Its purpose is to create wonderful experiences for the people, families, and businesses in the Philippines. It is done through putting the needs of the customers first, valuing and making a difference for the people and the nation with integrity, and through creating simpler, better and faster ways to connect.
The External Factor Evaluation (EFE) Matrix for the Globe Telecom’s displays a total weighted score of 2.95 which pertains to a relatively excellent external position for Globe Telecom. The opportunities outweighed the threats which should be considered in the formulation of their strategies.
Globe’s Internal Factors Evaluation (IFE) Matrix indicates that the company has a strong internal position as it yields a total weighted score of 2.95. As a strategy-formulation tool, IFE matrix is also considered by the management in strategizing.
Competitive Profile Matrix (CPM) shows that Globe Telecom and Philippine Long Distance Telephone Company or popularly known as PLDT is evidently head-to-head. Their total weighted grades only vary by 0.1 with Globe garnering a total weighted score of 3.0 and PLDT with a total weighted score of 2.9. Both companies serve as each other’s tenacious rival in the telecommunications industry in the Philippines as they both perform excellently in the industry.
Reading through various pieces and articles regarding Globe Telecom’s recent strategic positions, it can be said that the company is doing their best to improve in all the aspects covered by the company with the strategy that they are pursued and implemented.
They placed Mister Gil B. Genio, former Chief Operating Officer (COO) and still Chief Strategy Officer (CSO), as the company’s Chief Technology and Information Officer (CTIO) that allows Globe Telecom to respond to dynamic business and market demands. It puts him in charge of an integrated and well-structured networked and technology organization that allows Globe to respond to dynamic business and market demands.
Alberto de Larrazabal, who was Globe’s Chief Finance Officer (CFO), is also assigned as new Chief Commercial Officer (CCO) to ensure effective implementation and execution of strategies across all commercial units of Globe Telecom. Therefore, all core business segments will be consolidated under the CCO to ensure effectiveness in strategy implementation. As for strategy, it is good that Globe has formed a unifying chief officer for the execution of the company’s strategies across the whole organization for a better implementation and guaranteed success. The strategists are the managers of an organization and having been defined what positions are needed to deal with the dynamic demands of the market, it will be easier for Globe Telecom to deal with it and form strategies as the strategists of the company. The only strategy that we can suggest to Globe is to offer more economic bundles or promos so that more and more customers will come.
Strategic Positioning and Action Evaluation (SPACE) Matrix for Globe is formed with the average scores of the company’s Internal Strategic Position namely the Financial Position (FP) and Competitive Position (CP), and the company’s External Strategic Position composed of Stability Position (SP) and Industry Position (IP) and these factors being +5.2, -4.6, -4.75, and +5.75 respectively
Globe Telecom falls on the quadrant Aggressive. This would mean that their strategy can capitalize on their internal capabilities in dealing with their weaknesses, avoiding threats that may hinder success and take advantage of the opportunities that come in the way of Globe Telecom being one of the top companies in the telecommunication industry in the country. Some of the best applicable strategies that the company can implement would be Market Development, Product Development, Integration and Diversification.
Globe is divided into two divisions namely their Fixed Line division and their Wireless division. Based on the Boston Consulting Group (BCG) Matrix for Globe, the company’s Fixed Line division falls under the quadrant Question Mark. This means that Globe is highly in need of cash but experiences poor cash generation in this division. Therefore, the company keeps a market share position that is relatively low in a high-growth sector of the industry such as the Fixed Line business. The company has the choice of improving their fixed line division by pursuing market penetration, market development or product development, or they sell this division so they can focus more on their strengths. Regardless of the Fixed Line Division, Globe’s Wireless Division excels as it lands itself in the quadrant Star which means a relatively high market share position in this high-growth sector of the Telecommunications industry. To protect this competitive advantage, it is most advisable to invest in market development and product development.
Based on the QSPM above, the prevailing strategy that Globe Telecom should implement is to pursue product development, in which the company can capitalize on the aforementioned strengths and address their weaknesses, and also take advantage of the opportunities that they face and dodge the threats given above, with a given total attractiveness score of 4.7. It got the highest score among the three options of strategies to be implemented by Globe. Integration and diversification got a score of 3.5, while Market development is falling behind with a score of 3.15.
Globe Telecom’s organizational chart incorporates Strategic Business Unit (SBU) Structure. It is displayed that different strategic units that are equally vital to the company’s business are identified and headed by the biggest persons in the company. All eight chief officers together with the Executive Vice President, Senior Advisor, Chief technical Advisor and General Counsel, are under the President and CEO of the company, Mr. Ernest L. Cu. We admire that the Executive Vice President, Mr. Bernard P. Llamzon, is also in charge of Consumer Sales, so that his management and marketing skills are not idle while he is the EVP. If the group was to alter the organizational chart, we would recommend that the Chief Audit Officer and Chief Finance Officer be under a single department but maintain different tasks.
