Essay Preview: Mr.Report this essayQ1. How successful has SUNDAYs branding strategy been and what are the contributing factors?SUNDAYs corporate strategy was Ðto capitalize on the convergence of wireless communications and Internet technologies to develop wireless applications and services targeted at consumer lifestyle. Based on this corporate strategy, SUNDAYs brand was built on the concept of a lifestyle, a relaxed attitude towards life. The brand strategy was described as Ðirreverent, hence innovative, being a challenge to the status quo and traditions with a youthful appeal that aimed to aspire all ages that were youthful at heart. SUNDAY chose to portray a relaxed lifestyle in order to penetrate the mass market. This branding strategy has been very successful with proof of this success being SUNDAYs multiple awards that recognized them for being value for money, good roaming coverage and excellent service features. All this has resulted in SUNDAYs advertisements having the highest recall rates in 1999. Moreover, the brand ÐSUNDAY did not have a Chinese name and hence exuded a more international appeal from its customers who placed more confidence in international brands. This name also allowed them to go across geographical boundaries, which was in line with their objectives of regional expansion.
Q2. Define a strategy for SUNDAY to target overseas markets in Asia, with due respect to the issuing of 3G licensesSUNDAY can leverage its strong brand position abroad. Simultaneously, SUNDAY should continue to improve their efficiency in order to reduce their operating cost. They should also increase their network and add more cell sites to improve their quality. SUNDAY as in 1999 is still in a net loss position and getting more loan may be difficult and not a good idea. So strategy for SUNDAY to go abroad is to find an offshore partner who has a very strong financial position to help out with the financing of 3G through acquisition or joint venture. SUNDAY should also look for partners who have world wide resources, high quality, reliable network and strong in technology development. This will provide a platform for SUNDAY to penetrate overseas markets in Asia easier. One candidate for target partner can be a strong domestic player in China since potential growth in China seems to be very favorable with internet users expected to reach 80.5mn in 2003 vs. 7.5mn in 1999. Asia Pacific is expected to become the third largest regional 3G market by 2010 (Source: Gartner Group). China and India looks the most promising in term of estimated subscriber base growth.
Q3. With the imminent granting of the 3G licenses by the Government, what is the financial impact on SUNDAY?Building a platform in 3G requires a very high investment, projected investment estimated to be around HK$43mn. Sunday revenue and EBITA has shown significant improvement over the years but in 1999 the company still has a net loss of HK$747mn and expects to break even within 2001. SUNDAY may have to take a big loan to finance 3G (increasing its debt/equity ratio) but that is quite difficult, given that SUNDAY still has not break even yet. Another option would be to do a JV or partner up with company with stronger financial performance in the region who will help them finance the 3G investment. Acquiring 3G license will also help SUNDAY expand into other Asian countries. This will allow SUNDAY to grow their subscriber base faster and have more competitive packages, thus increasing their revenue and EBITA.
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Q4. Will SUNDAY invest for China?With an annual operating income of nearly USD 30mn, SUNDAY currently has a lot of money left over, but with a growth rate of 25 per cent per year from 2001 to 2013, it might not be too bad. If it is going to be successful there need to be an increase in investments to be seen and SUNDAY has an excellent track record of making great investments throughout Asia.
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Q5. Can you offer a few short-term strategic and investment-focused advices on SUNDAY?With several asset classes offering high returns and attractive growth prospects, such as the Asian Infrastructure Investment Bank, it is absolutely essential that SUNDAY has a strong core position in Asia. We believe that there is room in Singapore for 3G, and Singapore is also attractive. Currently the market for the telecoms (3G) infrastructure is strong and the country is highly competitive.
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Q6. How can SUNDAY manage its cashflow, which is currently sitting at USD 23mn?As a general rule, this is a financial concern for all users, since the country may be suffering from the negative outlook of the national economy. Unfortunately, the current financial policies of the government have caused a huge financial crunch, and as a result the current business cycle is rapidly moving in the opposite direction. It is necessary to pay close attention to the current state of the financial markets. In order for the current financial situation to be stable for the next few years and the economy to grow, we will need strong growth in a number of sectors of business: agriculture, industrial equipment, electronics, mining, real estate, IT and other sectors.
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Q7. What are the long- and short-term objectives of SUNDAY?With some of our large business projects already being completed in Asia, such as the China 4G Network, there remain several factors at play which could drive up the estimated financial position of the company. For that, there are certain needs that should be taken into account:
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Q8. Which are the most attractive ways for you to benefit shareholders?By providing an opportunity for shareholders to decide on their desired products, you will facilitate the growth of the company and improve its value. This will give shareholders the best opportunity to decide, on a case-by-case basis, what is suitable for the company and which should be done first.
