BUS489 - Strategic Analysis & Proposed Strategies for PLDT Inc.

This report provides a comprehensive strategic analysis of Philippine Long Distance Telephone Company (PLDT Inc.), a major telecommunications and digital services provider in the Philippines. The analysis includes a detailed examination of the competitive landscape, highlighting key competitors such as Globe Telecom Inc., Digital Telecommunications Phils., Inc., and Intelsat Corporation, with a focus on their revenue and market strategies. Customer analysis emphasizes the importance of targeting the younger generation due to their high internet usage. The report also assesses the rapid growth of the telecommunications industry in the Philippines. Furthermore, the report proposes two key strategies for PLDT Inc.: implementing a price skimming policy for innovative products and services, and improving the quality and speed of internet services to maintain a competitive edge. The conclusion underscores the need for strategic restructuring to enhance business effectiveness among customers. Desklib offers a variety of solved assignments and study resources for students.

Running head: STRATEGIC BUSINESS
Strategic Business
Name of the Student
Name of the University
Author Note

1CHANGE MANAGEMENT
Introduction:
The paper is focused in the evaluation of a renowned telecommunication and digital
services company in the form of the Philippine Long Distance Telephone Company. The
company is currently situated in the Makati, Philippines (Pldt.com, 2019). The paper is able
to conduct customer analysis, competitor analysis and the market analysis with a precise
focus on the mentioned company. Along with this, the paper proposes two important
strategies for the improvement of the operations and the market penetration for the chosen
company.
Competitive Analysis:
The competitive analysis of the company includes the competitor analysis, market
analysis and the customer analysis.
Competitor analysis:
The telecommunications industry of Philippines is seen to have notable number of
competitors. The organizations such as Digital Telecommunication Phils., Inc., Globe
Telecom Inc. and the Intelsat Corporation are observed to produce notable amount of the
competition to the chosen company. The competition in the industry is pretty evident with the
significant business conduction of mentioned organizations and the generation of notable
amount of profit. One of the major competitors of the chosen organization, Globe Telecom
Inc. was able to generate an amount of 2705 million US dollars as the revenue in the year
2017 (Globe.com.ph, 2019). Along with that, the net income of the organization was
observed to be 605 million US dollars in the same year (Globe.com.ph, 2019). On the other
hand, the Digital Telecommunications Phils., Inc. is seen to generate 595 million US dollar as
the revenue (Digitel.ph, 2019). Along with that, the competitor organization, Intelsat

2CHANGE MANAGEMENT
Corporation was able to generate an amount of 542 million US dollar in the year 2016
(Intelsat.com, 2019).
In comparison to that, the chosen company was observed to generate 3198 million US
dollar as the revenue in the year 2017 along with an operating income of 355 million US
dollar in the same year (Pldt.com, 2019).
All the mentioned organizations are observed to have significantly strong supply
chain and along with that, all the organizations are able to construct such a brand that will be
instrumental in attracting the customers. Hence it is seen that the nature of the competition
among the organizations was concentrated on the pricing strategy.
Customer Analysis:
The mentioned organization is able to produce notable number of digital services to
the customers including internet services, cellular telephony, information technology,
broadcast media and the electricity distribution. The organization is able to employ 17496
numbers of employees in the year 2014 for the various subsidiaries dedicated for the
production of the services to the customers of the company (Pldt.com, 2019). The
considerable number of employees employed for the operations of the organization makes it
pretty clear that the organization is one of the largest telecommunications company in the
country. Along with that, the customer segmentation on the basis of gender is seemed to be
irrelevant in this case as the need of the internet and the other services of the organization
such as the distribution of the electricity or the cellular telephony services are considered to
be significant for the customers of every gender (Labucay, 2014). In addition to this, the
customer segmentation on the basis of the lifestyle is significant as the customers who have
the interest on the digital services and uses the internet will prefer the services of the chosen
organization. The usage of the internet is observed to be significant among the younger

3CHANGE MANAGEMENT
generation in Philippines and that is the major reason for which the company needs to align
their marketing activities with a precise focus on the customers who belongs to the younger
generation and the youth (Labucay, 2014).
Market Analysis:
The telecommunication industry in Philippines is subjected to a rapid growth. The
increment in the generation of the revenue of the market leaders and above mentioned
organizations is significant proof of the rapid growth of the industry. In addition to this, the
value of the industry is notably increasing and that is visible with the statistical elaboration
where it shows that the value of the industry in Philippines in the year 2010 was 243.646
million Philippine pesos and that went up to 262.166 million Philippine pesos in the year
2013 (Statista.com, 2019). Even in the year 2014, the value of the telecommunication
industry is seen to increase as the value in the year 2014 went up to 276.537 million
Philippine pesos and in following year, the value crossed 300 million Philippine pesos and
was recorded to be 311.241 million Philippine pesos (Statista.com, 2019). Hence the market
is able to offer notable amount of opportunities to the organizations of the industry so that
they be able to grow in accordance to their desired growth rate.
Strategies:
Two of the strategies that will be significant for the organization, are the strategy for
the pricing of the services that they offer to the customers and the increment in the speed of
the digital services.
The company is seen to be a renowned name in the telecommunication industry of the
country and that is significant in stating the fact that the company is able to have lucrative
brand that is able to attract the attention of the customers in a notably easy manner. Hence,
the choices of the pricing strategy for the organization has limited need to follow the pricing

4CHANGE MANAGEMENT
for market penetration policy. Rather the company is well placed for the practice of the price
skimming policy and the new innovative products and the services of the organization will be
able to create notable amount of revenue for the organization following this way (Junior,
Youtang & Prestige NLTDA, 2018).
Along with this, the company being one of the notable service provider of the internet
services in the country, is in need to make sure that the quality of the services with a precise
focus on the strength of the signals and the speed of the internet services provided to the
customers, are managed by the company in efficient manner (Thaichon et al., 2014). This will
make sure that the company be able to maintain their reputation in the industry and be able to
obtain the much needed competitive advantage in the market over the competitor
organizations.
Conclusion:
On a concluding note, the company is able to establish their business conduction in
the country in significant manner. However the company is in need to make some necessary
restructuring to increase the effectiveness of their business among the customers.

5CHANGE MANAGEMENT
References:
Digitel.ph (2019). Digital Telecommunication Phils., Inc. (2019). Retrieved from
http://www.digitel.ph/
Globe.com.ph (2019). Create wonderful with Globe. Retrieved from
https://www.globe.com.ph/
Intelsat.com (2019). Intelsat | The Globalized Network. Retrieved from
http://www.intelsat.com/
Junior, N. M. D. S., Youtang, Z., & Prestige NLTDA, B. T. (2018). Pricing Innovation
Strategy Impact for Telecommunication Industry Companies in Congo Brazzaville
Based on Elasticity Analysis. Int J Econ Manag Sci, 7(517), 2.
Labucay, I. D. (2014). Patterns of Internet usage in the Philippines. The internet and the
Google age: Prospects and perils, 27.
Pldt.com (2019). Retrieved from http://www.pldt.com/
Statista.com (2019). Statista - The Statistics Portal for Market Data, Market Research and
Market Studies. Retrieved from https://www.statista.com/
Thaichon, P., Lobo, A., Prentice, C., & Quach, T. N. (2014). The development of service
quality dimensions for internet service providers: retaining customers of different
usage patterns. Journal of Retailing and Consumer Services, 21(6), 1047-1058.