CHAPTER I

NAME OF THE FIRM

Globe Telecom, Incorporation

Globe Telecom, Inc. (GLO) was originally incorporated on January 16, 1935 as
Globe Wireless Limited with a franchise to operate wireless long distance message
services in the Philippines. The Company eventually changed its name to the present one
in 1992, and welcomed Singapore Telecom, Inc. as a new foreign partner the following
year.

GLO is a telecommunication company that provides digital wireless

communication services nationwide under the "Globe Postpaid", "Globe Prepaid", and
"TM" brands using a fully digital network. The Company also offers domestic and
international long distance communication services or carrier services.

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 CHAPTER II

VISSION, MISSION, GOALS, CORE VALUES

2.1 VISION

We see a Philippines where families' dreams come true, businesses flourish, and
the nation is admired.

2.2 MISSION

We create wonderful experiences for people to have choices, overcome

challenges, and discover new ways to enjoy life.

2.3 GOALS

Our goal is to enrich everyday communications by simplifying and removing

obstacles in communication technology so that we bring our customers closer to what
matters to them most.

2.4 CORE VALUES

The Globe Way

We treat people right to create a Globe of Good:

 We put customers first.

 We value people and together, we make a difference.
 We act with integrity.
 We care like an owner. We keep things simple.
 We move fast. We are better every day.

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 CHAPTER III

HISTORY

In 1928, Congress passed Act No. 3495 granting the Robert Dollar Company (a
corporation organized and existing under the laws of the State of California), a franchise
to operate wireless long-distance message services in the Philippines. Subsequently,
Congress passed Act No. 4150 in 1934 to transfer the franchise and privileges of the
Robert Dollar Company to Globe Wireless Limited, which was incorporated in the
Philippines on 15 January 1935.

Globe Wireless Limited was later renamed as Globe-Mackay Cable and Radio
Corporation ("Globe-Mackay"). Through Republic Act ("RA") No. 4630 enacted in 1965
by Congress, its franchise was further expanded to allow it to operate international
communications systems. Globe-Mackay was granted a new franchise in 1980 by
Batasang Pambansa, under Batas Pambansa 95.

In 1974, Globe-Mackay sold 60% of its stock to Ayala Corporation, local

investors and its employees. It offered its shares to the public on 11 August 1975.

In 1992, Globe-Mackay merged with Clavecilla Radio Corporation, a domestic

telecommunications pioneer, to form GMCR, Inc. ("GMCR"). The merger gave GMCR
the capability to provide all forms of telecommunications to address the international and
domestic requirements of its customers. GMCR was subsequently renamed to Globe
Telecom, Inc. ("Globe").

In 1993, Globe partnered with Singapore Telecom, Inc. (STI), a wholly owned
subsidiary of Singapore Telecommunications Limited ("Singtel"),[6] after Ayala and STI
signed a Memorandum of Understanding.

In 2001, Globe merged with Isla Communications Company, Inc. ("Islacom") a

joint venture with Deutsche Telekom as foreign partner. It became its wholly owned
subsidiary effective 27 June 2001. Deutsche Telekom eventually sold its share to
Singapore Telecom. In 2003, the National Telecommunications Commission ("NTC")
granted Globe Telecom's application to transfer its fixed line business assets and

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subscribers to Islacom, pursuant to its strategy to integrate all of its fixed line services
under Islacom. Subsequently, Islacom was renamed as Innove Communications, Inc.

In 2004, Globe invested in G-Xchange, Inc. ("GXI"), a wholly owned subsidiary,

to handle the mobile payment and remittance service marketed under the GCash brand
using Globe Telecom's network as transport channel. GXI started commercial operations
on 16 October 2004.

In November 2004, Globe and seven other leading Asia-Pacific mobile operators
("JV Partners") signed an agreement ("JV agreement") to form Bridge Alliance. The joint
venture company operates through a Singapore-incorporated company, Bridge Mobile
Pte. Limited (BMPL) which serves as a commercial vehicle for the JV partners to build
and establish a regional mobile infrastructure and common service platform to deliver
different regional mobile services to their subscribers. The Bridge Alliance
currently[when?] has a combined customer base of over 250 million subscribers among
its partners in India, Thailand, Hong Kong, South Korea, Macau, Philippines, Malaysia,
Singapore, Australia, Taiwan and Indonesia.

