COMPANY’S VISION AND MISSION

Vision Statement

“We see a Philippines where families’ dreams come true, businesses flourish, and the

nation is admired.”

Parameter Yes/No Evaluation

1. Does it clearly answer No The vision does not specify on what kind of
the question; “What do industry the company is operating nor states
we want to become?” what it wanted to become.

The vision is inspirational because it highlights

2. Is it inspirational? Yes about the company’s goal in making families’
dreams come true.

3. Does it reflect the No It somewhat states the aspiration of the

company’s aspiration in company for making dreams come true,
the future? flourishing businesses, and admiring the nation
but no details on what it wanted to attain in the
future.

4. Does it give clear No The vision does not specifically state as to

indication as to when it when it would attain its goal.
should be attained?

Table 1 Vision Statement Analysis

An effective vision statement must reflect the company’s purpose or the

reason for being. It must speak what the company stands for and what it wanted to

become in the future, emphasize its value proposition, core values, uniqueness,

strength and the reason it matters. Basing from these criteria, the positive things about

the vision is it highly emphasizes making families’ dreams come true. However, it has a

generic and vague message in the phrase. The vision can be used by almost any

industry and one cannot tell that it is uniquely identifiable with Globe and what it stands
for. It does not emphasize on what industry the company caters, its specific aspirations,

or the timeline in achieving its goal. While it is inspirational, the lack of vivid imagery on

what it wanted to achieve and realistic aspiration made the vision statement unclear to

its target audience.

Mission Statement

“We create wonderful experience for people to have choices, overcome challenges, and

discover new ways to enjoy life.”

Components Yes/No Evaluation

1. Customer No The mission statement doesn’t specify the

people that Globe wanted to create
wonderful experiences for.

2. Products or Services No The mission statement doesn’t emphasize

the products or services being offered by
Globe.

3. Markets No It is unclear what the major market of

Globe is since it only stated “for people”.

4. Technology No The mission statement doesn’t highlight

the aspect of the business focusing on
technological development and innovation.

5. Concern for survival, growth
and sustainability
Yes “Discover new ways to enjoy life” is a
message that Globe aspires to continue
growing with the endless possibilities it can
create for its customers which means that
the company is aiming for infinite
relationship with its subscribers.

6. Philosophy Yes The line “To have choices”, “overcome

challenges” gives empowerment its
customers.
7. Self-concept No The mission statement doesn’t say what
the competitive advantage of Globe among
its competitors.

8. Concern for public image No No phrase of words is indicated in the

mission statement regarding concern for
public image.

9. Concern for employees No There is no mention of employees

participating in the mission statement or
how they will contribute in creating a better
tomorrow for Filipinos.

10. Nation building No The mission speaks no improvement on

unlocking and sharing the potential of the
Filipinos and it doesn’t create an
impression that the company is prioritizing
nation-building in its business.

Table 2 Mission Statement Analysis

There are eight components lacking in Globe’s mission statement since it

doesn’t specify who are its market, the products and services being offered, and so on.

The mission statement also failed to mention its concern for its neither public image nor

employees. It also doesn’t highlight nation-building in its business.

RECOMMENDED VISION-MISSION STATEMENT

Recommended Vision Statement

“Globe will be the number one wireless telecommunications service

provider in 3 years with leadership in both service revenues and subscriber base.”

Evaluation Criteria Result Remarks

 1. Does it clearly answer
what the company wants to
become?
YES The statement now include
“wireless telecommunications
service provider” which
indicates what industry the
company is operating in.

2. Is it inspirational? YES The words “leadership” sends a

positive message on what the
company aims to achieve.

3. Does it reflect the YES “Number one wireless

company’s aspiration in the telecommunication service
future? provider in 3 years” reflects the
aspiration of the company.

4. Does it give clear YES The phrase “in 3 years” gives a

indication as to when it specific timeline on when Globe
should be attained? targets to regain market
leadership.
Table 3 Recommended Vision Statement

Recommended Mission Statement

“To create wonderful experiences Filipinos around the globe with

customer-focused, and socially responsible digital advances by encouraging strong

collaboration and engagement of internal and external stakeholders to achieve excellent

user experience which allows Globe to serve its customers to reveal their capacity in

making the right choices, overcome challenges, and discover new ways to enjoy life.”
 Evaluation Criteria Result Remarks
Customers YES The revised mission
stated Filipinos as the
primary customers.
Products/Services YES “Digital advances” as the
major products and
services. Added the term
“serve” to emphasize the
objective to offer the
services.
Markets YES Filipinos around the globe
as the main market.
Concern for Survival, Growth YES Customer relationship is
and Profitability indicated thru the
statement “which allows
Globe to serve its
customers to have
choices, overcome
challenges, and discover
new ways to enjoy life”.
Technology YES The term “digital
advances” affirms that the
company is supported
technologically.
Philosophy YES The phrase “socially
responsible” accentuates
the philosophy of Globe
not only in the delivery of
the services not only in
the delivery of the
services not only in the
delivery of the services
 ensuring that things are
done the right way.
Self-concept YES The term “customer
focused and digital
advances” will be the
major competitive
advantage of Globe.
“Excellent user
experience” was added to
further highlight the goal
of the company to
differentiate itself from
competitors.
Concern for Public Image YES “Socially responsible” also
highlights the values of
Globe to underscore the
push of the company to
maintain a good public
image.
Concern for Employees YES The words “strong
collaboration and
engagement of internal
stakeholders” stresses the
involvement and
importance of the
employees to the
company.
Concern for Nation-building YES The phrase “to reveal their
capacity” of Filipinos
shows that the company
prioritizes nation- building.
Table 4 Recommended Mission Statement
Competitive Profile Matrix

Considering the inputs from the external and internal analysis, the following are

the identified critical success factors (CSF) for the telecommunications industry to

achieve its goals:

Critical Smart Globe Telecom, Sun Cellular

Success Factor Communications
Inc. Inc.

Weight Rating Score Rating Score Rating Score

1. Network 0.15 3 0.3 3 0.45 2 0.15

Coverage and
Quality

2. Subscriber Base 0.15 3 0.45 4 0.6 2 0.3

3. Customer 0.10 2 0.2 3 0.3 2 0.2

Service

4. Product Offering 0.10 4 0.3 3 0.4 2 0.2

5. Price 0.10 3 0.3 2 0.2 2 0.2

Competitiveness

6. Innovation 0.10 4 0.4 3 0.3 1 0.1

7. Strategic 0.08 3 0.24 4 0.32 2 0.16

Partnerships

8. Brand Equity 0.08 4 0.32 4 0.32 2 0.16

9. Cybersecurity 0.08 3 0.24 4 0.32 2 0.16

10. Financial 0.06 2 0.12 3 0.18 1 0.06

Position

Total 1.00 2.87 3.39 1.61

Table 9 Competitive Profile Matrix

Weight Score: 0.0 (Not Important) to 5.0 (Very Important)

Rating Score: 4 = Major Strength, 3 = Minor Strength, 2 = Minor Weakness, 1 = Major

Weakness

6.3.1 CSF #1: Network Coverage and Quality

Importance Weight: 15%

This factor was one of the highest at 15% because network coverage and quality

is essential in the delivery of telecommunications services. Personal day to day

activities or business processes can be affected if services are unavailable due to

disruptions or poor quality. It could affect the income of people reliant on these

applications at the same trigger hateful messages and customer complaints to the

telecommunication service provider.

