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Detailed SWOT Analysis Of Globe Telecoms With Company History and Overview

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Last time we took a deep dive into the SWOT analysis of Airtel, one of India’s largest telecoms. Now we turn our attention to the Philippines and will conduct a SWOT analysis of Globe Telecom.

Globe Telecom Inc, commonly known as Globe, is the leading telecommunication giant in the Philippines. In this digital day, where there are so many rivals and so many services to offer, being the main telecommunication service provider in a country is a hard task, and maintaining its position as a market leader is even harder.

For market leaders like Globe Telecom, having a strong online presence is a must to be able to maintain its market leader position. Digital marketing has become more relevant than ever since businesses need to have an online business to stay in the game. If you are interested in knowing the latest marketing techniques as well, you should definitely check out IIDE’s Free MasterClass on Digital Marketing 101 by our CEO and Founder, Karan Shah.

To learn more about how the company has stayed in the leading position, we are going to do a SWOT Analysis of Globe Telecom – exploring its strengths, weaknesses, opportunities, and threats in detail.

So before we begin our deep dive, let us start by learning more about the company – its history, services, financial position and competitors.

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About Globe Telecom 

Globe Telecom as you know is a major telecommunications service provider in the Philippines. Founded in 1928 and the company offered its shares to the public in 1975.  The telecommunication company is owned by one of the largest and oldest Filipino business groups – The Ayala Group. They had partnered with SingTel (Singapore Telecommunications) to launch a telecom industry in the Philippines.

Ernest Cu, the CEO of Globe Telecom, was named CEO of the Year at the World Communication Awards 2017. In the following year, Globe was announced as the best workplace in Asia. The major offerings of the corporation include providing commercial wireless services through its 3G, 4G LTE (Long Term Evolution), and LTE-A (Long Term Evolution-Advanced) networks. It has also started to deploy its 5G service offerings in some key areas in the Philippines. 

Globe CEO Ernest Cu CEO of the Year 2017 - SWOT Analysis of Globe Telecom - IIDE

Apart from this, in 2016 the organization also launched the Globe Lifestyle brand where the main focus was to expand the company in the fashion sector which would, in turn, help the firm’s lifestyle brand connect with the customers via fashion. It also ventured into the entertainment industry with 2 divisions namely Globe Studios which focuses on film and television production and Globe Live which focused on music events and live concerts.

 

Quick Stats About Globe Telecom
CEO Ernest Cu
Year Founded 1934
Origin Manila, Philippines
No. of Employees 8,339 (2020)
Company Type Public
Market Cap $6.78 billion (2020)
Annual Revenue $2.92 billion (2020)
Net Profit $371.48 million (2020)

 

Services of Globe Telecom

The telecom giant provides:

  • Mobile Network
  • Broadband Services
  • Fixed Line Telephony
  • Entertainment Production

 

Competitors of Globe Telecom

The Telecom industry is oligarchic, i.e., it has few but very intense competitors, Globe’s competitors are:

  • SK Telecom
  • PLDT
  • Ayala
  • Promelec
  • DITO

 

Now we got a basic understanding of the company, Globe Telecom. Let’s quickly begin the exploration of the SWOT analysis of the company. 

 

SWOT Analysis of Globe Telecom

SWOT stands for Strengths, Weaknesses, Opportunities, Threats. It is used as a tool to know and analyze the market position and general health of a business. It is extremely useful and is done by every old as well as a new business to determine the most effective future path.

So without any further ado, let us start the discussion of each segment in the SWOT analysis of Globe Telecom in the coming section:

Strengths of Globe Telecom

Some of the major advantages that Globe has over others are :

  • Successful Innovations: Globe Telecom has achieved great success in launching new products. Under Globe Lifestyle, 0917 Lifestyle is the name for its tech and fashion brand. This helped them to venture into different industries and expand their customer base which helps them with internal promotions.
  • Robust Domestic Market: The domestic market in which Telecom operates is both a source of strength and a hurdle to the company’s growth and innovation. The company can easily grow in its native market without much innovation, but to join the worldwide market, it will need to invest more in research and development.
  • Intellectual Asset Rights: Through invention and the purchase of rights from creators, the corporation has amassed a large number of patents and copyrights. This could aid Telecom company in fending off competitors in a variety of businesses. Entrepreneurship, joint ventures, and regulation are all words that come to mind when thinking of entrepreneurship.

