FACULTY OF BUSINESS ADMINISTRATION

BA249- BACHELOR OF BUSINESS ADMINISTRATION (HONS) ISLAMIC

BANKING

JBA249 5C

MGT 657 – STRATEGIC MANAGEMENT

CASE STUDY ON ASTRO MALAYSIA HOLDING BERHAD

PREPARED FOR:

PROFESOR MADYA KAMEL TAUFIQ ABDUL GHANI

PREPARED BY:

NO. NAME STUDENT ID

1 MUHAMMAD FARHAN BIN MOHAMAD 2019544717
FADZILI
2 MUHAMMAD FARHAN BIN MUHAMAD 2019722853
RAPIDI
3 MUHAMMAD IZMI FARHAN BIN IBRAHIM 2019314841

4 MUHAMMAD ZAHIRUDDIN BIN ZAMANI 2019346053

Date Submission: 15 January 2021

Executive Summary
In this case study, it will study the company that being chosen which is Astro Malaysia
Holding. Astro Malaysia Holdings is a Malaysian company that offered the media and
entertainment holding company that start with the paid digital satellite radio and television
service. Malaysia has a sole satellite television operator which is MAESAT Broadcast Network
System has introduced the Astro service in the launched event of the MAESAT-1 satellite as
a part of our country to commercialize the Malaysian outer space at that time. Astro has started
the broadcasting on 1 Jun 1996, which at that time there offered the three radio stations and
22 television channels on Astro. But today, Astro has a lot of channels which is 160 TV
channels and radio station also 25 HD channels. Astro also has began their IPTV service in
2013 in Malaysia.

In a nutshell, other than the background or the introduction to the company, this case study
will also identify things such as objectives of the company, major and minor problems of the
company, the mission and vison of the company, Matrix analysis and more. This case study
will identify the major problem of Astro Malaysia Holding which literally identify what is the
cause of the problem and the immediate action that need to be taken by Astro Malaysia
Holding in order to avoid from this problem will lead to any inconvenience towards the
company performance. This is why in the case study will provide identify the Strength,
Weakness, Opportunities and threat of the company that later on will be extract to use on the
Swot Matrix, Internal- External Matrix (IE Matrix) and also the Quantitative Strategic Planning
Matrix (QSPM) where it will used to identify the best strategy to be used by the company.
Moreover, there are other matrix analysis that being used in the Astro Malaysia Holding case
study which are the Strategic Position and Action Evaluation Matrix (SPACE Matrix), Boston
Consulting Group (BCG) Matrix, Grand strategy matrix and also the Competitive Profile Matrix.

By the case study of Astro Malaysia Holding, it basically will give us the knowledge on how
the companies operate and to identify the strategy being used. There were lot of things that
will be gain by looking on the Astro Malaysia Holding that will gives us the knowledge and
perhaps some tips on the business world.

1
Table of content

Executive Summary 1
Table of content 2
1.0 Background 4
1.1 Industry Background/History 4
1.2 Key Competitors in the Industry and their Market Share 4
1.3 External Environmental Influence 6
1.4 Global Operation and Market Segments 7
1.5 Emerging/Future Markets 9
1.6 Industry Analysis/ The Future 10
1.7 Company 10
1.7.1 Background/History 10
1.7.2 Vision and Mission 11
1.7.3 Organization Structure: 11
1.7.4 Existing Objectives Existing Strategies 12
1.7.5 Existing Strategies 13
1.7.5.1 13
1.7.6 Consolidated Financial Earning/Financial Performance 15
1.7.7 Marketing and sales 16
1.7.8 Divisional Performance 16
1.7.9 Product and services 18
1.7.10 Corporate social responsibility 19
1.8 Problem Identification 20
2.0 ANALYSIS 21
2.1 Mission Statement 21
2.1.1 Firm’s Current Mission Statement 21
2.1.2 Analysis of Current Mission Statement with the 9 Essential Components 21
2.1.3 Proposed New Mission Statement with 9 Essential Components 21
2.2 SWOT Framework 21
2.2.1 Identifying Organization's Internal Strengths 21
2.2.2 Identifying Organization's Internal Weaknesses 22
2.2.3 Identifying Organization's External Opportunities 22
2.2.4 Identifying Organization's External Threats 23
2.2.5 Analysis of SWOT Framework 24
2.2.6 Financial Ratios 27
2.2.6.1 Profitability 27

2
 2.2.6.2 Liquidity 28
2.2.6.3 Leverage 29
2.2.6.4 Activity 30
2.2.6.5 Summary of Financial Profile 31
2.2.6.6 Company Capability Profile: Financial Ratios 32
3.0 Matrixes Analysis 33
3.1 SWOT/TOWS Matrix 33
3.2 SPACE (Strategic Position and Action Evaluation) Matrix 36
3.3 BCG Matrix 39
3.4 Grand Strategy Matrix 40
3.5 Internal External Matrix (IE Matrix) 41
3.6 Competitive Profile Matrix 43
3.7 Matrix Analysis 43
4.0 PROPOSED ALTERNATIVE STRATEGY 44
4.1 QSPM 44
4.2 PROPOSED ALTERNATIVE STRATEGY AND LONG-TERM OBJECTIVE 46
4.3 Alternative Strategies 46
4.4 Long Term Objectives 48
5.0 Proposed Strategy Implementation 49
5.1 Strategy Proposed 49
5.2 Strategy Implementation 49
5.2.1 Strategy 49
5.2.2 Structure 49
5.2.3 System 50
5.3.4 Style 50
5.3.5 Shared Value 50
5.3.6 Staff 51
5.3.7 Skills 51
6.0 Recommendation 52
Conclusion 53
References 53

3
1.0 Background
1.1 Industry Background/History
Generally, Astro Malaysia Holdings is a Malaysian company that offered the media
and entertainment holding company that start with the paid digital satellite radio and television
service. This Astro company can also be classified as an industry of broadcasting in our
country, Malaysia. The industry of broadcasting is beginning to establish in Malaysia since
1980.

In 28 December 1963, Malaysian television broadcasting was start at the year of 1963.
The colour television was established in 28 December 1978. The full transmission of colour
television was officially launched in New Year’s Day 1982. The television in Malaysia was in
black and white colour until 28 December 1978. TV3 has introduced the first stereo audio
broadcasting in 1985. Between 13 and 16 May 1989, Malaysia has introduced the 24-hour
television on TV1. In 1997, the first television that operate 24 hours has launched on TV3.

In 1995, TV3 has launched the Mega TV which is the only cable television service in
Malaysia at that time. But, TV3 has facing the stiff competition with other television network
which is Astro and there failed to expand their cable TV at that time. Because of the
competition, TV3 cable TV has closed their operation on 2001 and there is replace with the
Astro to continue the operation.

As we know, Malaysia has a sole satellite television operator which is MAESAT

Broadcast Network System has introduced the Astro service in the launched even of the
MAESAT-1 satellite as a part of our country Malaysia to commercialize the Malaysian outer
space at that time. Astro has started the broadcasting on 1 Jun 1996, which at that time there
offered the three radio stations and 22 television channels on Astro. But today, Astro has a lot
of channels which is 160 TV channels and radio station also 25 HD channels. Astro also has
begun their IPTV service in 2013 in Malaysia.

1.2 Key Competitors in the Industry and their Market Share

Every company in the world have their own competitor in the industry, same goes to the Astro.
The top competitor of the Astro is Unifi TV but before name of Unifi TV, there are known as a
Hypp TV before the year of 2018. Unifi TV is an IPTV service operated by Telekom Malaysia
(TM). This Unifi TV was launched in 2010 as a part of TM’s bundled Triple- play service that
offering of VoIP Telephone, Internet and IPTV called Unifi. TM temporarily stopped offering
free Unifi TV set-top boxes to new Unifi home and broadband customers in January 2019 and
instead supplied Unifi playTV, citing the changing consumer behaviour of watching television

4
programmes on the go and increasing trends in OTT services. However, this resulted in the
inability of new unified TV users to benefit from the unified TV set-top box, such as improved
visual quality, viewing exclusive channels on the set-top box (such as majority channels from
The Walt Disney Company Asia Pacific, joining contests and using TV apps). Unifi TV
launched the Unifi Plus Box on 15 January 2020, which runs off the Android TV platform. The
box was made by Skyworth Digital. It introduced new features, such as the delivery of 4K
content through the Unifi TV app, and came with a number of pre-installed streaming apps,
including iflix, dimsum, BBC Player, YuppTV, and Viu. FOX+ has also been installed, but is
not available in Malaysia at the moment. The Unifi TV app was revised on 30 June 2020 to
allow subscribers to download the app without the need for the Plus Box on other Android TV
devices. The app is available on smartphones that are Google-certified and for users that have
migrated. The app also helped to increase Unifi TV viewership.

Second competitor of Astro is Netflix. Netflix, Inc., based in Los Gatos, California, is
an American over-the-top video network and production company. Reed Hastings and Marc
Randolph created Netflix in Scotts Valley, California, in 1997. The key business of the
company is a subscription-based video service that provides online streaming, including those
created in-house, from a library of movies and TV shows. Netflix has more than 195 million
paying subscribers globally, including 73 million in the United States. With the exception of
mainland China (due to local restrictions), Syria, North Korea, and Crimea, it is available
worldwide (due to US sanctions). The operating income of Netflix is estimated to be $1.2 billion
in 2020. With the advent of streaming media, though maintaining the DVD and Blu-ray rental
market, Netflix expanded its business in 2007. With streaming available in Canada, the
company expanded globally in 2010, followed by Latin America and the Caribbean. In 2013,
Netflix entered the content-production market, debuting the first House of Cards series. Netflix
announced in October 2018 that it would raise another $2 billion in debt to help fund new
content. By market capitalization, Netflix became the largest entertainment/media company
on July 10, 2020.

