Strategic Crossroads at MatavQuestions
1. What is Matav’s Strategy? Has it been successful?
Matav used to be an inefficient government agency. Since being privatized, Matav went with the overlay strategy-first built the infrastructure backbone, then worked step by step; Matav began to match organization to customer and improved the quality of network by using fibre-optic cables and putting into expats. At that time, Matav had a monopoly in Hungary. In 2000, Matav expand its international market by buying share of MakTel which is Macedonia’s telecommunications company. By September 2014, Matav’s management believed that the international expansion was a success. In 2001, Matav restructured into four business areas: business services, residential services, Internet and mobile. During period of working on the mid-term strategy plan, strategy group proposed three pillars of strategies-organic growth, synergies and international expansion. 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. They made existing product lines more competitive, tried to attracting more customers and expanded their market share. They had an opportunity to expand through the region, such as Montenegro. I believe Matav’s strategies are successful because by 2008, the company was a fully integrated telecommunications company involved in fixed line telephony, mobile communications, Internet services, data transmission and outsourcing.
2. Does Matav have any competitive advantages in its domestic markets?
In Matav’s domestic markets, they have no competitive advantages. With the fixed line market declining and customers substituting lines for mobiles, those companies which started later and focus on mobile became Matav’s competitors. When T-mobile had lower rate and more attractive package, Matav followed them in the price war not because Matav realized the changing of market, instead, Matav
Matav used to be an inefficient government agency. Since being privatized, Matav went with the overlay strategy-first built the infrastructure backbone, then worked step by step; Matav began to match organization to customer and improved the quality of network by using fibre-optic cables and putting into expats. At that time, Matav had a monopoly in Hungary. In 2000, Matav expand its international market by buying share of MakTel which is Macedonia’s telecommunications company. By September 2014, Matav’s management believed that the international expansion was a success. In 2001, Matav restructured into four business areas: business services, residential services, Internet and mobile. During period of working on the mid-term strategy plan, strategy group proposed three pillars of strategies-organic growth, synergies and international expansion. 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. They made existing product lines more competitive, tried to attracting more customers and expanded their market share. They had an opportunity to expand through the region, such as Montenegro. I believe Matav’s strategies are successful because by 2008, the company was a fully integrated telecommunications company involved in fixed line telephony, mobile communications, Internet services, data transmission and outsourcing.
2. Does Matav have any competitive advantages in its domestic markets?
In Matav’s domestic markets, they have no competitive advantages. With the fixed line market declining and customers substituting lines for mobiles, those companies which started later and focus on mobile became Matav’s competitors. When T-mobile had lower rate and more attractive package, Matav followed them in the price war not because Matav realized the changing of market, instead, Matav