STRAMA Case Study
STRAMA Case Study
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Then ang kanang mga parts nga naay a. b. c. d. nga gipang lahi2 ni sir sa iyang guidelines kay
pwede ra na ninyo usahon og suwat like pwede ra jd dli by letter ang paragraph na inyo isuwat.
The Strategic Management Case Study: Guidelines and Suggested Outline
Executive Summary. Provide a brief summary or overview of the strategy paper (in two pages
at most), stating what the business of the company is, the main results of the external and
internal analyses, results of strategy formulation tools used, the key strategic management issues
and the recommended strategic and financial objectives (at least for the next three years), and
I. INTRODUCTION
A. Company Background
Source: Pitchbook
1. Brief history
Globe Telecom, Inc. (GLO) was originally incorporated on January 16, 1935 as
Globe Wireless Limited with a franchise to operate wireless long distance message services
in the Philippines. The Company eventually changed its name to the present one in 1992,
and welcomed Singapore Telecom, Inc. as a new foreign partner the following year.GLO is
nationwide under the "Globe Postpaid", "Globe Prepaid", and "TM" brands using a fully
digital network. The Company also offers domestic and international long distance
communication services or carrier services.On May 30, 2016, the Board of GLO approved
the acquisition of 50% of Vega Telecom, Inc. (VTI) from San Miguel Corporation, with
Philippine Long Distance Telephone Company acquiring the remaining 50% interest. VTI
owns an equity stake in Liberty Telecom Holdings, Inc. (LIB) as well as in enfranchised
Philippines, Inc.; Express Telecom, Inc.; and Tori Spectrum Telecom, Inc., among others.
On June 21, 2016, GLO exercised its rights as holder of 50% equity interest of VTI to
cause VTI to propose the conduct of a tender offer on the common shares of LIB held by
minority shareholders as well as the voluntary delisting of LIB. At the completion of the
tender offer and delisting of LIB, VTI’s ownership of LIB is at 99.1%.The Company's
subsidiaries are composed of Innove Communications, Inc.; GTI Business Holdings, Inc.;
Kickstart Ventures, Inc.; Asticom Technology, Inc.; Globe Capital Venture Holdings, Inc.;
Bayan Telecommunications, Inc.; TaoDharma Inc.; GTowers Inc.; Yondu, Inc.; and
SM MARILAO TAGUIG
Unit 219 level 2, SM City Marilao, Km. 21 1 General Antonio Luna Brgy. Tuktukan,
Brgy. Ibayo, McArThu Hway, Bulacan Taguig
APALIT BORACAY
T&A Building Mc ArThu Highway, Barangay Block C Unit 1-2A Phase 2 D'Mall De
San Vicente Apalit, Pampanga Boracay Balabag, Malay,Aklan 5608
DAET MATI
Tan Building, J. Pimentel St. Daet, Andrada Building 2, Mati City, Davao
Camarines Norte Oriental
SM BAGUIO TAGUM
Unit 349 & 350 - Level 3, SM City Baguio, 3/f Gaisano Grand Mall of Tagum, National
Luneta Hill, Upper Session Road, Baguio Highway, Tagum City 8100
City
SM ILOILO
PUREGOLD LAOAG 3/F Cyberzone North Wing, SM City Iloilo, B.
Puregold Bldg, J.P. Rizal St. Laoag City, Aquino Ave. Mandurriao, Iloilo City 5000
Ilocos Norte 2900
SM DELGADO
VIGAN Ground Floor, SM Delgado cor. Valeria &
Collegio Business Center, Mart 1Nueva Delgado Sts. Iloilo City 5000
Segovia St., Vigan City
PASSI
CANDON Gaisano Capital, Passi City, Iloilo
Ground Flr Unit B, C Square Building
National Highway, San Juan Candon City GAISANO ILOILO
Ilocos Sur 2/F Gaisano City, La Paz, Iloilo City 5000
LA TRINIDAD SM MOLINO
Unit 1 FA 206 Tokiko Bldg. Km.5 Balili La Unit 213, 2nd Level, SM Supercenter Molino,
Trinidad, Benguet Molino IV, Bacoor, Cavite
SM LANANG SM ROSARIO
Loc C3-149-150, 3F Cyberzone, SM lanang Unit 237, 2nd Level, SM City Rosario, Gen.
Premier, JP Laurel Ave. Bajada, Davao City Trias Drive, Rosario Cavite.
