CIMA-SWOT analysis model

The SWOT analysis model will be applied to Dizz’s case.

Strength:

The first strength of Dizz is that the company is a large international mobile phone operator, with operations in 17 countries across Europe, Africa and Asia. The big operating scope can suggest that Dizz’s operation is able to achieve economies of scale, which helps the firm to lower costs as the scale of production increases. In this sense, Dizz is able to provide services at a lower price compared to its competitors. Moreover, big multinationals like Dizz usually have more capital to support its operations. The solid capital base can increase the possibility for the company to survive the globally financial tsunami.

Secondly, Dizz’s service quality is among the best in European countries. Its mobile phone networks cover up to 99.55% of the European population. Despite the company’s old history, Dizz has experienced few operational problems with its transmitters. In the current mobile phone market where competition is fierce and price levels are close, one of the differentiating factors is the overall customer experience. Therefore Dizz’s high quality of service is undoubtedly a advantage over its rivals.

Weakness:

The company’s large operating dimension may as well be a drawback. Because the firm is geographically dispersed, its management is decentralized and wide in scale. In order to response to managerial problems at a more rapid rate, regional headquarters need to be set up. This has inevitably increased the level and width of management, making it harder for the top managers to articulate their thoughts to lower management levels. As a result, the overall management of the whole company may lose effectiveness.

Opportunities

The biggest opportunity that arises for Dizz is the emerging market in Asia. Some Asian countries, for example India, have a huge population up to 1.1 billion, and an estimated percentage of at least 15% of them are mobile phone users. While the potential of the market is immense, the telecommunication infrastructures in those countries are not adequate to provide good quality service to current customers. It is a valuable opportunity for Dizz to enter and expand its operation in Asian countries The company has already obtained the license to operate in an Asian country Yee. The chance emerges for the firm to expand its operations in Asia by taking a lead in entering countries. It is expected that customer growth rate and sales volume is the major contributor to the company’s overall performance.

Threats

The company is also facing many threats from the external market. The most urgent and influential one is the financial tsunami starting from last year. Due to the financial downturn, customers’ purchase power is reduced. International companies with operations worldwide, like Dizz, are more seriously affected since their success partly depends on the widespread geographical dimension.

Another threat is that the company’s European market is now very much saturated and competitive is fierce. The growth rate in European markets is slow and last year’s financial crisis has further hindered the expansion. There is a threat that the European market will shrink in the near future if no further measure is taken to stimulate the home market. As the major market for Dizz, the European market is the company’s cash cow and its profit is crucial to the firm’s five-year plan.