These are Globe Telecom’s strengths and benefits in dealing with competitors in many industries. Let’s take a look at the weaknesses of the company below.

Weaknesses of Globe Telecom

The areas where Globe Telecom lacks are as follows:

  • Lack of Diversity: The lack of diversity arises because the primary focus of Globe has always been the domestic market. They have always limited themselves which has also led to facing issues specifically in human resources. As the Philippines has never been a tech-oriented country, they have faced a shortage of workforce in the field of technology & digital transformation.
  • Limited Talent in AI: They are also struggling with limited talent in Artificial Intelligence (AI) and machine learning. This can be very disadvantageous in the future if a telecommunication giant from another country tries to enter the Philippine market because it is very important to keep evolving with the trend and technologies to sustain in this telecommunication sector.
  • Dissatisfied Customers: Although there is no shortage of customers regarding their demand for telecommunication as well as other verticals of demand for Globe, there is a feeling of dissatisfaction amongst customers which is not taken care of very well. 

This concludes the weaknesses of Globe Telecom. These flaws are the most important areas where Globe should concentrate its efforts. Now that we know about the weaknesses of the company, let’s focus on its opportunities. 

Opportunities of Globe Telecom

The opportunities that Globe Telecom should focus on include:

  • Access To International Markets: This is one of the areas where Globe Telecom has scarcity. They can overcome this challenge by increasing their budget towards hiring the workforce from tech-oriented countries. By granting access to this, it can help them expand and tap into other international markets. Hiring can be tough for other countries. However, Globe should focus on making arrangements for these skilled forces and also offer good packages with many benefits. 
  • E-Commerce Business Model: This model can help Globe Telecom partner with logistic providers in the international market. It can also help to tie up with local suppliers with the help inculcating it with Social Media strategies. The rise of digital marketing all around the world has made it easy to enter new markets making it cost-effective as well as extremely efficient. 
  • Expanding Adjacent Markets: The company can investigate adjacent sectors through entrepreneurship, joint partnerships, and regulation to expand the market, particularly by enhancing the attributes of current products and services.

These are the possibilities for the telecom company to improve its position in the market. In the next section, we’ll take a quick look at the company’s threats.

Threats of Globe Telecom

The threats that Globe Telecom faces are :

  • Government Regulations: Under increasing pressure from protest groups and non-governmental organizations, the Telecom business should keep a close eye on rapidly changing government rules, particularly in the areas of environmental and labour safety.
  • Environmental Restrictions: Increasing expenses factor for working in the developed market due to environmental restrictions. Globe Telecom must deal with these costs as governments attempt to collect greater environmental fees to promote cleaner solutions. It may result in greater logistics and packaging expenses for the telecom industry.

This was the in-detail SWOT analysis of Globe Telecom, now let us conclude our learnings in the section below.

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Conclusion 

Globe Telecom, the leading telecommunication service provider does have some flaws and risks in its business. By using its might and prospects, the company can achieve its success no matter what. The organization can reach its target audience as it is expanding its business. With innovative products and services, Globe Telecom can create a positive atmosphere around the company to maintain its position in the market. 

Gaining a professional understanding of digital marketing is essential for working in the marketing sphere of highly competitive industries such as telecommunications. If marketing is something that interests you, you should definitely check out the Post Graduation Programme in Digital Marketing offered by IIDE that will help you transform into the managerial candidate in the marketing department of companies.

Want to know more about the marketing strategies and business models of different companies? Head on over to IIDE’s Knowledge Portal to learn more!

Thank you for your time and hope you liked what you read, if you have any thoughts to add to the discussion, please put them in the comment section below!

 

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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