In 2005, Innove was awarded by the National Telecommunications Commission

(NTC) with a nationwide franchise for its fixed line business, allowing it to operate a
Local Exchange Carrier service nationwide and expand its network coverage. In
December 2005, the NTC approved Globe Telecom's application for third generation
(3G) radio frequency spectra to support the upgrade of its cellular mobile telephone
system ("CMTS") network to be able to provide 3G services. Globe was assigned with
10-Megahertz (MHz) of the 3G radio frequency spectrum.

On 19 May 2008, following the approval of the NTC, the subscribers contracts of
Touch Mobile (TM) prepaid service were transferred from Innove to Globe, which now
operates all wireless prepaid services using its integrated cellular networks.

In August 2008, and to further grow its mobile data segment, Globe acquired
100% ownership of Entertainment Gateway Group ("EGG"), a leading mobile content
provide in the Philippines. EGG Group is engaged in the development and creation of
wireless products and services accessible through telephones or other forms of

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communication devices. It also provides internet and mobile value added services,
information technology and technical services including software development and
related services. EGGC is registered with the Department of Transportation and
Communication (DOTC) as a content provider. On May 15, 2014, EGGC changed its
corporate name from Entertainment Gateway Group Corp. to Yondu, Inc. (Yondu).

On 30 October 2008, Globe, the Bank of the Philippine Islands and Ayala
Corporation signed a memorandum of agreement to form a joint venture that would allow
rural and low-income customers' access to financial products and services. Last October
2009, the Bangko Sentral ng Pilipinas (BSP) approved the sale and transfer by BPI of its
shares of stock in Pilipinas Savings Bank, Inc. (PSBI), formalizing the creation of the
venture. Globe Telecom's and BPI's ownership stakes in PSBI is at 40% each, while AC's
shareholding is at 20%. The partners plan to transform PSBI (now called BPI Globe
BanKO, Inc.) into the country's first mobile microfinance bank. The bank's initial focus
will be on wholesale lending to other microfinance institutions but will eventually expand
to include retail lending, deposit-taking, and micro-insurance. BPI Globe BanKO opened
its first branch in Metro Manila in the first quarter of 2011 and now has 6 branches
nationwide, over 2,000 partner outlets, 261,000 customers and over P2.4 billion in its
wholesale loan portfolio.

On 25 November 2008, Globe formed GTI Business Holdings, Inc. (GTIBH)

primarily to act as an investment company. In March 2012, Globe launched Kickstart
Ventures, Inc. (Kickstart) to help, support and develop the dynamic and growing
community of technopreneurs in the Philippines. Kickstart is a business incubator that is
focused on providing aspiring technopreneurs with the efficient environment and the
necessary mechanisms to start their own business. Since its launch, Kickstart has 10
companies in its portfolio covering the digital media and technology, and web/mobile
platform space.

In May 2013, ABS-CBN Convergence, Inc. ("ABS-C", formerly Multimedia

Telephony, Inc.) announced the launch of its mobile brand, ABS-CBNmobile. The
launch of the new mobile brand is being supported through a network sharing agreement

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with Globe, wherein the latter provides network capacity and coverage to ABS-C on a
nationwide basis. ABS-C formally launched the brand on November 26, 2013.

In October 2013, following the court's approval of the Amended Rehabilitation

Plan (jointly filed by Globe and BayanTel in May 2013), Globe acquired a 38% interest
in BayanTel by converting BayanTel's unsustainable debt into common shares. This
follows Globe Telecom's successful tender offer for close to 97% of BayanTel's
outstanding indebtedness as of December 2012. As part of the amended rehab plan and
pending regulatory approvals, Globe would further convert a portion of its sustainable
debt into common shares of BayanTel, bringing up its stake to around 56%. In October
2014, Globe Telecom received a copy of the temporary restraining order (TRO) issued by
the Court of Appeals stopping the National Telecommunications Commission's (NTC)
proceedings in connection with the bid of Globe Telecom Inc. to take over Bayan
Telecommunications Inc. (BayanTel). Despite the lapse of the Temporary Restraining
Order (TRO) last December 9, 2014, the Court of Appeals has advised the NTC to refrain
from conducting any proceedings in connection with the bid of Globe assume majority
control of BayanTel.