CSF #1 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Network Coverage and 3 3 2
Quality

Industry monitor, OpenSignal, discussed how Globe and Smart performed in

terms of data speeds and availability by region. The report reveals that across all

regions, Globe has better availability while Smart has better speeds in 4G. Globe users

were able to find 4G signal 62.6% of the time, compared to Smart users who were only

able to find 4G signal less than 52.7% of the time. Meanwhile, Smart users with 4G

signal have an average download speed of 10.6 Mbps, while Globe’s 4G speed flitted in

between 7 and 8Mbps. Sun Cellular was rated the score of 2 since it doesn’t have 5G

connection unlike Smart and Globe.

6.3.2 CSF #2: Subscriber Base

Importance Weight: 15%

This factor got 15% weight since subscriber base is one of the most important

metrics on performance for wireless telecommunication industry (Narayanan & Gupta).

In a heavily invested industry, an economy of scale is important in order to secure

investment returns and lower unit costs (Falch, 1997). As what happened to the local

wireless telecommunication industry, companies with declining market share also

posted a drop in revenues. So maintaining and increasing subscriber base is vital for

companies to affirm leadership and growth.

CSF #2 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Subscriber Base 3 4 1

Smart received a score of 3 since as of end 2016 has 63 million wireless

subscribers which is down by 8% since 2015. The significant cut in the number of

subscribers was due to churning of inactive accounts (Camus M. , MVP admits PLDT

losing to Globe in market share, 2017). As the current number 1 in terms of subscriber

base, Globe earned a rating of 4 with 63.3 million wireless subscribers. Sun Cellular has

a score of 1 since subscriber base is only 9,889,907 compare to Globe and Smart.

6.3.3 CSF#3 Customer Service

Importance Weight: 10%

 This factor was weighted 10% since one of the major differentiating factors in

helping brands establish loyalty is providing the best personalized user experience

through the best customer service (The Telecom Industry Tunes in to the Customer

Experience, 2014). Wireless telecommunication service providers are now tuned in

implementing Omni-channel approach or ensuring that customers can avail of the

products and services in their preferred time, place, and manner (Saraf, 2015). As

Harvard Business Review pointed out, companies that were able to effectively manage

customer experience achieved better customer satisfaction, decreased churn rate,

increased sales, and showed increase in employee satisfaction given that they are also

internal customers (Rawson, Duncan, & Jones, 2013). The rating would be based on

the quality of the channels available for customers at the same time the number of

awards and citations on companies related to customer service.

CSF #3 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Customer Service 2 3 2

Smart and Sun earned 2 points given that there are several text and

hotlines for the different services. Below are the complete contact supports for the

different services:

Service Toll-free via Smart SIM Hotline

Smart Postpaid, Smart Prepaid, TNT *888 (02) 888-1111

Smart Infinity *800 (02) 848-8806

Smart Mobile Broadband (Plug-It, *888 (02) 888-1111

Pocket WiFi, Smart Bro SIM)

Smart Money/Padala 15177 (02) 845-7777 or 1-800-1-

888-5648

Smart Load Retailers *333 (02) 845-7733

Smart Load Dealers *7744 (02) 845-7744

Smart Bro Enterprise *177 177

Source: (Contact Support, n.d.)

Smart and Sun Customer Touchpoints
Touchpoints Details

1. Contact Call support with 12 contact numbers for Smart and 7 for Sun Cellular

Support depending on availed service

2. E-mail Subscribers can submit a ticket to mySmart for Smart Prepaid, Smart
Bro,

Support Smart Infinity, and TNT

Subscribers can mail to: enterprisesupport@smart.com.ph for Smart

Enterprise

Postpaid

Subscribers can mail to: enterprisebro@smart.com.ph for Smart

Enterprise

Broadband

Subscribers can send a feedback form for Sun Cellular

3. Facebook Support through Smart Communications, Inc. Facebook page with 3.63M

followers and Sun Postpaid Facebook page with 724K followers

4. Twitter Support through @SmartCares with 14.6K followers and @suncelldeals

with

81.3K followers

5. Single Sign- My Smart online through http://my.smart.com.ph and My Sun online

through

On Access https://my.suncellular.com.ph/loginauth

6. Mobile My Smart app in iOS and Android and Sun Cellular app available in
Android

Application only

7. Retail Store 95 Smart stores (Smartopedia, n.d.) and 124 Sun Shops (Marasigan,
2015)

nationwide offering account related concerns, customer service, and

payments

8. SIM Embedded Customer Support Menu through Smart SIM Tool Kit and can
also
 Customer be downloaded by sending an SMS GET MENU to 9888.

Support Menu

9. Online Queue slots can be booked online through iQueue

Appointment

System

10. Payment Subscribers can pay in over authorized 39,000 payment channels
nationwide

Channels including online, phone, and OTC banking options, credit card payments, and

other payment centers.

11. Text Hotline SagotAgad and SUNSAGOT

The average waiting time was 37 minutes per person in Smart Stores which

often times caused long queues. So while Smart has numerous touchpoints available,

problems in addressing the concerns of millions of its subscribers are still for further

enhancement.

However, some of the company’s initiatives have earned awards both here

and abroad on customer service including the Most Advanced Approach to

Customer Experience for its Smart Store transformation given during 18th Annual

Telecom Asia Awards in Jakarta, Indonesia last 2015, Finalist for Customer Service

Initiative (Project Embassy) in the 2014 Asia Communication Awards Singapore,

Finalist for Best Customer Care for Customer Ambassador Program during the 2013

World Communication Awards in London, Finalist for Best Customer Service

Initiative for Customer Ambassador Program Jump Springboard Customer

Education Program in the 3rd Asia Communication Awards Singapore in 2013 and

11 other awards here and abroad (Innovations and Awards, n.d.).

Meanwhile, Globe was given a score of 3 for its simpler approach

including lesser contact support numbers indicating a more centralized approach

on its customer service.

Globe Customer Touchpoints

Touchpoints Details

1. Contact Support Call support with 5 hotlines including roaming

2. Chat Support Support through Facebook Messenger highlighted in the Contact Us

page

3. Facebook Support through Globe Telecom Facebook page with 4.09M followers

4. Twitter Support through @Talk2Globe with 1M followers

5. Single Sign-On My Account online through https://accounts.globe.com.ph/login

Access

6. Mobile Application GServices app available in iOS and Android

7. Retail Store 150 retail stores nationwide offering account related concerns,
customer

service, and payments

8. SIM Customer Embedded Customer Support Menu through Globe Tool Kit and self-

Support Menu help configuration is provided in Globe Corporate Website

9. Payment Channels Subscribers can pay through online bills payment, GCash, and

accredited payment channels including online, phone, and OTC banking

options, credit card payments, and other payment centres.

