Company Background

Digi Company is a leading mobile communications company since Digi own the
majority of the share of Telenor ASA of Norway which hold 49% of the share. Sigve Brekke
are the founder of Digi Company. Digi Company had launch and operate the fully digital
cellular network and become the first telecommunication industry on 24 May 1995 in
Malaysia.
Digi Company had provide the comprehensive range of affordable, convenient and
easy to use wireless services in giving the customers simplify life. Besides that Digi company
had create value to the customers by selecting most appropriate advance technology so that
they can use this advanced technology to benefit their services and provide a better and
convenience services to their customers. Furthermore the Digi company are using the native
dealing prefix identifier such as “010” , “016” , “0143” and “0146” and “0149” .

Furthermore Digi Company had listed the main board of Bursa Malaysia Securities
Berhad which the symbol and code is DIGI (6947). At the end of 2006 Digi had relaunched
its brand campaign after 18 months of absence with Yellow Coverage Fellow which known
as YCF through a services of television commercials. Initially Digi named it as Yellow man
afterwards renamed as YCF by Digi adverting agency Naga DDB. With the theme song of “I
will Follow You” had built up the image of Digi Company.
Digi Company has been award two merit award which are best innovation and the
best overall winner in Corporate Social Responsibilities categories in the year 2007. Besides
that in the year of 2009 Digi has been recognized by Wall Street Journal Asia as Malaysia is
known as most admired company for innovation for third year running.
Moreover there are 200 of Asia country said that Digi are most admired companies
which had been done the research. In this research Digi had rank as number three in the
Malaysia of top 10 companies. In the year 2010 the annual report had shown that Digi
Company have the total profit for RM1, 597,248,000 by end of the 31 December 2010.
The vision of Digi Company is “to be the No.1 mobile internet provider for the mass
market”. Digi would try to desire to be the source of inspiring internet content that is
infections and engaging.
The mission of Digi Company is “ deliver Internet For All as part of our commitment
to building a connected Malaysia” Digi would try enabling access to mobile internet services
and applications by offering customers the right combination of devices and values pricing
can be supported by and efficient operation that brings best usage experience.
 Basically there are four values that Digi Company try to deliver to their customers.
Firstly Digi Company would always “keep their promises”. Digi Company would take
ownership to delivering on their goals and responsibilities and pride themselves on driving
quality into everything that do. Besides that they would deliver the values like “Make it
Easy”. Digi aim for simplicity in the way that work and in offering product and services that
are easy to understand and easy to use. Furthermore the Digi also delivery the values such as
“Be Respectful”. Since Digi company are open-minded and professional in their conduct and
appreciate difference in cultures, opinions and outlook. Last but not least Digi also delivery
the values like “Be Inspiring” which that they would bring passion, energy and creativity into
everything that they can do and make every effort to constantly drive change and continuous
improvement.

PEST ANALYSIS
Pest analysis are refer to the analysis to identify the effect of the external environment
or external factor that would affect the business. It normally refer to political, economic,
social and technological. According to Johnson (2008) the pest analysis would provide an
insight in to the factors which will affect the company or industry which in turn will also
affect the company that operate industry. Thus the Pest analysis is useful to the company to
know outside environment that would affect to the company whether is bad or good.

Political and legal environments

For the political and legal environments Malaysian government banned the usage of
cell phone among kids in nationwide school which include fully residential schools in the
year 2006. This decision was taken after many groups especially parents and teacher
expressed their concern by allowing handheld tool to be use by the students while in schools
could lead a lot of problem even though the guidelines on its use has been issued by
Education Minister earlier on. Besides that in the year 2007 Malaysian government has set to
achieve 50% of the Malaysian household for both wired and wireless mobile are having the
broadband penetration by the end of 2010. In order to aid the service providers further the
government roll out supplies of broadband infrastructure and services throughout Malaysia.

Besides that the political also refer to the relationship between the three main ethical
groups which Malays, Chinese and India. As we know that the Government rules and
regulations become more and more strict. Government start to control the incumbent fixed-
line operator TM continuous to dominate in the market which accounting around 62% of the
total communications revenues of 86% of the total fixed line services and revenues and by
Celcom subsidiary of 38% of the total cellular telephone services. Thus the Malaysian
government has a very active privation program to protect the telecommunication industry.
Even though the other major business are controlled by government controlled or the other
business have beyond to the government equity.

