ASTRO Full Report
ASTRO Full Report
ASTRO Full Report
BPMN 3023
STRATEGIC MANAGEMENT
GROUP ASSIGNMENT:
PREPARED BY:
NAME MATRIC NO
AMIR RIDHWAN BIN FAHMI 257794
ELAYATHARSHINI ARUMUGAM 257799
NURUL DIANA AZILA BINTI AZMAN 257880
NURUL JANNAH BINTI JAILANI 257883
RABIATUL ADAWIYAH BINTI AHAMAD KOSNAN 257887
PREPARED FOR:
SUBMISSION DATE:
NO CONTENT PAGES
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1.0 INTRODUCTION 1
2.0 ISSUES/PROBLEMS 2
3.0 INTERNAL FORCES
3.1 Company Name
3.2 Company Types and Industry
3.2.1 Vision
3.2.2 Mission
3.2.3 Logo 40
3.2.4 Objectives
3.2.5 Strategy
3.3 Board Of Directors
3.4 Top management Team
3.5 Organization Structure
3.6 Financial Analysis
4.0 EXTERNAL FORCES
4.1 STEEP 47
4.2 Porter 5 Forces
5.0 STRATEGIC OPTIONS
5.1 SWOT
5.2 IFAS
5.3 EFAS 58
5.4 SFAS
5.5 TOWS
6.0 RECOMMENDATE SUGGESTION 61
7.0 CONCLUSION 62
8.0 REFERENCES
1.0 INTRODUCTION
Astro is the first supervisor of paid satellite television services under MEASAT
Broadcast Network Systems Sdn.Bhd, a consortium of government and trade companies.
Astro started broadcasting in 1996 with the start offering only 22 different channels and 8
radio channels. Over the years, Astro has added dozens of new channels and Astro plans to
add another 50 new channels in 2007 using the capacity of the MEASAT-3. As of May 2007,
Astro subscribers totalled 2.02 million subscribers to 990,000 subscribers of which is Malay.
Astro is also partnering with other countries to launch new services for broadcasting,
multimedia and the internet. Astro also has strategic partnerships with leading software
developers and content providers to jointly develop technology and content to provide
interactive services across multiple platforms across the Asia Pacific region. A financial
report that ended on October 31, 2006 showed Astro earning RM1.97 million. Among the key
figures behind Astro's success was Dato 'Mohammed Shazalli Ramly (now Chief Executive
Officer of Celcom Berhad). He was Astro's former marketing director for 2 years where he
was involved in Astro's initial launch into the Malaysian market. Astro has now appointed
Ralph Marshall (former BSkyB executive) as its new Chief Executive Officer beginning
February 1, 2007.
With a total customer base of 4.8 million, or about 67% household penetration in
Malaysia, Astro presents 20 million individuals with various media and entertainment deals
covers television, radio, digital media and home-made entertainment. Their value proposition
includes 183 TV channels broadcast through their DTH Satellite TV, IPTV and OTT
platforms. Of which 69 are Astro brands and 54 are in HD. Customers have a variety of
options according to viewing tastes. They provide HD, PVR, OD, IPTV via Astro B.yond;
and also to AOTG and Tribe. They also offer freemium services instead. The subscription is
called NJOI, which offers 28 channels, two of which are HD and 20 radio stations.
1.0. ISSUES/ PROBLEMS
People nowadays, tend to spend their time on their smartphones and tablets than they
do watching TV. In Malaysia, adults more spend an average of three hours and 43 minutes
each day on their smartphones, feature phones and tablets, eight more minutes they will
spend watching TV. This is because, there are a lot of apps and webs on smartphones and
tablets. So this issue, directly brings problem to the Astro Company. For instance, the well
know program “ Big Boss” which are nowadays most Indian Malaysian citizens are attracted
at, more likely to visit websites like Tamilgun to watch it. On the other side, there is also
“TOPEUROPIX” website, where it aired movies and TV series online HD with subtitles. All
this kind of facilities, makes the users to not waste their money on monthly Astro payment,
where they can watch HD movies whenever they want.
Recently, The Star discussed issues on illegal website users making more money.
According to the “Global Piracy Insights Report 2017”mentioned that a London-based piracy
tracking company, over 179 billion visits to piracy sites were recorded globally. Even
though, there is Astro app, due to some programmes are air earlier in websites than Astro,
people more attract to the illegal websites. Apart of that, nowadays adults and youngster more
likely to spend their time on social media’s like Instagram, Facebook, Tweeter, and so on. The
using of illegal websites significantly affect the both film and television industry. Consumers
nowadays more looking to watch a film or television show online will often turn to illegal
websites, rather than those offering authorised version. In additional, these illegal website
making more profit from advertisers who frequent the sites because of this high volume of
infringing traffic. Astro Arena, Zulkarnain also stated that many Malaysia are still unaware
that creating, utilising and selling illegal streaming services and set top boxes is against the
law. Under the Communication and Multimedia Act 1998, an unlicensed service provider or
person who possesses illegal network service, on conviction, is liable to be fined. (Yeap,
2019).
Astro should know type of movie or drama that audience like such as Korean drama,
Love drama, Animation and so on where it follows audience’s taste about the movie or drama
at Astro. It can see Astro what movie or drama that Astro serve to their audience where the
drama at some Astro always shows same movie or drama that it all before. Astro need to
shake it up and find new, fresh ideas to bring to all audience’s Astro. It needs to be stuff that
they are never watching the movie and drama before this and the easiest way to do that is to
find more drama or movie and ideas that will challenge how audiences think and how
audiences look at the world. Astro needs to collaborate between their high manager, all staff
and all Astro who collaborate together such as Astro Warna, Astro Ria, Astro Prima and so on
to take action to improve their best service and shows many drama or movie without repeated
same story to audience and also have perfect time table and duration hours before start the
drama. (Astro Malaysia Holdings Customer Care Service, 2019).
Moreover, poor satellite signal connection in Astro. Among the possible causes, the
most popular reason is weather condition which leads to no or weak satellite signal, usually
when in raining weather. There are also may be due to the misaligned satellite dish, wrong
cable connection of faulty Set Top Box (STB). The story of Astro’s pay-TV subscribers is not
a new issue, but the story of ‘unseen’ broadcasting during bad weather and expensive
subscription fees has been endless since the broadcaster began operating in 1996.