Although Globe has lesser touchpoints, it focused on the quality of its

engagement to its customers. It has higher social media followers with Twitter
handle @Talk2Globe at 1 million, concentrating on interacting with consumer

concerns. It was also the first to launch a mobile application which has a higher

rating of 3.4 stars in Android (1M-5M downloads) and 3.4 stars in iOS. While it only

has 150 retail stores, it already cater to all brands and services making it more

cohesive than the competitor. The fewer contact information will also make it easier

for customers with multiple accounts and services availed to remember. It was also

first in providing free roaming hotline for its customers travelling abroad. This is an

advantage given that more Filipinos are travelling abroad for vacations (Abellanosa,

2016). Globe also won 16 awards for its customer service from local and

international award giving bodies.

6.3.4 CSF #4: Product Offering

Importance Weight: 10%

This factor was scored 10% since in a low differentiated industry, consumers are

looking for innovative offers and products that will provide value and improve customer

experience. Trends in products and services have changed dramatically over the years.

In 2014, Nielsen conducted a survey in identifying the factors in selecting a mobile

service provider and included in the top 5 were the data services and service bundle

offers (Connecting With The Consumer, 2014). This means that consumers still include

the offered services as important factor in considering the wireless telecommunication

provider to subscribe to.

CSF #4 Rating
Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Product Offering 4 3 2

According to its website, Smart is offering GIGASURF+ 75, allowing its

subscribers to enjoy 1GB plus 1GB per day for YouTube, iFlix, iWant TV, NBA League

Pass, Cignal TV. The promo is also paired with unlimited calls to Smart, TNT, Sun, as

well as unlimited texts to all networks. Globe, meanwhile, has GoSURF50. For three

days, you will enjoy 1GB of data, and 2GB GoWatch & PLAY + premium video access

and in-game items. Aside from free data for gaming and video entertainment, Globe is

also giving 300MB for an app of your choice, and unli text to all networks. For this part,

clearly PLDT's wireless arm Smart emerged as the winner as it gives extra 1GB of free

data everyday compared to Globe. It should also be noted that the GIGASURF+ 75

promo of Smart provides unlicall to TNT, Smart, and Sun.

Now, let's move on to Globe and Smart’s mobile data promos that are good for

one whole week. GOSAKTO70 and GOSAKTO90 of Globe offer 1GB and 2GB of

mobile data, respectively. Both promos also have unlimited text to all networks, and

2GB GoWatch & PLAY + premium video access and in-game items. The network also

has GOSAKTO120 and GOSAKTO140. The only difference between these two and the

cheaper GOSAKTOs we mentioned is GOSAKTO120 and GOSAKTO140 have

unlimited call to Globe and TM. Smart, on the other hand, has GIGASURF+ 149,

providing 2GB of data and free 1GB per day of video every day for YouTube, iFlix,

iWant TV, NBA League Pass, Cignal TV; unlimited calls to Smart, TNT, and Sun; and

unlimited text to all networks. It was a close fight for this part, but we still chose Smart
given its free 1GB of data per day for subscribers' to enjoy seamless streaming. Globe

has GoSURF299 with 1.5GB; GoSURF599 with 4GB; and GoSURF999 for 8GB. These

three promos all have 1GB of free data for an app of your choice. Smart has

GIGASURF+ 449 with 2GB; GIGASURF+ 749 for 5GB; and GIGASURF+ 999 for 8GB.

Just like all of the Smart data promos we included here, these deals have 1GB of free

mobile data per day for video entertainment. They also allow subscribers to enjoy

unlimited text to all networks and unlimited calls to TNT, Smart, and Sun. Again, while

Globe’s GoSURF299 and GoSURG599 are much cheaper than Smart’s GIGASURF+

449 and GIGASURF+ 749, the latter telco carrier provides more services. Also,

although GoSURF999 and GIGASURF+ 999 have the same price, you will make the

most of your money with Smart with free 1GB of data every day for 30 days. Smart’s

free 1GB of data per day, as well as its unlimited calls to sister wireless networks TNT

and Sun are surely its edges against rival Globe. Sun Cellular was scored 2 among its

competitors since it only offers few bundles compare to Smart and Globe.

6.3.5 CS#5: Price Competitiveness

Importance Weight: 10%
This factor was scored with 10% because Filipinos are very price sensitive

given that 95% are using prepaid services and are usually dual or multiple SIM

owner in order to get the best deals offered by the major telecommunication service

providers (Stryjak, Sharma, & Hatt, 2014). The pricing for wireless

telecommunication services were disrupted when Sun Cellular launched the

unlimited pricing model way back in 2001. In a TNS research entitled, Mobile Life

2013, more than 50% of Filipinos find the data packages expensive that is why 35%
of them use public WiFi (Lowe, 2013). This is another indication that Filipinos are

more price conscious and would rather avail for free services. Nielsen also noted in

a study that rate plans or price is the number 1 factor keeping consumers from

churning (Connecting With The Consumer, 2014).

CSF #5 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Price Competitiveness 3 2 2

Smart is the most competitive with a rating of 3 given that it has two brands

targeted to the mass market namely Talk N’ Text and Sun Cellular, the latter

started the war on unlimited pricing way back in 2001. Smart has also bigger data

allocations for prepaid promos and postpaid plans (Morial, 2016). Globe gained a

rating of 2 since it has higher price on postpaid plans, has lower data allocations,

and has only 1 brand (Touch Mobile or TM). Sun Cellular also scored 2 because

regardless of the cheaper offer, most of the products are only unlimited within Sun,

Smart or TNT.

6.3.6 CSF #6: Innovation

Importance Weight: 10%

This factor was scored also at 10% because the wireless telecommunication

industry belongs to the fast-paced industry that can be radically changed with

developments in technology. In order to be pro-active about this, innovation is key to

ensure continuity and sustainability of the company. The fall of former giant companies

like Nokia, Blackberry RIM, and Kodak is a reminder of the importance of innovation in

order to survive in business. On the contrary the success stories of Apple, 3M, and

Netflix are proofs that with innovation, the company can turnaround setbacks into

opportunities (Ilas, 2017). As subscribers require faster, reliable, and fair priced

products and services, the industry is obliged to enhance and upgrade its current

capabilities, processes, and portfolio of products in order to meet these demands.

CSF #6 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Innovation 4 3 2

Smart was given a score of 4 as it prides itself as the premier innovative

company based on its world’s first innovations recognized internationally including

Smart Padala, Smart Money, Pasaload, Smart Padala, Pasadata and more. The

number of awards and accolades that Smart received had proven that the company

is aiming to be at par not only in the domestic but at the same time in the global

market.

Globe scored 3 as it has its share of innovative products as the first telco to

adopt the rich communications service (RCS), an enhanced messaging feature in

partnership with Google (Globe Working with Google to Deliver Innovation in

Messaging, 2017). It was also the first telco to roll out the Worldwide

Interoperability for Microwave Access (WiMAX) (Dizon, 2009). Its product GoSakto,
a create-your-own-promo concept, also won as the Best Network-based Solution

for Serving Customers Award during the 19th edition of the Global Mobile Awards in

Spain (Globe Telecom's GoSakto wins Best Network-based Solution at the 19th

Global Mobile Awards, 2014). Meanwhile, Sun Cellular is rated 2 since it also has

its innovations such as partnership with Waze and by offering Sun Business which

aims to help business owners who are seeking innovative ways to reinvent

themselves get more rewarding ways to gain leverage over their respective

competitors.

