Strategic Analysis of Pldt Draft

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!ATelecommunication Industry
Telecommunications industry deals with the activities and services of electronic systems for transmitting messages through cables, telephone, radio or television. PLDT is the largest and most diversified telecommunications company in the Philippines. * Total service revenue for the global telecom services market for 2012 is $1.7 trillion or 2.4% of global GDP (gross domestic product) in 2012.

PLDT Competitive Position
PLDT is the leading telecommunication company in the Philippines. PLDT’s business segment are PLDT completed the re-organization of its business units designated to serve the segmented individual, home and enterprise markets. Which enables PLDT to maintain a single-minded focus on providing better quality and affordable services tailored to customers whether large corporations or ordinary Filipinos living in remote parts of the country or overseas. PLDT grew subscriber base in all our businesses as a result of both organic growth within PLDT plus the acquisition of Digitel. Customer favorites, like bucket unlimited pricing, are the result of a healthy 3 way competition among telecommunications firms.

As of November 2012 of Together with Digitel's subscribers, PLDT has a subscriber market share of about 65% across all segments. We believe the Digitel acquisition further strengthens PLDT's competitive position in the cellular segment and its growth opportunities in broadband services. PLDT remains the market leader with a subscriber base of about 68.6 million in the wireless market, 2.1 million (including 300,000 of Digitel) in the fixed-line portion, and 3.2 million in the broadband market. In the future, postpaid is an important market to keep an eye on, especially looking at developed countries like the US, where service contracts are standard. Yet as a developing country, much of the Philippines' present is dominated by pay-as-you-go, or prepaid, customers. Postpaid remains a very critical line of business for us. But prepaid is still the lion's share of revenue and profitability. From January to June 2011, the prepaid market made up 67% of Globe's mobile revenues and 82% of PLDT's – the most sizable chunk of the profit pie. Of the over 95 million prepaid subscribers on the two networks, the majority (68.4%) reside with PLDT and just under a third (31.6%) belong to Globe. Globe on the postpaid mobile service dominates with 1.6 million subscribers as of the end of June 2012 while PLDT’s SMART(Mobile Subsidiary of PLDT) has only has a number of subscribers almost half of that of Globe In terms of number of customers, average revenue from each, and total revenue, PLDT has clearly retained its historic hold on the prepaid market.

Competition exists because of Globe Telecom and other small telecom companies. The Philippines Telecoms’ competition is intense as Globe Telecom acquired Bayantel last 2012, a competitor of PLDT which makes the Telecommunication industry almost a duopoly.

PLDT positioned itself ahead of competition as it acquired Digitel However, in early 2012, Digitel and Sun Cellular continued to operate as separate brands within the PLDT group. What was already the most extensive and advanced network in the country has been further super-charged with our access network providing the widest coverage via the expansion of long-term evolution (LTE) sites and a transport network that rides on over 48,000 kilometers of fiber assets with an additional 6,000 kilometers of fiber-to-the-home rolled out.”

the Digitel acquisition further strengthens PLDT’s competitive position in the cellular segment and its growth opportunities in broadband services,” S&P said in a statement.

Figure 1 show PLDT’s SWOT analysis.

Figure 1

Swot analysis
Strength
* Leader in The Philippines
* PLDT has a subscriber market share of about 70 across all segments as of December 2011. * the leading telecommunications provider in the Philippines...
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