8000
AYALA ARVO
TORIL Space no. G-14B The District, Molino-
Gaisano Mall of Toril MacArthur Highway, Paliparan Road, Brgy. Salawag, Dasmarinas
Toril, Davao City Cavite
SM DAVAO SM TRECE
EA222, 2nd Level Cyberzone, SM Annex Lower Ground Floor Cyberzone, SM Trece
Bldg., SM City Davao, Ecoland, Quimpo Martires, Barangay San Agustin, Governor's
Blvd., Davao City 8000 Drive Trece Martires, Cavite
PANABO SM BACOOR
2/F Gaisano Grand Mall Panabo Brgy. Sto. 3F CB 324-325 Cyberzone Area SM City
Nino Panabo City Davao Del Norte Bacoor Tirona Highway cor. Aguinaldo
Highway, Bacoor, Cavite
McArthur Highway, Barangay San Miguel,
SM SAN LAZARO Calasiao, Pangasinan
3rd Floor, SM City San Lazaro, Felix Huertas
cor. A.H. Lacson Streets, Sta. Cruz, Manila SM URDANETA
L2, CYBERZONE, SM CITY URDANETA
SM STA MESA CENTRAL
3rd Floor, SM City Sta. Mesa, Ramon
Magsaysay Boulevard cor. Araneta, Sta. SM ROSALES
Mesa, Manila Unit IT112 G/F,SM City Rosales MacArThu
Hiway Brgy., Carmen East , Rosales
ROBINSONS PLACE MANILA Pangasinan
Level 4, Pedro Gil Wing, Robinsons Place
Manila, Pedro Gil cor. Adriatico Streets, MIDSAYAP
Ermita, Manila UNIT 7&8 Quial Building, Quezon Ave.,
Corner Burgos Street, Midsayap, Cotabato
SM MANILA City
Lower Ground Floor Cyberzone, SM City
Manila, Arroceros cor. Marcelino Streets, COTABATO
Manila BPI Bldg. Makakua St., Cotabato City 9600
BAYAWAN BALER
R8 Prince Hypermart Bayawan Poblacion, Ground Floor Unit A Gonzales Bldg. Quezon
Street Barangay Suklayin, Baler, Aurora, ROBINSONS CYBERGATE CEBU
Quezon Robinsons Cybergate, Don Gil Garcia St.,
Capitol Site Cebu City
NUEVA ECIJA
Mokara Building, Maharlika Road, San Jose SM CEBU
City, Nueva Ecija Unit 285 Cyberzone 2nd Level SM City Cebu
Northwing, North Reclamation Area, Cebu
OROQUIETA City 6000
Ground Floor Mayor Enerio St. Oroquieta
City, Misamis Occidental ELIZABETH MALL
Elizabeth Mall T-020 3rd Level cor. N
ILIGAN Bacalso & Keon Kilat Sts., Cebu City 6000
Unit 3-H, 3/F Gaisano City Super Mall,
Roxas Ave., Villa Verde St., Iligan City 9200 GAISANO TABUNOK
2FS-17 2F Gaisano Grand Fiesta Mall Hi-
ZAMBOANGA way Tabunok, Talisay City, Cebu 6045
KCC Mall de Zamboanga, Gov. Camins
Ave., Zamboanga City
ZAMBOANGA
2nd Floor, Southway Square, Don P.Lorenzo
St. cor. Gov. Lim Avenue, Zone 4,
Zamboanga City
OZAMIS
B-5 G/F Gaisano Ozamis City Mall, cor. Rizal
Ave. & Zamora Extension, Ozamiz City,
Misamis Occidental 7200
SINDANGAN
Ground Floor, Unit 1 Tantinco Building
Aquino Street Poblacion Sindangan,
Zamboanga del Norte
DIPOLOG
Lee Plaza City Central Quezon Avenue,
Miputak, Dipolog City, Zamboanga del Norte
PAGADIAN
L/G Floor - 05B, Gaisano Capital, San Pedro
District Pagadian City 7016
SM SEASIDE CEBU
3/F Cyberzone, South Road Properties
(SRP), Mambaling, Cebu City
Figure 1.2 The Globe Tower Location
2. Nature of business/products/services
and broadband services. It operates through two segments: mobile and Fixed Line & Home
Broadband. Mobile involves traditional mobile services and contributes to the majority of
company revenue. Within the mobile division, the majority of subscribers are considered
prepaid customers. The Fixed Line and Home Broadband segment provide wireline
communication services, fixed-line voice services, corporate data, and Internet for its
customers. The company generates the vast majority of its revenue in the Philippines.
Figure 1.4 Globe Telecom Products and Services
3.
small and medium-sized businesses, and corporate and enterprise clients in the Philippines.