Nevertheless, Astro's time of greatness seems to be expected to 'fall' when it comes to talking
of credible sources suggesting the world of local broadcasting will return as intense as a book
meeting the segment in the near future. Another cause of weak satellite signal on Astro
broadcasting is the Astro plate or the receiver of the broadcast is not in the correct position.
Since the broadcast is interruption begins with non-hd broadcast and subsequently hd
broadcast receives the same fate. (Astro Malaysia Holdings Customer Care Service, 2019)
Accordingly, the services provided by the Astro Center do not satisfy customers who
subscribe to Astro. Astro customers will contact Astro's customer service line to fix any
technical issues that may occur at home. Astro center responds slowly to responding to calls
from customers and customers need to contact the center repeatedly to ensure that Astro
center is answering their calls. Astro often promotes or offers new packages to customers.
Astro will contact every customer who subscribes to Astro to notifying of any new
promotions and packages available. This system can interfere with the daily life of the
customer if the call made multiple times at the same time. Astro will contact the customer
many times despite the customer's give the response to Astro party. This cannot only
persuade the customer to take the promotion but also make the customer feel bored when it
frequently interrupted. Astro center does not check the name of each call made to the
customer. The system created by Astro does not encourage customers to be interested in
subscribing to the new promotion or package. (Astro Malaysia Holdings Customer Care
Service, 2019).
2.0. INTERNAL FORCES
2.1. Company Name
There are various types of broadcasting systems with varying capabilities. The
smallest broadcasting system is an institutional broadcast system that transports conversations
and music within confined spaces such as schools or hospitals, and low-power radio or
television stations that broadcast programs in small local areas. National radio and television
broadcasts enjoy nationwide coverage through relay towers, satellite systems and cable
circuits. Satellite radio and television broadcasts can cover large areas of the continent, while
Internet channels can transmit text or audio and video streaming worldwide. Internet facilities
can also be used to distribute audio or video content either in streaming or here.
The sequence of content in the broadcast is called a table. As with other technologies,
the technical term for broadcasting was born. Television and radio shows are transmitted via
radio or cable broadcast, or both. By encoding the signal and having home decoding
equipment, decoding equipment also enables the reception of subscribed and pay-per-view
channel services.
2.2.1. Visions
To win the hearts and minds of the people through the first radio, TV, and media services
2.2.2. Missions
To create an organization that will maximize customer satisfaction in quality, time delivery,
troubleshooting, service and cost control.
2.2.3. Logo
This is a logo for Astro. The entire logo is used to convey the intended purpose and
avoid being dull or misrepresenting the intended image. The logo is of sufficient size and
resolution to maintain the quality suggested by the company or organization, without the need
for high resolution. This image is used to identify the Astro organization (satellite television),
a subject of public interest. Logo signification is intended to help readers identify the
organization, assure readers that they have reached an accurate article that contains critical
reviews of the organization, and illustrate the purpose of the organization's branding message
in a way that words alone cannot convey. As it is not a free logo, there is almost certainly no
free representation. Any replacement that is not a derivative work will fail to convey its
purpose, will defile or misrepresent the image, or will fail its purpose of introduction or
comment.
2.2.4. Objective
Information is spread through various broadcast platforms.
To catalyze the development of the country's creative content industry.
To support Malaysian heritage and culture
Extend a network of collaborations and strategic partnerships domestically and
internationally.
Conducts Astro regulatory reviews and promotions to create a business environment
among TV companies.
2.2.5. Strategy
One of Astro's great selling and selling techniques is to give previews (also known as
'samples') previews of the various channels available in many Astro TV packages.
With the 'nature' of this company, we can understand that Astro is a company that
cares about the 'sight' of the audience, so the appropriate sample or preview is also given in
terms of pre-preview for a specific time period. Like in 1 or 2 weeks, or a month.
He joined the Malaysian Judicial and Legal Services as a Magistrate and was later
transferred to the Attorney General’s Chambers where he held several positions for 15 years
before going into private legal practice. He was appointed as a Judge of the Federal Court of
Malaysia in 2007 and shortly thereafter, became the President of Court of Appeal of
Malaysia, the second highest judicial office in the country.
In October 2008, he was appointed as the 12th Chief Justice of Malaysia. He also
holds the distinction of being appointed as the first chairman of the Judicial Appointment
Commission until his retirement as Chief Justice in September 2011. He was also appointed
as Chief Justice of Dubai International Financial Centre Courts in November 2018. He is the
Chancellor of Multimedia University and MAHSA University and Pro-Chancellor of
University Science Islam Malaysia
She has more than 40 years’ experience in the financial services industry, having held
leading positions in both foreign and local institutions. She started her career in Bank of
America and held various roles in Asia. She was the former Group Managing Director and
Chief Executive of RHB Bank Berhad (1996-2002) and Hong Leong Bank Berhad (2003-
2013). She is a Council Member of Asian Institute of Chartered Bankers, a member of the
Board of Trustee for Teach For Malaysia Foundation, and an Honorary Professor of
University of Nottingham School of Economics.
Independent Non-Executive Director
He also served as Adviser to the Group Chief Executive Officer of CIMB Bank,
responsible for the development of overall business strategies till March 2019. Renzo also
held the positions of Executive Director at CIMB Bank Berhad and Non-Executive Director
of Sun Life Malaysia Assurance Berhad and Sun Life Malaysia Takaful Berhad. He currently
is a Director of CIMB Bank PLC, Cambodia and CIMB Bank (Vietnam) Limited.
Non-Independent Non-Executive Director
He has about 30 years’ experience in finance, treasury and credit management. Prior
to joining the UTSB Group in 1995, he was attached to General Electric Capital Corporation
in the USA and Ban Hin Lee Bank in Malaysia. He is a Director and Chief Operating Officer
of UTSB, and serves on the boards of several other companies in which the UTSB Group has
interests such as Maxis (listed on Bursa Securities) and Bond Pricing Agency Malaysia Sdn
Bhd, a bond pricing agency registered with the Securities Commission Malaysia. He is also a
Director of Paxys Inc. (listed on the Philippines Stock Exchange) and Yu Cai Foundation.