Based on the Product- Positioning Map, Globe is better than PLDT in terms of the quality of customer service while PLDT outshines Globe Telecom in delivering high quality telecommunications services. Although Globe has a larger subscriber base in SMS department, PLDT’s internet services are said to be better than that of Globe’s.
Globe Telecom, Inc Strategies
by : Banzon, Joshua Neil
Reyes, Janny Ann
University of the Philippines
Institute of Management
BA 190 - Strategic Management
Prof. Mita Angela M. Dimalanta
Globe Telecom, Inc., is one of the leading companies
in the Philippines’ telecommunication industry. It is
the #1 mobile brand that offers cellular, mobile data
and broadband services enriched to cater to
customers’ penchant for different multimedia
platforms through various mobile devices and
Ernest L. Cu is Globe’s President and Chief Executive
Vision and Mission
We see a Philippines where families' dreams
come true, businesses flourish, and the nation
We create wonderful experiences for people
to have choices, overcome challenges, and
discover new ways to enjoy life.
and late adaption
External Factor Evaluation (EFE) Matrix
Total Grade of 2.95 pertains to a relatively excellent
external position for Globe Telecom.
Internal Factors Evaluation (IFE) Matrix
Total weighted score of 2.95 pertains to a relatively
excellent internal position for Globe Telecom.
Competitive Profile Matrix (CPM)
Globe and PLDT are very tough competitors as their
accumulated scores only differ by 0.1 and both companies
excel with respect to their performance in the
telecommunications industry in the Philippines.
Globe Telecom’s Strategies
(Actual and Proposed)
• Globe is improving in all aspects with the strategy that they pursued
and implemented. .
• Mr. Gil B. Genio, former Chief Operating Officer (COO) and still Chief
Strategy Officer (CSO), as the company’s Chief Technology and
Information Officer (CTIO), allows Globe Telecom to respond to
dynamic business and market demands.
• Alberto de Larrazabal, who was Globe’s Chief Finance Officer (CFO),
is the new Chief Commercial Officer (CCO) to ensure effective
implementation and execution of strategies across all commercial
units of Globe Telecom.
• Globe can opt to offer more economic bundles or promos to bring in
Strategic Positioning and Action Evaluation
• Globe Telecom falls on the
Aggressive quadrant which means
their strategy can capitalize on
their internal capabilities in
dealing with their weaknesses,
avoiding threats that may hinder
success and take advantage of the
opportunities that come in the
way of Globe Telecom being one
of the top companies in the
telecommunication industry in
• Some strategies that are best
applicable to the company are
Market Development, Product
Development, Integration and
Boston Consulting Group (BCG) Matrix
• Globe Telecom’s Fixed Line division falls under the
Question Mark quadrant. Therefore, Globe maintains
a relatively low market share position in a high
growth sector of the fixed line business. They can
either pursue market penetration, market
development or product development to improve
their fixed line division and attain high market share
position, or just sell this division and focus more on
• Globe’s wireless division falls under the Stars
quadrant. This means that Globe Telecom has a
relatively high market share position in this high-
growth sector of the telecommunications industry.
Globe shall strive to protect this competitive
advantage by investing into it. Market development
and product development are the most advisable for
Globe Telecom to pursue to address some weakness
issues that they are facing.
Quantitative Strategic Planning (QSPM)
• Globe could implement the
prevailing strategy of product
development which got the
highest score among the three
options of strategies to be
implemented by Globe. This
allows the company to
capitalize on the strengths
and address their weaknesses,
and to take advantage of
opportunities that they face
and dodge the threats
Based on the Product-
Positioning Map, Globe is
better than PLDT in terms of
the quality of customer service
while PLDT outshines Globe
Telecom in delivering high
services. Although Globe has a
larger subscriber base in SMS
department, PLDT’s internet
services are said to be better
than that of Globe’s.
• Business strategies are driven by Four factors: The
Customers, Operations/Processes, Community/Social
Responsibility, and Financial. Key strategies that they
have implemented, and reason for their existing reign
as the leading telecommunication provider, are
investments on improving the quality of their key
growth areas by improving the speed, capacity and
reliability of their core network, improve their customer
satisfaction by minimizing corporate hierarchy, increase
management visibility and putting clear procedures in
dealing with customer issues.
Code of Business Ethics
• Globe Telecom adopted a Code of Conduct and
these aspects of their business ethics stands out
because they all indicate devotion to the
components of their mission and vision. The
Whistleblowing is for abiding to laws, and rules and
regulations for their customers, Conflict of Interest
policy is for their internal environment and their
employee’s safety and interest, Related Party
Transactions Policy is for their stakeholders and
other parties involved in their operations and
Focus Location for Globe
• Due to the threat the government once imposed on the
competing telecommunication companies, it would be
advisable to focus on expanding the reach of their networks
in geographic areas in the Philippines where there are no
means or signals for any communication or areas where
they have spotty or lousy signals. As part of their vision in
steering the Philippines to be a digital nation, they need to
establish more cell sites and strengthen capabilities of the
country’s mobile and wireless networks through different
technological and digital advancements in the Philippines
before they expand the reach of their services to other