MEIKTILA UNIVERSITY OF ECONOMICS

DEPARTMENT OF COMMERCE
MBA PROGRAMME (NAY PYI TAW CAMPUS)

STRATEGIC MANAGEMENT (MBA – 131)

ASSIGNMENT

NAME OF STUDENT
MBA I – 12 Hsu Yadanar Aung
3rd Batch

NOVEMBER – 2022
I. Examine the Business Strategy of a Company

(a) Identify a company you would like to learn more about that seems to have a competitive
advantage (earns above-average profit returns).

Marga Global Telecom (MGT), which has a world-class management team comprised of
seasoned professionals with extensive industry experience and market-leading knowledge of the
Asia Pacific region. It is uniquely positioned in Myanmar to lead and provide premium services,
international best practice facilities, dependable networks, exceptional user experiences, and
exceptional customer care. MGT is a leader in the Hong Kong telecommunications industry and
strongly supported by Virtual Switching Consultancy (VSC), solutions leadership in the
international telecom industries and leading edge of the revolution in the Hong Kong telecom
market.
MGT has a competitive advantage because of rich value-added services, 24-hour customer
care and support, super affordable prices and lowest calling charges, excellence service level high
speed and low latency, best-in-class fiber infrastructure and customer end service.

(b) Gather data about the strategy of that company, using public sources such as the company
website or its annual reports, public articles, and your own experience.

One of the internet service providers in Myanmar is Marga Global Telecom which uses a
focused differentiation strategy in order to outcompete competitors by providing premium service
at a high price in the luxury industry by concentrating on corporate and foreign clients who
demand luxury and prestige. Although they are costly, they offer Gigabit Passive Optical
Network (GPON) and 24-hour care service, which other ISPs do not.

(c) Identify the mission statement of the company, if it has one. How does this mission
statement guide the behavior and actions of people in the company? 

Marga Global Telecom’s mission statement is as follows: “Smarter for Myanmar”.

MGT aims to penetrate all key areas of Myanmar's fixed line and mobile network, to become
a leading national telecom by delivering economic and social benefits to Myanmar, to support
investment in infrastructure to develop adequate communication connectivity for smart city, to
focus on developing infrastructure and to provide smart solutions to businesses, residents and
people of Myanmar to excel in the smart city.
MGT takes great pride in providing excellent customer care, quality passive fiber-based
network service, fast speed internet, flexible infrastructure and being environmentally and
friendly in the community. They understand how crucial their employees are to the success of this
company and its mission. They are dedicated to preserving this organization's steady growth and
success.

(d) What markets or industries does the company focus on? Does this differ from competitors
in any particular way? 

The company focuses on communications related business which provide internet services.
MGT offers numerous premium internet packages. Due to its high-speed internet service 24-hour
customer care, MGT's premium business internet packages particularly appeal to entrepreneurs,
 investors, and foreign visitors. By offering the best internet quality and champion 24-hour
customer care, they set themselves distinct from other ISP markets.

(e) What unique value does it try to offer to customers? Why do most of its customers pick its
products over those of competitors? 

One of the top ISPs, with a core network infrastructure that includes quality overhead and
underground fiber that covers 28 townships in Yangon and provides premium service. Because of
its service, fast internet service, and variety of packages, a lot of consumers choose its products
over those of competitors. Additionally, compared to other ISPs, their installation team completes
the customer's home internet installation within 2 working days. When there is a router error,
their service is so quick that they visit the customer's home within a day of receiving a complaint.
Due to the fact that they receive the quality they paid for, business owners, investors, higher
companies, and foreigners choose this ISP in Myanmar.

(f) Try to identify any resources or capabilities this company has that help it offer unique
value. This is the most difficult step in the assignment, because companies often try to hide
their sources of competitive advantage.

Marga Global Telecom appreciates the importance of every interaction with a customer or
prospective buyer. MGT distinguishes itself from the competition by putting the customer first,
and developing fundamental customer service skills is a key component of success. It maintains a
reputation for superior service and convenience. As its services attract competence, it has been a
pillar of consistency year after year.
MGT has built a reputation through loyal customers who have witnessed the quality and
value of the telecommunication services. As a result, when faced with a purchasing decision,
customers feel more at ease when a company or product has been personally recommended to
them. So, it is with loyal customers. Additionally, they have had good service before, during, and
after their purchase. Therefore, it stands to reason that those satisfied customers have no
hesitation about telling others.
Moreover, MGT is aware of how difficult customer interactions can be, especially in the
hectic, fast-paced environment of a retail store, to consistently interact with customers in a unique
way. Thus, they also provide a customer interaction skills course to sales team members. The
main goal of the course is to make sure that sales team members are aware of the crucial part that
each of them personally plays in generating customer enthusiasm.
In conclusion, Marga Global Telecom's core competencies are based on the unique products
and the distinctive customer services it offers.
II. Identify a company that has increased its level of vertical integration with forward and/or
backward integration. Evaluate the impact of that decision on the company by answering the
following questions. 
(a) What new resources or capabilities, if any, did the firm have to develop in order to enter
that new activity? 
Samsung is a South Korean company that ranks among the top manufacturers of electronic
goods. Samsung specializes in producing a wide range of consumer and business electronics,
including integrated systems, digital media players, semiconductors, and appliances.
Samsung first entered the electronics industry in 1969, with several electronics-focused
divisions. Their first products were black-and-white televisions and the business started exporting
goods related to home electronics during the 1970s.
Samsung is even involved in the mining of the raw materials used in the manufacture of its
products. As a result, Samsung also supplies and manufactures components for other major
technology brands. Samsung practices backward vertical integration by manufacturing some of its
own products. Moreover, Samsung has retail locations in Asian markets as part of forward
integration, giving it direct control over some of the supply and distribution of its products.