6.3.7 CSF #7: Strategic Partnerships

Importance Weight: 8%

This factor had a weight of 8% since strategic partnership is critical for the

wireless telecommunication service industry in sharing costs and risk, and

exchange of technological expertise, brand management, and other intellectual

properties based on the PriceWaterhouseCooper study (Strategic Partnerships:

The Real Deal?, 2009). The same study also highlighted how successful

partnerships can achieve profitability, agility, cost reduction, increase in employee

engagement, better management on cash flows, improvement on governance, and

sponsorship increase and credibility. Majority of the wireless telecommunication

service provider are backed up by international firms and have forged partnerships

with various firms related to the industry.

CSF #7 Rating
Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Strategic Partnerships 3 4 2

The rating of Smart was 3 since it has alliances with telecom giants like NTT

DoCoMo which owns 20% outstanding shares of PLDT (Smart’s mother company),

Huawei, Ericsson, ZTE and other foreign suppliers for its infrastructure requirements

including but not limited to software, hardware, and services. It also inked

partnerships with gaming companies like Moontoon (creator or Mobile Legends) and

Garena (regional distributor for League of Legends) in promoting eSports (Smart

and TNT partner with Moonton to level up Mobile Legends experience of Filipinos,

2017). Content wise, the company also formed alliances with Fox Network Group

Asia, iFlix, Netflix, Cignal, and iWantTV of ABS-CBN (Smart partners with Fox to

enrich customers’ video experience, 2017). And to further support its LTE roll-out,

Smart partnered with local and foreign firms like Starmobile, myPhone, and recently

Vivo Mobile Tech Inc. to provide value for money smartphones and to promote LTE

usage (Vivo forges partnership with Smart Communications, 2017).

Globe on the other hand earned a score of 4 as the company speedily built

partnerships with Niantic at the height of the Pokémon Go fever, the first one to get

a nod from Apple in offering its iPhone in 2008 (Olandres, 2013), the first to offer

Spotify (Spotify partners exclusively with Globe Telecom, 2014) and Netflix (Globe

partners with Netflix in the Philippines, 2016), and got exclusive partnerships with

NBA (NBA and Globe Telecom announce groundbreaking, multiyear partnership in

the Philippines, 2014) and Disney (Globe Telecom, first to offer Disney Mobile in

SEA, 2015). SingTel, Singapore’s largest telecommunication firm, owns 20.13% of

Globe outstanding shares (Lifestyle How We Live Fully, 2016) paving the way for

the company to have joint deals with HOOQ in providing local and Hollywood

contents (Veletes, 2015) and Amobee in providing big data capability to mobile

advertisements. (Amobee joins forces with four large mobile operators to bring big

data to mobile advertising, 2013). Globe’s main advantage is its quick reaction time

in forming partnerships based on what’s popular with users. Sun Cellular scored 2

since most of its partnerships come from Sun Business.

6.3.8 CSF #8: Brand Equity

Importance Weight: 8%

This factor was given a weight of 8% because brand equity is the added value a

customer perceives on top of the received function and service in association of the

brand name (Aaker & Biel, 1993). Conceptually, there are five dimensions to brand

equity namely quality, value, image, trustworthiness, and commitment (Martin & Brown,

1990). Nielsen study also noted that a good brand image was the 9 th factor for

consideration of consumers in choosing providers (Connecting With The Consumer,

2014). In a separate Nielsen study, branding has high correlation with market share and

the attributes that emerge as big factors affecting brands are availability and innovation

in the telecommunication industry (Gokhale & Ammar, 2014). Awareness of the brand is

also the biggest equity driver (Gokhale & Ammar, 2014).

CSF #8 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Brand Equity 4 4 2

Smart scored 4 with the fact that it has earned the first mover advantage and

services are named after its products like e-load, Pasaload, and Pasadata. Its

established brands like Smart, Talk N’ Text, and Sun Cellular are among the most

prominent with the former winning a Gold Award in Phone Service by Reader’s

Digest Trusted Brands in 2012. It also won five other brand campaign awards from

international and local award giving bodies. Smart is also a champion of innovation

not only in its products but in its advertising as well. The viral video Girl Drops 600

Pesos in Mall and Gets Biggest Shock of Her Life was awarded with Excellence and

Merit citation in the Philippine Quill Awards last 2015 for creatively using the social

media platform in advertising (Smart shines at the Philippine Quill Awards with 18

wins, 2015).

Globe also scored 4 as availability of the services is also strongly correlated

with brand equity. It had also successful social media ad campaigns that were

featured in international websites and posted more than 7.2 million views (Alfonso,

2016). In the same Reader’s Digest Trusted Brands poll in 2012, Globe also won

Gold Award in Phone Service (Periabras, 2012). Sun Cellular scored 2 as it yet to

make its mark in terms of innovation and service availability with its products and

services.

6.3.9 CSF #9: Cybersecurity

Importance Weight: 8%
 This factor had a weight of 8% because of the higher risk on security here in the

Philippines (Schnabel, 2017) and the threats it pose on wireless telecommunication

service providers’ operation. Aside from the possible denial of service or the crippling of

the day-to-day operations of telco companies, the most vulnerable are the subscribers.

From PNP’s data, there are 556 million annual cybercrime victims globally (Macapagal,

2017) and given the Filipinos appetite in using the internet and social media, they are

most likely to be victimized by these acts. Solid cybersecurity solutions will put

subscribers at ease in knowing that threats are proactively being detected, monitored

and remediated.

CSF #9 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Cybersecurity 4 4 2

Smart earned 3 points given that it has a dedicated IT security group,

Information Asset Protection & Assurance (IAPA), with a mandate in securing

information and protecting the company from internal and external threats. PLDT

and Smart also hosted a Cyber Security Summit in partnership with Bangko

Sentral ng Pilipinas (BSP), Security and Exchange Commission (SEC), and other

government institutions which focused on the issues of cyber threats and

emphasized the role of both the private and public sector in battling them

(Agcaoili, 2017). These are indications that the company prioritize cybersecurity

and does not relegate its value in business continuity.

Globe however scored a 4 with its recent move in improving its position in

cybersecurity with the launch of Globe Advanced Security Operations Center

(ASOC) in partnership with Trustwave enhancing its current Managed Security

Services (Globe Business Further Solidifies Position in the Cybersecurity Space,

2017). Globe with SingTel’s expertise, aims to sustain the delivery of

comprehensive cybersecurity solution suites to address the pressing threats on

its subscribers and business as a whole. Furthermore, Globe has existing

collaborations with FireEye, the first company awarded by US Department

Homeland Security of the SAFETY Act certification (FireEye First Cyber Security

Company Awarded SAFETY Act Certifications by Department of Homeland

Security, 2015) and Arbor, NETSCOUT’s security arm. Sun Cellular was given a

score of 2 because although it is a given that network security is provided by

Smart, there is still a risk in terms of their frontend tools and contents.