Non-Independent Non-Executive Director
Prior to joining EPF, he was the Chief Marketing Officer and Chief Operating Officer
of the Iclif Leadership and Governance Centre. He has also held the positions of Director of
Strategic Management at Bank Negara Malaysia, Director and Head of Strategy and
Corporate Affairs at DiGi Telecommunications, and Vice-President and Head of Group
Strategic Planning at Malayan Banking Berhad. He is currently on the board of Kwasa Land
Berhad, Kwasa Utama Berhad, Dialog Group Berhad and Battersea Power Station
Development Company Limited, in addition to his capacity as Vice-Chairperson of the
Technical Commission on Organisation, Management and Innovation for International Social
Security Association.
Non-Independent Non-Executive Director
Mazita Mokty has more than 20 years' legal and regulatory experience, primarily in
corporate, commercial and banking matters, trusts and investments, and equity/capital
markets. She is currently the General Counsel of UTSB, a Malaysian based investment
holding company which has significant interests in companies operating across diverse
industries such as telecommunications, media and entertainment, and real estate.
She serves on the board of several companies in which UTSB Group has significant
interest, such as AHSB and Tanjong Capital Sdn Bhd. Prior to joining UTSB, she was
attached to an established law firm in Kuala Lumpur and worked with the Securities
Commission Malaysia.
Non-Independent Non-Executive Director
Henry joined our Group on 2 May 2008 as Chief Operating Officer and was
redesignated as Group Chief Content & Consumer Officer on 1 November 2017. He has also
been serving as Chairman of Go Shop, Astro's home shopping platform, since 28 April 2014.
On 1 February 2019 Henry was appointed as Chief Executive Officer. Henry was key in
introducing Malaysians to high definition (“HD”) TV viewing with Astro B.yond, and
launching the first free satellite multichannel service, NJOI.
His many firsts include Tutor TV, Malaysia's first free learning channels; Astro First,
a cinema in your home service; eGG Network, the first regional eSports channel; Boo, the
first Asian horror channel; local Hua Hee Hokkien entertainment and the hugely popular
Malay ‘Lawak’ comedy brands. He is focused on creating digital content experiences via
Astro digital brands such as Gempak, Xuan, Ulagam, ZAYAN, AWANI and Stadium Astro.
Henry believes in the potential of Malaysian movies and was instrumental in the success of
seven of Malaysia’s top 10 films: The Journey, Polis Evo and Polis Evo 2, OlaBola, Abang
Long Fadil 2, Hantu Kak Limah, and Paskal.
Henry was previously the Chief Executive Officer of Mindshare Malaysia and
GroupM (Malaysia and Singapore). Prior to that, he held the position of Media Director,
Ogilvy & Mather and General Manager, HVD Entertainment. He holds degrees in Business
(Marketing) and Arts (Communications) from Chisholm Institute of Technology Australia
(now known as Monash University).
Male Shafiq joined our Group on 9 January 2017 as Chief Financial Officer. He
oversees the finance and risk management functions across our Group encompassing
financial control, process risk assurance, treasury, business partner advisory, investor
relations, corporate finance, and tax. More recently his role has expanded to oversee legal,
procurement, strategic contracts and regulatory relations as well.
Prior to joining Astro, he was the Group Financial Controller and Chief Financial
Officer (Malaysia) of CIMB Bank Berhad. Before joining CIMB, he was Executive Director
at PricewaterhouseCoopers, a role he held having advanced from managerial positions in its
Kuala Lumpur and London offices, where he provided assurance and advisory services to key
clients listed on Bursa Malaysia and FTSE 100. He holds a Bachelor of Commerce, majoring
in Accounting and Finance from the University of Melbourne, Australia and was formerly the
Malaysian Chair of Chartered Accountants Australia and New Zealand.
Chief Executive Officer, Go Shop
Grace joined our Group’s Corporate Assurance Division on 2 January 2001 and has
held several other roles within the Group including Head of Process Improvement, Group
Financial Controller and Chief Risk Officer prior to her appointment as Chief Executive
Officer of Go Shop on 1 October 2016.
She was also recently appointed as a board member of Malaysian Global Innovation
and Creative Centre (MaGIC). She is responsible for driving Go Shop’s growth, doubling Go
Shop’s customer base and growing cumulative top line revenue to RM1 billion since joining
Go Shop in October 2016. This was achieved through her strategic focus on continuous
improvement of customer experience, content production, formats and distribution, analytics-
driven sales and marketing initiatives, supply chain management and technology. Prior to
joining Astro, she worked for PricewaterhouseCoopers’ Assurance and Advisory Division.
Malaysian, 46, Female Azlin re-joined our Group on 17 June 2019 to take the lead on
our Pay TV Business. She was recently Vice President of the Industrial Development
Division of Johor Corporation, where she was also a member of the board of QSR Brands.
Azlin was previously the COO of NJOI, our subscription-free TV service. Her task was to
grow NJOI as a pipeline for customers to purchase additional content on a prepaid basis by
executing customer solution initiatives and managing the distribution network to drive
transactions.
Malaysian, 49, Male MJ currently serves as Director, NJOI & OTT at Astro. He was
previously Financial Controller and Senior Vice President, Commercial Services
Multichannel TV at Astro until 2010. MJ has diverse experiences in media, assurance,
advisory, telco and private equity. Prior to joining Astro, he was Senior Director,
Investment/Outsourcing of Ekuinas. Other positions he held at Ekuinas include Chief
Financial Officer, Senior Director of Ekuinas’ education portfolio and Head of Ekuinas’
Outsourced Programme. He also had a stint at Celcom as Vice President of Financial
Accounting and Management Reporting, and served at both Arthur Andersen and Ernst &
Young where he provided assurance and advisory services. He holds a Bachelor’s degree in
Accounting and Finance from Lancaster University, UK, and is a Fellow Member of the
Association of Chartered Certified Accountants (ACCA) UK. He has also been accorded
Chartered Accountant Malaysia as well as ASEAN Chartered Professional Accountant. He is
currently a member of the Professional Accounts in Business (PAIB) Committee of the
Malaysian Institute of Accountants and sits on the board of Cradle Fund Sdn Bhd and AXA
AFFIN Life Insurance Berhad.
Director, Content
Malaysian, 51, Female a pioneer member of Astro, Agnes was appointed as Director,
Content on 1 February 2019. She leads the Group’s content team, covering Malay, Nusantara,
Chinese, Indian, International, Korean, Hollywood, Kids, Sports and Film businesses.
