGi
              Disajikan Oleh :


       RAHMAD KURNIAWAN
                P68500
Contents

1. Threat of entry of new competitors
2. Bargaining power of suppliers
3. Bargaining power of customers or
   buyers
4. Threat of substitute products or
   services
5. Competitive rivalry among existing
   firms in the industry



                  2        RAHMAD KURNIAWAN P68500
Porter’s 5 Forces Analysis




   3        RAHMAD KURNIAWAN P68500
Digi Strategic Position




4       RAHMAD KURNIAWAN P68500
About Company

 May, 24th 1995 Founded
 DiGi is a leading mobile communications
  company providing a comprehensive range
  of affordable, convenient and easy to use
  wireless services to simplify and enrich the
  lives of its customers.
 Mission:
  DiGi is driven to engage you, and we are
  here to be a part of your lives. Whoever you
  are, wherever you go and whatever your
  needs may be, we’re here for you!


                     5          RAHMAD KURNIAWAN P68500
Products And Figures

 CallerTunes™
 DiGi Internet™
 DiGi Business
 DiGiLIVE
 Developer Network
 DiGi Games
 DiGi Insurance
 International Services
 Competitor:Telekom Malaysia, Maxis
  Communications, Celcom, U Mobile, so on


                    6          RAHMAD KURNIAWAN P68500
Cont...
                                    New Entrants
                                                 Threat of new entrants

Bargaining power of the suppliers



                                       Existing
    Supplier                        rivalry in the                           Customer
                                       industry
                                                         Bargaining power of buyers




       Substitute products & services




                                        Substitutes

                                          7                 RAHMAD KURNIAWAN P68500
Threat of entry of new competitors

 Seeing provider competition in Malaysia at the moment, it
  is difficult to a new telecommunications provider to
  compete with the telecommunications provider that has
  long existed beforehand and already have many customers
  who use it.
 The biggest challenge is to find a new provider of
  telecommunications market in accordance with the
  company's target market and looking for new customers to
  use their provider.
 In addition to the new provider also has other challenges
  that such price competition between providers in Malaysia
  are tight. It made the newcomer provider must continue to
  innovate in the development, diversification of its products
  and strengthen its brand name. Under these conditions the
  above opportunity provider newcomers to enter the still
  low.


                             8             RAHMAD KURNIAWAN P68500
Cost Comparison of Broadband Internet Service in
                            Malaysia Year 2011




                   9          RAHMAD KURNIAWAN P68500
Bargaining power of suppliers

 Digi has been working with most popular diveces such
  as iPhone 5, Samsung GALAXY Note II, Samsung
  GALAXY SIII, Nokia Lumia 920, Nexus 4 by LG, iPad
  mini and so on.
 DiGi and mobile content provider WhatsApp have
  teamed up in October 2012 to offer unlimited access to
  WhatsApp Messenger services. The package will allow
  customers to connect with family and friends through
  messaging, location-based functions and sharing
  photos, videos, sound files and contact lists.
 DiGi added 10 new roaming outlets to its portfolio of
  networks in August 2012. The operator added
  Macau, Pakistan, Bangladesh, New
  Zealand, Poland, Slovakia, Hungary, Serbia, Spain and
  Brazil to its current list of networks. The operator's
  TravelSure Unlimited Roaming service will allow
  subscribers to access services with internet roaming
  rates in more than 40 countries.
                              10           RAHMAD KURNIAWAN P68500
Bargaining power of customers or buyers

 Consumers may reduce spending on computers
  and mobile if they fear economic downturns
  (Consumer Attitudes & Behaviors)
 Consumers have the opportunity or strength to
  use a variety of existing telecommunications
  provider in Malaysia. Today's consumer is faced
  by a number of attractive offers such features
  and rates given provider in Malaysia.
  Therefore, to attract and retain customers, DiGi
  continues to deliver offerings that attract
  customers.
 Various DiGi promotion can be seen in:
  http://www.digi.com.my/whatshot_v3/land
  ng.do
                       11          RAHMAD KURNIAWAN P68500
Threat of substitute products or services
 Some providers are there in Malaysia have similar
  replacement product such as Celcom, Maxis, Telekom
  Malaysia and each competitor has an attractive offer
  consumers if the network is now less than satisfactory.
 Other provider opportunities to replace DiGi as a
  provider of telecommunications networks still exist, but
  the closest competitor u mobile and YES are superior in
  terms of price competitive on broadband service, so this
  is a threat in terms of tariff competition.
 And YES is the brand name of YTL Corporation's foray
  into the telecommunications industry in Malaysia. YES
  promises to be the fastest 4G internet with voice and is
  set for commercial launch on the 19th of November
  2010. YES claims to have speeds of 3 to 5 times faster
  than current 3G networks.



                          12            RAHMAD KURNIAWAN P68500
Competitive rivalry among existing firms
                         in the industry




Market leader: Celcom


                 13       RAHMAD KURNIAWAN P68500
Industry Trends - Mobile ARPU(MYR) 2010-2017




                14         RAHMAD KURNIAWAN P68500
Cont..




Wireless Market Leader: Maxis


                 15      RAHMAD KURNIAWAN P68500
Overall Analysis

Telecomunication sector is one of the
 fastest growing sectors. This is due to
 strong competition that has brought
 down tariffs and simplification of
 policy environment that has promoted
 healthy competition amongst various
 players
DiGi has many competitors like
 Telekom Malaysia, Celcom, Maxis and
 some entrants like u mobile, YES and
 so on.
                  16       RAHMAD KURNIAWAN P68500
References

www.businessmonitor.com
http://www.digi.com.my/whatshot_v
 3/landing.do
http://www.digi.com.my
http://en.wikipedia.org/wiki/Yes_4G
http://joshuaongys.com/2011/07/co
 st-comparison-broadband-internet-
 service-malaysia-2011-soyacincau/