Globe Telecom operates under Telecom Services classification in the United States and is
Globe Telecom serves more than 700 million mobile customers in 21 countries,
including Singapore, Australia (via wholly-owned subsidiary Singtel Optus), and the
5. Number of employees
people. This is 44.74% lower than that of the Communication Services sector and 83.45%
lower than that of the Telecom Services industry. The number of employees for all United
% OF % OF NON-
Directors, Officers,
Plan
133,432,72 158,515,02
Total 100% 100% 20,000,000 100.00% 311,947,748 100.00%
7 1
Source: globe.com.ph
Figure 1.7 Globe Telecom’s Conglomerate Map (as of January 2021)
Source:globe.com.ph
Globe Valuation
Globe Telecom retains a regular Real Value of $34.96 per share. The prevalent price
of the firm is $37.29. At this time, the firm appears to be overvalued. Our model calculates
the value of Globe Telecom from evaluating the firm fundamentals such as Current
Valuation of 156.78 B, return on equity of 22.70 %, and Return On Asset of 8.24 % as well
encourage acquiring undervalued assets and dropping overvalued assets since, at some
point, asset prices and their ongoing real values will come together.
II. COMPANY’S VISION AND MISSION
OBJECTIVES
Globe is not simply a telco company. Globe is an organization that creates and
enables digital life for the Philippines, so Filipinos can access choices, overcome challenges,
and discover new ways to enjoy life. Globe achieves this through obsessing about its
empowering its people. Globe continues to provide meaningful support to all its stakeholders
and creates wonderful channels to the digital lifestyle for Filipinos and all stakeholders.
infrastructure growth and network upgrades continued in 2019. Globe followed through with
the building and deployment of cellular towers in the country throughout the year, spending
The company continues to believe that providing data services is crucial towards
true progress. Globe will continue to push its network expansion to meet its customers’
growing demand for data. The company committed to spending P63 billion in capital
expenditures in 2020, which includes spillover of CAPEX commitments from 2019. Globe is
set to fulfill its commitment to provide two million homes with at least 10 Mbps connectivity
VISION
We see a Philippines where families' dreams come true, businesses flourish, and the
nation is admired.
MISSION
B. How to communicate the vision and mission to the employees and other stakeholders.
Telling a good story gives life to a vision. A good storyteller creates trust,
captures hearts and minds, and serves as a reminder of the vision. To repeat a story
makes people find it easier to remember than to talk about a vision statement.
during and after the change. It must also be communicated appropriately. This means
using multiple communication channels appropriately, for both the audience and the
vision for change is likely to include group presentations, team meetings and one-to-
is executed consistently.
information, receive feedback, build support, and create energy around the vision. Be
thoughtful about what approaches you use, and try different tactics to influence
people based on what they’ll find most persuasive.
4. Solicit Feedback
Only with feedback can leaders know what their people understand and what
they don’t. Feedback is critical to ensuring that efforts in communicating the vision
have not fallen on deaf ears or been misunderstood and that the vision will not be
is the best way to get your employees on board with the strategy and its vision.It’s
not enough to ensure your employees are simply aware of what the vision is. Solicit
Once you’ve brought the strategy to life with visuals, it’s time to get your
employees engaged with it.When employees are engaged, they are more likely to
invest in the work they do which leads to a higher quality of work produced. By
A. General Environment
1. Discuss current and expected outlook in the following areas, focusing only on factors
that will have significant impact on your business. Consider the following areas only
insofar as they are relevant, and thus exert a significant impact on your industry.
a) Economic developments
c) Technological developments
e) Ecological aspects
f) Other external factors that may be more directly relevant to your business
2. Translate the above in terms of what it means for your business, identifying
c) Intensity of competition
a) Market size and/or growth rate and stage in the growth cycle
After gradually increasing total service revenues over the past five years, Globe
Telecom was able to counter global market forecasts of a financial recession in the
raising sales by 19 percent to PHP 12.5 billion from PHP 10.6 billion last year, putting
With over 2.9 million users, the company's home broadband user base increased by
58 percent from the first half of 2019. The total number of home broadband subscribers
currently stands at 3.8 million, up 88 percent from 2019 and up 9% from the third quarter,
extending its scope through new site builds and network improvements all over the world,
in line with the national strategy to improve digital inclusivity and fulfill its commitment
to serve its customers. The latest data backs up Globe's recent campaign to upgrade its
customers' data speeds from 3G to 4G/LTE, thus enhancing their overall data experience.