Market share is the percent of total sales in an industry that generated by a specific
company. The market share is calculated by taking the sales of the company over the period
and dividing it by the total sales of the industry over the same period. This measure is used to
give a general idea of the size of a company in relation to its market and its competitors. The
company with the largest market share is the market leader in the industry. Astro Malaysia is
the dominant Pay- TV operator in this country, Malaysia with a market share of more than
80%. The important market to Astro is to allow the company to achieve a greater scale with
its operations and improve the company profitability. Astro can try to expand their market share

5
either by lowering the subscription price, increase the advertising or introduce a new package
that can attract more customer to subscribe the Astro.

1.3 External Environmental Influence

In term of external environmental influence of Astro, there has some external
environmental factor such as demographic environment, political and legal environment,
economic environment technological environment and lastly is social cultural.

Firstly, is demographic environment. As we know, the majority of people that live in

Malaysia consist of three race which is Malay, Indian and Chinese. In year of 2015, the
population of Malaysian people that live in this country is 30.8 million which consist of three
main races in Malaysia. Moreover, our country Malaysia has more 65% of younger people
which between 15 until 64 years old. For the monthly salary of the household in Malaysia, the
median income of household has increase from RM 3,626 in 2012 to RM 4,585 in 2014. The
median household has growing in 11.7%. Regarding this demographic environment, Astro is
targeting for Malaysian household consist of all race in this country which age between 15
until 64 years old and target a user’s that have a median income to subscribe the Astro for
their entertainment and lifestyle.

Second environmental factor is political and legal environment. Malaysia

Communications and Multimedia Commission Act 1998 (MCMCA), is provide for and regulate
the law regarding the communications and multimedia industries, and for incidental matter and
giving the license, economic regulation technical regulation, customer protection and social
regulation. Therefore, Astro regulatory deal under this this act and Astro has complied with
this act, based on this act, Astro ensure that all the content broadcast via TV channels or radio
station should comply with the Malaysian communication and multimedia content code.

Third external environmental factor is economic environment. As we know, Malaysia’s

economic growth has going to drop because of some external factor that lead to this economic
growth. Our currencies, Ringgit has been affected for both domestic and external factor. This
is because from the case of fallout of crisis of 1 Malaysia Development Berhad (1MDB), it also
pushed the Malaysian currency to multi- year lows in late of 2015 because of this crisis happen
at that year. In 2015, unemployment rate in Malaysia is 3.3% which is the highest rate
compared to previous that will affect the unemployed will have less purchasing power and less
disposable income in this country. So, this will test the loyalty of Astro customer whether there

6
will change and switch to the cheap package or to terminate their Astro contract because
unable to subscribe the Astro for that time or subscribe to another competitor of Astro that has
cheaper than Astro.

The other external environmental factor is technological environmental. Basically,

when the old industries ignore the new industries, there will have the probability that the
industry or the business will be going to decline. As for technological advancement has
growing up year to year, Astro has launched the first High Definition (HD) broadcast in our
country Malaysia in December 2009 under the brand of Astro Beyond. The result is in the
recent trend, many customers has made a high demand on the HD services compared to other
previous year before and this gives the positive result to Astro itself. But for the bad side, the
customer of Astro still facing the experience a broadcast failure during the bad weather such
as in the raining and this issues still not being solved by Astro until now.

The last external environmental factor is social cultural. Society will shape their beliefs,
values and norms that will define these taste ad preferences of the people. Regarding this
view of nature, Astro has responded with this social cultural to increase the awareness of
nature environment by launched the Astro Kasih. The view of organization is very most
important thing to prevent the Astro has a bad perception and bad reputation on the eye of
customer in Malaysia. The issue happened when Astro’s customer service poorly treats their
customer and also the poor and unstable connection of the broadcast in the rural area which
that the issue Astro will resolves as soon as possible to maintain their loyalty of customer.

1.4 Global Operation and Market Segments

All-Asian Satellite Television and Radio Operator, which operates as Astro, is a
Malaysian satellite television provider. It operates in Malaysia and Brunei and operates in the
All-Asia Broadcast Centre, Bukit Jalil, Kuala Lumpur and MEASAT, Cyberjaya. It’s mean for
the global operation, Astro only operate their broadcasting in Malaysia and Brunei only and
not in the worldwide. In the September of 2014, Astro has reached 4.4 million of their
customers in Malaysia which is it has given the impact to the Astro itself.

Next, for the market segmentation of Astro, it will be divided into a several part which
is demographic, psychographic, geographic and behavioural. Firstly, is demographic. In this
part of demographic, it will be divided into three type which is age, gender and race. The age
of the customer of Astro is between 15 until 64 years old. The reason why I choose this age
is because according to the department of statistic, the working age of people in Malaysia is
for those are between these ages which is 15 until 64 years old. For the next age is between
7 until 17 years old. This group of age is normally using watch the Astor Tutor TV which is the

7
student in the primary and secondary school in Malaysia. Next is the age between 4 until 9
years old. This group of age are children that watch the Dunia Ceria which is the channel for
the kids to watch the Astro. For the gender, this is only having a two gender which is male and
female that using the Astro. The other part for demographic is race. As we know, the race in
Malaysia consists of three main race which is Malay, Chinese and Indian. Regarding the Astro
subscriber by the race, Malay is 62%, Chinese is 20% and Indian is 12%. The last for part for
demographic is income. The median monthly income for Malaysian household is increase
from RM 3,626 in 2012 to RM 4,585 in 2014. It’s meant the median monthly income for
household in Malaysia has growing in 11.7%.

Besides that, the second market segment for Astro is psychographic. Normally, the
group consumer of Astro that has a high resource which mean the household that have the
high income will subscribe the Astro because they want an entertainment in their house and
this group of people has a self-expression motivation which mean they want use the Astro to
fill their free time. For the experiences of the customer that subscribe the Astro, this experience
will get by young people who love the entertainment in their live and this type of people who
seek the variety and excitement by using the Astro for entertainment.

Next, the other market segment for Astro is geographic. In this part, the geographic
will divided into two part which is states and country. Firstly, States can categorize into two
parts which is urban area and rural area. For the people that live in urban area, there are more
likely to watch the channels that contains the international sports or tournament that involve
the high consumption expenditure. For the people which lice in rural area, there are more
prefer to watch the Malaysian sports or tournament that it involves the low consumption
expenditure. The highest mean monthly household consumption expenditure was recorded in
Wilayah Perseketuan Putrajaya followed by Wilayah Persekutuan Kuala Lumpur, Selangor,
Melaka and Johor. The other states were recorded the mean monthly household consumption
expenditure below than the national level. Country is only located in Malaysia and Brunei that
Astro provide their broadcasting services.

The last part for market segment is behavioural. In this behavioural, it will be divided
into three part which is occasion, user status and user rate. For the occasion, this will be
triggered by festivals. For example, the Chinese family subscribe the channel 338 during the
Chinese New Year, this is because in that festival the Chinese people can watch the concert,
or latest movie that related with their festival. For Indian people, there will subscribe the
Chakravarthy pack during the Deepavali Festival. So, there can watch the drama or movie
that related with the Deepavali festival. The other occasion is triggered by family. For example,
the Malay family will subscribe the Astro Warna channels because as we know Astro Warna

8
has a relaxing program for the family and we can relax while watching the program in the Astro
Warna such as action of local comedian in that channel like Sepahtu Reunion. The second
part for behavioural is user status. The regular status will use the HD, PVR and IPTV because
the users will use and subscribe the Astro for the longer term. Second, Potential users is
people that subscribe the NJOY pack. This we classified as a potential customer because this
user has a potential revenue and will potential if the users buy a prepaid content in Astro. Last
part for market segment is usage rate. The heavy users of Astro will subscribe the Astro
Beyond because it gives more optional and function to the users. The light user is the user
that subscribe for IPTV.

1.5 Emerging/Future Markets

Astro Malaysia Holdings Berhad has run the TV business for more than decades,
where it has dominated and conquer the market thanks to its exclusive satellite broadcasting
license and high entry barriers. The high obstacles of the Astro company not only surrounded
by competitors that just using the satellite TV, but now also over – top- (OTT) players, legal
and otherwise. The competition not only in the local scale, but now it happens in the global
scale. The CEO of Astor, Datuk Rohana Rozhan said there will be a fundamental shift in Astro
in term of their technology in this new world order, the way the business operate to
understanding more detail about the customer demand and preferences. To maintain the big
brand as a market leader position like Astro is not an easy thing, there have to keep on
innovating and investing to reach the customer satisfaction. Astro will make a changing every
day because the Astro know that the consumer habits, lifestyle and product lifecycle has
change all the time so the Astro will keep innovating and updated to meet the customer
satisfaction. The technology has just accelerated that and also change the step and pace of
innovation.

One of the advantages that Astro has today is the vast audience base which Astro has
built over the two decades. Astro has a foothold in 5.1 million households and serves 21 million
people that using the Astro service in Malaysia and Brunei. Therefore, Astro want to improve
their service in term of innovation because for today we know the new entry of global player
that will compete with the Astro like Netflix and Iflix. Nowadays, people can go out and find
the android box for RM 300- RM600, the value is including the installation services and you
can get the access to many channels under the sun. Just install the android box at the home
and pay RM 600 one- off, there can get the same Astro channel and content of the OTT
players like Netflix and Iflix. So, the issues here are piracy. Piracy is a big threat to the pay-
TV operators like Astro and OTT player. It’s mean the Astro will facing the falling of their
subscriber numbers, which will affect their revenue stream. Therefore, the Astro will try to do

9
an innovation to maintain their stability in the market share and to increase their subscribers
of the Pay- TV.