On June 3, 2014, Globe signed an agreement with Azalea Technology, Inc. and
SCS Computer Systems, acquiring the entire ownership stake in Asticom. Asticom, a
systems integrator and information technology services provider to domestic and
international markets, is 49% owned by Azalea, a 100%-owned subsidiary of Ayala
Corporation and 51% owned by SCS Computer Systems, a subsidiary of Singapore
Telecom.

On June 30, 2015, Globe incorporated Global Capital Venture Holdings, Inc., a
wholly owned subsidiary organized under the laws of the Philippines and formed for the
purpose of venturing into strategic non-core business.

On August 27, 2015, Globe Telecom, Inc. (Globe), Ayala Corporation (AC) and
Bank of the Philippine Islands (BPI) signed an agreement to turn over full ownership of
BPI Globe BanKO (BanKO) to BPI, one of the majority owners of the joint venture.

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 In Q3 2016, Globe Telecom dislodged Smart Communications as the largest
telecommunications company it terms of subscriber base with 65.8 million subscribers,
200,000 more than its rival.

In 2017, Globe Telecom's CEO, Ernest Cu was named the CEO of the year by the
World Communications Awards 2017.

In 2018, Globe Telecom was selected as the best workplace in Asia and the
Internet was proposed to be extended in Europe.

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 CHAPTER IV

SWOT AND PEST ANALYSIS

4.1 SWOT ANALYSIS

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Established Brand Poor New Technology Government
Name / Strong Telecommunication Available in the Regulations
Brand Recognition Infrastructure Market / through National
Technological Telecommunicatio
Innovations n Commission
(NTC)
Market Leadership Late Adapter of New Partnerships Heightened
Position Latest Technology and Affiliations Competition /
Intense
Competition
High Demand of Poor Customer Increasing Demand New Competitor
Telecommunication Service for Internet Services
Subscribers (e.g. Mobile
Banking)
Diverse Revenue Availability of
Models Substitute
Technology
Talent Management
Practices
Table 4.1

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4.1.1 STRENGTHS

 Established Brand Name / Strong Brand Recognition

As mentioned earlier in the Chapter III of this paper, Globe was

incorporated on January 15, 1935; which means that it has been existing in the
Philippines for a long period of time. Globe has established their brand name
through the years, making it widely known to almost everyone in the country.
Globe Telecom products have strong brand recognition in the industry. This has
enabled the company to charge a premium compare to its competitors in industry.

 Market Leadership Position

Globe had been slowly gaining on the market leader since 2012 when it
had a 32 percent market share. However, over the past two years it rapidly closed
the gap as Smart shed 7.8 million customers. Globe finished 2016 with 66.6
million subscribers compared with Smart’s 62.1 million, giving Globe a 52
percent market share according to GSMA Intelligence. Just last year, 2018,
according to The Manila Times, Globe Telecom claimed the lead in the local
mobile network market in the January to June period as its data traffic soared 140
percent, boosted by growth in its mobile subscriber base.

 High Demand of Telecommunication Subscribers

Last 2018, Philippines News Agency reported that the Globe Telecom has
registered a 16 percent growth on its net income for the second quarter of 2018
driven by strong demand for data services and multimedia content. The growth on
its revenues was attributed to the continuing expansion of its 4G and LTE
network and the strong preference of its subscribers to multimedia content and
applications. Reportedly, according to 2017 SEC Filings, Globe has more
postpaid and prepaid subscribers than PLDT, amounting to 60,686,155.

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  Diverse Revenue Models

Over the years Globe Telecom has ventured into various businesses
outside the sector. This has enabled the company to develop a diversified revenue
stream beyond sector and segment. This includes mobile business (postpaid and
prepaid, mobile voice, mobile sms, mobile data), and fixed line and broadband
business (fixed line voice, corporate data, and home broadband).

 Technology

Because of advancement in technology and the huge demand for new

mobile services such as 3G, 4G, and LTE, Globe is offering these services to cater
the demand of their markets.

 Talent Management Practices

Globe has talent management initiatives which include Executive

Development, Emerging Executive Program and the much sought after, Young
Leaders Bootcamp, an integrated leadership initiative that aims to engage and
develop the company's budding talents and hidden gems into future business
leaders.