Globe believes that 4G/LTE will become the new norm for mobile internet in the world,
d) Buyer/Customer profile
Globe Telecom has since been an outstanding service provider to families for
providing them internet connectivity. The former is also considered as a top provider for
companies that help them with daily operations. Globe became one of the choices for
There are certain factors to consider that affect the costs of doing business. This
social responsibilities, challenges regarding quality and customer care, material and
Globe provided business and corporate clients with a single 24/7 hotline for after-
sales and technical support. It is a critical touchpoint that receives an average of 36,000
calls per day from more than 20,000 business and corporate clients, with the majority of
operations being inbound. The following are the company’s objectives: Address technical
issues relating to stability, reliability and support from the previous interaction
management vendor, Lower operational cost, Improve the quality of all customer
g) Technology developments
As the Philippines adjusts to the new standard, Globe Telecom is poised to fully
partnerships with international players. The second explanation for low negotiating
power is that there is an excess supply of Globe Telecom units as a result of the
large range manufacturing of these leading sector players, which has reduced rates
to potential entrants in order to discourage them from joining the industry. Due to
the high cost of building wafer fabs and acquiring equipment, the risks of entering
the market are reduced. Furthermore, new players will not be able to compete with
accessible.
c. Threat of substitute products
are available in the market at lower prices. Because of technical and creative
manufactured by companies that are already in the market and use the same
technology are being replaced by products produced by other companies that are
comparatively cheaper in terms of price and quality and are produced from
profitable sectors.
customers.
scores
Opportunities
1 Strong Environmental, Social, and Governance (ESG) 0.05 3 0.15
Practices
6 Network Security. To make sure that its data is secure, 0.05 2 0.1
Globe has invested in a wide range of FireEye
solutions and services.
Opportunities
This factor is given the weight of 0.05 and a ranking of 3 because although it is a
strong contributor to the success of the company, it is still inferior to the other factors
mentioned. FTSE Russell (the trading name of FTSE International Limited and Frank
Russell Company) confirms that Globe Telecom has been independently assessed
according to the FTSE4Good criteria, and has satisfied the requirements to become a
constituent of the FTSE4Good Index Series. The FTSE4Good indices are used by a wide
variety of market participants to create and assess responsible investment funds and other
products. In 2019 alone, Globe joined over 50 mobile operators worldwide in committing
to disclose its environmental footprint which is a critical step in the journey to achieving
net zero carbon. As part of its commitment, Globe’s headquarters and two of its office
facilities are already carbon neutral through the purchase of renewable energy. Other
management to both internal and external stakeholders such as employees, vendor partners,
clients, and customers. This is an opportunity for the company because it reflects how the
company is environmentally and socially responsible, which will help attract potential
highest among the opportunities because the growth of Globe telecom flourished further
with the help of past and future partnerships with other companies. Its partnership with
(Philippines), CREI Philippines (CREI) and Frontier Towers & Associates (FTA) have
advanced to active acquisition and build phases. This gives Globe Telecom the ability to
extend their services since there will be more equity for the company. Synergic
relationships will help Globe telecom to boost their sales and can improve with their return
3. New Technology
This factor has a weight of 0.1 and a rating of 2, making its weighted score 0.2, the
second highest weighted score alongside two other factors. This is due to new technologies
being introduced and created, which gives the telecommunications industry more chances
of innovating products that are complementary to these rising technologies. Other than
expanded ventures for Globe telecom, such arising new technologies could also improve
their cellular and internet services. These new technologies that are identified to benefit the
4. Government-issued regulations.
This factor is also given the same weight and rating as the previous one since the
Government issued regulations have such a large influence and effect on companies in the
Dictionary, Government Regulation is a law that controls the way that a business can
referred to as the “Policy on Shared PTTIs”. This Policy eased the restrictions on telecom
builds in the country. As a result, Globe has been rigorous in its improvements and network
upgrades by building new cell sites. According to NTC, they had the most number of new
site builds in 2020. This Policy eased the restrictions on telecom builds in the country. As a
result, Globe has been rigorous in its improvements and network upgrades by building new
cell sites. According to NTC, Globe had the most number of new site builds in 2020. This
is an opportunity since the regulation helped Globe with expansion in order to provide a
This factor has the second largest weighted score of 0.2, from a weight of 0.07 and
a ranking of 2. According to the company's 2019 Annual Report, Globe had a total of 94.2
million mobile subscribers (up 27% YoY) among this, 91.5 million are prepaid consumers
while 2.7 million are postpaid customers. Additionally, over 2.0 million are Home
Broadband customers (up 25% YoY), and 1.4 million landline. This is an opportunity
considering the population of the Philippines was at 108.1 million at the time. Further, the
company had 38.4 Transactional Net Promoter Score (NPS) score versus 34.5 in 2018.
6. Network Security.
This factor has a weight of 0.05 and a rating of 2, making its weighted score 0.1,
which is the least weighted score alongside two other factors. To make sure that its data is
secure, Globe has invested in a wide range of FireEye solutions and services. The
company’s pervasive network is protected against known and unknown advanced attacks
by the FireEye Network Security (NX) platform. The rapid detection and accuracy of alerts
enables Globe to focus on events that pose a genuine threat. Globe utilizes the FireEye®
enabling the correlation of threat data across all of its FireEye components. According to
CISO Anton Bonifacio, To ensure that Globe’s defenses are always optimized to combat
possible security weaknesses that could be exploited by attackers. This is an opportunity for
the company because it shows how much they care for the security of their network.