1.6 Industry Analysis/ The Future

Astro has facing the declining on their demand, lower subscription revenues and sport
event deferment has become a barrier of Astor to gain their attraction to the customer in the
upcoming years. The industry of broadcasting and Pay- TV has affected during the pandemic
of COVID-19. This is because the consumer and the household has been affected during this
pandemic. For example, Astro has facing the lower subscription number of customers in this
year regarding to the cancellation of Olympic event in Tokyo in the year 0f 2020 because the
spread of the corona virus. Supposedly, Astro was target to gain their revenue during the
Olympic event because there know at that time, the consumer will subscribe the Sports
package but surprisingly it was not happened because of the pandemic COVID-19. Astro
shares had been under pressure since yesterday after the announcement of results and
continued their downward momentum, down six sen to 92 sen. Astro reported a net profit of
RM133.6mil in the quarter of April-July, down 21 percent from the previous year, but
significantly better than RM73.8mil in the first quarter. In the future, the industry of
entertainment and broadcast will expend their operation in line with the technological
advancement that have this world right now. So, the broadcast and entertainment industry will
try to make an innovation toward to achieve their customer and demand and satisfaction.

1.7 Company
1.7.1 Background/History
Astro Malaysia Holdings Berhad is a Malaysian broadcasting and entertainment that
serve the Malaysian household with television, radio, digital and commerce platform. The
meaning of ASTRO is All- Asian Satellite Television and Radio Operator. All-Asian Satellite
Television and Radio Operator do a business as Astro. Astro was found in 1996 by Ananda
Krishnan in Malaysia. The new pay-television service named Astro had started broadcasting
with 22 television channel and 8 radio platforms after the MEASAT-1 satellite is launched.
Astro operates in Malaysia and Brunei and for the headquarter of Astro at All Asia Broadcast
Centre that located in Bukit Jalil, Kuala Lumpur, and MEASAT in Cyberjaya.

Besides, Astro have consumed up to RM5.8 million which is about 71% of the total
households in Malaysia. Astro also serve 21 million individuals by offering a wide range of
media and entertaining across television, radio, digital media and home shopping. Astro also
have 188 channels broadcast form their satellite which there is 60 Astro branded channels,
72 are in HD and 19 was radio station.

10
 Moreover, as a trusted brand, Astro has been entertaining Malaysians with the largest
content offering of vernacular, international and live spots content, same day date as USA,
Korea, China, Hong Kong and many more. Astro has multiple services that includes TV
channels, radio and digital publications. Astro also provides varieties of options for viewers
such as Astro Beyond that includes HD, PVR, Internet Protocol Television (IPTV) and OD.
Apart from that, ASTRO also offers a non-subscription freemium service called NJOI, offering
only 28 channels with 2 of it are High Definition and 19 radio stations. Moreover, Astro was
voted by consumers as Malaysia’s Brand of the Year and Platinum winner in Media Network
category and was inducted into the Putra Hall of Fame for its 10th consecutive win at the Putra
Brand Awards 2019.

1.7.2 Vision and Mission

Vision:

• To create an organization that will exceed customer expectations in quality

on time delivery, problem solving, service and cost control.

Mission:

• To dream up ideas to delight their customer and forge new landscape for
their talents. Astro will create inspiring local and regional original and bring
human value to the communities that they serve. Astro will leverage new
technology to deliver meaningful customer experiences.

1.7.3 Organization Structure:

This is the organization structure for Astro Malaysia Holdings Berhad (Astro).

This is the organization structure for Astro Malaysia Holdings Berhad (Astro).

Tun Dato’ Seri Zaki

Bin Tun Azmi
(Chairman)

Henry Tan Poh Hock

(Chief Executive
Officer)

Euan
Smith Dr Grace Christinne Wong See Mazhairul
Agnes Azlin Gavin
(Group Lee Hwee Lim Yen Wei Jamaludin
Rozario Arshad Baxter
Chief Ling Wah (Director, (Director,
(Director, (Director, (Director
Operating (CEO, Go (Director, Media NJOI
Content) PayTV) Workplace)
Officer Shop) Marketing) Solutions) &OTT)
and CEO,
TV)

11
1.7.4 Existing Objectives Existing Strategies

Key Areas Objectives Measure of Performance

1 Marketing To maintain the customer It will be measure by the

loyalty and implement the amount of the subscriber
brand promotion that can by customer.
increase sales of the
business

2 Innovation To offer and create a new It will be measure by the

product or service in the new idea that comes out.
business.

3 Human To develop a smart and work It will be measure by the

Resource hard leadership and arise effective and efficient
the performance among worker in complete their
them. task.

4 Financial To increase the financial It will be measured by the

growth of the company by revenue of the company.
increasing the sale of the
product and service.

5 Production To provide product and It will be measured by the

service that can fulfil the satisfaction of the user and
demand of the customer. feedback from the user.

6 Productivity To develop a good It will be measure by

leadership and arise the operational plan that has
worker knowledgeable. been implemented by the
worker. How the employee
can generate a good idea.

12
 7 Social Serve the community by It will be measured by the
Responsibility improving live in a balanced relationship between the
and sustainable manner. company and community.

8 Profit To increase the profit of the It can be measure by the

company that achieve short increasing of the profit,
term and long-term goals. market share and revenue.

1.7.5 Existing Strategies

1.7.5.1

Key Areas Objectives Measure of Performance Strategies Pursued

1 Marketing To maintain the It will be measure by the In order to get Astro’s

customer loyalty amount of the subscriber brand into more homes,
and implement by customer. Astro started to reduce its
the brand monthly subscription fees
promotion that to appeal to a wider target
can increase market with different
sales of the income levels.
business

2 Innovation To offer and It will be measure by the Astro always innovate their
create a new new idea that comes out. product continuously in
product or service order to ensure that they
in the business. offer a best to their
customer. For example,
the Astro had launched the
new Ultra Box that
designed to provide the
best TV experience to their
customer

3 Human To develop a It will be measure by the To ensure to produce an

Resource smart and work effective and efficient innovative employee,
hard leadership Human Resources of Astro

13
 and increase the worker in complete their has provided bonus and
performance task. reward based on the
among them. performance of the
employees. Thus, it will
make the employees have
an incentive to work hard
for the company.

4 Financial To increase the It will be measured by the Astro spent more than
financial growth revenue of the company. RM1.4 billion on content in
of the company 2020. With the best content
by increasing the it will keep the subscriber
sale of the and attract more customer
product and to subscribe.
service.

5 Production To provide It will be measured by the Astro’s expanding

product and satisfaction of the user ecosystem,
service that can and feedback from the
growing capabilities in data
fulfil the demand user.
and analytics,
of the customer.
and core strength in on-
screen talent and

content production.

6 Productivity To develop a It will be measure by To ensure Astro remain to

good leadership operational plan that has be a market leader of
and increase the been implemented by the satellite television. Astro
worker worker. How the has sent their worker to the
knowledge. employee can generate a Seminar related with the
good idea. industry to gain knowledge
that can be apply to the
company

7 Social Serve the It will be measured by the To help the community

Responsibil community by relationship between the achieve its aspirations.
ity improving live in a company and community.
balanced and

14
 sustainable Astro had work with their
manner. various partners through
the community initiatives
that are based on four
focus areas which is

Lifelong Learning,
Community Development,
Sports and Environment.

8 Profit To increase the It can be measure by the Astro had collaborated with
profit of the increasing of the profit, many companies to
company that can market share and innovate their product. For
achieve short revenue. example, Astro has
term and long- collaborated with Maxis to
term goals of the develop the IPTV. With this
company. celebration it can increase
the sale of the company.

1.7.6 Consolidated Financial Earning/Financial Performance

We have use 3 years to compare the performance of the company which in 2018, 2019
and 2020. From the annual report of Astro, it can be observed that the revenue of Astro had
marginally dropped by 0.94% form RM5.531 Billion recorded in 2018 to RM 5.479 Billion in
2019. There are many factors that influence the decreasing of the revenue. One of the factors
is lower pay-Tv subscription. About 1400 000 to 150 000 of Astro customer had switched to
NJOI that provide free satellite TV service. Thus, the existing of the Netflix has make the
customer switching from pay-tv satellite subscription to the Netflix. Besides, increase in net
financial coast and expenses. The Astro’s net profit in 2019 was RM462.92 million that decline
by 39.9% as compared in 2018 which is RM770.64 million. This drop was mainly due to arise
the sport content cost, investment in broadcasting technologies and initiation of employee
separation scheme (ESS) exercise.

However, based on the survey that conducted by PWC in 2018, it stated that the sport
media has a potential to grow by 3.2% in the next 3 to 5 years as many people prefer to watch

15
live sports on TV. This can be the reason why the Astro are willingly to spend a big budget to
acquire top sport broadcasting. For example, in 2018, Astro secured the broadcasting right for
the FIFA World Cup 2018, English Premier League (EPL), UEFA Champions League and
UEFA Europa League.

While, on 2020 the revenue of Astro RM 4,912 Billion and as we know the revenue in
2019 was RM5,479 Billion there is huge decline on 2020 compare to 2018 and 2019. This can
be due to the pandemic of Covid-19 that has affect the consumer behaviour. There are many
people that has loss their job or the salary has been cut off because of that they cannot afford
to pay the monthly payment for subscript the Astro. However, the Astro also take the
opportunity to provide a movie same as cinema and provide an online apps to their customer.
With this idea, every subscriber can enjoy the movie with their family at home and can watch
anywhere and anytime.

