1. Matav has had a very specified strategy that has gotten them where they are as a company today. Matav is the leading telecommunications source in the country of Hungary. I think that overall their strategy has been quite a success. I think that the success really took off when they decided to transition the company from one big group and broke it down into four different business zones. The four zones consisted of: Internet, business services, mobile and residential services. This has greatly benefitted the company because no part of the business is now put on the back burner while other parts get more of the focus. The company is more balanced as a whole since the major strategy changes. Also, the company has now been able to have multiple individuals oversee each major section of the company. The statistics have greatly proven that since the change in their strategy to go into the four major sections, the company as the on the rise from where it was. One of the greatest rises has been in their Internet services. Over the past two years Matav has seen a tremendous jump of above 40% in their customers, just in this service alone.
2. From what I discovered, Matav has very few competitive advantages over the domestic markets in Hungary. I think that Matav did have a competitive advantage until T-Mobile was able to open its market there. T-Mobile opening its market to the Hungarian community really did damage to Matav’s advantages it held over the country. Matav were not the only option for people when it came to mobile services any more. Prior to T-Mobile’s arrival, Matav was pretty much able to become a monopoly and able to elevate its prices for services, much more than they should be. T-Mobile was naturally able to give customers and much more reasonable and affordable price for customers. This eventually forced Matav to drop their once higher price, lower so they could compete for the services that T-Mobile was handing out as well. Other than the mobile services, initially, I did not think Matav had much of an competitive advantage over the domestic markets in Hungary.
3. I think that Matav’s plans to expand internationally not only makes perfect sense, but also will more than likely are the best thing for them. It was known that Matav was not doing its best as a company dating back for a few years. With their backs ups against the wall they needed to make a move that would get them back competitive in the market again. The move that did this for them was buying MakTel. When Matav purchased MakTel, it was a good them for them because it enabled them to use the resources they