This factor has the same weight, rating, and weighted score as the previous one,
which is the least of weighted scores. This is because although there is a growing number
of internet users in the country, it’s not certain that they chose or will choose Globe
there are more prospects that the company can attract. In 2020, the number of internet users
in the Philippines according to a data report grew to approximately 73.91 million people,
accounting for more than half of the total population. The Philippines tops the world again
for time spent using social media this year, making it the 6th straight year it has done so.
According to the report, Filipinos spend an average of 4 hours and 15 minutes each day on
social media, which is 22 minutes higher than last year's average of 3 hours and 53 minutes,
and 3 minutes higher than 2019’s average of 4 hours and 12 minutes. The Philippines has
73 million social media users as of January 2020, comprising 67% of its total population.
Moreover, the 67% social media penetration rate in the Philippines is higher than the global
average of 49%. Social media users in the Philippines spend the most time on social media
every day at an average of 3 hours and 53 minutes. This is higher than the global average of
2 hours and 24 minutes. This means that there is a huge market for Globe Telecom to
penetrate into.
Again, this factor has the same score as the two previous factors mentioned for the
same reason as the previous one. Although there is an increase in mobile device owners in
the country, it’s not certain that they chose or will choose Globe Telecom as their Network
more prospects that the company can attract. According to Philippine Statistics Authority,
there are over 14.6 million cellular phone users all over the Philippines, with the National
Capital Region having the highest number of users per region with 2.4 million as of 2010.
In 2019, the number of mobile device owners has increased by 1146.03% with over 167.32
million users, since mobile phones and the telecommunications industry have a direct
relationship since the way a mobile phone functions is in need of a sim card provided by
their chosen telecommunications provider. This means that as there is an increase of unique
mobile device owners, the demand for sim cards and the promotions complementary to it,
companies operating in the country because they control the way these businesses operate
(according to Cambridge Dictionary). The order issued by DPWH last March 23, 2021,
outlining the department’s policy on telecom and internet infrastructures to comply with the
Bayanihan laws. Republic Act No. 11469 or the Bayanihan to Heal as One Act (Bayanihan
1) paved the way for faster approval of permits and clearances from local government units
to hasten the construction of cell towers, while RA 11494 otherwise known as the
Bayanihan to Recover as One Act (Bayanihan 2) waived several permitting requirements
for the telcos. With the new order supporting the objectives of Bayanihan 2, information
and communications technology (ICT) service providers are now allowed to construct and
undertake excavations and restoration works for infrastructure projects within the allowable
right of way limits of national roads. This will be determined by the concerned District
This has the third largest weighted score along with one other factor. This is
because the internet has been very helpful to many since then, but with the emergence of
the Covid-19 pandemic, it quite looks like why internet access should be a basic right. The
pandemic has caused substantial disruption in the economy and has limited the movement
of people and reduced business operations nationwide. With the country’s digital adoption,
the use of digital technologies has increased its potential. This resulted in the demand of the
internet. People in the country adopted online activities such as online learning for students
and home-based jobs for the workers. It’s demand suddenly increased due to the emergence
of the pandemic and Filipino had no choice but to opt with this. Globe has offered its
Threats
1. Stiff competition.
The industry's stiff competition affects the organization’s ability to sustain and
expand the customer base. However, it is believed that the company can overcome this
threat, which is why this factor has the least weighted score along with two other factors.
However, it does not change the fact that this is still a challenge for the company. Based on
PLDT's performance in 2020, it is expected that its revenue will grow slightly higher
diversification and entrenched fixed line position that was advantageous in mitigating
revenue pressure in its wireless business. As such, Fitch Ratings projected that heavy
capital spending will continue through 2021 as new challengers turn up the heat. It is
expected that competition intensifies in the medium term as new entrants expand coverage.
In addition, mid-to-high single digits revenues are likely to grow and localized competition
2. Inflation.
This factor has the third highest weighted score among the threats. This is because
the rise in inflation increases the cost of production and affects the business profitability. In
fact, its first-quarter core profit dipped 4% as rising inflation and a strong peso adversely
impacted on group revenues. Globe's revenue for the period under review was PHP15.54
billion, compared with PHP15.61 billion the previous year. Inflation averaged 6.2 percent
in the first quarter of the year due to galloping prices of food and fuel. Globe Telecom,
which is part of the Ayala group of companies, also said that its net income for the period
rose 32 percent to P3.4 billion. However, the company said its core net income, which does
not include foreign exchange and other market-to-market gains, fell 4 percent to P3.5
billion.
