Matav Case Study

Strategic Crossroads at Matav Hungarys Telecom power plant Assignment 1 What is Matavs Strategy? Has it been successful? Matav, being the Magyar Telecommunications Powerhouse, had secured their footing in most of the communications market in Hungary, including t remove go, residential services, Internet and Mobile. Their parent compe real Deutsche Telekom requireed them to re main an integrate telecommunications confederacy.Since their objectives were laid out in front of them, they were facing a dead(prenominal) fixed restless market in Hungary with the only background knowledge of amplification being the wideband market. So their primary focus was on combative response to the core customer beginning, consolidating financial performance, change magnitude productivity and dramatizeing the broadband market. The next step that Matav took in implementing their strategy was to split their vast company into sm every(prenominal)er personal line of credit 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 function them step in to a natural, little 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 symmetry of Europe and keep the house servant growth ascending with introduction of raw(a) technologies. The fixed line business was decreasing as it is and the aspiration had reached a saturation point.The strategy hasnt been as successful as previous(a) 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 federation in Hungary. Does Matav have any competitive advantages in its domestic markets? Matav, saturnine late, has faced a lot of domestic competition because the East European Market has seen a heavy increase in the teeny telecommunications companies bracket. These small companies enter the existing markets and offer low price incentives which inevitably increases competition in the price war.Matav is a telecommunications powerhouse. It has the infrastructure, the ability, the foresight and the manpower to match any competition the foreign companies can offer. Matav is a well-established integrated communications company and has footholds in all the four markets of residential, business, mesh and mobile. They already have a lot of customer market in the Hungarian environment. Familiarity with the topical anaesthetic policies, business and customers makes Matav even more powerful when it comes to dealing with competition.It could add additional services by implementing sunrise(prenominal) technologies on the current infrastructure to the current customer base and could in like manner attract a lot of customers by swelled bundled servic e like fixed and mobile or fixed and internet together. Do Matavs multinational expansion plans make sense? why? Matav was taken over by a European Telecommunications giant. The line was clear. Since the domestic market was completely overwhelmed by Matav, the only logical place to expand further was another European company. Matav is already an integrated telecommunications powerhouse.There is no fresh market it can create or develop within its cause country to sustain development for it. There has to be competition and stretch for expansion by introducing new technology into third world countries. This is very attractive when offered at a lower price than your local provider. Matavs international plans make sense to me for precisely the same reason. There is scope for expansion and revenue in untapped markets more than expansion in tapped markets. Nevertheless, the domestic market should not be overlooked since thats the main source of revenue and development for Matav.Matav wa s also losing foothold in themobile market. It demand to expand and look for new markets. This exhibit will show you why. If you were a member of the strategy group, what would you recommend to Andras Balogh? If I was a member of the Andras Balogh team, I would recommend continuing what the company was doing. On top of that, I would ask him to fix his gaze more upon the local market since lately, the competition was increasing drastically. Even if the international expansion makes sense, the company should not lose its foothold in the domestic market.Since the infrastructure and the man power already existed, new technologies should be researched and implemented since, if someone else comes up with it, we dont want to fall behind the market. A new research course should be created which could work in collaboration with the german giants to implement and try new technologies. This team should everlastingly be in process of innovating and researching new technologies. They should a lso keep a watch on the new emerging technologies in the markets across the world.Another division should constantly keep check on the local market and try and implement and provide the existing customer base enough to hold on to Matav for the next generation of technologies. This division should constantly help provide information to both the research divisions and the international division about the needs and demands of the local market and what to expect. The international division should tighten solely on expansion and should set up local divisions to help understand the local market. It should also make sure all the international markets communicate with each other.