1.7.7 Marketing and sales

• Astro sports Marketing

- Football as the number one sports in the world and majority of the people in Malaysia
loves football. Due to this circumstance, Astro partnered with Bein Asia pacific, ESPN
to bring live the coverage for the UEFA Champions League, UEFA Europa League
and also Premier League.

• Les copaque
- Astro also partnered with Les copaque Production on content sharing, distribution and
marketing of their animation content including Upin and Ipin.

• Social media marketing

- Promote their content of their product and services through social media. For an
example, showing the highlight of the football match to encourage people to watch the
Live of the football match with Astro. Other than that, is to promote the Movie
blockbuster such as Mael totey, Hantu kak Limah and Polis evo in order to watch the
movie at home by using Astro.

1.7.8 Divisional Performance

• Human Resources Management

16
 One of the compensation strategies used by Astro is give stock option to employees.
Employees stock option plan is a companywide incentive plan whereby the company
contributes shares of its own stock or cash to be used to purchase shares of the firm’s stock
for employees. The firm generally makes this contribution annually in proportion to total
employee compensation, with a limit of 15% of compensation. In addition, the trust holds the
stock in individual employee account and distributes it to employees upon retirement,
assuming the person has worked long enough to earn ownership of the stock. The advantage
of this when employees are given a share of ownership in the company, they will enjoy coming
to work. They know that their efforts will directly impact their financial situation and will be more
willing to work together. Instead of looking at the situation as the employees against the
employer, they will look at the situation as if everyone were working towards a common goal.

Moreover, benefit can be one of the best incentives that provide to the employees.
Astro offer an attractive opportunity to their employees based on the performance of the
worker and the integrities of the worker to finish the task. Besides, the Astro will provide a
bonus or an award to the employees to make sure the worker maintains their performance in
the company. Also, this incentive has been providing to the worker to maintain the loyalty of
the worker and create competitiveness between them. Since the Astro company connect with
the customer directly the Human Resources of Astro must make sure that the worker can give
a best idea or product to the customer. Example of the award that given by the Astro to the
employees are Best Performance Award and Creativity Awards. Besides, recruiting the new
employees. Astro has carried out across several of available platforms such as Astro’s website
and through offline application. With this technique the company can recruit a new worker with
a new idea. Also, the Astro provide an internship programmed to Universities student.

• Operation Management:

Astro Malaysia Holdings Berhad (ASTRO) is largest pay television in Malaysia. Astro offers
188 TV channels, including 60 Astro branded channels, 72 are in HD and 19 was radio station.
This all channel is delivered via direct to home satellite TV, IPTV and OTT platforms. Also,
Astro provide HD, PVR and IPTV services through Astro B-yond and Astro On the Go. This
develop has bridge the digital for all Malaysia. The company is dedicated and engaged in
content creation, aggregation and distribution activities, including the provision of direct-to-
home subscription television, radio broadcasting services, library licensing, multimedia
interactive service, magazine publishing, Malaysian film production, talent management,
creation of computer animation, interactive content and television content distribution.

17
On December 2011, the government announced that they will collaborate with Astro to provide
free satellite television to customers. NJOI is the first non-subscription-based satellite TV that
offer 18 TV and 20 radio channels. NJOI were launched on 18 February 2012. In addition,
Astro was awarded the “Brand of the Year” award at Malaysia’s Putra Brand Awards 2012.
The award is recognition of Astro’s efforts to exemplify innovation, quality and strong corporate
social responsibilities.

1.7.9 Product and services

1. Pay per view

- Pay per view or it is known as PPV is a product and services by Astro where the customer
can purchase a selected live events and linear channels with a pay per view basis for a specific
duration without having to subscribe the channels.

2. Multiroom

- Multiroom is also one of the services by Astro where it will provide that the customer can
watch two different channels in different rooms at the same time but the customer needs to
subscribe a second top box within the same household.

3. On Demand

- On demand or Video on demand (VOD) is a service by Astro where it provides a new way of
enjoying Astro for free. It is actually give the customer to choose the show that they would like
to watch anytime of the day so that the customer does not need to wait for the show that they
wated to watch to air. As an addition, On demand also will provide the customer to pause and
rewind or fast forward the show, watch full uncut episodes, no weather or any other disruptions
during viewing time and to catch up on the episodes if the customer missed to watch.

4. Personal Video Recorder (PVR)

- It is Astro’s High definition (HD) decoder which includes recording function and can be
connected to Wi-Fi in order to access the videos on demand. The capacity for the recording
function will be about 500GB (200 hours of HD recording) with a high definition including
vibrant colours and multi-dimensional audio.

5. Ultra-box

- Ultra Box is known as the latest generation of 4K UHD enabled box with Cloud recording
feature, redesigned new interface and UHD resolution. Moreover, with Ultra Box the customer
can take control of the entertainment and explore over 50 000 videos that are waiting to be
streamed anytime.

18
6. Astro Go

Astro Go is one of the products and services by Astro that is an application that enable the
customer to stream and access over 50 000 videos on demand. It basically allows streaming
for up to four devices simultaneously and access over 100 channels from Live sporting events,
latest drama, blockbuster movies and more. The most exciting feature is that it can be watch
via the application in Smartphone that can be download via App store and Google store. With
the application in the smartphone, the customer now can watch Astro anytime and anywhere
they wanted to watch.

1.7.10 Corporate social responsibility

Corporate social responsibility can be defined or known as a self-regulating business model
that helps a company to be socially accountable to itself, stakeholder and also the public or
community. Basically, corporate social responsibility (CSR) is a concept where the company
or businesses can benefit the society while boosting their brands. Moreover, through corporate
social responsibility activities, it may help forge a stronger bond between employees and
corporations, boost morale and to help the employees and employers to feel more connected
with the world around them. In relation to the case study, Astro sdn Bhd also had done their
part on the corporate social responsibility. One of the corporate social responsibility activities
by the Astro sdn bhd was the Kampus Astro.

• Kampus Astro

The Astro Campus is one of the learning initiatives under Astro's corporate social responsibility
program. Launched at the end of 2008, the mission of the Astro Campus program is to bring
a holistic and enjoyable learning experience to students. With the contribution of Astro decoder
with extensive recording function, LCD TV set and access to 13 international and local
broadcasts to more than 10,000 national and secondary government schools (approximately
5.2 million students) including Divisional Education Technology Center (PTPB) and Activity
Center Teachers (PKG) throughout Malaysia enjoy it. This programme is known as one of
Astro’s biggest Corporate Social Responsibility programme where in this programme, RM 30
Million initiative aimed to provide television facilities and also learning channels to over 10 000
primary and secondary school students.The learning channels will provide more than 172
hours of TV content locally in Bahasa Melayu, English, Tamil and Mandarin in order to meet
the needs of Malaysians in academic learning and life skills. Major programs include Astro
TVIQ UPSR! PMR !, 'The English Room' and Dunia Adik on Astro channel 552; Astro Xiao Tai
Yang - XTY Fun Tuition, Di Zi Gui and Xiao Tai Yang IQ on Astro Channel 325. (TheEdge,
2009)

19
 Moreover, under this program, Astro not only supplies the Astro Campus set of equipment
and access to the broadcast of learning programs, but also emphasizes the use of training for
media teachers, the development of better quality and relevant learning content for students
as well as outreach activities together teachers and students.

However as for the pilot program outside Astro Campus, the activities were held at 41 schools
around Sabah, Sarawak and Peninsular Malaysia covering about 6,000km, 33,500 students
and 1,300 teachers in 10 weeks. The goal of this Astro Campus outreach program is to provide
astro Campus introduction to students and teachers on fun learning opportunities that can be
used in schools. Astro Campus will always be committed to improving and supporting the
learning of students in Malaysia through our services and will always find space to improve
the quality of our services.

1.8 Problem Identification

No Problem Major Problem/ Priorities of The Problem
Identification
Minor Problem

1 Content Major 1 (need immediate attention)- Due to many

Piracy content piracies, Astro need a solution or
immediate action in order to combat content
piracy.

2 Competitive 2. With Netflix being favourable in Malaysia,

business Netflix will need to improve their Pay Tv market in
Minor
landscape order to improve their product and services to
and mature meet the needs of diverse customer segments in
Pay-Tv Malaysia.
market

3 Investment 3. To ensure business growth, Astro should be

and responsible and monitoring the performance of
Minor
diversification Astro and to make a good investment to promote
for business business growth.
growth

20
2.0 ANALYSIS
2.1 Mission Statement
2.1.1 Firm’s Current Mission Statement
Astro Malaysia Holding Berhad current mission is to dream up ideas to delight their customers
and forge new landscapes for their talents (9). Astro will create inspiring local and regional
originals (8) and bring human value to the communities that they serve (6). Astro will leverage
new technology (4) to deliver meaningful customer experiences.

2.1.2 Analysis of Current Mission Statement with the 9 Essential Components

Items Criteria Criteria Stated Criteria Not Stated
1. Customers ✓
2. Products/Services ✓
3. Markets ✓
4. Technology ✓
5. Concern for Survival, Growth and ✓
Profitability
6. Philosophy ✓
7. Self-Concept ✓
8. Concern for Public Image ✓
9. Concern for Employees ✓
2.1.3 Proposed New Mission Statement with 9 Essential Components
The new mission statements that consist of nine (9) essential components of Astro
Malaysia Holding Berhad is “our mission is to deliver a good services of broadcast and
entertainment (2) that suitable from teenagers until senior citizen (1), to make sure that Astro
become the best world company that provide the broadcast and entertainment services (3),
Astro will leverage new technology to deliver meaningful customer experiences (4) and will
unite with other expertise team member of Astro to improvise their coverage area worldwide
(7) to enable our company profitability highly increasing (5), Astro will create inspiring local
and regional originals (8) and bring human value to the communities that they serve (6), and
forge new landscapes for their talents (9).