4.1.2 WEAKNESSES

 Poor Telecommunication Infrastructure

The infrastructure needed by telecommunication companies entails huge

amount of investment. One of the sad facts about telecommunication
infrastructure in the Philippines is its slow internet connection, a service also
provided by the two players in the market. The average webpage loading speed on
desktops in the Philippines was 15.4 seconds, the second slowest behind 20.3
seconds of Indonesia in a Google study based on the report of Bloomberg, an
international news agency (Mendoza, 2012). In a survey by OpenSignal, a
company that created impartial coverage maps of mobile networks, the

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 Philippines was identified as the poorest and slowest LTE (Long Term Evolution)
broadband Internet access and coverage in the globe (Luces, 2014).

 Late Adopter of Latest Technology

It is true that LTE adoption in developed nations such as Japan and Korea
is doing well but emerging markets including the Philippines is at a slow pace.
With approximately 34.6 million LTE subscribers in Asia-Pacific region of the
aggregate 3.45 billion subscribers in the region in the first quarter of 2013, 4G is
far from commonplace (Magdirila, 2013).

 Poor Customer Service

When there is a problem, the customer service of Globe cannot address the
problem immediately. You need to contact them a few times before they fix the
problem. The subscribers are paying the right amount but they do not get the
product/service they deserve.

4.1.3 OPPORTUNITIES

 New Technology Available in the Market / Technological Innovations

The existence of new mobile phone units such as smart phones and
Iphones entails a huge opportunity for telecommunication companies to offer
services for users of these new mobile phones. The advancements of mobile
phones today require new services such as 3G, 4G, and LTE. These services can
be provided by telecommunication companies.

 New Partnerships and Affiliations

Globe Telecommunications is stepping up its bid for stronger partnership

with global leaders in IT solutions and technological innovations in line with the
company’s goal of developing a robust digital economy in the country. In line
with this commitment, Globe recently held its 2nd Annual ISG Movers Awards

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 (AIM), aimed at highlighting the importance of the company’s collaboration with
its IT partners.

 Increasing Demand for Internet Services

We are living in the 21st Century where technological advances prevail.

One of the most important services, which are already needed in a daily basis, is
the Internet Services. The higher the demand for this service, the higher may be
the revenue; which will serve as an opportunity not only to Globe, but also to
other telecommunication companies.

4.1.4 THREATS

 Government Regulations through National Telecommunication Commission

(NTC)

In the Philippines, the government through NTC regulates the

telecommunication industry. The heavy regulation imposed by NTC means a
major threat for telecommunication companies.

 Heightened Competition / Intense Competition

The competition between PLDT and Globe is still aggressive. Just last
year, according to an article of inquirer.net, the rivalry between PLDT Inc. and
Globe Telecom is taking on a generational shift since both telcos made claims
about the rollout of their 5G, or fifth generation, mobile networks. The technology
promises faster internet speeds and lower latency, making it ideal for data-
intensive activities such as high quality video streaming and gaming as well as
potential uses in financial trading and health care.

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  New Competitor

Last 2018, a new telecommunication company has secured a third telco

rights in our country. Mislatel secured "provisional" third telco rights on Nov. 7
after regulators disqualified its 2 rivals, Philippine Telegraph and Telephone Corp
or PT&T and Sear, which includes former Ilocos Sur Gov. Luis "Chavit" Singson.
(ABS-CBN News)

 Availability of Substitute

In many cases, telecommunication networks both provide inputs to, and

compete with another network. In addition to this, when new telecommunication
companies arise in our country, there are several substitute goods in regards with
the products and services that Globe telecom offers. This tends the subscribers to
switch from one network to another. Hence, a threat to the company.

4.2 PEST ANALYSIS

POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL

Political Instability Inflation Rate Demographics 5G Technology
in the Philippines
Regulatory Interconnection Connectivity Technological
Practices Rate Innovation
New Government Economic Career Attitude and
Performance Safety
Table 4.2

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4.2.1 POLITICAL FACTORS

 Political instability in the Philippines

There is a growing political instability in the Philippines stemming from

opposition to the government’s domestic and foreign policy agenda. It is said in a
survey of New York-based think tank that there is a “moderate” likelihood for the
Philippines to suffer from political instability.

