Starcomms - Page 19

twentypercent · #**361** (**permalink**) 14th October 2009, 08:51 PM

Quote:

Originally Posted by Apache

The problem with Starcomms involves a lot of dynamics that's not just restricted to them alone but to the entire PTO industry.

First of all, the number of competitors in that category of the industry is too much hence making the industry highly fragmented. also, the level of competition is very high thus eroding any possibility of making high margins since they mostly compete on price.

Secondly, the positioning of the CDMA industry puts them in bottom place in consumer's scale of preference when compared to the GSM companies (most consumers will most likely go for a GSM phone first when thinking of getting a mobile line). Also, the cost of acquisition of these lines are much higher for PTOs compared to GSM lines hence putting them at a disadvantage.

Unfortunately, it's quite difficult (but not impossible) to be disruptive in this industry because activities are easily imitated by competitors thus eroding any competitive advantage. remeber that to create a sustainable competitive advantage, the resources need to be valuable, rare, non-imitable and non-substitutable. Unfortunately, these are characteristecs that Starcomms seems to lack.

The point I'm trying to make is that Starcomms problems are not restricted to the company alone, but to the sub-Industry that it currently operates in. though there's still a lot that they can do, I do not think the results will change much until the fundamental problem which is facing the Industry is addressed such as consolidation, positioning, etc.

personally, i don't see much coming from this company or any other within the sector. My 2 kobo

The thing that came into my mind when reading your analysis is that Starcomms needs to be innovative and two things came into my mind almost immediately, the first is that Starcomms seem to lose it's creativity as soon as Actis divested from it and the actions of the FG almost always renders ay company's strategy useless.

Waves · #**362** (**permalink**) 14th October 2009, 09:29 PM

Quote:

Originally Posted by Apache

The problem with Starcomms involves a lot of dynamics that's not just restricted to them alone but to the entire PTO industry.

First of all, the number of competitors in that category of the industry is too much hence making the industry highly fragmented. also, the level of competition is very high thus eroding any possibility of making high margins since they mostly compete on price.

Secondly, the positioning of the CDMA industry puts them in bottom place in consumer's scale of preference when compared to the GSM companies (most consumers will most likely go for a GSM phone first when thinking of getting a mobile line). Also, the cost of acquisition of these lines are much higher for PTOs compared to GSM lines hence putting them at a disadvantage.

Unfortunately, it's quite difficult (but not impossible) to be disruptive in this industry because activities are easily imitated by competitors thus eroding any competitive advantage. remeber that to create a sustainable competitive advantage, the resources need to be valuable, rare, non-imitable and non-substitutable. Unfortunately, these are characteristecs that Starcomms seems to lack.

The point I'm trying to make is that Starcomms problems are not restricted to the company alone, but to the sub-Industry that it currently operates in. though there's still a lot that they can do, I do not think the results will change much until the fundamental problem which is facing the Industry is addressed such as consolidation, positioning, etc.

personally, i don't see much coming from this company or any other within the sector. My 2 kobo

To understand why Starcoms is currently in problems, you need to understand why they were successful in the first place. Starcoms came in to the industry and overtook its seniors (Multilinks and Intercellular) because thier then CEO Mr Dirk Smet (former CEO MTN cameroun). This man took the company from a small family business run by an aging owner to be the most successful PTO between June 2002- Jan. 2006. His arrival and departure were turning points for the company.

PTOs can actually do very well in the current market. It depends on thier products, management and service. As an insider in the telecom industry, i can tell you that in some markets in Nigeria, PTOs (rather than other GSM companies) are our major competitors. CDMA is more data efficient than GSM

The major problem with Starcom is management. Remember, their major loss item last year was financial not operational.