2.2 SWOT Framework

2.2.1 Identifying Organization's Internal Strengths

2.2.1.1 Strong brand awareness

21
 2.2.1.2 Diverse business portfolio

2.2.1.3 Strong cash generation

2.2.1.4 Increasing demand for live coverage of sport events

2.2.1.5 Increasing demand in e- sports.

2.2.1.6 Use the Maesat-1 Satellite

2.2.1.7 Provide training and seminar for employee.

2.2.1.8 Reward incentive for good staff performance.

2.2.1.9 Good in managing the debt of company.

2.2.1.10 Provide wide coverage throughout the country.

2.2.2 Identifying Organization's Internal Weaknesses

2.2.2.1 Poor customer services

2.2.2.2 Poor brand reputation from customers

2.2.2.3 Astro depends heavily on TV subscription for revenue

2.2.2.4 Expensive package by Astro

2.2.2.5 Poor signal during bad weather

2.2.2.6 Poor advertisement on Astro Go

2.2.2.7 Sales decreasing in the year 2020.

2.2.2.8 Profit decreasing in the year 2020.

2.2.2.9 Lack of staff management

2.2.2.10 Less incentive of health benefit

2.2.3 Identifying Organization's External Opportunities

2.2.3.1 The industry of Pay TV was keep growing

2.2.3.2 Astro make a collaboration with TV makers

22
 2.2.3.3 Household rising income

2.2.3.4 International expansion

2.2.3.5 Joint venture with Maxis (IPTV)

2.2.3.6 Government backing

2.2.3.7 Increase in entertainment industry

2.2.3.8 Partnership with Allo in expanding broadband services

2.2.3.9 Moving foward in IR4.0

2.2.3.10 Customer loyalty

2.2.4 Identifying Organization's External Threats

2.2.4.1 Increasing of free live TV on internet

2.2.4.2 Intense competition by other Pay TV company

2.2.4.3 Tax chargers (SST) which was imposed by government of Malaysia

2.2.4.4 Technological advances in the industry of entertainment and

broadcasting

2.2.4.5 Pirate cable devices

2.2.4.6 Depreciation of the currency of Malaysia which is Ringgit Malaysia

2.2.4.7 New technology by Netfllix which is open-source software in its

backend, including Java, MySQL, Gluster, Apache Tomcat, Hive, Chukwa,
Cassandra and Hadoop

2.2.4.8 Unemployment rate increase due to the implementation Movement

Control Order (MCO)

2.2.4.9 Fear of investment by investor during recession.

2.2.4.10 Strict guidelines by FINAS.

23
 2.2.5 Analysis of SWOT Framework
Items STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
M M F O H M M M FI O H M D P E C T D P E C T
G K I P R I G K N P R I
T T N S T T S
1. Strong brand ✓
awareness / /

2. Diverse business /
portfolio
3. Strong cash /
generation
4. Increase demand
for live coverage of /
sports event
5. Increase demand /
on E-sport
6. Use the /
MAESAT-1 satellite
7. Provide Training
or seminar for the /
employee
8. Reward incentive
for good staff / /
performance

9. Good in
managing the debt /
of the company

10. Provide Wide

coverage /
throughout the
country

11. Poor customer

services /

24
12.Poor brand /
reputation
13. Poor signal / /
during bad weather

14. Expensive /
package by Astro

15. Astro depends /

heavily on TV
subscription for
revenue
16.Poor
advertisement on /
Astro Go
17.Sales decreased /
in the year 2020

18. Profit decreased /

in the year 2020

19. Lack of staff / /

management

20. Less incentive / /

on health benefits

21. The industry of

Pay TV was keep /
growing
22. Astro make a
collaboration with /
TV makers
23. Household /
rising income
24. International /
expansion
25. Joint venture
with maxis /

25
26. Government /
backing
27. Increase in
entertainment /
industry
28. Partnership with
Allo in expanding / /
broadband services
29. Moving forward /
in IR 4.0
30. Customer /
loyalty

31. Increasing of
free live TV on /
internet
32. Intense
competition by /
other Pay TV
company
33. Tax charge
(SST) was imposed / /
by government of
Malaysia
34. Unemployment
rate increased due
to implementation /
of Movement
control order
35. Pirate cable /
devices
36. Depreciation of
the currency of
Malaysia (Ringgit / /
Malaysia)

26
37. New technology
by Netflix which is
open-source
software in its /
backend, including
Java, MySQL,
Gluster, Apache
Tomcat, Hive,
Chukwa,
Cassandra and
Hadoop
38. Technological
advances in the
industry of / /
entertainment and
broadcasting
39. Fear of
investment by /
investor during
recession
40. Strict guideline /
by FINAS

2.2.6 Financial Ratios

2.2.6.1 Profitability
a. Gross Profit Margin Formula Analysis: The gross profit
(Sales – COGS) / Sales margin shows that in 2018
2018: 40.9% Astro performance is good
2019: 35.5% compared 2019 and 2020. It
2020: 38.6% shows management and
investors how efficiently the
Astro can produce and sell
products.
b. Net Profit Margin Formula Analysis: In 2018, Astro shows
Net Income/ Sales the higher net profit margin
2018: 13.8% compared to 2019 and 2020. It

27
 2019: 8.4% means that Astro are able to
2020: 13.1% generate more profit from the
amount of sales generate.
c. Return on Asset Formula Analysis: In 2018, Astro
Net Income / Total Asset company shows the higher
2018: 14.28% return on asset compared to
2019: 9.82% 2019 and 2020. It’s mean that
2020: 13.59% Astro are able to generate
profit invested in the total
asset.
d. Return on Equity Formula Analysis: Astro company
Net Income/ Shareholders shows the higher return on
equity equity in 2018 compared to
2018: 120.7% 2019 and 2020. It means that
2019: 74.7% Astro able to generate profit
2020: 90.9% invested in the shareholder
equity.

2.2.6.2 Liquidity
a. Current Ratio Formula Analysis: In 2020, the Astro
Current Asset / Current company shows the good
Liabilities performance compared to
2018: 0.85 2018 and 2019 which it can
2019: 0.78 meet the short-term obligation.
2020: 0.97
b. Quick Ratio Formula Analysis: Astro company quick
Current Asset – Inventory / ratio shows the good
Current Liabilities performance in 2020
2018: 0.84 compared to 2018 and 2019.
2019: 0.77 It’s meant the Astro able to pay
2020: 0.96 off its current liabilities with
quick assets.

28
 c. Inventory to Net Formula Analysis: Inventory to Net
Working Capital Inventories / Net Working Working Capital of Astro
Capital company in 2019 shows the
2018: -0.05 good performance compared
2019: -0.04 to 2018 and 2020. Because of
2020: 0.21 the negative value, the
company unable to finance
their inventories because there
do not have an available cash.

2.2.6.3 Leverage
a. Debt - to - asset Formula Analysis: In 2020, shows that
ratio Total Liabilities / Total the Astro company has a
Asset lowest borrowing compared to
2018: 10.48 2018 and 2019. It’s meant the
2019: 10.7 lowest the debt ratio, the lower
2020: 7.24 the potential loss that may
occurred to the company
b. Debt - to - equity Formula Analysis: In 2020, shows that
ratio Total liabilities / the Astro company uses more
Shareholder equity equity and less borrowing as
2018: 6.07 their source of financing in
2019: 6.10 2020. Astro also using less
2020: 4.11 borrowing compared to 2018
and 2019.
c. Long term debt - to Formula Analysis: In 2020, the Astro
- equity ratio Long term liabilities / long term debt - to - equity ratio
Shareholder equities has lower ratio compare to
2018: 71.9% 2018 and 2019. It means the
2019: 72.8% high ratio usually indicates a
2020: 68.2% higher degree of business risk
because the company must
meet principal and interest on
its obligation.

29
2.2.6.4 Activity
a. Inventory Turnover Formula Analysis: In 2020, Astro
Margin COGS / Inventories company inventory turnover
2018: 163.3 margin show the good
2019: 196.6 performance compared to
2020: 205.3 2018 and 2019. It’s meant the
Astro can generate sales from
its inventory.
b. Fixed Asset Formula Analysis: Astro company fixed
Turnover Sales / Fixed Asset asset turnover shows the good
2018: 2.62 performance in 20018
2019: 2.36 compared to 2019 and 2020. A
2020: 2.30 high turnover means that the
assets are being utilized
efficiently and large amount of
sales are generated using a
small amount of assets.
c. Average Collection Formula Analysis: Astro average
Period Average account collection period shows a good
receivables / (Sales/360) performance in 2018
2018: 36 days compared to 2019 2020. It’s
2019: 37 days indicates that the Astro
2020: 38 days company take a shorter period
in 2018 to collect from the
account receivables.

30
2.2.6.5 Summary of Financial Profile
Profitability

Very Low Average Very High

Liquidity

Very Low Average Very High

Leverage

Very Low Average Very High

Activity

Very Low Average Very High

Comments: Based on the four main ratios above, we can see that the Astro Malaysia Holding
Berhad shows the good performance during year of 2018 compared to the 2019 and 2020.
This performing happens because the COVID-19 pandemic has attack all over the world and
the Astro company also not excepted from this current situation.

31
2.2.6.6 Company Capability Profile: Financial Ratios
0% Weak Neutral Strong 100%

(50%)

1. Accessed to Capital When Required

2. Degree of Capacity Utilization

3. Ease of Exit from the Market

4. Profitability, Return on Investment

5. Liquidity Available Internal Funds

6. Degree of Leverage, Financial Stability

7. Ability to Compete on Prices

8. Capital Investment, Capacity to Meet Demand

9. Stability of Costs

10. Ability to Sustain Effort in Cyclic Demand

11. Price Elasticity of Demand

2.3 Organization’s Cultural Assessment

No Cultural Aspects Score (0-9) for each statement
on importance of culture
1. Founder’s Beliefs and Values 8
2. Openness and Trust 7
3. Climate of Organization 5
4. Recognition of Individual 7
5. Rewards for Performance 7
6. Support of Individual 8
7. Participation in Decisions 8
8. Consistent Communication 6

32
 9. Enforcement of Policies 7
10. Degree of Social Interaction 6
11. Opportunity for Growth 8
12. Level of Job Security 6
13. Level of Technology 9
14. Degree of Innovation 8
15. Sense of Belonging 7

3.0 Matrixes Analysis

3.1 SWOT/TOWS Matrix
Strengths Weaknesses

1. Strong brand awareness 1. Poor customer services

2. Diverse business 2. Poor brand reputation

portfolio from customers

3. Strong cash generation 3. Astro depends heavily on

TV subscription for revenue
4. Increasing demand for
live coverage of sport 4. Expensive package by
events Astro

5. Increasing demand in e- 5. Poor signal during bad

sports. weather

6. Use the Maesat Satellite 6. Poor advertisement on

Astro Go
7. Provide training and
seminar for employee. 7. Sales decreasing in the
year 2020.
8. Reward incentive for
good staff performance. 8. Profit decreasing in the
year 2020.
9. Good in managing the
debt of company. 9. Lack of staff
management
10. Provide wide coverage
throughout the country. 10. Less incentive of health
benefit.

33
Opportunities SO WO

1. The industry of Pay TV was 1. (S1O5) – Market 1. (W4O1) – Retrenchment

keep growing Penetration Reduce or remove the
channel that is unprofitable
2. Astro make a collaboration Joint venture with Maxis
and to focus on the high
with TV makers (IPTV) to increase brand
subscription package such
awareness.
3. Household rising income as sport channel.
2. (S4O6) – Market
4. International expansion 2. (W1O10) – Related
development
5. Joint venture with Maxis diversification
Provide for live coverage for
(IPTV) Strengthen online customer
sport events such as FIFA
6. Government backing services
World Cup.

7. Increase in entertainment 3. 3. (W3O9) – Product

(S3O4) – Market
industry development
development

8. Partnership with Allo in To expand Astro company Conduct research and

expanding broadband services globally. development even better for

the product development.
9. Moving forward in IR4.0

10. Customer loyalty

Threats
1. Increasing of free live TV
on internet
2. Intense competition by
other Pay TV company
ST
1. (S2T7) – Product
development
Invest new technology to
compete with Netflix.
2. (S1T2) – Market
penetration
WT
1. (W1T2) – Related
diversification
Enhance the Customer
Relation Management
(CRM) system in order to
improve the customer
relation and quality service

34
3. Tax chargers (SST) which Collaborate with HBO box in order to compete with
was imposed by government offices the competitors2. (W6T1) –
of Malaysia Market Penetration
3. (S3T5) – Market
4. Technological advances in Penetration Increase the advertisement
the industry of entertainment on Astro Go.
and broadcasting Enforce a regulation that
will help Astro from threat 3. (W5T2) – Product
5. Pirate cable devices by the pirate cable devices development
6. Depreciation of the Improve and end up new
currency of Malaysia which is channel on Astro.
Ringgit Malaysia
7. New technology by Netfllix
which is open-source software
in its backend, including Java,
MySQL, Gluster, Apache
Tomcat, Hive, Chukwa,
Cassandra and Hadoop
8. Unemployment rate
increase due to the
implementation Movement
Control Order (MCO)
9. Fear of investment by
investor during recession.
10. Strict guidelines by
FINAS.

35
3.2 SPACE (Strategic Position and Action Evaluation) Matrix
Factors Determining Environmental/ Stability Position

Technological changes Many 1 2 3 4 5 6 Few

Rate of inflation High 1 2 3 4 5 6 Low

Demand variability Large 1 2 3 4 5 6 Small

Price range of competing Wide 1 2 3 4 5 6 Narrow

products

Barriers into entry to market Few 1 2 3 4 5 6 Many

Competitive pressure High 1 2 3 4 5 6 Low

Price elasticity of demand Elastic 1 2 3 4 5 6 Inelastic

Average: - 2.71

Critical factors: The factors determining environmental or stability position of Astro Malaysia
Holding are the rate of inflation, price range of competing products, barriers into entry to
market, competitive pressure and price elasticity of demand.

Strategic Position and Action Evaluation (SPACE) (continued)

Factors Determining Industry Position/Strengths

Growth potential Low 1 2 3 4 5 6 High

Profit potential Low 1 2 3 4 5 6 High

Financial stability Low 1 2 3 4 5 6 High

Technological know-how Simple 1 2 3 4 5 6 Complex

Resource utilization Inefficient 1 2 3 4 5 6 Efficient

Capital intensity High 1 2 3 4 5 6 Low

Barriers of entry into market Easy 1 2 3 4 5 6 Difficult

Productivity, capacity Low 1 2 3 4 5 6 High

utilization

Average: = 5.0

36
Critical factors: The factors determining Industrial strength of Astro Malaysia Holding is the
Capital intensity.

Strategic Position and Action Evaluation (SPACE) (continued)

Factors Determining Competitive Position/Advantage

Market share Small 1 2 3 4 5 6 Large

Product quality Inferior 1 2 3 4 5 6 Superior

Product life cycle Late 1 2 3 4 5 6 Early

Product replacement cycle Variable 1 2 3 4 5 6 Fixed

Customer loyalty Low 1 2 3 4 5 6 High

Competitor’s capacity Low 1 2 3 4 5 6 High

utilization

Technological know-how Low 1 2 3 4 5 6 High

Vertical integration Low 1 2 3 4 5 6 High

Average: = -4.75

Critical factors: The factors determining financial strength of Astro Malaysia Holding is the
customer loyalty.

Strategic Position and Action Evaluation (SPACE) (continued)

Factors Determining Financial Position/Strength

Return on investment Low 1 2 3 4 5 6 High

Leverage Imbalanced 1 2 3 4 5 6 Balanced

Liquidity Imbalanced 1 2 3 4 5 6 Balanced

Capital required/capital High 1 2 3 4 5 6 Low

available

Cash flow Low 1 2 3 4 5 6 High

Ease of exit from market Difficult 1 2 3 4 5 6 Easy

Risk involved in business Much 1 2 3 4 5 6 Late

Average: = 3.86

37
 Critical factors: The factors determining financial strength of Astro Malaysia Holding is
Leverage.

SPACE MATRIX

FP
Aggressive

• Backward, Forward, horizontal

integration
• Market penetration
• Market development
• Product Development
• Diversification

(0.25,1.15)

CP IP

SP

38
3.3 BCG Matrix

Market Share: Firm market share (revenue)

Largest competition market share (revenue)
:
HIGH LOW
STARS QUESTION MARK
High

M
A
R
K
E CASH COWS DOGS
T
G Low
R
O
W
T
H

MARKET SHARE

39
 3.4 Grand Strategy Matrix
The Grand Strategy Matrix

RAPID MARKET
GROWTH

Quadrant II Quadrant I

1. Market development
1. Market development
2. Market penetration
2. Market penetration
3. Product development
3. Product development
4. Divestiture
4. Forward integration
5. Liquidation
5. Backward integration
6. Horizontal integration
WEAK 7. Related diversification STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION

Quadrant III Quadrant IV

1. Retrenchment 1. Related diversification

2. Related diversification 2. Unrelated diversification
3. Unrelated diversification 3. Joint ventures
4. Divestiture
5. Liquidation

SLOW MARKET
GROWTH

Comments:
From the observation, Astro Malaysia Holdings Berhad (ASTRO) has been sitting
in Quadrant I.

40
3.5 Internal External Matrix (IE Matrix)

THE IFE TOTAL WEIGHTED SCORES

Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99

THE EFE High

TOTAL 3.0 to 4.0
I II III
WEIGHTED
SCORES
Medium
2.0 to 2.99 IV V VI

Low
VII VIII IX
2.0 to 1.99

IFE MATRIX
No Key Internal Factors Weight Ratin Weighted
. g Score
Strengths
1 Strong brand awareness 0.08 4 0.32
2 Diverse business portfolio 0.04 3 0.12
3 Strong cash generation 0.08 4 0.32
4 Increase demand for live coverage of sports event 0.08 4 0.32
5 Increase demand on E-sport 0.03 3 0.09
6 Use the MAESAT satellite 0.08 4 0.32
7 Provide Training or seminar for the employee 0.02 3 0.06
8 Reward incentive for good staff performance 0.02 3 0.06
9 Good in managing the debt of the company 0.02 3 0.06
10 Provide Wide coverage throughout the country 0.06 4 0.24

Weakness
1 Poor customer services 0.06 2 0.12
2 Poor brand reputation 0.05 2 0.10
3 Poor signal during bad weather 0.05 2 0.10
4 Expensive package by Astro 0.06 2 0.12
5 Astro depends heavily on TV subscription for revenue 0.06 2 0.12
6 Poor advertisement on Astro Go 0.03 1 0.03
7 Sales decreased in the year 2020 0.06 2 0.12
8 Profit decreased in the year 2020 0.06 2 0.12
9 Lack of staff management 0.03 1 0.03
10 Less incentive on health benefits 0.03 1 0.03