She was instrumental in driving the success of Astro On Demand services, bringing
the Astro First cinema experience into customers’ homes, and introducing Astro Best which
allows early access to global blockbuster movies. Being a passionate advocate of regional
content, she has championed numerous Asian and Southeast Asian initiatives, which include
introducing horror channel Boo and bringing the Korean wave to Astro’s offerings. Agnes
holds degrees in Law and Economics from Monash University, Australia and completed
Harvard Business School’s General Management Programme.
Director, Data
Malaysian, 46, Male Mark joined our Group on 17 June 2019 as Director, Data. He
is responsible for the seamless integration, utilisation and monetisation of all data across our
Group. His key task is to bring together the disciplines of data management, visualisation,
reporting and advanced analytics to generate value for Astro businesses
Before joining Astro, Mark was the Advanced Analytics Practice Lead of SAS,
where he designed, developed and implemented analytics solutions for organisations in
various industries. Mark holds two bachelor’s degrees from the University of Adelaide,
Australia. The first with Honours is in Electrical & Electronic Engineering and the second is
in Applied Mathematics & Computer Science. He completed his PhD in Electrical
Engineering at the University of Edinburgh, United Kingdom. He is also registered as a
Chartered Engineer with the Engineering Council (UK) through the Institution of
Engineering and Technology.
Director, Astro Radio & Rocketfuel Entertainment
Malaysian, 45, Male Ramesh joined our Group on 2 February 2000 and was
appointed Director of Astro Radio & Rocketfuel Entertainment on 1 July 2019. Prior to his
appointment as Director, Ramesh was Chief Content Officer at Astro Radio where he led
strategy, research, talent management and creative content creation across our radio, digital &
social platforms. His key achievements include growing Astro Radio to lead in listenership
across all languages, launching our digital-first radio brands - ZAYAN and GOXUAN and
establishing our digital marketing arm - Blaze Digital.His new task includes heading
Rocketfuel Entertainment, Astro’s influencer marketing arm. It manages some of the biggest
talents in the entertainment industry, produces talent-driven digital content and runs an
independent music label.Ramesh studied at Syuen College, graduating with a Diploma in
Hotel Business Management from the American Hotel and Motel Association and attended
the Harvard Business School Programme in 2012.
Director, Media Sales
Malaysian, 56, Male TH joined our Group on 16 April 2007 as Group General
Manager of Sales, Astro Radio and was instrumental in driving Astro’s Radio Adex revenue
from RM180 million to RM340 million in FY2016. In 2016, TH was appointed as Director,
Media Sales, leading the team in media sales and services across all Astro media assets,
including TV, Radio and Digital. He is responsible for spearheading the growth of group
media sales Adex revenue and driving integrated media solutions across all Astro’s media
properties and Intellectual Properties. His key achievements include centralising Blaze
Digital advertising sales and sales operations system, extending advertising sales beyond pure
commercial airtime to include event, activation capabilities, formulating media sales strategy
and operation efficiency, as well as trade marketing communication.
Alison joined our Group on 8 September 1996 and was appointed as Director,
Customer Sales on 1 February 2019. She is responsible for providing leadership and strategic
direction on customer sales, business development, customer operations and supply chain.
She spearheaded and managed Astro regional sales channels and operations in achieving
targets and operational efficiency in her previous role as Head of National Sales. She was
instrumental in contributing to the growth of Astro’s penetration in East Malaysia from 34%
in 2008 to 83% in 2018 through market and business intelligence. She has extensive
experience in customer service and retention via key customer strategies and sustainable,
market-driven initiatives. She graduated from the Singapore Hotel and Tourism Education
Centre (SHATEC) and holds a certificate of Specialisation from the American Hotel and
Motel Association (AHMA).
Senior Vice President, Human Capital
British, 44, Male Gavin joined our Group on 3 September 2018 as the Senior Vice
President of Human Capital. He leads our Group’s Human Capital operations, which aims to
provide an amazing people experience for everyone at Astro through a culture of creativity,
diversity and collaboration. A senior HR professional with over 15 years of experience,
working in both Australia and the UK, Gavin spent the last 6 years in the technology/media
sector as the Group Head of Talent Performance for Sky plc in the UK where he developed
and delivered the group’s talent strategy. Prior to that he was the Head of Organisational
Capability, Optus Business in Australia. In both roles, he was involved in the ongoing digital
transformation of the organisations.
He has also held senior roles in professional services firms including Deloitte
Australia and BDO Australia. Gavin started his career in the insurance industry with Royal
Sun Alliance & QBE where he advanced into management positions in the UK & Australia.
Gavin studied at the University of East Anglia, UK where he pursued technical insurance
qualifications with the Chartered Insurance Institute.
Director, Marketing
Christinne joined our Group on 18 April 2005 and was appointed as Director,
Marketing on 1 February 2019. She is responsible for providing leadership in marketing
strategies and promotion of Astro’s products, services and content IPs ranging from on-air,
online to on-ground. She also oversees the Group’s strategic imperatives and business
development activities, delivering strong value proposition to Astro customers. Prior to this,
Christinne led different portfolios within the Group including regional content, content
strategy and marketing, premium business and corporate finance. Before joining Astro, she
was Corporate Finance Manager at PricewaterhouseCoopers Advisory Services, Malaysia.
She holds a Bachelor of Commerce with First Class Honours from Lincoln University, New
Zealand.
Director, Communications
Female
Laila joined our Group on 3 May 2005 and was appointed as Vice President,
Regulatory, Intellectual Property Protection & Industry Affairs on 1 April 2009. In her current
role, she is responsible for providing specialist advice on the Malaysian regulatory
framework and facilitating a conducive regulatory environment for the execution of our
Group’s strategic imperatives. Working alongside the relevant authorities and stakeholders,
she is instrumental in spearheading anti-piracy initiatives in the industry besides leading our
Group’s intellectual property protection efforts. She has 25 years of working experience both
in local and international markets. Prior to joining our Group, she worked in the
communications and property industries, including UEM Holdings Bhd. She received a
Master of Science in Corporate Communications from University Putra Malaysia and holds a
Bachelor of Education in Teaching English as a Second Language (TESL) from University of
Malaya.
Company Secretary
Sharon joined our Group on 1 March 2002 and was appointed as the Company
Secretary of Astro Malaysia Holdings Berhad since its incorporation on 14 February 2012.
