Strategic Management Analysis of GO Plc

This assignment requires a comprehensive analysis of GO Plc's strategic management using various frameworks and models. Students must apply Porter's Five Forces to assess industry competition, conduct a PESTLE analysis to identify external environmental factors, and employ SWOT analysis to evaluate the company's internal strengths, weaknesses, opportunities, and threats. The analysis should be supported by a case study of GO Plc, drawing on relevant theories and concepts from strategic management literature. Finally, students are expected to provide recommendations for improving GO Plc's strategic positioning.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic directions followed by the company.......................................................................1
TASK 2............................................................................................................................................2
Detailed analysis of telecommunication Industry..................................................................2
PESTLE Analysis (External environmental) .........................................................................3
GO Plc Competitive advantage .............................................................................................4
TASK 3............................................................................................................................................5
Extent in which GO Plc is facing strategic drift.....................................................................5
Mission and vision statement.................................................................................................6
Strategic capabilities of GO Plc.............................................................................................7
Business canvas model of GO Plc..........................................................................................8
TASK 4............................................................................................................................................9
Possible strategies that GO Plc could follow.........................................................................9
Strategic clock model by Bowmen to determine strategic option........................................10
TASK 5..........................................................................................................................................12
Resource implications..........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management is important for every business in order to make effective use of
strategies within firm while using resources effectively to achieve desired goals and objectives. It
will also help to work according to the market situation and customer analysis to increase
production and profitability. The report will cover strategic directions followed by the company
from the last few years, a detailed analysis of telecommunication Industry and external
environment analysis of GO, Plc. In addition to this, competitive advantage, extent in which GO
Plc is facing strategic drift, mission and vision statement, strategic capabilities of GO Plc and
business canvas model of GO Plc. The report will also demonstrate a depth knowledge of
possible strategies that GO Plc could follow and strategic clock model by Bowmen to determine
strategic option for business. Finally, the report will present resource implications and strategy
implementation.
TASK 1
Strategic directions followed by the company
Strategic management and direction is important for any firm in order to manage their
operations and activities involved in production (Enama, 2017). This will help them to increase
their competitive advantages and provide strength to external as well as internal environment
effectively.
GO Plc is a Maltese integrated telecommunications business. The firm offers local and
long distance wireless and telephone services, DSL internet access and digital terrestrial
television. Strategic direction and management refers to a business that matches its resources and
capabilities with the current and future opportunities in the external environment (Stacey, 2016).
GO Plc Strategy
The main objective of GO Plc is to strive to nurture, enhance their unparalleled
dedication to customers and grow value for their shareholders effectively.
The firm is following a strategy to deliver a complete range of products and services
while leveraging global partnership by remaining leading and reliable communication service
provider (Thomas and Cardot, 2016). The business is still focused on its past strategy to
safeguard an effective relationship with consumers in the market by providing solutions that are
valued for money in order to satisfy their needs and also by remaining honest (Moutinho and
Vargas-Sanchez, 2018). The strategy of sound leadership and effective governance towards
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strategic thinking has been developed within past few years to ensure that the operational
activities will remain sustainable in the longer term effectively.
GO Plc also pursues new opportunities towards business in order to drive inorganic
growth. The firm is achieving far-reaching connectivity with customers by offering state-of-the-
art solutions and highest quality products and services. GO Plc aim is to foster a meritocratic
culture, where efforts are rewarded, talent gets developed and loyalty is acknowledged.
GO Plc is Malta's first quadruple play operator business and they are proud of this; a truly
integrated telecommunication and converged business with a variety of products and services.
The firm offers mobile telephony, fixed line telephony, digital television, broadband internet
services and business related services such as IP services, networking solutions for businesses
and co-location facilities. The strategic planning is developing from the past few years and also
changed strategic thinking to operate in a large area or network. The business also operates a
network of quad-play retail outlets covering Gozo and Malta and different authorised dealers
selling range of products and services of GO Plc. The main strength of this firm is that it is the
first business to provide 24X7 customers call centre services.