 Regulatory Practices

The National Telecommunication Commission is the one responsible for

telecommunication policies in the Philippines. Changes in their policies may
affect the telecommunication industries like Globe. RA 7925, otherwise known
as the "Public Telecommunications Policy Act" likewise recognizes the vital role
of telecommunications to national development and security, and under Section 5
thereof declares that the "National Telecommunications Commission (NTC) shall
be the principal administrator of this Act and as such shall take the necessary
measures to implement the policies and objectives set forth in this Act".

 New Government

With the changes in new government, there could also be changes in the
telecommunication industries. One of the major changes last year is the entry of a
new player in the telecommunications market. President Rodrigo R. Duterte
directed the NTC and the DICT to ensure the entry of a New Major Player OIMP)
in the telecommunications industry that will provide the best possible services at
reasonably accessible prices.

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4.2.2 ECONOMIC FACTORS

 Inflation Rate

Despite the downside risk of recent inflation in the Philippines, the

International Monetary Fund (IMF) projects a 6.6 percent economic growth
outlook by 2019. On the other hand, the inflation forecast is estimated to reduce
by 4 percent amid a 6.7 percent current inflation rate. Inflation greatly affects the
prices of commodities and services in the country. (Philippines Information
Agency)

 Interconnection Rate

The government has set lower charges on texts or short messaging service
and calls between telecommunication companies. The interconnection rates will
be reduced from ₱2.50 to ₱0.50 per minute for voice and from ₱0.15 to ₱0.05 per
SMS for text messaging services. Lower interconnection rates could result in
lower operation costs for telecommunication companies, making the business
environment more attractive to a third telecommunications player. (CNN
Philippines)

 Economic Performance

In 2017, the Philippines was among the top three growth performers in the
region. Only Vietnam and China did better. The Philippine economy grew from
6.9 percent year-on-year in 2016 to 6.7 percent year-on-year in 2017. The
country’s medium-term growth outlook remains positive. The Philippine
economy is projected to continue on its expansionary path and grow at an annual
rate of 6.7 percent in both 2018 and 2019. In 2020, growth is expected to level at
6.6 percent.

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4.2.3 SOCIAL FACTORS

 Demographics

Latest data released by the agency National Economic and Development

Authority (NEDA), showed that out of the total population of 100.98 million
Filipinos, those classified under the young age group number around 31 million.
They are 15 years and below who are still dependents. (PhilStar) Nowadays,
young people are fond of using technology especially mobile devices which used
up data or internet. The demographics in the Philippines is in favor with
telecommunication industries.

 Connectivity

Connectivity is central to so many things including work and

entertainment. Globally, the use of internet-based services has grown. A higher
number of people are using the social media for fun and business. From YouTube
videos to Netflix, video streaming services all require a very good connectivity.
This is a reason that the use of 4G has grown globally. Moreover, more and more
people like to remain connected on the go. This is a part of their lifestyle. For
some it is because they are too busy with work and in case of others they cannot
remain disconnected with family and friends.

 Career Attitude and Safety

The common social factors that are associated with telecommunication

industry are all about career attitude and safety. Many companies rely on telecom
industry to carry out conference calls, instant messaging, emailing and for daily
phone calls.

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4.2.4 TECHNOLOGICAL FACTORS

 5G Technology and Its Potential

Globe Telecom has to keep a close eye on the development and

enhancement of user experience with increasing speed and access. This can
completely transform the customer user experience in the industry.

 Technological Innovation

The entire telecom industry is based on technology and therefore

technological changes influence it deeply. The use of mobile computing is on the
rise. Around the world IT is changing things like never before. It is central to
several things including business and productivity. Computers and cloud
computing have become the core of productivity. It is the telecom sector that
stands to gain the most from these technological trends. Smartphone and tablet
sales have kept growing and none of the two can be used fully without a fast
connection. 5G is about to arrive and it has already given rise to a lot of
excitement.