6.3.10 CSF #10: Financial Position

Importance Weight: 6%

This factor was given a weight of 6% because in the wireless

telecommunication service provider industry which is heavily capitalized,

financial state is important for investors and creditors. The fast pace

changing landscape of the industry requires it to have enough capital and

proper management in funding expansion projects, technology change,

upgrades, and modernization in order to consistently address the growing

demands of the customers. The financial status of the company can provide

insights for the management in formulating pivotal strategic decisions. The

basis of the rating shall be in terms of the historical key financial indicators.
CSF #9 Rating

Critical Success Factor Smart Communications, Globe Telecom, Inc. Sun Cellular
Inc.
Financial Position 2 3 1

Smart earned a score of 2 as it is the company’s current weakness as net

income continued to skid due to higher expenses. The acquisition of Sun Cellular

which also posted consecutive net loss did not help the financial position of the

company. Globe was given 3 points as the company’s mobile revenues for the

period grew close to P27.0 billion, up 11% from the same period of 2018 and 4%

higher from the previous quarter, mostly coming from the prepaid brands.

A. Summary and Conclusion

Garnering a total score of 2.87, Smart Communications, Inc. ranks lower

than Globe Telecom, Inc. with 3.39 but higher than Sun Cellular with 1.61. Its Price

Competitiveness and Innovation are clearly outstanding however, the Network

Coverage and Quality, Subscriber Base, Customer Service, Product Offering,

Strategic Partnership, Cybersecurity, and Financial Position, are Globe Telecom’s

major advantages. Network coverage and quality had the heaviest weight among

the critical success factors as the company rely on its infrastructure in the delivery

of its services and quality in maintaining relationship with customers.

External Factor Evaluation (EFE)

External Factors Importance Responsiveness Weighted

Weight Rating Score

Opportunities

O1: Mobile Platform Preference 0.13 3 0.26

O2: Population Rate 0.09 3 0.20

O3: OFW Population and Filipino 0.10 3 0.23

International Tourists

O4: BPO Sectors 0.10 3 0.23

O5: Emerging Technologies 0.14 3 0.31

Sub-Total 0.56 1.23

Threats

T1: Potential New Entrants 0.10 2 0.23

T2: Over-the-top Products 0.10 3 0.23

T3: Cybersecurity 0.08 3 0.19

T4: Government bureaucracy and 0.06 2 0.17

regulatory requirements

T5: Peso Fluctuation 0.05 2 0.16

Sub-total 0.44 0.98

Total 1.00 2.21

Importance Weight = Weight 0.00 (Not Important) to 1.0 (Very Important); Responsiveness Rating:
4 = Response is Superior; 3 = Response is Above Average, 2 = Response is Average, 1 =
Response is Poor

Table 10 External Factor Evaluation

7.1 External Opportunities

7.1.1 Mobile Platform Preference

Importance Weight: 13%

This factor was given a weight of 13% because the wireless

telecommunication service provider can grab the opportunity of the changing

culture of Filipinos towards mobility. With the increased interest on online

transactions, companies can support this by providing connectivity and digital

solutions like financial, marketing, and messaging platforms not only to the general

consumers but at the same time to the businesses who are involved in m-

commerce. As more people use mobile platforms, more data revenues are

expected.

Rating: 3

Globe’s responsiveness is rated at 3 since usage of mobile platforms

requires usage of data connection so the company can gain both ways through the

access of the customer on the platform providing insights on its mobile commerce

behavior at the same time earn through the data connection charges in making

these transactions

7.1.2 Population Rate

Importance Weight: 9%

This factor gained a weight score of 8% since it is important for the wireless

telecommunication service provider to know the different population demographics to

serve. The growth of the population and the area where the increase are noted are

important factors for wireless telecommunication service provider in planning their roll-

outs and in knowing the target segments to cater. Customer experience is affected if

infrastructures are not planned based on the expected number of users to serve.

Rating: 3

Globe earned a rating of 3 for this factor since it is part of the current strategy to fortify

network in areas that matter and improve the existing network footprint by capacity and

resiliency. It also plans to serve more customers in all segments of the market. The

populations increase in telecommunications’ spending fuels the company to offer

products and services catering to their specific needs.

7.1.3 OFW Population and Filipino International Tourists

Importance Weight: 10%

This factor was given a weight of 10% since the growing OFW Population

and increase in Filipino international tourists will raise the revenues for

international calls and roaming. Given that OFWs have higher disposable income

and have a strong need to communicate with loved ones, the situation will also

increase communication services availed by their loved ones. On the other hand,

as more and more Filipinos are travelling abroad a demand for better roaming
services are expected. It will help jetsetters and vacationers in getting connected

without the need to get a new line in their destination.

Rating: 3

Globe got a responsiveness rating of 3 given that it provides services catered to

roamers and OFWs such as OFW Family Pack that contains 2 SIM cards: one OFW

SIM and one Family SIM. The OFW SIM is for the person who will travel abroad, while

the Family SIM is for the person/family member who will stay in the Philippines.

7.1.4 BPO and MSME Sectors

Importance Weight: 10%

This factor was given a weight of 10% since the Business Process

Outsourcing (BPO) industries are reliant on the services of the wireless

telecommunication service providers for their operations and other business needs.

BPOs use voice and data communications to deliver their services to clients. With

the Philippines among the global leaders in the BPO industry, the demand for better

and reliable service is expected to grow.

Rating: 3

Globe’s score for this factor is 3 since the company Globe Business offers

solutions such as Cloud, Cybersecurity, Connectivity, and Business Application

Services to help BPOs enable their digital transformation.

7.1.5 Emerging Technologies

Importance Weight: 14%

This factor earned a weight of 14% since emerging technologies are the

future of the wireless telecommunication service provider industry. The mobile

industry drives innovation and growth from messaging to business reinvention using

digital platforms to cloud-based analytics of major industrial sectors. New networks

like Low Power Wide Area Networks (LPWA) and 5G are gaining ground. These

technologies will create future markets and products for the industry that is why

adoption is crucial.

Rating: 3

Globe got a responsiveness rating of 3 since officially made its fifth-generation

(5G) fixed wireless broadband service called Globe At Home Air Fiber 5G commercially

available to consumers recently in select areas in Rizal, Cavite, and Bulacan.

7.2 External Threats

7.2.1 Potential New Entrant

Importance Weight: 10%

This factor was given a weight of 10% as the current government pressures

the wireless telecommunication service provider to improve its services or it will

make necessary steps in opening the market to local and foreign investors or will

operate a state owned provider as the need arise. Given that there are gaps in the

availability and quality of the services, a new entrant can pose a threat to the current

players’ market shares.

Rating: 3

Globe got a responsiveness rating of 3 since the company strengthens its

current market position through improvements on its network and operations.

7.2.2 Over-The-Top Products

Importance Weight: 10%

This factor was given a weight of 10% since over-the-top or OTT products

had eaten out revenues from the wireless telecommunication service providers’

traditional services like voice calls and SMS. These traditional services are now

available in the OTT platforms using the internet making it cheaper and borderless.

Rating: 3

Globe got a responsiveness rating of 3 since it is currently in the testing phase of

the 5G Technology that it has recently launched earlier this 2019.

7.2.3 Cybersecurity

Importance Weight: 8%

This factor was given a weight of 8% since as technology progress, threats

are becoming more sophisticated and imminent. The threats are not only confined in

the delivery of wireless telecommunication products and services but also on the

subscriber information passing through the network.