TASK 2
Detailed analysis of telecommunication Industry
The telecommunication sector within Malta is among the most effective and advanced in
Europe with high rates and strategy of mobile and broadband penetration to develop and improve
e-commerce opportunities and capitalise on infrastructure effectively (Amutha and Rajini, 2015).
The telecom sector also simulated by regulatory measures which are designed to reduce
customer prices.
Vodafone Malta and Melita is one of the most effective competitors for GO Plc, which
would essentially created a market duopoly and rest have a very small market share. GO Plc is
currently investing in an extensive FttP network, which covered about 64,000 premises by March
2018 (Stead and Stead, 2016).
GO Plc is also planning to embarked on a program in order to develop a wide spread Fttp
network to provide a developed service network in future effectively. The company has also
announced to invest 100 million over five years in sector of telecom market to upgrade capacity
on submarine cables effectively (Chen, Hadjikakou and Wiedmann, 2017).
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The mobile market is dominated by GO Plc mobile and Melita mobile, Vodafone Malta
with Redtouch Fone the only active MVNO. There are some key issue can be occurred in the few
upcoming years and it will be continuous efforts by regulators in order to encourage a national
broadband network with the help of developing and improving regulations attractive to investors.
PESTLE Analysis (External environmental)
Political: The government has an idea how telecom sector businesses should be handled. Internet
and Wi-Fi are daily part of people life. It is required for careers and education purposes. The
battle is rising between service providers, the government and people that consumer believes that
data and internet should be treated same by the government and service providers.
Economic: Economic factors such as tax, inflation and interest rates affect the business of GO
Plc that expenses affect the pricing per plan offered to consumers in the market. It is very
expensive for firms to build towers and resources in rural areas that consumers living in sub
areas are affected.
Social: Horizontal growth is limited of telecommunications. Thus, it is difficult to expand
business in rural regions (Hambrick, Humphrey and Gupta, 2015). Television packages, internet
and mobile options are available in multiple choices for customers. These services are needed to
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Illustration 1: Environmental factors in Strategic
Planning
(Source: Environmental factors, 2017)

communicate with friends and family members. It is now vastly important for a person in his
daily life.
Technological: Technology is updating day by day as requirements by telecom services are also
raising. For an example, telephone businesses install fibre wires in their build over copper now.
Phones, schemes and wireless products are now more demanding and people wants these in their
vehicles too. Thus, it has a vital impact on GO Plc towards telecom development.
Legal: The telecom businesses are often impacted by different rules and legislations formulated
by the government. Issues with monopolies, government and consumers. Import and export of
products and services such as international smartphones allow development in devices
effectively.
Environmental: Global warming and climatic changes can also affect GO Plc telecom business
process of selling products to customers in terms of technology advancement, employment and
changes that should be adopted by employees. Customers demand and supply also has an impact
over business.
GO Plc Competitive advantage
GO Plc is now one of the most rising telecommunication business in Malta. This is
helping to increase its competitive advantage over direct competitors. The firm published its
financial result of showing profit of €28.1 million for 2016. The Group's robust performance was
underpinned by significant year on year increases in revenues, which grew by €33.3 million to
€157.0 million, and in Group Earning before Interests, Taxes, Depreciations and Amortisations
which is grown by €10 million to €61.06 million with an increase of 19.4% effectively. The firm
is achieving far reaching connectivity with customers by offering state-of-the-art solution and
highest quality products and services and also aims to foster a meritocratic culture, where efforts
are rewarded, talents are developed and loyalty is acknowledged effectively and efficiently. 2016
was a successful and encouraging year for GO as per Yiannos Michaelides as they reap benefits
of long term strategy towards customer (Slater, 2015). The benefits are increasing and network is
getting larger for firm that its competitive advantage is also enhancing towards direct
competitors such as Vodafone Malta etc.
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Illustration 2: GO Plc Porter’s Five Forces Analysis
Source: Dudovskiy, 2016
Buyers are sensitive towards price range that GO Plc have a high threat of buyer power
and it must manage some strategies to attract customers such as discounts and incentives
effectively (Henderson and Lambert, 2018). In addition to this, substitutes products are also
easily available in the market with cheaper prices which is also a threat for business competitive
advantage. Bargaining power of suppliers who provides raw material and other accessories for
business also high due to the place Malta. The threat of new entrance is low for business that
there are not many competitors available for firm in the market.