Economic Environment – income change economic down

Nowadays the world become borderless. Economic openness and growing
independence between countries had spur on increase in movements of people, goods and
service. Thus the globalization is important to us now. By referring to the Malaysia GDP for
2nd Quarter 2010 was at RM186.07 million which have 8.9% growth rate as compare to the
past quarter. According to Information Telecoms and Media 2008 said that Malaysia is one
of the fastest growing telecommunications companies in the world. Besides that Celcom
Maxis and Digi are sharing the RM23.4 Billion mobile telecom revenue. As mention above
Globalization can bring more travellers and business man into Malaysia.

For the economic as we know that the Malaysians economy has been correlating to
the world economy and to the Asia economy. A growing economy can help to encourages
more investments and more companies to enter the market. Thus the better economic
conditions the more likely the need for third generation telecommunication infrastructures in
the whole Malaysia. In this few years even the Malaysian economy was not really good after
a decade of high economic growth the Asian financial crisis in 1998 had plunged Malaysia
into recession. However during the discoveries time the major three telecommunication
companies such Digi Celcom and Maxis had increasingly become stronger and increased the
sales more and more customers in Malaysia buy their telecommunication products and
services.

For example due to economic down turn the income of the customer also drop. Thus
the purchasing power of the customer would drop. Besides that the customer would to save
their money in their expenses. Hence more and more customer try to switch their preference
from Digi to Umobile. Since Umobile package are cheaper as compare to Digi. As a results
the Digi revenue had drop in year 2015. By referring to the research conducted by Bursa
Monitor found out that due to economic slowdown and lower usage had affect the Digi
revenue in the quarter ended June 30 in the year 2015 drop.

Social environments lifestyle change

 The Malaysia is getting advancements and moving towards new ear of technology or
known as High Digital distribution of contents, and consumer demands are become greater
and greater bandwidth capacity for their internet connectivity. As the income increase,
Malaysian have more disposable income which enables to more selective with their choice in
buying smartphone. Hence social factor become important factor for Malaysian
telecommunication industry as the number of using mobile phone have been increase as
become a society culture or even become personal culture nowadays.

Furthermore for Social Cultural the basic values of perceptions preference and
behaviours always the main reason that can affect the telecommunication company product.
Nowadays we can see increasingly using the mobile phone become a important tools for
Malaysians. It is difficult to understand one person preference and perception because
sometimes the person preference and behaviours will change according to social and cultural
changes.

Moreover the lifestyle of the customer keep on changing time to time. For the lower
income customer tend to use the cheaper product and service. Thus it also become a trend to
Malaysian customer switch their preference from high or expensive product to low cost or
cheaper product or services. Hence many customer especially lower income customer had
switch their preference from Digi to Umobile since Umobile can provide low price package
to them as compare to Digi. By referring to the Fundamental Analysis it is easy for the
customer to switch their cost or their data services once they found that their experience the
poor data services plan.

Technology environment can’t call poor services by digi

In the era of science and technology, technology already become one of important
part in our life. As mention above the in the year 2010 is known as broadband year of
Malaysia thus Digi need to upgrade plenty of the new device and package in order to increase
the market share since Digi still left behind Maxis and Celcom. As the technology advanced
communication and information technology infrastructure become the key elements to
achieve industrialized nation study in 2020.

Malaysia is not high technological country but the main point it is striving to get
there. Communication and IT infrastructure is a key element in Malaysia plans to achieve
industrialized nation status by 2020. This creates a huge demand of IT and communication
technologies and it will make the Malaysia market and other south-east Asian markets even
more attractive and the future. Every telecommunication company in Malaysia need and are
necessary using to do their business transaction because using advance technology can save
the time and make more accuracy.

As we know that the coverage also one of problem to Digi company. Digi Company
have poor coverage thus it may have the issue or problem low connection. The issue of low
connection or poor connection the customer may feel unhappy or angry. Since nowadays
more and more customer using the internet very often thus if the low internet connection the
customer may get angry faster. As a results the customer would choice the internet package
that can provide their high speed internet to allow them to surfing internet. The customer
would switch to the Umobile as Umobile can provide the high internet speed as compare to
low internet speed of the Digi Package. Thus the Digi would revenue due to losing a lot of
customer switch their preferences.

http://www.digi.com.my/sustainability/page-vision.html
http://www.telenor.com/about-us/global-presence/malaysia/

http://bursamonitor.blogspot.my/2009/07/digi-q2-net-profit-falls.html

https://lcchong.wordpress.com/2015/07/21/digi-fundamental-analysis-21-jul-2015/