3. Environmental Sustainability.
This factor has a weight of 0.1, rating of 2, leading to a weighted score of 0.2. This
is because the growing environmental sustainability trends act as a major threat when
offered products/services are not environment friendly. It draws the negative publicity and
criticism from the environmentalists and affects the brand image in a competitive market.
Issues specific to telecommunications that were not tackled by Globe are electromagnetic
fields from base stations and handsets, perfluorocarbons from fire suppression systems,
solvents from installation processes and visual and aesthetic effects of masts and base
stations. Globe Telecom has taken up the sore issue of challenges in building cell sites as it
noted that many HOAs oppose cell site proposals made by the company due to alleged
health hazards. Globe emphasized that the country badly needs to build new sites if it wants
With the ongoing pandemic right now, students are doing online classes and
employees are working from home. Therefore, most of us need an internet connection that
is fast enough to enable us to do our tasks in an efficient manner. According to their 2020
report, Globe had a total of 76.6 million mobile subscribers (including fully mobile
broadband), and 3.8 million Home Broadband customers, and 1.6 million landline
subscribers. This shows a decrease from their previous data in 2019 (94.2 million mobile
subscribers, 2.0 million Home Broadband customers, and 1.4 million landline subscribers).
This is a threat for Globe Telecom because their users have decreased and might continue
to do so in the next few years if consumers aren’t satisfied with their service. This is why
this factor has the second highest weighted score of 0.6 from a weight of 0.03 and a rating
of 2.
5. Competition Position.
This factor has a weight of 0.02 and a rating of 1, with a weighted score of 0.2. As
of June 2020, Comclark provided the fastest internet speed of 22.5 Mbps in the Philippines.
Converge ICT Solutions was the next fastest internet service provider with an internet
download speed of 21.4 Mbps. Despite these numbers, the overall internet quality in the
Philippines still must improve. The global average for social media usage is 2 hours and 25
minutes, with Japan taking the last spot in the rankings, recording an average of 51 minutes.
The Philippines is also again the highest in internet usage, clocking in close to 11 hours per
day at 10 hours and 56 minutes. Brazil comes in at second, with an average of 10 hours and
This factor has the highest weight (0.05) and weighted score (0.15 from a rating of
1) among all the threats. This is because DITO Telecommunity Corporation is the country’s
third major player in the telecommunications industry, and is one of the biggest threats to
Globe Telecom. They are the top competitor to providing 5g internet speed in the country.
On March 8, 2021, DITO Telecommunitty announced its commercial launch in the Visayas
and Mindanao. The company provided free calls, texts, and broadband services for the 3000
frontliners in the Visayas and Mindanao. The company is challenging the duopoly of PLDT
and Globe in the country. As a result, Globe's competitive position is at risk because of the
emergence of DITO which offers the same products as them, but with a faster speed.
The Philippines is said to be the world’s single biggest attack originator for both
automated and human-driven cyber-attacks according to Arkose Lab. This means that most
of the cyber threats – phishing, malware smuggling, credential stuffing, social media
account takeovers, etc. – were done in the Philippines. To put things into perspective, the
Philippines ranks first while the United States ranks in a distant second. The same report
also reveals that more than half of login attempts in social media are made by scammers
and hackers; not to mention that a majority of new accounts created for social media are
fraudulent and are used as vehicles for cyberattacks by criminal elements and malicious
actors. This is a huge threat for the company, which is why it is given a weighted score of
0.02 because the data they possess might be compromised if these cyber-attacks continue to
persist.
Over the years, the bargaining power of buyers of telecommunication providers has
increased significantly which results in downward pressure on prices. This is the reason
why this factor has the second highest weighted score (0.06) among all the major threats.
As the pressure that customers exert on the business organizations intensifies as they
demand for high quality services at affordable prices and excellent customer service
directly influences Globe’s ability to accomplish its business goals and objectives. Low
profitability is expected to happen as bargaining power of buyers gets stronger over time.
According to a study conducted by PwC, 42% of consumers said that they would pay more
for a friendly and welcoming experience, and 52% would pay more for a speedy and
efficient customer service. Buyers sensitivity to prices and high market knowledge
Based on the EFE Matrix Tool presented above, it is evident that Globe Telecom is
strongly attractive in the industry in which it belongs to. As reflected in the opportunities presented
above, it is clear that the company has a lot of external factors that they can take advantage of.