TASK 3
Extent in which GO Plc is facing strategic drift
It can be said that strategic drift happens when strategy of a firm is no longer relevant to
the issues faces by external environment. There are some fusion of factors which produces this
such as failure of workforce, business is unable to adopt dynamic external environment, denial of
senior management and complacency sets at time of issues effectively. There are four phases in
strategic drift which are given below in the context of GO Plc.
Phase 1- Incremental changes: A little significance changes in external environment can be
described as incremental change. Incremental changes to the strategy will help business to assist
with the external environment (Barros, Hernangómez and Martin-Cruz, 2016). Due to the impact
of political environment at Malta there are some changes took places in external environment
which has an impact on telecom businesses.
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Phase-2 Strategic drift: It is a phase where rate of change in the external environment has minor
and escalating transformation in strategy which not work for the firm effectively. GO Plc have
various ventures such as telecom, IP services and networking which share is decreasing as the
management is unable to comprehend external environment factors that results in decreasing
share of business in the market (Hill, 2017).
Phase-3 Flux: This is a phase where a significant gap between market expectation and final
results can be seen. Management is able to determine this gap and begun to alter their strategies
but it will not helpful for them to recover from diminishing state.
Phase-4 Transformational changes or death: It is the last phase in which transformational
needs towards strategies is identified to save the business venture effectively. Drastic changes are
necessary here by the firm in order to develop its position and market share effectively.
GO Plc, is one of the leading telecom business in Malta. In addition to this, there are
different ventures of firm such as firm offers local and long distance wireless and telephone
services, DSL internet access and digital terrestrial television, fixed line telephony, digital
television, broadband internet services and business related services such as IP services,
networking solutions for businesses and co-location facilities (Karami, 2017). The firm is
focusing on transforming strategies in order to gain competitive advantage. Strategic drift affect
the business and management and they are unable to comprehend external environment changes.
Mission and vision statement
It can be said that mission and vision statement are very important for the firm in order to
aligned with the market demand accordingly (Gure and Karugu, 2018). This will help them by
providing guidance and directions from which they can achieve desired goals and objectives
effectively. The mission and vision statement of GO Plc is described below:
Mission: At GO, we strive to nurture and enhance our unparalleled dedication to consumers in
the market and grow value for our shareholders.
The vision of GO Plc has been divided into five elements which are given below:
 Expansion around the world
 Opportunities to grow business
 Innovative, modern and full of ideas
 Winners locally whilst applying our skills globally
 Loyalty from consumers, earning trust and inspiring communities and colleagues
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It can be said that the vision and mission of business are interrelated to each other which
helps management to achieve desired objectives and goals.
Strategic capabilities of GO Plc
Strategic capabilities can be described as core competencies of business which provide
strengthen to internal and external environment. These are some unique things which helps to
make strategies well and effective. Strategic capabilities helps business to perform better and at
high level in many ways that helps to gain competitive advantage as well. GO Plc is Malta's first
quadruple play operator business and they are proud of this, a truly integrated telecommunication
and converged business with a variety of products and services (Van der Molen and Bagrianski,
2016). The strategy should be different from other competitors in order to remain effective in the
market. Resource utilisation should be effective by management so that they can achieve
financial results as well. In order to increase performance and competitive advantage the
management should utilise all resources effectively, pay attention towards own development so
that profitability and production can be enhanced effectively.
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Business canvas model of GO Plc
The main purpose of business is to increase customer satisfaction by providing valuable
and effective telecom services with unforgettable experience. This will help to gain effective
competitive advantage which is really necessary for the firm (Hogarth, 2018). The above
business canvas model helps to determine that the value proposition of GO Plc is to increase
customer base by providing a range of products and services in order to maintain goodwill in the
market, customer relationship and management of utilise in numerous ways effectively. This can
be done by providing online support, customer care helpline and grievance centres.