Prior to that, she was the Company Secretary of Astro All Asia Networks Plc, a position she
has held since January 2008. She is responsible for the overall corporate secretarial and
governance functions of our Group. Her responsibilities include advising our Board on its
role and responsibilities, managing our Board and shareholders’ meetings, as well as
providing efficient administration to our Group entities with regards to compliance with
statutory and regulatory requirements. She also acts as the focal point for shareholders’
communication and is a conduit between our Board members and Senior Leadership to
ensure proper communication. She has over 20 years of working experience in the corporate
secretarial field and is a licensed secretary approved by the Companies Commission of
Malaysia. She holds a Bachelor of Law (Honours) from the University of London and was
issued the Certificate of Legal Practice by the Legal Profession Qualifying Board, Malaysia.
2.5. Organization Structure
The organization structure consists of board of director who are the top authority and
are responsible for planning and corresponding the strategic direction and taking care of its
affairs to make sure the organization success to have the proper control over risk and go on
worth the rules and regulation of the territory and the company. The body of board of director
consists of three director who are non-executive with one executive chairman and one non-
executive director. The next level come the management group who are responsible for
managing their department activities related to different brands and sections. This level is the
link between the lowest level and the board and mostly comprises of managers and senior
managers who implement the plans made by the top levels. The next level is the lowest level
comprising of normal workers who are directly into the activities and are only linked with the
management groups.
Financial analysis is considered as one of the best ways to analyze the fundamental
aspect of a business. It helps the researcher in understanding the financial performance of
ASTRO Malaysia Holdings Bhd. This is important metric to analyze the company’s operating
profitability, liquidity, leverage and others. The following financial analysis example provide
an outline of the common financial analysis used by performance. These relationships
between the financial statement accounts help investor, creditors and internal company
management understand how well a business is performing and of areas needing
improvement. Below mentioned are the financial analysis of ASTRO Malaysia Holdings
Bhd.
800,000
700,000
600,000
500,000
RM
400,000
300,000
200,000
100,000
0
2017 2018 2019
Figure 1 shows the gross profit for ASTRO Malaysia Holding Bhd for the year of 2017, 2018
and 2019. In 2017, the gross profit is RM 794,177 and decrease in 2018, RM 742,251.This
shows not good performance and also widely decrease into 2019 RM 496,632. This is shows
that whole result of profit.
NET PROFIT AFTER TAX
800,000
700,000
600,000
500,000
RM
400,000
300,000
200,000
100,000
0
2017 2018 2019
Figure 2 shows the net profit after tax for ASTRO Malaysia Holding Bhd. In 2017, the net
profit after tax is RM 702,845 and decrease in 2018, RM 686,487. This graph shows not good
performance. In 2019 is also decrease which is RM 443,534. This is shows that whole result
of profit.
TOTAL ASSET
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
RM
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2017 2018 2019
Figure 3 shows the total asset for ASTRO Malaysia Holding Bhd for the year of 2017, 2018
and 2019. In 2017, the total asset is RM 9,347,397 and decrease in 2018, RM 8,788,608. This
performance shows not good and also widely decrease into 2019 RM 7,608,449. This is
shows that whole result of profit.
Total Liabilities
2,500,000
2,000,000
1,500,000
RM
1,000,000
500,000
0
2017 2018 2019
FIGURE 4: Total Liabilities
Figure 4 shows the total liabilities for ASTRO Malaysia Holding Bhd. In 2017, the total
liabilities is RM 2,364,646 and decrease in 2018 which is RM 1,760,796. This performance
shows not good and in 2019 the liabilities fell plummeted, RM 665,235. This is shows that
whole result of profit.
SHAREHOLDER'S EQUITY
7,040,000
7,020,000
7,000,000
6,980,000
RM
6,960,000
6,940,000
6,920,000
6,900,000
2017 2018 2019
Figure 5 shows the shareholder’s equity for ASTRO Malaysia Holding Bhd. In 2017, the
shareholder’s equity is RM 6,982,751 and increase in 2018, RM 7,027,812. This graph shows
good performance. In 2019 is also decrease which is RM 6,943,214. This is shows that whole
result of profit.
RETURN ON INVESTMENT
9.00%
8.00%
7.00%
6.00%
PERCENTAGE
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2017 2018 2019
Figure 6 shows the return on investment (ROI) for ASTRO Malaysia Holding Bhd for the
year of 2017, 2018 and 2019. In 2017, the ROI is 7.52% and increase in 2018, 7.81%. This
shows good performance and also decrease into 2019, 5.83%. This is shows that whole result
of profit.
RETURN ON EQUITY
12.00%
10.00%
8.00%
PERCENTAGE
6.00%
4.00%
2.00%
0.00%
2017 2018 2019
Figure 7 shows the return on equity (ROE) for ASTRO Malaysia Holding Bhd for the year of
2017, 2018 and 2019. In 2017, the ROE is 10.07% and decrease in 2018, 9.77%. This
performance shows not good and also widely decrease into 2019, 6.39%. This is shows that
whole result of profit.
3.0. EXTERNAL FORCES
3.1. STEEP
3.1.1. Politic
In additional, The Star, reported After pushing Internet service providers (ISP) to
lower broadband prices the Malaysian Communications and Multimedia Commission
(MCMC) is said to be focused on combating content piracy. According to Maybank
Investment Bank (IB) Research, the regulator is in talks with ISPs to deny Internet access to
Android TV boxes - a move that will ultimately benefit players such as Astro Malaysia
Holdings Bhd. Apart of that, the research house implore MCMC to investigate e-commerce
websites that sell Android TV boxes. Though MCMC prefer the banning of Android TV
boxes, these two developments ought to bode well for TV subscription revenue,” the research
house said in a note yesterday. Maybank IB Research noted that TV subscription revenue
accounts for about 75% of Astro’s revenue. The research house noted that MCMC has been
ramping up efforts to combat content piracy, with more measures to come. Most recently, two
company directors were fined RM10,000 each for having 79 units of non-certified Android
TV boxes. Then, four individuals were fined by the Sessions Court for owning and selling
unauthorised TV android box and AV senders.Based on its estimates, Astro’s dividend yields
are an attractive 260 bps higher than the current Malaysian Government Securities 10-year
yield of 3.6%. The research house marginally tweaked its net profit estimates based on its
forecast that Astro’s TV subscription revenue will have fallen by about 20% from a peak of
RM4.4bil in FY16 to MYR3.6bil in FY21. However, it expects that the group’s core net
profit will hover at about RM650mil, as it has managed to rationalise costs. [ CITATION
Moh17 \l 17417 ]
Besides that, on regulatory risk, Astro’s licensees are subject to renewal and while it
can apply to renew them, there is no guarantee that it can secure the necessary approvals.