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 CHAPTER V

PRODUCT LINES

5.1 MARKETING STRATEGIES

 Product
Globe is a major provider of telecommunication in the Philippines which
operates one of the largest mobile, fixed line, and broadband networks, in the
country. They provide digital mobile communication and internet-on-the-go
services nationwide using a full digital network based on different technologies. It
provides voice, SMS, data and value-added services to its mobile subscribers
through three major brands: Globe Postpaid, Globe Prepaid, and TM.
Globe Postpaid is the leading brand in the postpaid market, with various
plan offerings. These plans have evolved in order to cater the changing needs,
lifestyles and demands of their customers.
Globe Prepaid and TM are the prepaid brands of Globe. Globe prepaid is
focused on the mainstream market while TM caters to the value-conscious
segment of the market. Each brand is positioned at different market segments to
address the needs of the subscribers by offering affordable innovative products
and services.
Mobile SMS includes local and international SMS offerings. They also
offer various bucket and unlimited SMS packages to cater to the different needs
and lifestyles of its postpaid and prepaid subscribers.
Mobile Data services allow subscribers to access the internet using their
internet-capable devices. There are volume-based consumable plans geared
towards improving the mobile data experience of its subscribers and ensures the
most appropriate pricing of data.
Globe also offers a full range of fixed line communication services, wired
and wireless broadband access, and end-to-end connectivity solutions customized
for consumers, SMEs (Small & Medium Enterprises), large corporations and
businesses.

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 Price
Globe Postpaid offers different plans to keep up with its growing market
which includes The PLAN PLUS, that offers up to 2x larger than life data. With
the PLAN PLUS, all customers must bring their own smart phone and get as
much as 42GB of data (with 10 GB GoWatch for videos) for more time online.
With access to premium entertainment like Netflix and Spotify Premium, their
favorite movies, shows, and music are within easy reach. Plus, they can customize
and build their plan based on their needs from a variety of plans ranging from Php
599 per month (Php599 + Free 200 bonus value) to Php 2,999 (Php599 + Free
200 bonus value), all with a lock-up period of only 6 months.
Mobile SMS value offers ranging from unlimited and bucket text services.
Globe continues to provide its prepaid subscribers with all-day unlimited on-net
SMS with UnliTxt promos: UnliTxt20 valid for 1 day for P20; UnliTxt40 valid
for 2 days for P40 and UnliTxt80 valid for 5 days for P80. GoUnlitxt49 was also
made available in the market which offers its subscribers unlimited on-net texts to
Globe/TM for only P49 valid for 7 days. For budget conscious customers,
SuliTxt15 provides its subscribers with 100 text messages to Globe/TM for one
day. With the use of the GoSakto, Globe Prepaid subscribers can create a promo
exactly how they want it based on their lifestyle and budget.
Mobile Data or mobile browsing services include the consumable mobile
internet plan “GoSurf” which gives its subscribers bulk megabytes of mobile data
consumable per kilobyte for as low as P10/day. Globe Postpaid, Prepaid and TM
subscribers can choose from a variety of GoSurf consumable data plans ranging
from P10 for 40 MB for a day to P2,499 for 20 GB per month. With every GoSurf
data plan, subscribers can get free access to Spotify 4. Subscribers who register to
GoSurf99 and below gets free music streaming on Spotify Basic, while those who
register to GoSurf299 and above get free music streaming on Spotify Premium or
HOOQ5 with free access to YouTube and Dailymotion. All GoSurf plans are
automatically bundled with the “Globe No Bill Shock Guarantee”, so subscribers
who exceed their monthly MB allocations will never pay more than P1,500 for
GoSurf plans 99 to 999 and P3,000 for GoSurf plans 1799 and 2499. Globe

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 Prepaid or TM customers may also opt to avail of site bundles to enjoy 24-hour
unlimited access to various websites of their choice for only P20 per day. Globe
Prepaid customers who subscribe to GoSurf50 and up, GOTSCOMBODD70 and
90, or GoSakto120 and 140 will enjoy the additional 2 GB for free to access their
favorite video streaming and gaming apps and sites.
 Place
Globe provides telecommunication services in the Philippines, they
continuously expand their networks in geographic areas in the country where
there are no signals by building more cell sites.
 Promotion
Globe uses methods like digital marketing and traditional marketing in
reaching out to their clients and potential customers.

