Ricardo Bazante Martin Castro mahias paredes

3. Internal evaluation

Movistar internal evaluation.

Movistar has been gaining much more costumers since 1993, the date it was
founded. This means that also Movistar has been upgrading its services and
technology gradually. As every company, may have strengths and weaknesses,
this one has many of them, we will check them. According to many forums of
customers, these say that Movistar has been doing a good job as a mobile
service company, meanwhile, many of them complain about certain problems
Movistar has experienced. We have analyzed its internal qualities, throughout a
PEST analysis, according to customers forums and commentaries.

STRENGTHS:

Movistar has been getting a longer range of signal which let customers have a
better service and communication.

It’s publicity, Movistar’s publicity has been a really strong advantage in

comparison with other cellular service companies. This may be because they
use young people in their advertising, which also let us know they have
innovative stuff going on.

Lots of customer service spots, this leads that their customers get information
faster and can change their plan or many services.

Movistar offers many different services.

Good working environment.

WEAKNESSES:

More expensive than other companies from the market.

May be affected by climatic changes.

High staff turnover, making Movistar an unstable place to work.

Inefficient customer service, this is an important weakness because there are a

lot of customers complaining about it’s lack of customer service.

No much coverage in rural areas, make rural customers to search for another
company that work in rural parts.

THREATS:

Economic crisis like in Venezuela or Ecuador.

Politic instability in several countries may affect that customers won’t be able to
buy a cellphone service.

Market innovation in other companies may affect Movistar.

OPPORTUNITIES:

Customers searching for a cellular service number it’s raising more and more.

New cellphones coming out with innovative functionalities that Movistar can
approach.

Technological advances that permit services to be joint like cellular and home
phone.

4. External Evaluation
Branch and competitive analysis
Movistar brand is one of the most recognized national and Latin American
telephone brands, because it has a strategic planning that makes it superior to
others.
In Ecuador there are four companies that focus on the mobile phone service,
these are Movistar, Claro, Tuenti and Cnt.

Industry and kind of sector

Movistar is part of the Telecommunications Sector, it has grown and evolve in

the country in recent years. An evidence of the work carried out during the last
48 months is the result in positive figures for Ecuador, which have as pillars the
infrastructure, access to ICT and the development of an industry that allows the
reduction of the digital divide.

Thus, it worked on several fronts such as expansion of optical fiber, reduction of

digital illiteracy, inclusion of ICT through Community Infocenters, software
industry and universalization of telecommunications services such as, for
example, the competition of frequencies for radio and television for the
democratization of the radio spectrum.

The development of telecommunications in Ecuador had an investment,

between public and private sector, close to 7 billion dollars, which allowed the
projection of the country. The work done is reflected in milestones such as the
reduction of digital illiteracy from 32% in 2008, to 12% in 2015, 20% less.

An important achievement was the concession of the 110 MHZ of the radio
spectrum for the expansion of fourth generation (4G) technology for mobile
phones to private operators. Thanks to this agreement, the State received 330
million dollars and currently this technology covers 50% of the population.
4G technology has greater advantages than 2G and 3G technologies as a
faster and more efficient Internet connection from mobile devices within the
available spectrum.

Movistar also belongs to the tertiary sector because this company generates
services that are offered to meet the needs of any population in the world. In
this case they offer telephony service for many parts of the world.

PEST Analysis

Political

The services offered from local infrastructures in different geographical areas or

nations compete with services rendered globally through the Internet.
Business models based on free services and two-sided markets emerge. The
service provider does not receive financial compensation from the user,
but from a third agent in exchange for obtaining access to the user's personal
data or directed advertising.

The convergence of services produced in the markets has resulted in the

appearance of equivalent services based on different technologies competing
with each other.

Personal data has become the main pillar of the Internet industry, considered as
a production factor or currency, being monetized thanks to the competitive
advantage they bring to the platforms.

Agents from different sectors and with different business models compete along
the Internet's value chain for the same users, revenues or times of use.

Economical

Movistar ended last year with revenues of 551 million euros (more than 590
million dollars at current exchange rate), that is, its revenues decreased 8.9%
compared to the 605 million that reported in 2015, according
to Telefónica's financial data.

The operating profit before depreciation and amortization (Oibda) in Ecuador

reached 177 million euros, 8.5% less than in 2015, when that indicator stood at
194 million euros.

As of December, Movistar had 4.5 million mobile accesses in the country, 3.2
million in prepaid, 1.3 million in contracts.

Social

Project of Scholarships and Aids to the study of FP is part of the actions of the
Young Employability Program of Fundación Telefónica, whose main objective is
to support young people in the development of their life project by connecting
them with the labor market.
Technological

Implemented the new Center has 3000 m2 equipped with all the advances and
technological resources necessary to replicate the real network.