41
 TOTAL 1.00 2.74

EFE MATRIX

No Key Internal Factors Weight Ratin Weighted

. g Score
Opportunities
1 The industry of Pay TV was keep growing 0.05 3 0.15
2 Astro make a collaboration with TV makers 0.06 3 0.18
3 Household rising income 0.02 1 0.02
4 International expansion 0.07 3 0.21
5 Joint venture with maxis 0.05 3 0.15
6 Government backing 0.05 3 0.15
7 Increase in entertainment industry 0.04 2 0.08
8 Partnership with Allo in expanding broadband services 0.04 2 0.08
9 Moving forward in IR 4.0 0.05 3 0.15
10 Customer loyalty 0.05 3 0.15

Threats
1 Increasing of free live TV on internet 0.06 3 0.18
2 Intense competition by other Pay TV company 0.08 4 0.32
3 Tax charge (SST) was imposed by government of Malaysia 0.02 1 0.02
4 Unemployment rate increased due to implementation of 0.05 3 0.15
Movement control order
5 Pirate cable devices 0.08 4 0.32
6 Depreciation of the currency of Malaysia (Ringgit Malaysia) 0.05 3 0.15
7 New technology by Netflix which is open-source software in its 0.05 3 0.15
backend, including Java, MySQL, Gluster, Apache Tomcat,
Hive, Chukwa, Cassandra and Hadoop
8 Technological advances in the industry of entertainment and 0.04 2 0.08
broadcasting
9 Fear of investment by investor during recession 0.05 3 0.15
10 Strict guideline by FINAS 0.04 2 0.08
TOTAL 1.00 2.92

42
3.6 Competitive Profile Matrix
Critical Success Weight Astro Netflix Hypptv (TM)
Factor Rating Score Rating Score Rating Score
1. Advertisement 0.19 3 0.57 3 0.57 2 0.38
2. Management 0.18 3 0.54 3 0.54 2 0.36
3. Market share 0.10 3 0.30 3 0.30 3 0.30
4. Global 0.08 2 0.16 3 0.24 2 0.16
expansion
5. Financial 0.11 3 0.33 3 0.33 3 0.33
position
6. Customer 0.14 2 0.28 4 0.56 2 0.28
expectation
7. Price 0.08 3 0.24 2 0.16 1 0.08
competition
8. Technology 0.12 3 0.36 4 0.48 2 0.24
Total 1.00 2.78 3.18 2.13

3.7 Matrix Analysis

No. Alternatives Strategies SWOT IE SPACE Grand BCG Total
Matrix Matrix Matrix Strategy Matrix
matrix
1. Forward Integration ✓ ✓ ✓ 3
2. Backward Integration ✓ ✓ ✓ 3
3. Horizontal Integration ✓ ✓ ✓ 3
4. Market Penetration ✓ ✓ ✓ ✓ ✓ 5
5. Market Development ✓ ✓ ✓ ✓ 4
6. Product Development ✓ ✓ ✓ ✓ ✓ 5
7. Concentric ✓ 1
Development
8. Conglomerate ✓ 1
Diversification
9. Horizontal 0
Diversification
10. Joint Venture 0
11. Retrenchment ✓ 1
12. Divestiture 0
13 Liquidation 0

43
 4.0 PROPOSED ALTERNATIVE STRATEGY
4.1 QSPM
Key factors Weight Market Product Market
penetration development development
Strengths AS TS AS TS AS TS
1. Strong brand awareness 0.08 1 0.08 2 0.16 2 0.16
2. Diverse business portfolio 0.04 - - -
3. Strong cash generation 0.08 - - -
4. Increase demand for live coverage of 0.08 2 0.16 2 0.16 2 0.16
sports event
5. Increase demand on E-sport 0.03 - - -
6. Use the MAESAT satellite 0.08 - -
7. Provide Training or seminar for the 0.02 1 0.02 3 0.06 1 0.02
employee
8. Reward incentive for good staff 0.02 1 0.02 2 0.04 1 0.02
performance
9. Good in managing the debt of the 0.02 2 0.04 1 0.02 3 0.06
company
10. Provide Wide coverage throughout the 0.06 3 0.18 2 0.12 1 0.06
country
Weakness
1. Poor customer services 0.06 2 0.12 1 0.06 1 0.06
2. Poor brand reputation 0.05 - - -
3. Poor signal during bad weather 0.05 2 0.10 2 0.10 1 0.05

4. Expensive package by Astro 0.06 2 0.12 1 0.06 1 0.06

5. Astro depends heavily on TV 0.06 2 0.12 2 0.12 1 0.06
subscription for revenue
6. Poor advertisement on Astro Go 0.03 - - -
7. Sales decreased in the year 2020 0.06 1 0.06 2 0.12 2 0.12

8. Profit decreased in the year 2020 0.06 1 0.06 1 0.06 2 0.12

9. Lack of staff management 0.03 1 0.03 3 0.09 2 0.06

10. Less incentive on health benefits 0.03 - - -
Total 1.00 1.11 1.17 1.01

44
Key factors Weight Market Product Market
penetration development development
Opportunities AS TS AS TS AS TS
1. The industry of Pay TV was keep 0.05 3 0.15 1 0.05 2 0.1
growing
2. Astro make a collaboration with TV 0.06 2 0.12 1 0.06 2 0.12
makers
3. Household rising income 0.02 - - - -
4. International expansion 0.07 2 0.14 1 0.07 1 0.07
5. Joint venture with maxis 0.05 2 0.1 2 0.1 2 0.1
6. Government backing 0.05 - - -
7. Increase in entertainment industry 0.04 1 0.04 2 0.08 1 0.04

8. Partnership with Allo in expanding 0.04 2 0.08 3 0.12 1 0.04

broadband services
9. Moving forward in IR 4.0 0.05 3 0.15 1 0.05 1 0.05
10. Customer loyalty 0.05 3 0.15 2 0.1 1 0.05
Threat
1. Increasing of free live TV on internet 0.06 2 0.12 1 0.06 2 0.12

2. Intense competition by other Pay TV 0.08 3 0.24 2 0.16 2 0.16

company
3. Tax charge (SST) was imposed by 0.02 - - - -
government of Malaysia
4. Unemployment rate increased due 0.05 1 0.05 3 0.15 1 0.05
to implementation of Movement
control order
5. Pirate cable devices 0.08 1 0.08 2 0.16 1 0.08
6. Depreciation of the currency of 0.05 3 0.15 1 0.05 1 0.05
Malaysia (Ringgit Malaysia)
7. New technology by Netflix which is 0.05 3 0.15 1 0.05 2 0.1
open-source software in its
backend, including Java, MySQL,
Gluster, Apache Tomcat, Hive,
Chukwa, Cassandra and Hadoop

45
 8. Technological advances in the 0.04 2 0.08 2 0.08 2 0.08
industry of entertainment and
broadcasting
9. Fear of investment by investor 0.05 3 0.15 1 0.05 1 0.05
during recession
10. Strict guideline by FINAS 0.04 - - - - -
Total 1.00 1.95 1.39 1.26

4.2 PROPOSED ALTERNATIVE STRATEGY AND LONG-TERM OBJECTIVE

4.3 Alternative Strategies

➢ Market Penetration

Advantages

● Market penetration makes growth by growing sales in the organization's corporate

markets with established products. One of the strategic priorities of the company, for example,
is to use aggressive ads to boost its product launched in the global entertainment market.
Astro boost their promotion on sports and entertainment to boost their sales.

● It is lowly competitive and Astro benefits from less competitive programming rights
for sports. Astro has become a well-known organisation that provides high-definition streaming
of all television and streaming sports. There are least company that offer sports streaming
legally in Malaysia other than Astro, so it is a low competitive for Astro to penetrate the market.

Disadvantages

● Bad company image If the company has many product lines (including a luxury line),
then it may be harmful to use a market penetration strategy. For example, if a market
penetration strategy for a single product is introduced by Astro, it can impact poorly on the rest
of the product lines. The other product will be affected if Astro only focus on one product lines.

● Astro is controversial due to the rise of the streaming company widely around
Malaysia due to the choice of television shows, drama and series are limited and consumers
prefer to select another channel than Astro. For example, there are drama series that are not
available on Astro so customer will go to other alternative to make sure that they can watch
their desire drama series on another streaming platform.

46
 ➢ Product Development

Advantages

• Astro can develop or create new product that other competitors did not have such as
build or create the smartphone application for customer that allow them to watch all
desired show and drama series without even waiting for them to access on television
broadcast. A product development plan allows the company to keep pace with
changing times, attracting consumers who always get dissatisfied with much the same
deals.
• A product marketing strategy will help the company exploit opportunities to market to
these emerging preferences as customer expectations and desires change. You place
your business in the position of potentially sparking a fad or riding the wave of one that
has already been set in motion if your efforts are successful and you read upcoming
trends correctly.

Disadvantages

• A product development strategy, particularly when businesses are comprehensive

and invest in processes such as market analysis and advertisement, can be costly.
Even if new deals are ultimately successful, substantial costs will still be incurred
before any meaningful revenue is generated by the new goods.
• Since a product market and development plan can be costly, especially if the business
is comprehensive and invests in processes such as market research and
advertisement, it can trigger extra costs. Even if the company's new product launches
are ultimately successful, before the new products pull in any substantial revenue, the
company will still face considerable expenses.
➢ Market Development

Advantage

• Its primary objective, undoubtedly, is to increase sales. Strategies for market

penetration, when correctly applied, can contribute positively to a company's top line.
Astro can increase their profit just by using market development strategies easily.
• Unique strategies for market development will increase a product/exposure service's
in unexplored market segments. A business can, however, join buyer segments only
in which it can produce superior customer value and achieve advantages over its rivals.
For example, Astro become most popular service that provide streaming and tv shows
in Malaysia since they been introduced in the market and they can provide a various
type of channel suitable with the test of the customer in Malaysia.

