What is Matav’s Strategy? Has it been successful?
Matav, being the Hungarian Telecommunications Powerhouse, had secured their foothold in most of the communications market in Hungary, including business services, residential services, Internet and Mobile. Their parent company Deutsche Telekom wanted them to remain an integrated telecommunications company. Since their objectives were laid out in front of them, they were facing a stagnant fixed mobile market in Hungary with the only scope of expansion being the broadband market. So their primary focus was on competitive response to the core customer base, consolidating financial performance, increasing productivity and expanding the broadband market. The next step that Matav took in implementing their strategy was to split their vast company into smaller business units which could manage their market independently and sufficiently. International expansion was on the cards as well. Belonging to a greater European powerhouse, they had all the man power and resources to help them step in to a new, less visited, European country where the telecommunications prospects were bright. I personally think that there was no other option but to expand their foothold in the rest of Europe and keep the domestic growth ascending with introduction of new technologies. The fixed line business was decreasing as it is and the competition had reached a saturation point. The strategy hasn’t been as successful as late since, the domestic competition has increased, Matav are losing foothold in the fixed and mobile market, contrary to the fact that they still are the number one Telecomm Company in Hungary.
Does Matav have any competitive advantages in its domestic markets?
Matav, off late, has faced a lot of domestic competition because the East European Market has seen a heavy increase in the small telecommunications companies’ bracket. These...