Rating: 3
 Globe earned a responsiveness rating of 3 as Globe provides round-the-

clock support from its Advanced Security Operations Centers (ASOC), and follows

the National Institute of Standards and Technology (NIST) framework that helps

businesses Identify, Protect, Detect, Respond, and Recover from Cybersecurity

threats online.

7.2.4 Threat 4: Government Bureaucracy and Regulatory Requirements

Importance Weight: 6%

This factor was given a weight of 6% since the ongoing bureaucracy

impedes the faster roll-out of network expansion projects due to the numerous

permits and regulations. Some of the regulations can also directly affect

revenues.

Rating: 2

For this factor Globe was rated with 2 because government regulations are

required to be complied with regardless of the impact on the business. Although

operators can voice out their opinions and stand on the issues, the decisions of

the government are executory else the company pay for violations and be

threatened to lose their business franchise.

7.2.5 Threat 5: Peso Fluctuation

Importance Weight: 5%

The weight for this factor was 5% because in an industry where most of the

infrastructures are sourced abroad, exchange rate matters. The fluctuation of the
peso can affect the capital expenditures of the company due to foreign exchange.

Although companies avail forward contracts, foreign exchange is still unpredictable

and could still lead to losses despite the hedged risks.

Rating: 2

Globe was given a responsiveness score of 2 since the least it can do for

foreign exchange is to minimize the risk. This is something that the company can

prepare for but cannot prevent.

7.3 Conclusion

With an overall score of 2.21, Globe has a responsiveness rating by exploiting

opportunities in overcoming the threats in its external environment.

Internal Factor Evaluation (IFE)

Strength Importance Rating Weighted

S1: Innovation 0.10 4 0.4

S2: Product and Service Offering 0.10 3 0.3

S3: Price Competitiveness 0.10 3 0.3

S4: Brand Equity 0.08 4 0.32

S5. Strategic Partnerships 0.08 3 0.24

S6: Corporate Social Responsibility Programs 0.07 4 0.28

Sub-Total 0.53 1.84

Weakness Importance Rating Weighted

Weight Score
W1: Network Coverage and Quality 0.15 2 0.30

W2: Customer Service 0.10 2 0.20

W3: Postpaid Business 0.10 2 0.20

W4: Financial Position 0.06 2 0.12

W5: Social Media Presence 0.06 2 0.12

Sub-total 0.47 0.94

Total 1.00 2.78

Table 12 Internal Factor Evaluation Matrix (IFE Matrix)

8.1 Internal Strengths

8.1.1 Innovation

Importance Weight: 10%

 This factor was scored with 10% because as a technology company in a high

velocity industry, innovation is a requirement. User demand varies as new

breakthroughs are introduced. Changes are implemented as fast as possible to

remain relevant. Innovation drives value creation and opens new opportunities in

the business driving growth even in mature markets.

Rating: 4

Globe scored 4 points indicating that this is a major strength since it has

always been an early adopter of telecommunication technologies in the Philippines.

Globe Telecom continues to push the boundaries of digitalization during 2018’s

Globe Innovation Month by introducing over 2,000 participants to trends and

technologies that impact the fast-evolving workplace of the future. The event also

served as an avenue for some of Globe Telecom’s partners to showcase new and

emerging technologies for the future workplace. Some of these were NEC’s facial

recognition system, which makes the process of registration easier and faster;

Google Cloud platform, which offers future-proof infrastructure for big data; and

Amazon Web Services’ cloud-based intelligent omnichannel solutions, which aim to

enhance digital customer engagement.

8.1.2 Product and Service Offering

Importance Weight: 10%

This factor was scored 10% because in a mature market where product

and services are almost the same with low differentiation, companies need to

have a diverse portfolio which shall be offered based on target market and
consumer needs. As traditional products are being replaced by more advanced

over-the-top services, companies should take a step ahead in creating more up-

to-date products to address this trend.

Rating: 3

Globe scored a 3 indicating this factor as a minor strength. Consumer can

choose between prepaid and postpaid services and can avail different packages

and bundles based on what the user wanted to avail. Unlimited services are also

available for texts, calls, and data or a combination of these.

8.1.3 Price Competitiveness

Importance Weight: 10%

This factor was rated with 10% because in a market where product

differentiation is low, subscribers are price sensitive. The lower price of SIM Cards

and multi-SIM phones added the ease in switching networks depending on the

deals and promos being offered. The unlimited pricing model which has become

revolutionary since 2001, has affected the telecommunication service prices and

has Average Price per User (ARPU) declining ever

since. People look for economical packages depending on the service that they

frequently use.

Rating: 3

Globe was given a score of 3 since it is not a major strength but its subsidiary,

TM (Touch Mobile), offers cheaper prices of mobile services. Globe also offers cheaper
plan such as ThePLAN PLUS which costs 599/month with 3gb data, unlimited call to

Globe/TM, 100 Min. call to all networks, and Unlimited text to all networks which also

includes Facebook.

8.1.4 Strength 4: Brand Equity

Importance Weight: 8%

This factor was given a weight of 8% since brand equity is important in

maintaining the loyalty of subscribers, brand awareness, brand association, and

perception of quality (Aaker, 1996). In the wireless telecommunications provider

industry, strong brand equity generates more revenues as people continue to

patronize the company and its products. People are even willing to pay in premium

in order to be associated to the brand. A good name can also be advantageous

during contract negotiations with partners, vendors, and suppliers.

Rating: 4

Globe has distinct brands based on target market earning a score of 4, with

this factor classified as a major strength. For low-end and “masa” markets, the

company have established a prepaid brand which is TM. Last 2013, CMO Asia has

conferred Asia's Best Brand Award to Globe Telecom in recognition of its

marketing leadership in the telecommunications sector both local and regional.

Globe has proven that it can marry limitless creativity with brand-building

objectives by winning six trophies at the recently held PANAta Awards which

include the Gold for PANAta Brand Bravery Award for #SeeYouTomorrow mental

health awareness campaign.

8.1.5 Strategic Partnerships

Importance Weight: 8%

This factor was given a weight of 8% because the wireless

telecommunication service providers working under a high velocity industry need to

evolve, integrate in seeking mutual benefits, and constantly adopt to change. And

critical to this is the establishment of partnerships to ensure benchmarking of best

practice and exchange of expertise.

Rating: 3

This strength was given a score of 3 Globe has partnered with reputable

companies for technological support, international experience, and management

expertise. It also inked deals with tech companies for the improvement of service

delivery, expansion of product and service portfolio, enhancement on user

experience, increase of operational efficiency, and convergence and integration

of Smart services to other businesses and industries.

8.1.6 Corporate Social Responsibility Programs

Weight: 7%

This factor is given a score of 7% because social issues like education,

environment, safety, health, and livelihood have impact on subscribers. Alignment of

business strategies is addressing these needs would encourage their loyalty and

increase trust and confidence that more than the profits the company is able to help

where it is severely needed.