Figure 1

Figure 1 shows the marketing method wherein digital marketing is used to

market today’s generation as we are in the digital age. There are three main
categories which globe uses, namely earned media, paid media, and owned media.
Earned Media is equivalent to word of mouth but online, this is the part where
Globe is mentioned on news articles and even on blogs and reviews by satisfied
customers. Another is Owned Media which is a web property that the company
can control and is something unique to the brand. Globe has its own website and

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 mobile application where they can put up all their services and promotions they
offer for customers and potential customers to see. Social Media Channels
controlled by Globe is also a part of owned media which serves as a platform to
promote and inform users. Lastly, Paid Media wherein they pay people such as
influencers to promote their product and services for continuous exposure on the
digital sphere. Globe uses Pay Per Clicks and display ads across media channels
to direct people on the digital world to their owned media. They also create TV
commercials that catch the attention of people, and even put up promotional
videos on the internet.
Globe also uses the traditional approach to marketing to cater the earlier
generation. Advertisements are through newspapers or magazines. They also put
up advertisements through billboards and signages across different places with
famous endorsers to appeal more to the public eye. Also, most of their latest
promos can be found on materials like flyers handed out to places like malls.

5.2 PRICING STRATEGY

 Psychology pricing

The new trial plans have refundable modem fees and only require one
valid ID for processing. New customers can choose from Globe At Home’s Go
Big Plan 1299, 1599, or 1899 to enjoy speeds of up to 50 Mbps and up to 600 GB
of data allocation for just P499 per month for the first 3 months.

It is where the Globe Telecommunication uses 599 instead of 600. At this

state, people’s mindset brought them to the concept that they will be able to avail
the promo at a cheaper price rather than an expensive one.

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 Figure 2

 Pricing for market penetration

The minimum pricing system of Globe Telecommunications in is worth

P599 (five hundred ninety nine pesos) only where it includes 1.5GB of data,
Unlimited calls to globe/TM, and unlimited texts to all networks with the
minimum contract span of 6 months. This is eventually paid by the consumers for
it can suffice their monthly needs without the hassle of always loading in the retail
stores and the registering it to a specific promo. This enables the company to
attract buyers at a cheaper or lower price that also maintains them to have a long
run in the business.

 Pricing at premium

If you will compare the prices of Globe Telecommunications to their other

competing companies, the prices are definitely competent because it is a bit
higher than the others. It can show the consumers that at a higher cost, one may
achieve a better quality of service without the inconvenience of risking the value
perception for everyone else.

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 Economy Pricing

Economy pricing isn’t applicable for Globe Telecommunications

Company. They do not need suppliers of supplies in their field of business unlike
the other fields like food companies. This contributed a great help in minimizing
their cost of production and maximizing their profit even without stressing the
changes within the price of their service.

 Bundle Pricing
Under this strategy, Globe Telecom is able to provide a cheaper service
wherein the consumers are experiencing multiple products for a lower rate than
purchasing it individually. One of the examples is their plan 1299 big. This
upgrade of home broadband comes with a 400GB data allowance at a speed of
5Mbps to give the consumers a seamless YouTube experience and more. Also,
with more allowance on data the consumers can surf without interruption, stream
videos without buffering and play online games without lags with this promo.
Again, consumers can avail it for only 1,299 pesos per month. Unlike when the
consumer will buy it per GB which costs 15 pesos which will cost 6,000 pesos,
one can save 4,601 pesos in a month.

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5.3 MAJOR COMPETITORS

 PLDT
PLDT is the leading telecommunications and
digital services provider in the Philippines. Through its
principal business groups – fixed line, wireless and
others – PLDT offers a wide range of
telecommunications and digital services across the Philippines’ most extensive
fiber optic backbone, and fixed line and cellular networks.

PLDT is listed on the Philippine Stock Exchange (PSE:TEL) and its

American Depositary Shares are listed on the New York Stock Exchange
(NYSE:PHI). PLDT has one of the largest market capitalizations among
Philippine-listed companies.

 Converge
Converge ICT is the fastest growing
fiber internet and other digital consumer-
centric services provider in the country today.
The premium products and services they
offer run through the first pure end-to-end fiber internet network in the country.

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 CHAPTER VI

CORPORATE SOCIAL RESPONSIBILITY

Globe Telecom is the only telecommunications company in the Philippines to

come out with a sustainability report adhering to the Global Report Initiative (GRI)
framework which sets the standard on which organizations shall measure their economic,
environmental, and social performance. Globe Telecom’s Corporate Social
Responsibility (CSR) and sustainability report reflects the company’s efforts in ensuring
that the economic, environmental, and social well-being of its stakeholders are
incorporated in its business strategy and vision for society.

