What is Matav’s Strategy? Has it been successful?
Matav restructure into four business area: business services, residential services, Internet and mobile. The mid-term strategic plan of Matav is: expansion in Hungary; regional penetration; organic growth in existing product lines. Business units operate separate management teams, allowing each unit to focus on their areas of enterprise. They develop mobile services to attract customers in order to pick their product over competitors. Also, Matav was keen to expand through the Balkan region and southeastern regions of Europe such as Bulgaria, Romania, Serbia, due to its well performance in getting the controlling interest of MakTel. Their second target is Montenegro Telecom because
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From year 1990 to 1997, the company shortened a waiting list of 600,000 people to 0, whom just asked for fixed telephone line.
Does Matav’s international expansion plans make sense? Why?
YES
Rational expansion experience with the success of MakTel made Matav as a local expertise in Southern Europe: “Matav transferred its knowledge of a financial control system, professional regulatory management and tariff packages to rebalance fixed line fees”. Maktel increased the number of fixed lines by 21 percent from 2000 to 2003 and mobile subscribers were five times higher in 2003 than in 2000. MakTel’s performance was a possibility to show Deutsche Telecom that Matav was capable. After result of MakTel, Deutsche Telecom offers it capital and other financial support and treats Matav like a Central/Eastern European hub. An unsaturated market in fixed line and mobile business made Montenegro a place worth to be acquiring. Also, Macedonian experience helped Matav get into the Balkans become a lot more international.
If you were a member of the strategy group, what would you recommend as a mid-term strategy to Andras Balogh?
Matav will achieve continuous growth while remaining an integrated telecommunication company. Market need to subdivide into segments, but company need to operate as a whole.
Need to seek for unsaturated markets in and out of Hungary. Maybe in Hungary, It is hard to find out unsaturated markets no matter in fixed line, mobile phone or
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