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TASK 4
Possible strategies that GO Plc could follow
It can be said that in this competitive world it is not easy for an organisation to survive
that technology advancement and customer awareness is crucial for business. It will help to
enhance market share and profitability for the firm. GO Plc should pay attention towards its core
competencies in order to maintain and develop its top position in the market effectively. The
strategies should be effectively aligned with available resources to gain competitive advantage.
Ansoff matrix can be used to recommend possible strategies. Ansiff matrix model is a marketing
planning model that helps to assist business in evaluating and determining product and market
growth and development strategy (Heath, 2017). This will also help to suggest that a business
attempts to grow which is depended on whether the market is new or existing or product is new
or existing. In addition to this, Ansoff marketing mix model will be helpful to provide strategic
option for business.
Market Penetration : It measures the adoption of the sales and work. Market penetration is the
activity of increasing market share of the production. It is a percentage of a target market that
consumes the product and services. It describes the share of the GO, plc sales for a specific
product. Market penetration indicates potential for increased sales of the company. GO, plc used
to determine the sales volume of all their competing products (Harris, 2017). The high market
penetration of the GO, plc show that the product has become established and the company is a
market leader.
Market Development : It means organization looks for new buyers to pitch their merchandise or
services to a different segment of consumers in an effort to gain sales. The main aim of GO, plc
is to expand the reach into a various and unexplored marketplace. The other important aspect for
the GO, plc is the pricing of their product. Market development starts with the research of the
market. The goal of the company is to spread out into the untapped markets. It helps in to cut
down the concentration risk and it expands the company revenue.
Product Development : It refers modification in the existing product of the company. The
product improvement of the GO, plc ensures the end product support requirements on the basis
of the consumers demand. Innovative new goods on the customers need is helps in the growth of
the company. Business or company cannot grow without product modification. GO, plc involves
a range of various product development strategies which helps in the sales of the company.
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Strategic decisions on product modification is crucial for the product's success of the company.
This process helps GO, plc to earn profitability in the global market.
Diversification: The strategy is considered as most risky but also a strategy for development and
growth effectively. Diversification can be described as expansion which refers to launching new
products and services in the new market (Parker, Parsons and Isharyanto, 2015). Research and
development is crucial for firm in order to in order to increase market activities to put more
efforts. Management should also analyse requirement of customers in the market to manage
strategies accordingly. The strategy is risky but also worthy for organisation such as GO Plc to
enhance production and profitability.
Strategic clock model by Bowmen to determine strategic option
The model is used to analyse competitive position of business in the market. It is the best
approach or model which helps to provide many options regarding information of products and
services effectively. According to GO Plc, the strategy is crucial for them in order to manage
their position of particular product which helps to provide competition to others in the market
effectively. The main purpose of this model is to provide a range of option for business based on
products on two ways price based and perceived value (Tassabehji and Isherwood, 2014). The
Bowmen strategic model consists different steps to determine actual structure of business and its
functionality.
Low price and low value added: In this, product value decide the position and customers in the
market make difference of one product to another effectively. This is not effective or much
competitive in the market place. It can be said that the customer only perceives value of product
at low price. Bargaining power of customer receive the products in low rates effectively.
Low price: The strategy is used by the firm in order to enhance their production and sales in the
market. The overall position is to look at the low cost in the market place effectively. This is the
best scheme while many consumers attracts towards products and services offered by GO Plc
efficiently. High output is generated but overall profits becomes low in the market.
Hybrid: The position is crucial that it involves elements at low rates and also compare them to
another products. The main purpose is to deliver product with reasonable rates so that customers
can easily afford them. Thus, it is also known as combination of reasonable price and
differentiate products (Cosenz and Noto, 2016). It is a strategy that helps to add value to products
and also help to offer other products and services at same prices.
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Differentiation: Differentiation of products and services is made by customers in the market that
brand value plays a crucial role in this. The trust of customers towards products, loyalty and
awareness helps to identify a branded product and can be easily differentiate by consumers in the
market effectively.
