PROPOSED STRATEGIC PLAN FOR

GLOBE TELECOM

Presented to the Faculty of the

Graduate School of Business Administration Department
De La Salle University-Dasmariñas
Dasmariñas, Cavite

In Partial Fulfilment
of the Requirements for the Degree of
Master in Business Administration,
Major in Supply Chain Management

EDMAR C. ALDAY
March, 2016
 Table of Contents

Executive Summary i

About the Author ii

Acknowledgement iii

CHAPTER
I INTRODUCTION 1

Company Background 1

Core Services: Mobile voice and mobile SMS 2

Mobile data and value added services 2

Content partnership and international services 3

Fixed line voice and fixed line data 4

Independent dealers 6

Globe stores 6

Customer facing unit 7

II RESEARCH DESIGN AND METHODOLOGY 9

Limitation of the study 10

III VISION/MISSION 11

The Globe Telecom Company Profile 11

Vision and Mission 11

 
 
 Company Core Values 12

Mission Statement Evaluation 13

Mission Statement with Proposed Inclusions 14

A Recommended Revised Mission Statement 15

Proposed Vision and Mission Statement 16

IV ENVIRONMENTAL ANALYSIS 17

a. Market Analysis Telecommunication 17

Interconnection 17

The Market Environment of Philippine Telecommunication 18

b. Economic 19

c. Sociological 27

d. Technology 31

e. Political 34

V INDUSTRY AND COMPETITOR ANALYSIS 38

Industry Analysis 38

Inside Global Telecommunication 42

Global Telecom Operator Strategic Priorities 43

Major Player in Philippine Telco Market 44

PLDT-Digitel Merger 48

 
 
 Key Success Factors 49

Competitive Profile Matrix 60

The Five Forces Model of Competition 61

Opportunities 63

Threats 70

EFE Matrix 78

VI COMPANY ANALYSIS 80

Globe Telecom’s Position 80

Globe Telecom’s Product Planning 80

Innovation 83

Globe Stores 86

Globe Telecom Supply Chain 88

Corporate Officers 88

Globe Telecom Table of Organization 90

Product and Market (UAI) Study 90

Brand Image 91

Coverage and Capacity 103

Products and Services that need Significant Improvement 108

Actions Conducted by Globe 108

Globe Telecom Subscriber Base 114

 
 
 Globe Telecom Market Share Wireless Business 115

Globe Telecom Market Share Broadband Business 116

Globe Telecom Market Share Landline Voice 117

Revenue Growth 2014-2015 118

Perceptual Mapping and Positioning 119

Gap Analysis 124

Strengths 126

Weaknesses 131

IFE Matrix 139

VII STRATEGIC (OR LONG TERM) OBJECTIVES 140

Strategic and Financial Objective 140

Globe Telecom Targeted Subscriber Growth rate 141

Globe Telecom Proforma Income Statement 142

Globe Telecom Proforma Balance Sheet 143

VIII STRATEGY FORMULATION 146

Tows Analysis 147

Space Matrix 149

IE Matrix 151

GS Matrix 152

Summary of Matrices 154

Quantitative Strategic Planning Matrix 156

 
 
 QSPM Market Penetration Programs 158

Recommended Business Strategies 162

The Value Chain for Postpaid, Prepaid and Broadband 163

Cross Selling and Upselling 165

Churn Management Initiatives (Project Resurrection) 166

Improvement on Supply Chain 167

School Ibook Cool (Prepaid Push) 169

Group Switchers Promo 170

Sari Sari ng G-Cash 170

Front liners Daily Hero and Customer’s Super Star 171

Recommended Organizational Strategies 172

The Strategy Map 173

IX ACTION PLAN AND DEPARTMENTAL PROGRAMS 175

X STRATEGY EVALUATION/MONITORING AND CONTROL 178

Globe Telecom Balance Scorecard 179

Bibliographies
180

 
 
 EXECUTIVE SUMMARY

Telecommunications industry in the Philippines is well-developed due to the

presence of modern infrastructure facilities. Personal communications and unified

messaging systems are the vanguard of this technological phenomenon. Competition

has accelerated and sought out every nook and cranny of telecom products and

services for both consumers and businesses. Fifteen years ago, consumers were tied to

a fixed phone with its fixed phone number. This time, however mobile and cellular

phones have proliferated to meet the demand for communication anytime, anywhere in

the world.

Companies that have not foreseen change or kept up are quickly consigned to

the technological and financial graveyard. Financial muscle has been displaced by

quality and depth of management and speed of execution as the final arbiter in the

marketplace. Customer service can contribute a lot in maintaining quality subscribers

and can gain more switchers to gain the market leadership.

PLDT/SMART is well positioned to become the market leader in personal

communications and unified messaging. Now that business and consumer have

telecommunications mobility with numerous phone, messaging, email, and internet

access requirement, they are demanding simplicity and speed, one identifier for their

complex business and personal lives that will find them anytime, anywhere, and

 
 
deliver their communications. Telecommunication services in the country are also

affected by the rules and permits of the government creating slow response in

providing better speed and wide coverage of connectivity. Competition with the

leading provider PLDT/Smart and Globe Telecom, has become rampant these past

years claiming they are both leaders in the postpaid market. Both companies provide

almost the same products and services, and their main determinant in capturing a huge

market is the approach in penetration and the quality of service they provide.

This paper aims to help Globe Telecom compete in the fast changing

telecommunication market place. Companies who refuse to learn and improve will

definitely one day become redundant and not relevant to the industry. They will learn

the lesson in a hard and expensive way. To change and improve is giving the

company a second chance. To be forced by competitor to change is like being

discarded.

This paper can help Globe Telecom in reaching out huge telecom subscribers

in the Philippines and will generate substantial amount of revenue year on year for the

total business, starting from 22.94% in 2016, 28.2% in 2017, and 34.29% in 2018.

Increase in sales revenues will give Globe Telecom a net profit of P 20.85 Billion for

the year 2016, P 27.05 Billion for the year 2017, and 36.39 Billion for the year 2018.

This paper identified various market penetration programs to create loyalty and

awareness to existing Globe customers and to encourage competitor’s subscribers to

experience differentiated service from Globe.

 
 
 Using the approaches and the principles of this paper, Globe Telecom can

fulfill its mission in creating the circle of happiness to its customers, employees, and

shareholders.