Basic Strategy There are four types of basic strategies that many companies apply to respond to the uncertainties. The four basic strategies include defender, prospector, reactor, and analyzer. Each type of the strategies has their own way to react with the uncertainties. Prospectors will always focus on developing or expanding new market. They will put their effort for seeking out new markets rather than waiting things to happen. Defenders can be defined as expert at producing and selling narrowly defined products and services.
In other words, defenders always tries to insulate themselves from changes and they secure this stable market either by keeping the prices low or keep advertising. The analyzer is in between the defenders and the prospectors. They let the organizations take the risks of products development and marketing and then imitate what seems to work best. The reactors can be defined as the strategy that company use to make adjustments only when finally forced to by environmental pressures. In other words, this is the least effective of the four strategies and it is without direction or focus.
After a series of research we done, we believed that DiGi Telecommunication have apply prospector strategy and defender strategy in their company. This can help them make a stand among their competitors such as Maxis, Celcom, and U Mobile. DiGi acts as a prospector among the competitors. In the year 1998, DiGi comes out with the first prepaid mobile phone service which also known as DiGi Prepaid in Malaysia. They pay attention on developing new markets rather than waiting things to happen.
They realize that different field of users may have different usage of cell phone and hence they come out with this service to meet the wants of the customer. Besides, DiGi is also the first telecommunication in Malaysia to launch a cost-saving postpaid mobile service to suit the different usage and lifestyle patterns of customers of today. These have already help DiGi to open up a whole new market and create new opportunity. Besides that, DiGi also enter the market which they do not familiar with. For instance, they finally come out with 3G broadband service in order to compete with their competitors such as Maxis and Celcom.
This service helps them not only focus on providing a variety of mobile communication services but also make a stand in this broadband service market. The field of their customer also becomes wider since customers always willing to pay more for new and innovative services. Besides, they also invest and develop their R&D department so they come out with the first GPRS service in the year 2004. This service allows the customers to surf the net wherever they are as long as their cell phone supports it. DiGi Telecommunication also applies the defender strategy to react with the uncertainties.
A defender do not aggressively pursue markets but try stabilizing their market either with keeping low prices, keep advertising or other promotional costs low. DiGi telecommunication always improving their service by coming out with new plans and packages. For instance, DiGi has come out with DiGi Campus which allows users to call, SMS, and surf the net for free with terms and conditions apply. This service helps them to maintain the stability within the same market. Because the customers always expecting the new services which can catch their attention
Besides that, a defender also maintains and secures their market by lowering their price. Most of the markets of DiGi Telecommunication are teenagers. Hence, DiGi always lowering their price or comes out with a promotional price to make a stand within this markets. In order to do so, DiGi often comes out with new plans and packages which is much more affordable for customers. For instance, the Super SMS and Fu-Yoh plan allows customers to call and SMS with the promotional price which is much lesser than the competitor’s. These plans and packages allow DiGi to compete with the competitors because the customers always concern about the price.
Other than that, DiGi Telecommunication also keeps on advertising on their new product or services. Advertising can help the public know more about their services and help them to maintain their position in the market. For instance, DiGi comes out with the DiGi Yellow Man advertisement to promote their new services. They even come out with a new slogan “I will follow you” to promote their newest service. These advertisements have been well received by the public. As a conclusion, DiGi is very successful in playing these roles in the market. Being a prospector, DiGi always searching and seeking for the new markets to enter.
They do not waiting things to happen but always analyze the market and try to meet with the customer’s wants. Hence, DiGi always comes out with new services in order to enter new market and compete with competitors. As a defender, DiGi always attempt to stabilize their position in market. They maintain the stability of the market with keep lowering the price and keep advertising. Hence, DiGI often comes out new services with lower price or promotional price. They also advertise their services through media in order to catch customer’s attention.