They can use these for the further betterment of their prospects and industry attractiveness. They
can use these as leverage in order to gain maximum benefit from these opportunities. However, the
company must look out for and monitor these threats in their external environment because these
cause damage to the company or their products and services. However, based on the strong
competitive position of the company, they have the ability to reduce the impact of these threats, or
Relevant Classification
Key Internal Factors
Yes No S W
Strengths
Weakness
9 Poor Customer Service 0.1 4 0.4
Strengths
1. Advance Technology
Globe Telecom’s IT Enabled Services Group continues to be one of the leading ICT
enablers in the country that help Globe Telecom be one of the top internet service
providers. Technology has always made things easier for us. With advancements in
technology, Globe Telecom made communication better as we were able to send messages
through texting, e-mailing and communicating in social media. With the 5G technology
available and accessible in the country, Globe believes that the evolution of the Filipino
digital lifestyle will spur further. Globe has offered a lot of benefits to people especially to
students, employers and employees. With these advancements, the company would be able
to improve their services to the consumers. Furthermore, these will enable possibilities in
the near future which includes Augmented and Virtual Reality executions that can be used
2. Strong workforce
Globe Telecom keeps its employees engaged in the company to ensure emotional
commitment among one another. They have focused on motivating, listening to employees,
providing growth and paving the way for opportunities. Engagement for the company is all
about connecting and understanding the workforce. In 2021, they reached a total of about
8,300 employees compared to the 7,700 employees in 2018. Talents are utilized and
developed as well as upskilling a worker. The company has been awarded for having the
best workplace in Asia and it serves as the testament to the company’s effort in creating
experiences that are wonderful for its employees. Globe Telecom ensures that their
employees find purpose and meaning in their work. In addition, Globe provided
Enterprise Development has been also established by the company to generate additional
income opportunities through AutoloadMax retailership for small retail stores that are
assisted by the DSWD through their Pantawid Pamilyang Pilipino Program (4Ps). In
conclusion, a highly motivated workforce will become very reliable, they can also be called
as “brand ambassadors” as they provide more value to the business by helping win more
As the demand of mobile data grows as daily activities shift online during this
pandemic, Globe’s initiative to launch its wide range 4G LTE network has helped
significantly with better connectivity, enhanced productivity and wide online reach.
Propelled by innovative mobile strategies, wider content offerings and streamline customer
service fuels Globe’s increased media reach. Strong online presence on various social
networking sites and better social management can develop strong relationships with
partnerships with local, regional and global brands that allowed Globe to offer the right
service through the company’s marketing and distribution channels. Globe’s subscriber has
4. Geographical Presence
To sustain efforts with Globe’s increasing productivity and enhanced revenue, they
are bent on boosting and widening their network expansion in many provinces all over the
country despite the restrictions and changes in community quarantines. In fact, they have
invested a total of P20.9 billion for its network in the first half of the year which is 10%
higher than last year. This geographic presence can be a major strength of the company as it
determines the market reach to its subscribers as well as ensures easy accessibility. Through
the support of Bayanihan to Heal as One Act, Globe was able to secure 1,857 permits for
2020 and expects to build 1,300 cell sites at the end of the year. The new cell sites were
built in areas where connectivity is needed the most. This is to achieve improved data
gives a clearer picture of the company’s strengths, as well as raises the company’s
credibility. Moreover, they can help boost the company’s reputation, and give team morale
a boost by highlighting team and individual achievements. Consequently, this can elevate
the status of the company and increase customer loyalty. Some of Globe Telecom’s Awards
Awards 2019, for its awards in “Top Workplaces in Asia” and “Industry
Champion” Categories.
Experience
Globe Telecom was the first telecommunications company in the country to list its
shares in the Philippine Stock Exchange (PSE). Although there is no data available about
how much their initial public offering is, the company nevertheless continues to maintain a
strong capital stock. In December 2019, the value of their common stock amounted to Php
8.4 billion, and their retained earnings amounted to Php 37 billion. As of December 31,
2020, the company has approximately 3,124 holders of their common stock. Additionally,
as of the same year, the Top 20 registered shareholders of the company's securities hold a
including liquidity ratios, leverage ratios, and profitability ratios. These provide insight into
(compared to 0.80 in 2018), their current ratio is 0.73 (compared to 0.86 in 2018), and their
debt-to-equity ratio is 1.58 (compared to a high 1.78 in the previous year). In the same year,
their Return on Equity (ROE) is at 28.9% compared to 26.7% in 2018, and their Return on
Globe Telecom offers a wide range of products and services that allows them to
target various segments in the domestic market. This includes mobile, fixed, broadband,
data connectivity, internet and managed services. Examples of their products and services
are Postpaid and Prepaid plans (GoSakto, GoUnli, GoSurf), Fixed Line and Home
Broadband Business, International Long Distance Services, Load Watch, Load and Promo
Loan, Globe MyBusiness, Gcash, Share-a-load, etc. Additionally, the company also has
major interests in financial technology, digital marketing solutions, venture capital funding
for startups, and virtual healthcare. With all of these wide varieties of products and
services, a consumer is sure to find one that matches their interests and financial capacity.