Risk high margin: Risk high margin is based on risk positioning strategy which are offers extra
value in the goods and services effectively. There are consumers who purchase products at high
prices that firm add value and features to them. It is an effective way from which the firm is able
to increase its profitability and production. The strategy is also uncompetitive to sell the price in
premium rate with any justifications.
Monopoly pricing: Monopoly pricing is a strategy which does not believe adding values to
products and services. The concern is based on the choice of consumers. What products are
purchased in the market, it is one of the important question. The strategy also prevent price of
products to be fixed and setting regulated.
Loss of market share: The position is mainly concerned with market share which shows the
actual percentage of sales within GO, Plc which helps to describe that what they earned and what
they loss in the market. The loss of market share has a negative impact on firm performance
which decrease profitability and production. It can be said that market share depends on actual
condition of business effectively (White and Bruton, 2014).
Focused differentiation: Focused differentiation is a strategy were business moves the product
to the higher prices. There are some consumers in the market who buy products with higher
values because of their features and added value proposition. The strategy is to become a luxury
brand to achieve desired goals and objectives effectively (Haselwanter, Muskat and Zehrer,
2016). The strategy is useful for business in order to increase profitability. It is also based on
long term plans that helps to accomplish desired goals and objectives of business effectively.
It can be said from the above strategic analysis of GO, Plc that it is able to use hybrid
strategy from Bowmen strategic clock model in order to enhance profitability and production.
The firm is able to provide quality and effective products and services at low prices in order to
attract customers which will also help to gain its competitive advantage effectively.
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TASK 5
Resource implications
The firm is able to implement strategy effectively by analysing resources that are
employed within firm. This will be done by management of business. It can be said that there are
different types of resources involved within an organisation such as financial resources, human
resources, physical resources, technological resources and information resources that are inter-
related to each other effectively and efficiently (Golan and Campbell, 2015). It is known that
transformation within firm can affect internal resources of the firm that before implementing the
strategy, management should aligned these resources with the final strategy effectively.
Human resource: Human resources are the workers who work in GO, Plc and helps organisation
to achieve its desired goals and objectives effectively. It can be said that strategy must be
discussed with managers so that they can manage ground level workers accordingly and
effectively. This will also help them to delegate work according to the skills of workers at
workplace to improve production.
Operation: Operational management deals with different elements involved in business such as
production and distribution, manufacturing etc. The firm should inform operation team to
implement the strategy effectively and successfully.
Financial resource: Strategy implementation requires financial resources that are limited for the
firm. A budget should be made in order to manage financial activities involved in strategy
implementation (Kasemsap, 2014). This will help to revised strategies accordingly to implement
it smoothly and effectively.
Information and technology: The department of information and technology deals with online
activities and IT resources effectively. The strategy should be discussed with IT department so
that they can make changes accordingly. This will also help to implement strategy to achieve
desired goals and objectives.
These are some recommendations should be followed by GO Plc in order to make
effective use of strategy that can be implemented successfully and effectively. This will help to
increase production and profitability which will help to accomplish objectives and goals
(Merigó, 2015). This will also provide strengthen towards competitive advantage to compete
others in the market effectively.
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CONCLUSION
It can be concluded from the above report that, strategic management and direction is
important for any firm in order to manage their operations and activities involved in production.
GO Plc is a Maltese integrated telecommunications business offers local and long distance
wireless and telephone services, DSL internet access and digital terrestrial television. In addition,
strategic planning of firm is developing from the past few years and also changed strategic
thinking to operate in a large area or network. There are some fusion of factors which produces
strategic drift such as failure of workforce, business is unable to adopt dynamic external
environment etc. It is analysed that, the firm is focusing on transforming strategies in order to
gain competitive advantage. GO Plc is Malta's first quadruple play operator business and they are
proud of this, a truly integrated telecommunication and converged business with a variety of
products and services. In order to recommend possible strategies, Ansoff matrix can be used by
firm. The main purpose of Strategic clock model by Bowmen is to provide a range of option for
business based on products on two ways price based and perceived value. The firm is able to
implement strategy to increase production and profitability which will help to accomplish
objectives and goals.
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