The company takes part in Sustainable

Development Goals (SDG) set by the United Nations in
2015 in which they contribute to 10 out of 17 of these
goals. One of Globe’s initiatives is to advance learning in
the 21st century and education technology where they
created a program called “Digital Thumbprint Program.”

This program teaches Filipino youth about the impact of

their online behavior through workshops on cyber security, safety, online responsibility
and leadership, and empowerment. Globe is also an active proponent of adoption and
application of technology in public schools to ensure
that children can keep up with today’s innovations.
They also enable programs that support climate action
and continuing efforts to build the nation, one program
is called “Project 1 Phone” which is a part of Globe’s
continuing efforts to build the nation after Typhoon
Yolanda and its commitment to sustainability. This
program is a recovery and recycling program that ensures e-wastes such as old mobile
phones do not end up in landfills.

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 Globe also provides employment opportunities and
economic growth within their value chain, they are able to
generate additional income opportunities for small retail
owners through their AutoLoadMax Program. They also
play an active part in community development by using
people and technology as a catalyst of positive changes.
Some of the programs they launched for Positive Societal
Impact includes “Sports Para sa Bayan” which provides underprivileged Filipino youth a
chance to improve their lives through sports, learn about a healthy lifestyle, and receive
opportunities for academic advancement. Globe also supported Department of Health and
Natasha Goulbourn Foundation by an information and communications technology
infrastructure for HOPELINE, an emotional crisis hotline.

Globe’s Corporate Social Responsibility efforts are on people empowerment.

They provide consumer the means for a stable livelihood, which could eventually
stimulate the market and help contribute to sales growth of products or services that the
companies are providing. They also recognize its employees’ passion for service and
their desire to be agents of change. They provide everyone with two days of volunteer
time-off annually, specifically made to participate in volunteerism or CSR activities of
their choice. Globe’s ultimate goal is to build a better nation for every Filipino.

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 CHAPTER VII

CONCLUSION

Communication is very important in today’s generation. It plays an important role in

psychological, social, and economic aspects of every human being.

The firm analysis performed in this study showed significant factors and differences
of the product and services to the determination of the supply and demand of the
company in terms of mobile, fixed line, and broadband networks. The diversified
products and services offered by Globe Telecom complements the trend and needs of the
market which gained the company loyal subscribers and consumers despite those
weaknesses and threats that have been mentioned earlier in this study.

Such firm analysis allows us to conclude that Globe Telecom, Inc. now, plays an
important role in our market. As one of the major providers of telecommunication in the
Philippines, it now gains control partly on the price of its products and services. One of
the key factors which brought globe in today’s phenomenon is its flexibility as to its
marketing and pricing strategies which assure to cater and address the changing needs,
lifestyles and demands of the customers.

In line with this, based on the above-mentioned information, such data allow us to
conclude that Globe Telecom Inc., belongs to an oligopoly market structure wherein there
are only few competing companies who offer telecommunication products and services
namely, PLDT and the newly recognized competitor Converge ICT.

There is mutual interdependence among competing firms in this kind of market

structure. This mutual interdependence is an important feature of an oligopolistic firms
wherein they base their actions, partly, on how other industry react on anything they do.
In this case, these actions of oligopolistic firms may result to collusion or price war.
However, it was mentioned earlier that Globe’s pricing strategy is one of the key factors
that lead globe in today’s phenomenon wherein the company still ensures the market
price of their product at a lesser price compare to its competitors so that their subscribers
can still avail it although the price constantly increases then decreases as time pass by.

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And may be presumed that, when the other competing firms has increased their price,
there is a tendency that globe telecom products and services be the substitute goods for it
is more affordable for the consumers.

Figure 3

Figure 3 represents the demand curve for an oligopoly market structure. The
oligopolistic faces a kinked-demand curve because of competition from other
oligopolistic firms. When an oligopolist increases its price above the equilibrium price P,
it is assumed that the other oligopolists in the market will not follow with price increases
of their own. And Globe telecom is no different at all, for the company alone control the
price over their products and services offered.

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