The own Movistar +, the HGU or integrated fiber equipment, and Screen Fusion
are some products and services that have been tested in this space before
commercializing them.

Manage technology of 3G & 4G in Ecuador and the rest of the continent.

Resources: 4. External Evaluation

Branch and competitive analysis
Movistar brand is one of the most recognized national and Latin American
telephone brands, because it has a strategic planning that makes it superior to
others.
In Ecuador there are four companies that focus on the mobile phone service,
these are Movistar, Claro, Tuenti and Cnt.

Industry and kind of sector

Movistar is part of the Telecommunications Sector, it has grown and evolve in

the country in recent years. An evidence of the work carried out during the last
48 months is the result in positive figures for Ecuador, which have as pillars the
infrastructure, access to ICT and the development of an industry that allows the
reduction of the digital divide.

Thus, it worked on several fronts such as expansion of optical fiber, reduction of

digital illiteracy, inclusion of ICT through Community Infocenters, software
industry and universalization of telecommunications services such as, for
example, the competition of frequencies for radio and television for the
democratization of the radio spectrum.

The development of telecommunications in Ecuador had an investment,

between public and private sector, close to 7 billion dollars, which allowed the
projection of the country. The work done is reflected in milestones such as the
reduction of digital illiteracy from 32% in 2008, to 12% in 2015, 20% less.

An important achievement was the concession of the 110 MHZ of the radio
spectrum for the expansion of fourth generation (4G) technology for mobile
phones to private operators. Thanks to this agreement, the State received 330
million dollars and currently this technology covers 50% of the population.

4G technology has greater advantages than 2G and 3G technologies as a

faster and more efficient Internet connection from mobile devices within the
available spectrum.
Movistar also belongs to the tertiary sector because this company generates
services that are offered to meet the needs of any population in the world. In
this case they offer telephony service for many parts of the world.

PEST Analysis

Political

The services offered from local infrastructures in different geographical areas or

nations compete with services rendered globally through the Internet.
Business models based on free services and two-sided markets emerge. The
service provider does not receive financial compensation from the user,
but from a third agent in exchange for obtaining access to the user's personal
data or directed advertising.

The convergence of services produced in the markets has resulted in the

appearance of equivalent services based on different technologies competing
with each other.

Personal data has become the main pillar of the Internet industry, considered as
a production factor or currency, being monetized thanks to the competitive
advantage they bring to the platforms.

Agents from different sectors and with different business models compete along
the Internet's value chain for the same users, revenues or times of use.

Economical

Movistar ended last year with revenues of 551 million euros (more than 590
million dollars at current exchange rate), that is, its revenues decreased 8.9%
compared to the 605 million that reported in 2015, according
to Telefónica's financial data.

The operating profit before depreciation and amortization (Oibda) in Ecuador

reached 177 million euros, 8.5% less than in 2015, when that indicator stood at
194 million euros.

As of December, Movistar had 4.5 million mobile accesses in the country, 3.2
million in prepaid, 1.3 million in contracts.

Social

Project of Scholarships and Aids to the study of FP is part of the actions of the
Young Employability Program of Fundación Telefónica, whose main objective is
to support young people in the development of their life project by connecting
them with the labor market.

Technological
Implemented the new Center has 3000 m2 equipped with all the advances and
technological resources necessary to replicate the real network.

The own Movistar +, the HGU or integrated fiber equipment, and Screen Fusion
are some products and services that have been tested in this space before
commercializing them.

Manage technology of 3G & 4G in Ecuador and the rest of the continent.

Resources:
http://www.fundaciontelefonica.uy/publicaciones-listado/pagina-item-
publicaciones/itempubli/609/
https://www.telefonica.com/es/web/sala-de-prensa/-/telefonica-pone-en-
marcha-un-centro-de-innovacion-y-tecnologia-para-testar-los-servicios-antes-
de-lanzarlos-al-mercado
https://jobs.telefonica.com/?locale=es_ES
https://prezi.com/vtkwxbj8nvmk/analisis-de-movistar/
https://es.wikipedia.org/wiki/Sector_servicios
https://www.telecomunicaciones.gob.ec/sector-de-las-telecomunicaciones-
continuan-creciendo-en-el-pais/
https://www.google.com.ec/search?q=pest+analysis&source=lnms&tbm=isch&s
a=X&ved=0ahUKEwies6P09cjaAhUswlkKHcUkBecQ_AUICigB&biw=1093&bih
=530#imgrc=lGvQQEQBVcFU6M: