Matav is an integrated telecommunications company that focused on four lines of business in the Hungarian and surrounding markets, they are as follows: business services, residential services, Internet and mobile services. Matav used to be an inefficient government agency that would not be provided with the resources to grow and help consumers. So they made the decision to move onto privatizing the company to then become a customer oriented organization. They used the overlay strategy so they could create a backbone and work step by step. By privatizing, they were able to have Deutsche Telekom from Germany to have controlling interest in the company. This made them become the largest telecommunications in central Europe and dominated the fixed line market segment with 80%. Belonging to such a powerhouse company could help them have all the resources available and enter new countries more easily. Unfortunately, the government decided to allow increased competition and this made the market become stagnant. For this reason, they decided to expand globally. This is how Matav strategy started to become apparent. They’re three main pillars into their strategy are organic growth, synergies, and international expansion. The first step for the company was to restructure into four business areas, stated above, to provide “focus and dedicated management teams.” They needed to focus on the competition response based on customers, increase their productivity, make financial measurements for each business unit, and expanding to the broadband market. By stabilizing the structure of the business, the next part of their strategy was to focus on the domestic market of the fixed telephone line based on Internet and mobile. They also would start the international expansion. Going alone internationally proved to be unsuccessful so they won a bid with controlling interest in MakTel in Macedonia and it proved to be successful. With the decrease of fixed lines and increase
Matav is an integrated telecommunications company that focused on four lines of business in the Hungarian and surrounding markets, they are as follows: business services, residential services, Internet and mobile services. Matav used to be an inefficient government agency that would not be provided with the resources to grow and help consumers. So they made the decision to move onto privatizing the company to then become a customer oriented organization. They used the overlay strategy so they could create a backbone and work step by step. By privatizing, they were able to have Deutsche Telekom from Germany to have controlling interest in the company. This made them become the largest telecommunications in central Europe and dominated the fixed line market segment with 80%. Belonging to such a powerhouse company could help them have all the resources available and enter new countries more easily. Unfortunately, the government decided to allow increased competition and this made the market become stagnant. For this reason, they decided to expand globally. This is how Matav strategy started to become apparent. They’re three main pillars into their strategy are organic growth, synergies, and international expansion. The first step for the company was to restructure into four business areas, stated above, to provide “focus and dedicated management teams.” They needed to focus on the competition response based on customers, increase their productivity, make financial measurements for each business unit, and expanding to the broadband market. By stabilizing the structure of the business, the next part of their strategy was to focus on the domestic market of the fixed telephone line based on Internet and mobile. They also would start the international expansion. Going alone internationally proved to be unsuccessful so they won a bid with controlling interest in MakTel in Macedonia and it proved to be successful. With the decrease of fixed lines and increase