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Q9. What are the expected impact of our recent developments on the company’s financial position that need to be fully assessed and reflected in quarterly reports and management’s strategy?To be in good financial position is the best thing to do, but to understand that you need to be willing to take risks and take risks if you see that something will fail. However, as of today, if you feel that things will break down, then you need to learn about that so that you will not lose your position.
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Q10. What is your forecast for SUNDAY?I know that SunDAY is a great start, but what is your target for its financial growth?
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Q11. What are the short-term and long-term business outlooks for SUNDAY?Looking forward, to keep you in the loop about the latest developments at SUNDAY, I know I am not alone – some of you have already read this in-depth. There are plenty to hear and read and read about, but the focus should be on
Q4. Should the government grant the 3G license?A: In the best case scenario, yes. Given the financial crisis, it is difficult to say which future license will be granted to the future companies which are the worst of both worlds, or which offer the best value, with less leverage and little flexibility. In particular, the best possible case scenario is that the 4G networks will develop in 3 years rather than only two. The government also needs to consider new technologies, new technologies which allow a competitive package to grow in new markets. However, the current regulatory framework was developed to guarantee a competitive package even more, and the need for new regulatory frameworks for this new generation of technologies has increased. In such circumstances, with the introduction of new generation of high speed, reliable, high performance networks, with the possible use of 3GB/s devices, by the end the current market may remain limited. As shown in the examples from the S&P 500, this situation requires a huge increase in the government’s incentives for a large number of smart phones. To achieve the same, the government should consider the impact of low volume and high prices for those 4G networks. With the right set of technological and funding conditions, we can begin to secure the full support of the government.
Q5. What should the financial effect be (in percentage terms)?A: In the best case scenario, the financial impact of the 3G license could be about one-third of the stated revenues of the company.
http://www.innovationandtechnology-network-compensation.com With an initial license of $500,000 by the beginning of 2020 we could potentially qualify for an increase of about 50X/year. This would probably need a much higher licensing figure (e.g. 50X/year) but this is not a possibility in our opinion. At least with the current market conditions Sunny’s revenue could actually fall and we should expect the company to continue to build its customer base in a strong, attractive manner. In total, we believe the economic and regulatory landscape will allow the Company to grow faster in order to bring Sunny’s revenues to around 2 trillion won in 2020. Although this may not be possible for Sunny in the early months, it might be possible during the years of 2019-20. Therefore, our current valuation should be consistent with your investment and we will be looking forward to your feedback. Your contribution would be appreciated
Q6. Do you think Sunny will continue to grow in this market?A: Yes, our forecasts suggest that Sunny will grow a bit more rapidly than expected from today to at least 2020 and possibly even beyond 2020 onwards.
http://www.innovationandtechnology-network-compensation.com With an initial license of $500,000 by the beginning of 2020 we could potentially qualify for an increase of about 50X/year. This would probably need a much higher licensing figure (e.g. 50X/year) but this is not a possibility in our opinion. At least with the current market conditions Sunny’s revenue could actually fall and we should expect the company to continue to build its customer base in a strong, attractive manner. In total, we believe the economic and regulatory landscape will allow the Company to grow faster in order to bring Sunny’s revenues to around 2 trillion won in 2020. Although this may not be possible for Sunny in the early months, it might be possible during the years of 2019-20. Therefore, our current valuation should be consistent with your investment and we will be looking forward to your feedback. Your contribution would be appreciated
Q6. Do you think Sunny will continue to grow in this market?A: Yes, our forecasts suggest that Sunny will grow a bit more rapidly than expected from today to at least 2020 and possibly even beyond 2020 onwards.
http://www.innovationandtechnology-network-compensation.com With an initial license of $500,000 by the beginning of 2020 we could potentially qualify for an increase of about 50X/year. This would probably need a much higher licensing figure (e.g. 50X/year) but this is not a possibility in our opinion. At least with the current market conditions Sunny’s revenue could actually fall and we should expect the company to continue to build its customer base in a strong, attractive manner. In total, we believe the economic and regulatory landscape will allow the Company to grow faster in order to bring Sunny’s revenues to around 2 trillion won in 2020. Although this may not be possible for Sunny in the early months, it might be possible during the years of 2019-20. Therefore, our current valuation should be consistent with your investment and we will be looking forward to your feedback. Your contribution would be appreciated
Q6. Do you think Sunny will continue to grow in this market?A: Yes, our forecasts suggest that Sunny will grow a bit more rapidly than expected from today to at least 2020 and possibly even beyond 2020 onwards.