Matav Case Study Essays

849 Words Nov 14th, 2012 4 Pages
Strategic Crossroads at Matav: Hungary’s Telecom Powerhouse

Assignment 1

What is Matav’s Strategy? Has it been successful?

Matav, being the Hungarian Telecommunications Powerhouse, had secured their foothold in most of the communications market in Hungary, including business services, residential services, Internet and Mobile. Their parent company Deutsche Telekom wanted them to remain an integrated telecommunications company. Since their objectives were laid out in front of them, they were facing a stagnant fixed mobile market in Hungary with the only scope of expansion being the broadband market. So their primary focus was on competitive response to the core customer base, consolidating financial performance, increasing
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Matav is a telecommunications powerhouse. It has the infrastructure, the ability, the foresight and the manpower to match any competition the foreign companies can offer.
Matav is a well-established integrated communications company and has footholds in all the four markets of residential, business, internet and mobile. They already have a lot of customer market in the Hungarian environment. Familiarity with the local policies, business and customers makes Matav even more powerful when it comes to dealing with competition. It could add additional services by implementing new technologies on the current infrastructure to the current customer base and could also attract a lot of customers by giving bundled service like fixed and mobile or fixed and internet together.

Do Matav’s international expansion plans make sense? Why?

Matav was taken over by a European Telecommunications giant. The line was clear. Since the domestic market was completely overwhelmed by Matav, the only logical place to expand further was another European company. Matav is already an integrated telecommunications powerhouse. There is no new market it can create or develop within its own country to sustain development for it. There has to be competition and scope for expansion by introducing new technology into third world countries. This is very attractive when offered at a lower price than your local provider. Matav’s international plans make sense to me for precisely

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