Currently, Astro has a 25-year renewable broadcasting license with exclusively over DTH
satellite TV services until 2017 and non-exclusively until 2022. On the other hand, Astro
regularly engages with the regulators and is confident of extending its licenses at the right.
Juncture, due to its brand strength, its value proposition to the Malaysian population. Its large
and increasing customer base, as well as consistent record of compliance (Kae, N. S. 2016).
Furthermore, based on the press reader Astro is currently facing the risk of regulatory
pressure with the new government planning to liberalise and promote competition in the pay
TV segment through distribution of more broadcasting licences to new players. While it may
be challenging for new players to survive in the long term given the capex-intensive nature of
industry, heavy investment required for content cost and exclusivity of broadcasting rights, a
foreign convergence player which has experience in the telecommunication and media
industries could still post an unprecedented threat to the local pay-TV in- cumbent.
[ CITATION Jon18 \l 17417 ]
3.1.2. Economy
3.1.3. Social-cultural
Society shapes the beliefs, values and norms that largely define these tastes and
preference. Besides that, Malaysian household penetration of Astro keep increase from by
year. However, there are few things that Astro overlooked. View of organization is very
important in order to prevent Astro from having a continuous of bad reputation on customer’s
eyes. From view of society, the Malaysian households are categorized under experiencers
which is those who are young, enthusiastic and impulsive people who seek variety and
excitement, with high living cost, the consumption pattern does reflect social attitude. (Kae,
N. S. 2016)
3.1.4. Technology
Astro started broadcasting in 1996 with the start offering only 22 different channels
and 8 radio channels. Over the years, Astro has added dozens of new channels and Astro
plans to add another 50 new channels in 2007 using the capacity of the MEASAT-3. As of
May 2007, Astro subscribers totaled 2.02 million subscribers to 990,000 subscribers of which
is Malay. Astro is also collaborating with other countries to launch new services for
broadcasting, multimedia and the internet. Astro also has strategic partnerships with leading
software developers and content providers to jointly develop technology and content to
provide interactive services across multiple platforms across the Asia Pacific region. As such,
Astro launched the first High Definition (HD) release in Malaysia in December 2009 under
the brand Astro B.yond. This new trend shows that there is a higher demand for HD services
from customers than in previous years.
3.1.5. Ecology
The world is currently facing the huge challenges of climate change, plastic pollution,
industrial and domestic waste pollution, and the unintended impacts of nature resource
exploitation by humans on the environment. By understanding and effectively applying
technology and physics-based approaches, Astro are assisting conservative and environmental
action. Effective conservation relies on knowing the current state of the ecosystem being
conserved. Response to environmental disaster requires knowledge of what contaminants are
out there, and in what abundance and locations. By using drones astro can get a bird’s-eye
view of the situation, and cover a large area on the ground very quickly. Collaboration
between astrophysicists and ecologists at Liverpool John Moores University (LJMU) is
helping to monitor rare and endangered species and stop poaching. Astrophysical software
and techniques are applied to thermal infrared imagery captured by drones to automatically
detect and identify animals. The drones can survey large areas of difficult terrain from above,
allowing ecologists to access hard to reach areas and monitor wildlife without disturbing the
animals. Using the best remote sensors for the task Astro are improving the efficiency and
efficacy of human efforts to solve these crises. (Royal Astronomical Society, 2018)
3.2. Porter’s Five Forces Analysis
Threat of new
entrants
Rivalry among
existing firms Competitive Bargaining
rivalry in power of buyers
industry
Threat of
Bargaining substitute
power of product or
suppliers services
Threat of new entrants means the power of competitors to enter a market. The threat
of enter depends on the presence of entry barriers and the reaction they can be expected from
existing competitors. New entrants to an industry typically bring to it new capacity. It is to
fulfill desire to gain market share and potentially substantial resources. In 2017, Astro
Malaysia Holdings Berhad organised strategic imperatives into Customer, Content,
Experiences, Digitalisation and Talent.
In 2018 Astro as a No. 1 media company, serving 5.1 million households and 21
million individuals across all screen with 5.8 million unique visitors per month across the
digital platforms of our entertainment and lifestyle brands. Astro’s Pay-TV customers have
access to 188 TV channels broadcast via our DTH satellite TV, IPTV and OTT platforms of
which 72 are Astro-branded and 60 are in HD. Aside from Pay-TV we also provide a non-
subscription freemium service called NJOI, which offer 28 channels and 20 radio stations
free for life. Consumers across our Pay-TV and NJOI platforms are able to consume content
on demand and on the go through our on demand and ASTRO GO services. Our company
also houses a regional mobile-first Over-the-Top (OTT) service
Threat of substitute services define as the availability of a product or service that the
consumer can purchase instead of the industry’s product. The threat of substitute will affects
the competitive environment for the firms in that industry and influences those firms that
have ability to achieve their profitability.
In 2017, Astro manages competition risk through enhancing our content and product
propositions. Astro are constantly adding new features to ensure a best-class customer
experiences while differentiating by strengthening our vernacular, international and sports
propositions through investing more in local IPs, Day/Date and premium sports content.
Bargaining power of buyers can be define as when buyer have a strong enough to be
able to put collective pressure on the companies producing a product or a services. It is
happened when a strong buyer is present in the market, it can directly impact a company’s
product. The strongest power of buyer will make lower prices which in turn impacts the profit
potential. Buyers can also demand higher quality of product or services and increase
competitiveness by forcing different companies into price wars.
In 2017, Astro aimed to provide customers with an even greater viewing experience,
now Astro have over 23 000 titles available on the platform and more focused on curating a
second-to-none library, providing access to a wide range of personalised, easy-to-discover
content across Day/Date programmes and box sets with full stacking right, supported by a
self-learning recommendation engine. And Astro also proactively managing the end-to-end
customers journey from sign-up to installation and beyond. Astro Malaysia Holdings Berhad
is in open free TV there are two kinds of customers which are advertisers and the audience
itself. Therefore, this is necessarily press prices and margin.