(b) What impact did the decision to enter that activity have on its ability to coordinate with
other related activities within the firm? 
Samsung practices backward vertical integration, which means it is heavily involved in the
production of the components that lead to the final product in order to control quality and increase
efficiency and economies of scale. It is a significant player in the technology industry, and its
diversification efforts demonstrate how influential it is in the sector, particularly in the computer
and smartphone markets. It is the market leader as a result of backward integration and related
diversification strategies.

(c) What impact did this decision have on its suppliers or customers? 
This decision has on its suppliers because Samsung practices backward vertical integration by
manufacturing some of its own products. The software and hardware that go into the products are
created by their technology division, but the Android operating system, which was created by
Google and is based on open-source software.
III. Determine the appropriate mode of entry: 

(a) Choose a firm that has not yet expanded internationally. Choose a market for the firm to
enter.  Determine which mode of entry is the right one for the firm to use. Justify your
choice.

One of the food producers in Myanmar is called Kathit Oo Food Production Company. It is a
well-known local brand for its potato chips. It was founded in 2002 and offers more than 20
different flavors of potato chips. The company is operating a business with two factories—one in
Insein and one in Myingyan—and more than 600 employees. They provide potato chips to the
entire population of Myanmar. As their flavor differs from other potato chips in Myanmar, Kathit
Oo's products are more well-known and consumed here at all. They used a French flavor, which
sets their products apart from those of their rivals. Furthermore, they have already received FDA
and HALAL approval, making their chips hygienic and suitable for consumption by people of all
nationalities. Additionally, the cost is affordable for all customers their packaging is clean and
simple. They go after people who love potato chips and are of all income levels and ages.

However, the company has not yet expanded its product internationally because it is awaiting
GHP and HACCP approval, which are required for food exportation. Following approval, the
business should use a multidomestic strategy to export potato chips because each consumer has a
unique set of preferences. When entering the global market, Kathit Oo must be aware of the
various cultures and tastes present there, just as Asian and European food preferences differ. They
should provide products that are customized to the specific market conditions and consumer
preferences of each host country.

(b) Choose a firm that has already expanded internationally. Choose one foreign market that
the firm entered. Determine which mode of entry it used. Given the firm’s international
strategy, evaluate whether it used the right mode of entry. 

Arkar Oo Co., ltd. was founded on November 6, 1997, and produces pulses and beans (value
added product) for export to countries around the world, especially the United States, United
Kingdom, and India. Initially, it only exported to India and ASEAN countries, but it later
mainly exported to the United States and the United Kingdom, and it now also exports to Sri
Lanka, Korea, Vietnam, Australia, New Zealand, Canada, and middle eastern countries such as
Saudi Arabia and the United Arab Emirates. In order to facilitate doing business with other
countries, it established a Singapore branch, Six Sigma Trading Pte., Ltd. Moreover, it has got
HACCP Certificate from URS in 2018.

It has supplied high quality beans, sprouting and non-sprouting to all countries around the
world at the right product and at a reasonable price. Additionally, it produces a variety of bean
products, including Green Maung Bean, Black Matpe Bean, and Toor Whole. Only Myanmar is
the source of the beans and all products are handled by fully automatic plants without any human
intervention, resulting in the purest form of product.

It began as a family-owned wholesale company and began exporting in 1999. Local farmers
who plant and harvest their crops by hand provide them with the freshest and highest-quality
beans. After producing the purest beans, they entered the global market (value added). They
initially entered the Indian market, where there are many bean consumers. They first went to the
India Embassy to get a contact from Indian buyers when they had to enter the Indian market. They
established contact with the embassy and began expanding their market in India. As requested by
traders from India, they produce high-quality beans. They also got a contact via Yangon Directory
or Yellow pages in old days. They produced a high-quality product with value added, and
exported to many countries nowadays after entering India market first. They are accountable for
making Myanmar beans a brand successful in the international market.

One of the key elements in their success is their ability to preserve the quality of the beans,
which helps their product succeed and endure in the global market. They only pay attention to
quality, ignoring quantity. To break into international markets, they employ a global strategy.
Wherever they are distributed, they use the same strategy. They provide a value-added product
made from local beans at prices that are acceptable to all countries. When local market conditions
require it, they offer the same products everywhere with only minor variations. Around the world,
they employ the same capacities, channels of distribution, and marketing strategies.