Rating: 4

Globe earned a score of 4 making this factor a major strength owing to the fact

that it has comprehensive CSR activities. Globe bagged honors for its CSR efforts by

winning two awards under the Excellence in Brand CSR category: a Silver for

#SeeYouTomorrow, a Bronze for the #TimePlease Volunteer Program, and another

Silver for its National Teachers’ Month Campaign. The #SeeYouTomorrow campaign

made waves last year with a heartwarming video that takes viewers into the world of a

person battling depression, from the perspective of someone closely affected by the

person suffering. There is value in the story presented through the video, but more than

the powerful execution, it sends a message of hope and encourages the 3.3 million

Filipinos suffering from depression to seek assistance by calling HOPELINE, toll-free.

Launched in May 2018, Time Please is a nationwide volunteering program that

matches individuals or groups of volunteers with volunteering opportunities anywhere in

the country. Over 9.5 million hours of volunteer hours were pledged within two months

through the online volunteer registration portal developed by Globe.

Another Globe advocacy that won in PANAta was National Teacher’s Month

campaign which kicked off in September last year with a video that pays tribute to

teachers. The #IbaKaTeacher video sheds light on the seemingly insurmountable

challenges of engaging in such a profession. As moving they were, the social media

and video components were but smaller parts of the whole.

Globe’s National Teacher’s Day campaign gave hundreds of private and public

school teachers the opportunity to join workshops as well as a three-week professional

training program. Globe also provided Internet connectivity and mobile tech equipment

to qualifying schools.

8.2 Internal Weaknesses

8.2.1 Network Coverage and Quality

Importance Weight: 15%

This factor was given a weight of 15% because network coverage and quality

affects customer experience. Unsatisfied users can easily buy another SIM or avail from

other wireless telecommunication service provider once their needs aren’t met. The

increase of data usage saw a surge in network traffic leading to congestion and

intermittent signals.

Rating: 2

Globe got a score of 2 since network coverage and quality is among its

minor weaknesses. Globe sometimes experience service interruption that can

affect customers—Globe Postpaid, Globe Prepaid, TM, Globe At Home LTE and

Globe At Home Prepaid WiFi.

8.2.2 Customer Service

Importance Weight: 10%

This factor was given a weight of 10% because customer service affects

loyalty. Consumers are expecting excellent user experience throughout its life

cycle with numerous available touchpoints to manage their concerns. The trend

now is shifting towards convenience and personalized approach.

Rating: 2

Globe got a score of 2 which means that customer service is one of its

minor weaknesses. It takes an average of 37 minutes to queue in Globe stores

which is a big challenge given that there are more than 63.3 million subscribers.

Although there are numerous touchpoints, subscriber engagement was dismal

with low mobile application rating and downloads, and less followers on social

media touchpoints.

8.2.3 Postpaid Business

Importance Weight: 10%

This factor was given a weight of 10% due to the fact that shifting from

prepaid to postpaid can positively impact the industry’s average revenue per unit

(ARPU) (Philippines Telecommunication Report Q2 2017, 2017).

Rating: 2

Postpaid Activation is one of Smart’s minor weakness, hence the score of 2.

Globe’s postpaid business lost about 5,000 subscribers. The cause of the decline

was due to longer approval time with more than 50% application approved beyond

the service level agreement. This is due to the number of steps from application,

validation, assigning of unit, payment, and releasing.

8.2.4 Financial Position

Importance Weight: 6%
 This factor was given a weight of 6% since the industry require bigger capital

and operational expenditures. Network expansion and developments need funding

from investors and creditors and one of their main criteria is a strong financial

position of the company.

Rating: 2

Financial position is one of Globe’s minor weaknesses with a score of 2. The

total revenues of Globe ended at P81.52 billion, up 9.5% from in the same period

last year. But expenses also increased 6% to P63.2 billion as the company boosted

spending on its network infrastructure to support the growing number of its

subscriber base. Globe said capital spending hit P19 billion in the first half of the

year, 75% of which went to data-related requirements.

8.2.5 Social Media Presence

Importance Weight: 6%

A weight of 6% was given to this factor for the reason that social media has

been part of the current digital culture as the Philippines is being tagged as the

social media capital with Filipinos logging an average daily usage of 4 hours and 17

minutes. The country ranked as 7th in terms of active Facebook users at 60 million.

Social media is being gauged based on the number of followers and engagement.

Wave7 survey showed that 69% of Filipinos use social media to join brand

communities and 85% shares their appreciation of the products online (Consumer

Lifestyles in the Philippines, 2015). This scope of influence can be tapped by the
wireless telecommunication service providers in promoting their products and

services.

Rating: 2

Globe gained a score of 2 indicating that social media presence is also a

minor weakness for the company. Even though their social media platform has more

followers, Globe doesn’t respond right away to inquiries made using such media

platforms.

8.3 Conclusion

With an overall score of 2.78, Smart has a strong internal position having above

average result but still needs to work on its network infrastructure, customer service,

postpaid business, financial position, and social media presence in order to strengthen

its competitive advantage.

 I. Strategy Formulation

9.1.1 S-O Strategies

SO1: Continue partnership with local and international phone manufacturers to

offer cheaper LTE smartphones SIM-locked to GLOBE to align with the

infrastructure strategy. (S5, O1, O2, O3, O4, O5)

This strategy actually could impact both the sales of cellular units and SIM

cards at the same time encourage usage of LTE products.

SO2: Sustain investments on infrastructure by increasing cell sites

constructions in order to support the increase on mobile internet usage

(S1, O1, O4, and O5)

One of the main issues on network is availability. It is more important to be

available in all areas than performing well in terms of speed and latency but is

limited only to a few areas. In other words, the precedence should be

 establishment first of signal then proceed to upgrade or if both can be achieved

then the better. Prioritization of roll-out shall be based on market inputs on

potential subscribers and demographics.

SO3: Create innovative and convergent products for BPO sectors. (S2, S4,

and O4)

The company can bank on this strength to create innovative products on

sectors that not only have high disposable incomes but more importantly have the

biggest need of the telecommunication services. Providing technological support

through products like B2B, M2M, and financial solutions can improve BPOs with

their current operations and processes.

SO4: Boost research on products and services focusing on "Internet of

Things", Big Data, Satellite Internet, Geo-fencing, Virtual Augmented Reality,

B2B, M2M and other emerging technologies. (S2, O5)

The company should conduct further research in assessing the current

market for emerging technologies. Individual, corporate, and premium products

and services can be created based on the insights gathered and can become

the next disruptive offering of the company to its subscribers.

9.1.2 S-T Strategies

ST1: Emphasize in marketing campaigns that OTT works better using LTE in

order to push the utilization of data translating to better customer experience

and more revenue on volume-based products. (S1, T2)

 Over-the-top products are data driven and are best experienced using

faster connection. Some of the OTT features like video calls can be affected on

lower speed technology. Using 4G can increase speed and encourage faster

consumption of data allocation. This will be beneficial for volume-based products

that are not bound by the fair usage policy of the company.

ST2: Create a campaign highlighting the brand complying with

government regulations such as disaster preparedness as part of the

company's corporate social responsibility. (S4, S6, T4, T6)

The company should inform its subscribers on the different initiatives on

information dissemination, disruption of service, and other advisories that might

affect the customers. This shall reiterate the company’s commitment to comply

with government regulations and support public service as the need arise.