In 2019, from chairman statement, Tun Dato’ Seri Zaki Bin Tun Azmi said success
comes from creating and finding opportunities within seemingly complex problems. NJOI
customers have free access to 30 TV channels including free-to-air channel and 3 Go Shop
channels, increasing both our commerce and advertising reach. In addition, customers have
the option to purchase skinny bundle, event passes on a prepaid mechanism as accompany
adjust customers to consume premium content and gear them towards an upsell pathway into
Pay-TV platform.
Bargaining power of supplier is the ability to provide input to determine the prices
and terms of supply. Suppliers can exert power over firms and industry by raising prices or
reducing the quality of purchased goods and services so from that it can reduce a profitability.
Supplier has a big influents and roles to the firm. Suppliers or vendors are companies that can
provide raw material, components or services into their industry. It is because, they can
increase the prices of raw material, limits the quantity and lower the quality of raw materials.
So the producers must have a good relationship with their supplier to avoid from any
problems.
In 2017, Astro increasingly pivotal in market that values differentiated and vernacular
IPs such as Gegar Vaganza and Maharaja Lawak Mega 2016. Astro also enhanced the
exportability of signature IPs to execute on our intent of being a key player in the content
space across ASEAN. Astro manages competition risk through enhancing our content and
product propositions. Astro are constantly adding new features to ensure a best-in-class
customer experience while, differentiating by strengthening our vernacular, international and
sports propositions through investing in more local IPs, Day/Date and premium sports
content. Astro also entered into partnerships across several countries such as in Indonesia for
the creation of Nusantara content, in Thailand by securing the production of the original
series 3 A.M., and in China and India by concluding the licensing deal to remake The
Journey.
4.0. Strategic Options
4.1. SWOT Analysis
TABLE 1: SWOT Analysis
STRENGTHS WEAKNESSES
1. Maintain a lead position and 1. Goodwill, brands and spectrum
venture into a long-term impairment assessment
sustainability
2. Strengthening presence in 2. Amortization of program rights
Malaysian households
3. Provide an anytime 3. Assessment of funding
entertainment, and anywhere requirements and ability to
with personalized tools meet short term obligations
4. Serve a digital lifestyle and 4. Subscriber revenue recognition
emphasized on personalization
5. Give some profits to shareholders 5. Staff performance systems
6. Shaping the industry landscape 6. Code of business ethics
through content, entertainment
and edutainment
7. Growing the ecosystem 7. Key control checklist
8. Reinforce and build the market 8. Price risk
strengths to be a customer’s
media brand of choice
9. Mitigate an environment impact 9. Capital risk
through sustainable business
solution
10. Won many golden awards 10. Liquidity and cash flow risk
from 2010 to 2018
OPPORTUNITIES THREATS
1. Launched Tribe, first mobile 1. Market and competition
regional streaming app in
Indonesia and Philippines
2. High speed broadband 2. Economic conditions
penetration in Malaysia
3. Work closely with relevant 3. Sustainable growth
ministry and authorities
4. Partner with Amazon Web Series 4. Cyber security
(AWS)
5. Collaborated with various 5. Cost optimization
government authorities
6. Support role in honing nation’s 6. Fraud management and
potential whistleblowing
7. Aspire to be top of mind 7. Limits of authority
individual across the ASEAN
region
8. Provide platform to develop 8. Digitalization and technology
creativity skill among globally
talents
9. Cooperate with 15 000 vendors 9. Security infrastructure
and provide creative
advertisement solution
10. Invest in key content with 10. Supply chain management
expert potential in collaboration
4.2. Internal Factors Analysis Summary (IFAS Table)
DURATION
5.4.1 SHORT-TERM
Based on SFAS Table, Astro have strategic factors analysis that contain in
short term strategy are:
The key priority for Astro Board and senior leadership is remaining
relevant to customers by providing entertainment anytime, anywhere with
more targeted and personalized experience across ecosystem. This key
priority also includes strengthening their presence in Malaysian
households and involves diversifying our efforts as aspire to be top of
mind in individual space in Malaysia as well as ASEAN region.
5.4.2. INTERMEDIATE
Astro aimed to provide customers with an even greater viewing experience, now
Astro have over 23 000 titles available on the platform and more focused on curating a
second-to-none library, providing access to a wide range of personalized, easy-to-discover
content across Day/Date programmes and box sets with full stacking right, supported by a
self-learning recommendation engine. And Astro also proactively managing the end-to-end
customer’s journey from sign-up to installation and beyond. Astro Malaysia Holdings Berhad
is in open free TV there are two kinds of customers which are advertisers and the audience
itself.
5.4.3. LONG-TERM
In Astro, the future planning is belong in long term strategy that must be
deploy, as long as it will give positive effect toward company. Based on
SFAS Table, the strategic factors analysis that contain in long term
strategy are:
i) S1. Maintain a lead position and venture into a long-term
sustainability
Astro have three key areas of focus to sustain into long-term growth
which are digitalizing their dominant legacy businesses, scaling their
digital venture and deepening strength in vertical and building a robust
innovation pipeline. Digitalization is not limited to a technological
undertaking. It is digital economy that has lowered entry barriers for agile
competition, increasing the pressure to offer greater value to customers to
maintain their position as provider of choice. In Malaysia, Go Shop will
leverage into existing scale and to be a top lie growth and profitability.
