Matav's Business Strategy: Has It Been Successful?
Jhon Manrique
Case # 3 Matav
1. What is Matav’s Strategy? Has it been successful?
Matav, being the Hungarian Telecommunications leader, had secured their spot in most of the communications market in Hungary, including business services, residential services, Internet and Mobile. Their parent company Deutsche Telekom wanted them to remain an integrated telecommunications company. Later on they were facing a decline in the mobile market in Hungary with the only scope of expansion being the broadband market. So their primary focus was on competitive response to the core customer base, consolidating financial performance, increasing productivity and expanding the broadband market. The next step that Matav took in implementing their strategy was to split their vast company into smaller business units which could manage their market independently and sufficiently. International expansion was on the cards as well. Belonging to a greater European powerhouse, they had all the man power and resources to help them step in to a new, less visited, European country where the telecommunications prospects were bright. I personally think that there was no other option but to expand their foothold in the rest of Europe and keep the domestic growth increasing with the creation of new technology.
2. Does Matav have any competitive advantages in its domestic markets?
No. I think domestic competitors were the reason Matav lowered their price. They didn’t offer any packages or services to get customers eyes on them. After T-Mobile offer services with lower prices, Matav was forced to decrease the prices. They could have done that before T-Mobile enter the market. In all the services that Matav can offer, they have not done anything for competitive goals, like in internet services and in mobile services. They once offer tariff packages and they saw the results, It was good. Why not offer different packages and offers with low prices; customers love to see new discounts and promotions
Case # 3 Matav
1. What is Matav’s Strategy? Has it been successful?
Matav, being the Hungarian Telecommunications leader, had secured their spot in most of the communications market in Hungary, including business services, residential services, Internet and Mobile. Their parent company Deutsche Telekom wanted them to remain an integrated telecommunications company. Later on they were facing a decline in the mobile market in Hungary with the only scope of expansion being the broadband market. So their primary focus was on competitive response to the core customer base, consolidating financial performance, increasing productivity and expanding the broadband market. The next step that Matav took in implementing their strategy was to split their vast company into smaller business units which could manage their market independently and sufficiently. International expansion was on the cards as well. Belonging to a greater European powerhouse, they had all the man power and resources to help them step in to a new, less visited, European country where the telecommunications prospects were bright. I personally think that there was no other option but to expand their foothold in the rest of Europe and keep the domestic growth increasing with the creation of new technology.
2. Does Matav have any competitive advantages in its domestic markets?
No. I think domestic competitors were the reason Matav lowered their price. They didn’t offer any packages or services to get customers eyes on them. After T-Mobile offer services with lower prices, Matav was forced to decrease the prices. They could have done that before T-Mobile enter the market. In all the services that Matav can offer, they have not done anything for competitive goals, like in internet services and in mobile services. They once offer tariff packages and they saw the results, It was good. Why not offer different packages and offers with low prices; customers love to see new discounts and promotions