A strategic management paper [for] Transpacific Broadband Group International Inc.

• Main Author: Pesurnay, Jean Andre
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Broadband communication systems; Internet service providers; Transpacific Broadband Group International Inc.
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3680
• Institution: De La Salle University

Transpacific Broadband Group International is a company engaged in internet and data network provider using satellite-based VSAT technology in delivering its service to the subscribers. Just like any industry, internet and data network industry is affected by the macro-environmental changes. Using the Five Forces frameworks, the following opportunities were identified: (1) emergences of advanced telecommunication, information and computer technologies, (2) rapid internet growth, and (3) low internet penetration in the Philippines. On the other hand, there are five major threats to the industry: (1) increasing competition in the industry, (2) rising consumer price, (3) commoditization of services, (4) continued industry liberalization, and (5) decrease in customer loyalty. TBGIs strengths and weaknesses derived from analyzing the companies activities using the value chain analysis framework. The following strengths were identified: (1) strategic partnership with CBCP, (2) wide area coverage, (3) strong equity and highly liquid financial position and (4) low overhead cost. While the company's weaknesses include: (1) lack of marketing and promotion, (2) lack of corporate-wide information systems, and (3) inefficient revenue collection and (4) underutilized capacity. The vision of the company is committed to provide information and communication services and to contribute to the education and healthcare systems particularly to the Philippines countryside areas and uses its technological platform to enhance and benefit the community where it operates. The objectives set for the company to achieve over the next five years are: (1) increase ROE by 15 percent, and (2) increase earnings by 15 20 percent annually until 2011. In order to achieve those objective, TBGI will attract new schools subscribers by continue providing financing facility and technical supports needed to set up computer laboratory in schools. Another strategies proposed for TBGI to sustain business growth are to expand customer base by developing innovative service caters to specific segments of customer and expand distribution channel through building strategic partnership with IT companies to provide seamless and cost efficient internet access and data network to their clients. Implementation of the above strategy depends on the capabilities of the company, thus it might require changes around the 7-S factors which are strategy, structure, system, skill, staff, style and shared values.