In our previous article, we had done an in-depth SWOT Analysis of the market leader of Malaysian Cellular Networks, Digi. In this article, we will see the SWOT analysis of Movistar, a telecommunication company.
Movistar was founded in 1995 and is owned by Telefónica S.A., one of the world’s largest telecommunications companies. So ever thought of, how this company became so huge? It happened through its brand awareness over large masses. And brand awareness is a part of marketing.
The company is a market leader in Spain due to its efficient services and strong visibility. In today’s world digital marketing is very important to create a brand image, if you want to learn more about digital marketing and its different attributes do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
In this blog, we will learn about the SWOT analysis of Movistar, but before that let’s know about the company.
(Movistar, Source: Halberd Bastion)
Movistar is a Spanish telecommunications company that provides fixed and mobile telephone as well as broadband services to its customers. It is a subsidiary company of Telefonico. It has operations in Spain as well as several other Latin American nations like Mexico, Chile, and Argentina.
With 22 million users and a 41.58 per cent market share, the business is Spain’s largest carrier.
|No. of Employees||1001-5000|
|Market Cap||USD 25.71 Billion (2021)|
|Annual Revenue||USD 15.5 Billion (2020)|
|Net Income/ Profit||158.2 Crores EUR (2020)|
Products of Movistar
(Movistar Store, Source: Google Images)
- Mobile services
- Pay television
Competitors of Movistar
- Cell C
- Grameen Phone
SWOT Analysis of Movistar
SWOT Analysis is a useful technique for developing business strategies for both new and current businesses. This simplified methodology is used to assess a company’s competitive standing. SWOT analysis of Movistar can help the organization develop effective and efficient business strategies.
Below is an explicit guide to the SWOT analysis of Movistar.
Strengths of Movistar
- Regional Presence: The major strength of the company is its regional presence in several places. It determines the company’s reach to the target market and guarantees that the information is easily accessible.
- Online Presence: A strong online presence on various social networking sites. Effective social media management may boost the impact of positive e-WOM and help build strong customer relationships.
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- Highly Skilled Workforce: Successful training and learning programs result in a competent workforce. Movistar devotes significant resources to employee training and development, resulting in a workforce that is not just highly competent but also driven to attain greater success.
- Well Developed Infrastructure: Movistar IT infrastructure is well-developed which can improve operational efficiency and increase awareness of current market trends.
- Intellectual Property Rights: Different intellectual property rights may be owned by an organization, making its product offers distinctive and exclusive and making it difficult for competitors to copy.
- Successful Mergers and Acquisitions: Movistar has a track record of successfully combining complementary businesses through mergers and acquisitions. Movistar has successfully integrated several technological enterprises in recent years to streamline operations and establish a reliable supply chain.
- Strong Dealer Community: Movistar has established a culture among distributors and dealers in which dealers not only sell the company’s products but also invest in training salespeople so that they can explain to clients how to get the most out of them.
Weaknesses of Movistar
- Lack of Proper Estimation of Product Demand: As compared to competitors, it is not very adept at estimating product demand. One of the reasons why Movistar’s days’ inventory is so high in comparison to its competitors is that the company isn’t particularly effective at estimating demand. As a result, more inventory is kept in-house and in the channel.
- Lack of Investment in Technology: More money should be put into innovative technology. Movistar needs to invest more in technology to unify operations across the board, given the magnitude of its expansion and the various locations it plans to enter.
- Unable to Integrate Different Work Cultures: While Movistar has had some success integrating small businesses, it has had significant setbacks when it comes to merging businesses with different work cultures.
- Poor Management Practices: Internally, poor project management techniques can stifle an organization’s capacity to successfully create additional branches or extend its product line.
- Poor Marketing: The product’s marketing lacks in several ways. Even if the product is a sales success, its positioning and unique selling proposition are unclear, which could lead to competitor attacks in this segment.
Opportunities for Movistar
- Customers Acquired Through the Web Channel: Movistar has gained access to a new sales channel as a result of its big investment in the internet platform. In the coming years, the corporation can diversify on this opportunity by understanding their clients and meeting their demands through big data analytics.
- Innovation: Advanced technology integration can help businesses save money, increase productivity, and provide new products faster.
- Improved Lifestyles: Improvements in customer lifestyles and standards translate into increased consumption of consumer products and services, as well as greater possibilities to stimulate purchase.
- Lower Inflation Rate: A lower inflation rate provides better market stability and allows Movistar consumers to obtain credit at a lower interest rate.
- Global Interconnections: Movistar can enter the international market, target a geographically dispersed consumer base, and boost profitability because of the reducing boundaries and expanding global interconnection.
Threats to Movistar
- Intense Competition: Stable profitability has increased the number of enterprises in the market over the previous two years, placing downward pressure on both profitability and overall sales.
- Rising Salary Levels: Rising salary levels, particular movements such as $15 an hour, and rising costs in China may put a major strain on Movistar’s profitability.
- Lack of Cultural Intelligence: Globalization drives organizations to cross national borders and deal with cultural variety, which can be harmful if the organization lacks cultural intelligence.
- Strict Environmental Standards: When the products/services are not environmentally friendly, the environmental sustainability trends pose a serious challenge and it has a degrading effect on the brand’s image in a competitive market.
This ends our engrossing SWOT analysis of Movistar. Let us conclude our learning below.
Movistar is a subsidiary company of Telefonica and is expanding its customer base. In 2021, it has reached a base of 20 million customers and a majority of customers are mobile users and more than half of its reach is to TV users.
Movistar is putting a lot of investment in online mediums for its services to reach the maximum number of people in this era of digitalization. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3 Month Advanced Digital Marketing Course.
We hope this blog on the SWOT Analysis of Movistar has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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