47
Disadvantage

• Market development, such as production and sales, may generate unwanted strain on
other departments. Producers of Astro’s programme may not be able to reduce their
costs as quickly as expected, and producers may not be able to make their processes
more effective.
• Due to its market development strategy, as newer members of the target group meet
a product, not all of them would be perfect clients. There is the possibility of an incorrect
'product fit' that could hinder the company's image. This arises as a result of inaccurate
market segmentation. For example, if Astro introduce a new channel, not all customer
is fit with it as the taste of customer are different based on their interest.

4.4 Long Term Objectives

Long-term objectives usually include specific improvements in the organization's

competitive position, technology leadership, profitability, return on investment,
employee relations and productivity, and corporate image. So, the long term for this
company is proposed based on the product development. The long-term objective of
product development is:
• To add more channel that brings a lot of excitement for the subscribers
(specific). For example, introduce more show or series that can attract viewer with
more variety of channel
• To introduce and improve their services on streaming on internet (specific)
because of the technology is improving (measurable) and there are a lot of competitors
out there to challenge in the market.
• To add at least one more satellite so the coverage of services (specific) can be
expending outside the South East Asia especially worldwide.
• Collaboration with other company to provide (achievable) high quality of
product that can satisfy the customer (measurable) for example making a product that
have a lot of benefit in one device.
• Astro must improvise their quality of resolution (specific) in all channel to make
sure that the customer can experience the art and quality (measurable) of the product
that Astro give is the better than other competitors.

48
5.0 Proposed Strategy Implementation

5.1 Strategy Proposed

- Market Penetration

5.2 Strategy Implementation - Allocating Resources and Policies Using McKinsey 7s

5.2.1 Strategy
All the business company have their own strategy to stay compete in the market
and important to the company, there must have to choose the right strategy to sustain
in the market. A strategy is a plan the company develops to maintains their place in
the market. Astro performance was reinforced by revenue diversification strategies
coupled with effective cost management initiatives throughout the entire business
supply chain. It consists of a set of decisions and actions to be taken in response to
changes in the external environment of the company, including its customers and
competitors. The company must have market their product to create a brand
awareness and to keep their product will be known by other people. For Astro, their
strategy to market their product is good actually. For example, Astro become most
popular service that provide streaming and TV shows in Malaysia since they been
introduced in the market.

5.2.2 Structure
The structure is the organizational chart of the company. It represents the way
in which the different units and divisions of the company are organized, who reports to
whom and the division and integration of tasks. Astro company have their
organizational structure that consist of Board of Director (BOD) that start with Chief of
Executive, manager executive of each department and subordinate staff that work with
Astro companies. Astro company have their employer and employee that are very
dedicated to their work and will give full responsibility to improve the performance of
their company. The manager of the Astro must know and have a clear goal to achieve
the goal of their company. The manager and their employer also must know how to
create a new product development to attract new subscribers of the Astro. All the
employer and employer must unite and work together to achieve the goal of the
company and also can expend their company in the global.

49
5.2.3 System
These are primary and secondary activities that are part of the day-to-day
functioning of the company. Systems include core processes such as product
development and support activities such as human resources and accounting. A
system will help their worker or staff to make their daily process in the company in
completing their task and works to achieve the objectives in their company. In Astro,
there a good system in term of technology to meet their customer satisfaction and good
system also can make the company daily process will run in the smooth way. System
also includes the process, policies and standard of operation that used by company.
For example, in term of good technology system, Astro has a lot of channels which is
160 TV channels and radio station also 25 HD channels so it means Astro also can
generate their income because there a good technology system in their company.
Therefore, the system is very helpful for the company to meet their customer
satisfaction and the good system also come from the dedicated worker in the company
that work follow the procedure of their company and this will make the company
process more systematic.

5.3.4 Style
It refers to the management style of the leadership of the company. This
includes the actions they take, the way they act, and how they interact. Style also
means the way the company managed by top level managers, how there interact, what
are the actions do they and their symbolic value. Astro company adopted a very strict
tightly measure of style in their organization. Astro leadership was a hardworking,
loving and caring of each other staff in their company. The way of Astro worker
interacts with their customer also good in term of their customer services. For example,
if the customer having a poor channel connection due to the bad weather, and the
customer will make some complaint to the Astro’s customer service, and their staff will
assist the customer in a good manner, So the style of leadership in the Astro is very
good for their company itself and it can make the customer will very trust with the
services that provide by Astro.

5.3.5 Shared Value

Shared values are also referred to as superordinate objectives and are an
element at the root of the model. It is a collective value system that is central to the
organisational culture and represents the standards, attitudes and beliefs of the

50
 company. It is considered to be the most fundamental building block of the organisation
that provides the basis for the other six elements. Vision of the Astro is to create an
organization that will exceed customer expectations in quality on time delivery,
problem solving, service and cost control. The mission of the Astro is to dream up ideas
to delight their customers and forge new landscapes for their talents. Astro will create
inspiring local and regional originals and bring human value to the communities that
they serve. Astro will leverage new technology to deliver meaningful customer
experiences. The Astro company philosophy is to bring human value to the
communities that they serve. Thus, this this is the core value of the company that are
evidenced in the corporate culture and the general work ethics. This core or belief set
by its own founder is strong enough in order to develop and expand their business in
their own legacy which want to entertain the people by watching the channel of the
Astro in the television.

5.3.6 Staff
The organization's most valuable strategic asset is its staff or human resources.
This aspect focuses on the number of employees, recruitment, staff development,
remuneration and other motivational considerations. It is an important thing to each of
the company to analysing staff or their employees and their general capabilities in
order to make the process of the company run in the smoothly way. Basically, Astro
have their own programme for the new staff namely Astro Graduate Programme. This
is an 18-month rotation-based programme that focusing on content creation and
business development to drive customer value. The worker will spend there until 5
months each rotation across key business functions within Astro. Therefore, this
programme actually is a good programme that will make the staff knew the history of
the company and also know about the corporate culture.

5.3.7 Skills
Skills are the skills and capabilities of the human resources of the organization.
Core skills or skills of employees are intangible, but play a key role in achieving a
sustainable competitive advantage. Skills also can define as an actual skills and
competencies of the worker that working for the company. The question also arise of
what are the skills that the company will really need to reinforce its new strategy or
new structure when the organizational change. Basically, Astro as we know is the
company that base on the broadcast and entertainment. So, this Astro company will

51
 hire the employer that have a capability in the technology and have a good knowledge
and skill and the technology of the broadcast. Therefore, if the Astro is lacked of the
skilled worker that good in the technology system, this will make the company are
unable to generate more income in the future.

6.0 Recommendation

- Marketing management

The current role of marketing is not only to deliver the product or service to the hands
of consumers but also how the product or service can provide satisfaction to customers
by making a profit. The goal of marketing is to attract new customers effectively
promote and retain existing customers while maintaining the principle of customer
satisfaction. The marketing manager must make a move to promote the product and
services of ASTRO to gain their subscribers especially outside Asia since there are
many newcomers exist in the industry of media and streaming.

- Continue International Expansion

Astro stands to gain considerable competitive advantage in the global arena with its
ambitious growth plans. This gain would come in many global markets from Astro size,
related efficiencies of scale, and early mover advantages. The advantages of a
successful international expansion outweigh the drawbacks. However, Astro must
carefully monitor its actions and regulate its expenses and be smart and cautious in its
global future growth, given the costs and time needed to become operationally safe in
each international market.

- Always interact or get feedback from the customer

To respond to the change in the climate and economy, always communicate or collect
input from the consumer. Astro currently has several influential rivals that offer
television broadcasting services. They may also introduce a new platform that delivers
customer-favoured content, such as the latest famous films.

52
Conclusion

ASTRO is the brand name of the Malaysian direct broadcast satellite pay television
service. It transmits digital satellite television and radio to households in Malaysia and Brunei.
Astro is an acronym for All-Asian Satellite Television and Radio Operator. Astro is owned and
operated by MEASAT Broadcast Network Systems, a wholly-owned subsidiary of Astro All
Asia Networks. It is important to coordinate and mutually reinforce these seven elements so
that the model can be used to help determine what needs to be continually in order to improve
quality or sustain consistency and performance with the recommendation given. Astro must
set the goal to take this to a bigger market and use the reach of TV and radio and digital that
they have, including the creativity and talent pool that they have, to help Malaysians move into
the new digital world. After evaluating the model based on the theory that these seven
components must be balanced and mutually balanced for an organization to function well. It
is easy to claim that Astro has built synergy between all seven aspects of the structure of the
McKinsey 7. In order to produce quality of all type of entertainment, Astro has always matched
its priorities and goods.

References
Astro Malaysia. (2013, December). Astro Malaysia Holdings Berhad. Retrieved from About
Us: https://corporate.astro.com.my/
Burfitt, N. (2017, February 16). The Future Of Audience Measurement in Malaysia. Retrieved
from Kantar: https://www.kantar.com/inspiration/tv/the-future-of-audience-
measurement-in-malaysia/
Ibrahim, N. A. (2009). Financial Analysis of ASTRO Malaysia Holdings Berhad.
ResearchGate , November .
Mahmud, W. A. (2013). A Broadcasting History of Malaysia: Progress and Shifts.
ResearchGate, April.
TheEdge. (2009, August 23). The edge markets. Retrieved from Corporate Social
Responsisbility: Doing good on less:
https://www.theedgemarkets.com/article/corporate-social-responsibility-doing-good-
less
UKEassay. (2018, November). The Astro Malaysia Holdings Berhad. Retrieved from
Business Essay.: https://www.ukessays.com/essays/business/the-astro-malaysia-
holdings-berhad-business-essay.php?vref=1

53