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Matav Strategic

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Matav Strategic
What is Matav’s Strategy? Has it been successful?
Matav restructure into four business area: business services, residential services, Internet and mobile. The mid-term strategic plan of Matav is: expansion in Hungary; regional penetration; organic growth in existing product lines. Business units operate separate management teams, allowing each unit to focus on their areas of enterprise. They develop mobile services to attract customers in order to pick their product over competitors. Also, Matav was keen to expand through the Balkan region and southeastern regions of Europe such as Bulgaria, Romania, Serbia, due to its well performance in getting the controlling interest of MakTel. Their second target is Montenegro Telecom because Montenegro is very small and it is only fixed line operator.

YES, it has been successful.
Matav has registered a gradual growth after the implementation of this strategy. They changed to a customer-oriented company, which offered all telecom service to both individuals and corporations. As the monopoly telecom company in Hungary, Matav had a very high percent market penetration. Also, regional expansion in MackTel received huge revenue and became the biggest employer in Macedonia. Performance measures showed Matav in the Internet area that the number of subscribers growth of over 40 percent in 2 years.

Does Matav have any competitive advantages in its domestic markets?
YES.
Matav’s ownership changed from the government of Hungary to Deutsche Telekom (59.5% controlling interest). Matav moved from an inefficient government agency to an efficient customer-oriented organization. The new shareholder, Deutsche Telekom and Ameritech International, gave experience to Matav both technical expertise and customer service. There were 30 to 40 expats that came from Germany to help with the network development and network reconstruction”. High quality of technology in Eastern Europe made Matav became a monopoly in Hungary with 80 percent of

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