ST3: Form strategic partnerships with reputable companies to strengthen

cyberspace security. (S1, S5, T3)

Globe should seek the expertise of firms with deep understanding of

cybersecurity and on how to proactively protect the company from online and

digital threats. As risks are increasing, the company should be able to thwart

attacks using sophisticated tools, knowledge equipped personnel, and a strong

security policy.

ST4: Fast-track testing and roll-out of VoLTE technology to curb losses due

to OTT products. (S1, S5, T2)

 VoLTE is the answer of wireless telecommunication service providers in the

rising popularity of OTTs. The technology shall enable the subscribers to avail of

services direct from their smartphones without having to use the OTT platform.

ST5: Focus on development of data and digital products like entertainment,

content, games, mobile applications, etc. while holding the line for

traditional voice and SMS products to re-establish market leadership and

maintain loyalty of subscribers against possible new entrants and market

disruptors. (S1, S2, S3, T1)

In order to retain customers, the company should highlight its digital

expertise in account management and rewards program, and offering of diverse

content and useful digital solutions.

9.1.3 W-O Strategies

WO1: Continue expansion of 5G network on areas that matter. (W1, O1, O2,

O4, and O5)

5G technology supports the need for faster and reliable data network

connection. Subscribers can expect better service since the technology

provides faster download and upload speed, low latency, and near real-time

online experience. Roll-out prioritization should follow critical areas where weak

signals were detected but with big potential in terms of number of subscribers.

WO2: Strengthen social media presence and improve engagement

through popular brand ambassadors, meaningful and relevant campaigns,

emotional branding, and better customer service experience. (W2, W5, O1,

O2, O3,O4, and O5)

Through the years, big and popular names always headlined Globe brands

from local celebrities. But the digital shift forced the battle of the brands in social

media as more Filipinos spends time using the platform over traditional media.

Social media influencers turned brand ambassadors are on the rise. Celebrities are

no longer confined within the small and big screen but also in cyber space.

Social media also opened new trends like real time personal feedback,

demand on unconventional contents, and popularity of emotional branding or

“hugot” in Filipino laymen’s term. The success of campaigns are measured

based on the “viral factor” or the number of unique views, likes, shares, and

engagement. Insights are readily available in the social media platforms for

monitoring and analysis.

9.1.4 W-T Strategies

WT1: Highlight network coverage and quality to emphasize technology

leadership and maintain subscriber loyalty against threats of new entrants

who are yet to establish their footprint. (W1, T1)

The capital-intensive nature of the industry can be a major challenge for the

new player on top of the issues on geography and bureaucracy. It will take time to

fully roll-out technology. Given this, Globe should take these factors as a challenge

in improving its network in order for subscribers to maintain their loyalty to the
company. The company should not let new competitors surpass the current

technology leadership by ensuring quality of network.

WT2: Continue offering flexible add-ons featuring popular OTTs and other

emerging applications and technologies for Postpaid products. (W3, T2)

Provide more choices for Postpaid users to change their add-ons based on

their needs.

WT3: Strengthen security and fraud management using the latest analytics

and cybersecurity tools to avoid network hacking, revenue leakages, and

service disruptions (W1, T3)

The company should regularly update and enhance the existing security

and fraud systems to keep up with the evolving nature of cybercrimes and fraud.

Criteria should be reviewed in order to validate whether detection mechanisms

are still appropriate and working.

WT4: Host events through Public Affairs Group or Legal to discuss with

government and other related stakeholders in addressing the current

bureaucratic process to speed up network expansion and other regulatory

requirements. (W1, T4)

Establish support from government against bureaucratic issuance of permits

and restrictions of private subdivisions in erecting cellular sites and other

telecommunication equipment as part of the network expansion initiative. Forums,

town hall meetings, and other related activities can be hosted in order to provide

an avenue to discuss issues and resolutions.

WT5: Strengthen early retention programs to avoid churn. (W3, T1)

Proactively reach out with subscribers nearing contract expiration by re-

assessing their current needs and offer retention packages based on the

results of the assessment.

9.2 Internal-External Matrix

The IE Matrix given the results of the IFE and EFE showed that Globe belonged

to the 5th cell which means that it is expected to implement hold and maintain

strategies which are Market Penetration and Product Development.

9.3 Grand Strategy Matrix

 Figure 14 Grand Strategy Matrix

Globe Telecommunication Inc. maintained its excellent strategic position, with its rapid

growth and its strong competition in the industry. Globe continues to create more

opportunities and marketing strategies for its consumers. Under Quadrant I, it includes

Market Development, Market Penetration, Product Development, Forward, Backward

and Horizontal Integration and Related Diversification.

9.4 QSPM

Key Factors Market Market Product

Development Development
Penetration

Strengths Weight AS TAS AS TAS AS TAS

S1: Innovation 0.10 2 0.2 3 0.3 4 0.4

S2: Product and Service 0.10 3 0.3 2 0.2 4 0.4

Offering
S3: Price Competitiveness 0.10 4 0.4 2 0.2 3 0.3

S4: Brand Equity 0.08 3 0.24 2 0.16 4 0.32

S5. Strategic Partnerships 0.08 2 0.16 3 0.24 4 0.32

S6: Corporate Social 0.07 - - - - -

Responsibility Programs
Subtotal 0.53 1.30 1.10 1.74

Key Factors Market Market Product

Development Development
Penetration

Weaknesses Weight AS TAS AS TAS AS TAS

W1: Network Coverage and 0.15 3 0.45 2 0.3 4 0.6

Quality
W2: Customer Service 0.10 4 0.4 2 0.2 3 0.3

W3: Postpaid Business 0.10 4 0.4 2 0.2 3 0.3

W4: Financial Position 0.06 3 0.18 2 0.12 4 0.24

W5: Social 0.15 4 0.24 2 0.12 3 0.18

Media
Presence

Subtotal: 0.47 1.67 2 0.94 1.62

Key Factors Market Market Product

Development Development
Penetration

Opportunities Weight AS TAS AS TAS AS TAS

O1: Mobile Platform Preference 0.13 4 0.52 2 0.26 3 0.39

O2: Population Rate 0.09 4 0.36 2 0.18 3 0.27

O3: OFW Population and 0.10 4 0.4 2 0.2 3 0.3

Filipino and Filipino Tourists
O4: BPO Sectors 0.10 3 0.3 2 0.2 4 0.4
O5: Emerging Technologies 0.14 2 0.28 3 0.42 4 0.56

Subtotal 0.56 1.86 1.26 1.92

Key Factors Market Market Product

Development Development
Penetration

Threats Weight AS TAS AS TAS AS TAS

T1: Potential New Entrants 0.10 3 0.3 4 0.4 2 0.2

T2: Over-the-top Products 0.10 3 0.3 2 0.2 4 0.4

T3: Cybersecurity 0.08 2 0.16 3 0.24 4 0.32

T4: Government bureaucracy 0.06 - - -

and regulatory requirements
T5: Peso Fluctuation 0.05 2 0.10 3 0.15 4 0.20

Subtotal: 0.44 0.86 0.99 1.12

Total 2.00 5.69 4.29 6.4

Attractiveness
Score
Weight Rating: 4 = Highly Attractive; 3 = Reasonably
Attractive; 2 = Somewhat Attractive; 1 = Not
Attractive

Garnering a score of 6.4, the best strategy for Smart is to implement Product and

Technology Development.