These also help the company be globally competitive, increase their profits, improve social
Globe Telecom obtained rights such as patent, copyright, and trademark for the
company’s innovations, as well as rights they obtained from other creators. These rights
and licenses that the company obtained for their products, services, and trade names allow
the company to reserve all rights to them, which means that no one can use their work
unless permission is granted. This prevents other companies from copying these intellectual
properties because it is deemed unlawful and illegal. Therefore the company’s licensed
All trademarks, service marks, and trade names (collectively the "Marks") are proprietary
to Globe Telecom or other respective owners that have granted Globe Telecom the right
Weaknesses
to happen with discouraging frequency. With the “new” normal, it will be difficult for
Globe if they don’t seek further improvements to keep up with the changing customer
demands. There was a news article published last June 4, 2020 wherein an angry customer
complained about her Globe broadband subscription with an additional prepaid Wi-Fi
device, as she shares the house with her three children. She was alarmed to discover that the
data allocation had disappeared two days in a row — something many other Globe
subscribers have also frequently experienced. She called Globe customer service and was
constantly put on hold by a discourteous agent for two hours before her call was
unceremoniously dropped. The complete lack of urgency is one of Globe’s biggest
weaknesses.
all. In an article published by Coconuts Manila (2020), a 21-year old student “smashed” a
Globe Telecom router because he had it with its super slow internet connection. He has
since gone back to using another company’s service, but he hopes that Globe understood
Globe Telecom relied on SAP ERP to manage various core business functions,
including finance and accounting, procurement, sales and distribution, among others. As
the business grew, processes became siloed and inefficient, requiring significant manual
intervention for processing transactions and generating reports. Those process inefficiencies
4. Customer Dissatisfaction
Customers have been sending complaints to Globe Telecom for various reasons.
First, erroneous charges on their credit card due to double transactions. Errors kept on
occurring as attempts were made to pay internet bills online. One customer received two
official receipts who immediately contacted two agents who both cannot verify the
transaction through their system. Customers, who simply pay their bills on time, can barely
receive the service they deserve. Globe Telecom’s erratic system creates enraged,
1. Provide a clear statement of your strategic and financial objectives for the company or
business, for the next three years. It should state measurable objectives, e.g. market
position, sales or revenue growth, net income or profit level, profitability or rate of
return, etc… (Follow the SMART rule - specific, measurable, achievable, realistic, and
time-bound.),
2. Financial objectives: These can be stated in terms of revenue level and growth, and
productivity growth (cost effectiveness). Other financial objectives like net income,
a) The time frame can be anywhere from three to five years hence, depending on the
nature of the business and the characteristics of the industry where it belongs.
B. Recommended Business Strategies
In this fast-paced environment, where nearly every business and organization has been
dominated by a social-media rich world, it is a given that there is the need to transform
and improve their business’ strategies. They have to make their business well-known and
the most suggested. As Globe struggles to overcome stiff competition, it has affected its
ability to sustain and expand its business as well as its customer base. To overcome this, it
As such, Fitch Ratings projected that heavy capital spending will continue through
2021 as new challengers turn up the heat. It is expected that competition intensifies in the
medium term as new entrants expand coverage. In addition, mid-to-high single digits
revenues are likely to grow and localized competition in mobile is expected to intensify.
Strategy:
Marketing
Operations
Finance
Human Resources
1. This should provide a more specific and comprehensive discussion of your proposed
enable the company or organization to achieve its objectives and address the strategic
2. If you are dealing with several businesses or product types, you may need to group
them or come up with one set of strategies for each business or product type.
3. If you are diversifying into a new business but plan to maintain your existing or core
business, you need to specify a set of strategies for both the core and new business.
4. Include functional level strategies for the following areas: Marketing, Sales and
Resources.
1. Identify strategies that will involve the necessary changes needed in order to
align the organization with the requirements of the business, given the long-
2. Identify strategies that will address the identified internal strategic issues,
strengths.
Note that the business and organizational strategies may also be combined if
Appendices:
Additional Guidelines:
• Do not be constrained by the company’s current strategic plans or what you think will be
strategies follow the logic of your external and internal analyses and your strategy
• While the STRAMA paper will be evaluated largely on the basis of its logic, substance
and content, it should be professionally done and written in formal style using the correct
grammar, spelling, choice of words, and proper format. In addition, all tables and figures
in the paper should be numbered for easy reference and should have appropriate titles,
with units of measures used and data sources indicated. The previous three year’s
• Acknowledge and cite your references and data sources. Proper footnoting should be
followed. Note that the school enforces strict rules against plagiarism.
• Be consistent. Define your base year which should not be more than 2020. Historical
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