STRENGTHS -S WEAKNESSES -W
S1. Maintain a lead position W1. Goodwill, brands and
and venture into a spectrum
long-term sustainability impairment
assessment
S2. Provide an anytime W2. Amortization of
entertainment, and program rights
anywhere with
personalized tools
TOWS MATRIX S3. Shaping the industry W3. Assessment of
landscape through funding requirements
content, and ability to meet
entertainment and short term
edutainment obligations
S4. Reinforce and build the W4. Subscriber revenue
market strengths to be a recognition
customer’s media brand
of choice
S5. Mitigate an W5. Staff performance
environment impact systems
through sustainable
business solution
OPPORTUNITIES –O SO STRATEGY WO STRATEGY
O1. Launched Tribe, first 1. Build market strength in 1. Enhance the
mobile regional Indonesia and Philipines assessment with an
streaming app in (S4, O1, O3) - experts’ help
Indonesia and Horizontal Integration (W1, W3, O5) - HRM
Philippines Strategy Strategy
O2. Work closely with 2. Focused on customers 2. Train staff with an
relevant ministry and need (S2, S3, O1) - expert to develop skills
authorities Marketing Strategy (W5, O5) - HRM
Strategy
O3. Aspire to be top of 3. Venture with 3. Expand the market to
mind individual across collaboration authorities ASEAN region (W1,O3) -
the ASEAN region or company (S1, Horizontal
O2, O4, O5) - Join Integration Strategy
Venture Strategy
O4. Partner with
Amazon Web Series
(AWS)
O5. Invest in key
content with expert
potential in
collaboration
THREATS –T ST STRATEGY WT STRATEGY
T1. Market and 1. Leaders need concerns 1. Take an action towards
competition on the company (S1, T1, problematic employees
T2, T3,T4) -HRM (W5, T4) - HRM
Strategy Strategy
T2. Economic conditions 2. Leader tighten 2. Company deals on how
customers data privacy they promote the
(S1, S2, T3, T5) products (W1,W2, T1)-
-Technology Strategy Marketing Strategy
T3. Cyber security
T4. Fraud management
and whistleblowing
T5. Digitalization and
technology
5.0. RECOMMENDED STRATEGIES
Nowadays as we can look at the economies situation are critical on the declined of our
monetary of money. This issue is not anticipated by all people. To sustain in industry, they
should develop the new strategies to reduce the burden that had them faced it.
ASTRO has come with strong strategy that will provide new changers in their
business strategy. Join venture allows the parties equal ownership and participation in the
operations. For factor (O2, O4, O5), O2 is refer work closely with relevant ministry and
authorities, O4 is refer partner with Amazon Web Series (AWS), meanwhile O5 is refer invest
in key content with expert potential in collaboration. Thus, the parties will share the right to
off-take the production of the joint venture on an equal basis.
The organization must look it as seriously part to change and improve their
performance on workforce. In the same time, they should have a spirit on shared success to
the organization. Through Hargrave (2020) a joint venture is a business arrangement in which
two or more parties agree to pool their resources for the purpose of accomplishing a specific
task. This can be seen in TOWS table, which is ASTRO had use the joint venture strategy in
it business. ASTRO had to do a joint venture with others because it is will help to expand the
business market. For factors (S1), S1 is refer to maintain a lead position and venture into a
long-term sustainability.
In addition, we all know ASTRO is now expanding its in Indonesia, Philippines, and
Korea. Therefore, to keep this ASTRO Company strong in the market, it could expand its
cooperation and create a strong collaboration with others to make more branches in countries
such as the Americas, Japan, UK, China and others. With this good relationship, ASTRO has
provided new development in business. This relationship is collaborate on a strategies
partnership.
Other than that, ASTRO should ensure that any content displayed or provided in it is
accordance with the culture life of the country. This may indirectly attract viewers to
subscribe to ASTRO as their daily watch. Hence, this success collaboration will see both in
working increasing the ASTRO services for all people.
6.2 Technology Strategy
In this strategy the leader tighten customers’ data privacy and secure nationwide
network. For factors (S1, S2), S1 is refer maintain a lead position and venture into a long-
term sustainability meanwhile S2 is provide an anytime entertainment, and anywhere with
personalized tools. For factor (T3, T5), T3 is refer to the cyber security while the T5 is
digitalization and technology.
Next, with this two relationship ASTRO had come out with a new strategy that use a
to gain multiple business benefits. Therefore, as ASTRO leaders need to play a key role in
improving their broadcasting network in line with the current global trends. Improve the
security system in the network so that all channels that are broadcast to users are first filtered.
This will further strengthen the user's loyalty to ASTRO. By expanding such networks
ASTRO is able to expand their network throughout the country and get more customers
subscribed to their business.
This human resource strategy is to train staff with an expert to develop skills. For
factor (W5, O5), W5 is refer staff performance systems meanwhile the O5 is refer invest in
key content with expert potential in collaboration. ASTRO had used the corporate strategy in
it business. Based on Nicki (2015) human resource management strategies are the plans that
lead to implementing different functions in the human resources department of an
organization. It is also attracting, developing, rewarding, and retaining employees for the
benefit of both the employees as individuals and the organization as a whole.
Other than that, ASTRO should ensure that all of its employees are well trained in
network management. Choose the best worker to put in the system maintenance section in
case of any problems. Workers' performance should also be constantly monitored and made
sure they are within the scope of their work. Therefore, the improved performance of workers
will be rewarded for their achievements in the organization. As a result, the goals of a human
resource department reflect and support the goals of the rest of the organization.
Last but not least, ASTRO had used the marketing strategy. As this strategy company
deals on how they promote the products. A good marketing strategy should be drawn from
market research and focus on the right product mix in order to achieve the maximum profit
potential and sustain the business. For factor (W1, W2), W1 is refer goodwill, brands and
spectrum impairment assessment meanwhile W2 is refer amortization of program rights.
In addition, the new and more attractive package offering makes ASTRO more user-
friendly and competitive with other businesses. For factor (T1), T1 is refer market and
competition. Such an opportunity should be wisely taken by the leader so that all planning
can go smoothly. Every competition that exists in a business will determine the stage to
which the business can survive or not and beat with competitor fairly.
Besides that, with the downsides of ASTRO's broadcasting channels before this, their
next viable strategy is to offer consumers more new broadcast packages at attractive and
affordable prices. By provides exciting and variety programs to keep users from getting bored
of watching and rewarding their subscriptions. Through the new offer package more users
like to subscribe the ASTRO and enjoy the services it offers.
7.0 CONCLUSION
Astro Malaysia is well established in a unique market. The operations carried out resulted
in stable growth and profitability. These business invest in research and development as one
of their key elements in investing and as a result they are meeting the needs of Malaysians in
keeping with the latest trends when expanding their wings globally. Therefore, market
research is important before making any new plans. This prevents them from making any
mistakes when investing in opening up the action. At the same time, they do not take any
action if there is insufficient demand in the market and avoid any offer or action. Astro
Malaysia also has a good line of directors. They also have selected the highest trained
managers. Where they have successfully brought the company to the top of the industries.
8.0 REFERENCES
Anwar, M. (2017). Astro to gain from anti-piracy measures. Petaling Jaya, Kuala Lumpur:
The Star.
Cather, J. (2018). By Public Investment Bank Outperform Target price : RM2.00. Selangor:
PRESSREADER.