                17       RAHMAD KURNIAWAN P68500
Thank you




18   RAHMAD KURNIAWAN P68500

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Rahmad kurniawan, p68500, (task 5)

  • 1. ASSALAMU’ALAIKUM INFORMATION TECHNOLOGY MANAGEMENT PORTER’S 5 FORCES ANALYSIS CASE STUDY : DiGi Disajikan Oleh : RAHMAD KURNIAWAN P68500
  • 2. Contents 1. Threat of entry of new competitors 2. Bargaining power of suppliers 3. Bargaining power of customers or buyers 4. Threat of substitute products or services 5. Competitive rivalry among existing firms in the industry 2 RAHMAD KURNIAWAN P68500
  • 3. Porter’s 5 Forces Analysis 3 RAHMAD KURNIAWAN P68500
  • 4. Digi Strategic Position 4 RAHMAD KURNIAWAN P68500
  • 5. About Company  May, 24th 1995 Founded  DiGi is a leading mobile communications company providing a comprehensive range of affordable, convenient and easy to use wireless services to simplify and enrich the lives of its customers.  Mission: DiGi is driven to engage you, and we are here to be a part of your lives. Whoever you are, wherever you go and whatever your needs may be, we’re here for you! 5 RAHMAD KURNIAWAN P68500
  • 6. Products And Figures  CallerTunes™  DiGi Internet™  DiGi Business  DiGiLIVE  Developer Network  DiGi Games  DiGi Insurance  International Services  Competitor:Telekom Malaysia, Maxis Communications, Celcom, U Mobile, so on 6 RAHMAD KURNIAWAN P68500
  • 7. Cont... New Entrants Threat of new entrants Bargaining power of the suppliers Existing Supplier rivalry in the Customer industry Bargaining power of buyers Substitute products & services Substitutes 7 RAHMAD KURNIAWAN P68500
  • 8. Threat of entry of new competitors  Seeing provider competition in Malaysia at the moment, it is difficult to a new telecommunications provider to compete with the telecommunications provider that has long existed beforehand and already have many customers who use it.  The biggest challenge is to find a new provider of telecommunications market in accordance with the company's target market and looking for new customers to use their provider.  In addition to the new provider also has other challenges that such price competition between providers in Malaysia are tight. It made the newcomer provider must continue to innovate in the development, diversification of its products and strengthen its brand name. Under these conditions the above opportunity provider newcomers to enter the still low. 8 RAHMAD KURNIAWAN P68500
  • 9. Cost Comparison of Broadband Internet Service in Malaysia Year 2011 9 RAHMAD KURNIAWAN P68500
  • 10. Bargaining power of suppliers  Digi has been working with most popular diveces such as iPhone 5, Samsung GALAXY Note II, Samsung GALAXY SIII, Nokia Lumia 920, Nexus 4 by LG, iPad mini and so on.  DiGi and mobile content provider WhatsApp have teamed up in October 2012 to offer unlimited access to WhatsApp Messenger services. The package will allow customers to connect with family and friends through messaging, location-based functions and sharing photos, videos, sound files and contact lists.  DiGi added 10 new roaming outlets to its portfolio of networks in August 2012. The operator added Macau, Pakistan, Bangladesh, New Zealand, Poland, Slovakia, Hungary, Serbia, Spain and Brazil to its current list of networks. The operator's TravelSure Unlimited Roaming service will allow subscribers to access services with internet roaming rates in more than 40 countries. 10 RAHMAD KURNIAWAN P68500
  • 11. Bargaining power of customers or buyers  Consumers may reduce spending on computers and mobile if they fear economic downturns (Consumer Attitudes & Behaviors)  Consumers have the opportunity or strength to use a variety of existing telecommunications provider in Malaysia. Today's consumer is faced by a number of attractive offers such features and rates given provider in Malaysia. Therefore, to attract and retain customers, DiGi continues to deliver offerings that attract customers.  Various DiGi promotion can be seen in: http://www.digi.com.my/whatshot_v3/land ng.do 11 RAHMAD KURNIAWAN P68500
  • 12. Threat of substitute products or services  Some providers are there in Malaysia have similar replacement product such as Celcom, Maxis, Telekom Malaysia and each competitor has an attractive offer consumers if the network is now less than satisfactory.  Other provider opportunities to replace DiGi as a provider of telecommunications networks still exist, but the closest competitor u mobile and YES are superior in terms of price competitive on broadband service, so this is a threat in terms of tariff competition.  And YES is the brand name of YTL Corporation's foray into the telecommunications industry in Malaysia. YES promises to be the fastest 4G internet with voice and is set for commercial launch on the 19th of November 2010. YES claims to have speeds of 3 to 5 times faster than current 3G networks. 12 RAHMAD KURNIAWAN P68500
  • 13. Competitive rivalry among existing firms in the industry Market leader: Celcom 13 RAHMAD KURNIAWAN P68500
  • 14. Industry Trends - Mobile ARPU(MYR) 2010-2017 14 RAHMAD KURNIAWAN P68500
  • 15. Cont.. Wireless Market Leader: Maxis 15 RAHMAD KURNIAWAN P68500
  • 16. Overall Analysis Telecomunication sector is one of the fastest growing sectors. This is due to strong competition that has brought down tariffs and simplification of policy environment that has promoted healthy competition amongst various players DiGi has many competitors like Telekom Malaysia, Celcom, Maxis and some entrants like u mobile, YES and so on. 16 RAHMAD KURNIAWAN P68500
  • 18. Thank you 18 RAHMAD KURNIAWAN P68500