Apache · #**363** (**permalink**) 14th October 2009, 10:00 PM

Quote:

Originally Posted by hispy99

bros, me I no know book o....all dis one na grammar o..we want to see profits

Welcome back o, I tink say u for don marry one girl for Indonesia

lol... that was the intention but dem no step-up reach. Nice to be back jare. All this book wey i don dey read since don tire me.
Time to make some moneeeeeeeeeeeey like my friends Billions, wanajo, hispy, Zainab, waaan5 etc. Dem know themselves

Personally, i don't see anything attractive with this company. A lot has to change before their fortunes can. And i also agree that management ain't helping issues either.

knightofdelta · #**364** (**permalink**) 14th October 2009, 10:05 PM

Quote:

Originally Posted by cashrules

Hmmm.. Good Old Apache! Nice to have u back on the forum!!

Personally I think every industry has its own challenges and the issue is how to rise above that... If its what funding can do then they have to seek for the funds to creat the much touted disturbance..
Or do they intend to continue making losses till eternity?

Funds from where? What happened to the public offer they floated recently? If they do another PO will you buy? The company is currently running at a loss and bond investors will not even touch it with a long pole. They need to get their acts together first. I believed their story of concentrating on profitability in 2009 but I have not seen anything come out of it. All I see are promo ads all over the place.

knightofdelta · #**365** (**permalink**) 14th October 2009, 10:08 PM

Quote:

Originally Posted by Apache

lol... that was the intention but dem no step-up reach. Nice to be back jare. All this book wey i don dey read since don tire me.
Time to make some moneeeeeeeeeeeey like my friends Billions, wanajo, hispy, Zainab, waaan5 etc. Dem know themselves

Personally, i don't see anything attractive with this company. A lot has to change before their fortunes can. And i also agree that management ain't helping issues either.

Welcome back sir! Another bull run is about to hit the market as Apache has come with his trillions...

Where is my cheque book??

pumping · #**366** (**permalink**) 14th October 2009, 10:09 PM

Ha...I did not even think of that. With all these Asian currencies in the mix. To find stocks by tomorrow go be die...

Apache · #**367** (**permalink**) 15th October 2009, 01:21 PM

Quote:

Originally Posted by knightofdelta

Welcome back sir! Another bull run is about to hit the market as Apache has come with his trillions...

Where is my cheque book??

Lol... I'm sure your sources haven't told you that my trillions are denominated in Zimbabwean currency. Not sure if that will cause any run at all

hispy99 · #**368** (**permalink**) 15th October 2009, 03:39 PM

Quote:

Originally Posted by Apache

Lol... I'm sure your sources haven't told you that my trillions are denominated in Zimbabwean currency. Not sure if that will cause any run at all

No worry, some stocks (e.g Poly Prods, Enamelware) need all the liquidity they can get, Zimbabwean Dollars are welcome

knightofdelta · #**369** (**permalink**) 15th October 2009, 07:09 PM

Quote:

Originally Posted by Apache

Lol... I'm sure your sources haven't told you that my trillions are denominated in Zimbabwean currency. Not sure if that will cause any run at all

I got confirmation that your monies run into trillions of trillions of trillions of..... Zim$. I was also informed that the monies that Ololo is owing all the banks joined together is like a third of what he is owing you...

pumping · #**370** (**permalink**) 15th October 2009, 07:29 PM

Quote:

Originally Posted by knightofdelta

I got confirmation that your monies run into trillions of trillions of trillions of..... Zim$. I was also informed that the monies that Ololo is owing all the banks joined together is like a third of what he is owing you...

If Ololo owes you money, you cannot be SOLVENT.

hispy99 · #**371** (**permalink**) 15th October 2009, 07:48 PM

Quote:

Originally Posted by pumping

If Ololo owes you money, you cannot be SOLVENT.

na true u talk o, abeg which other bank Ololo owe money that is not part of the Sanusi 9

knightofdelta · #**372** (**permalink**) 15th October 2009, 08:09 PM

Quote:

Originally Posted by hispy99

na true u talk o, abeg which other bank Olo owe more that is not part of the Sanusi 9

If you look at the trend it looks like all the banks that did a PO in 2006/2007 - Oceanic, Intercontinental, Afribank, Finbank, Bank PHB... the ones not axed are that we need to check their books are Access bank, Fidelity bank, Zenith bank, First bank, Skye bank, FCMB (Yeeepaaa!)

...

to be continued...