CASE STUDY

TQM - Service Focused Business

I. The Company

II. Background of the Study

Converge ICT commonly referred to as Converge, also known in Pampanga as

ComClark, is a major provider of telecommunication and cable television services in
the Philippines. It operates fiber optic broadband networks, cable television marketed as
Air Cable, and cable internet, marketed as Air Internet, in the country.

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

III. Viewpoint
Dennis Anthony H. Uy
Chief Executive Officer / President
He is a visionary entrepreneur and Founder of
Comclark Network and Technology Corporation, he
 has taken it upon himself to provide premium yet
affordable ICT services to the Filipinos.

IV. Time Context

2023 (present)

V. Statement of the Problem

How can Converge ICT Inc. surpass the emerging negative consumer feedback for
their services knowing the fact that there is strong rivalry within the industry?

VI. Areas of Consideration

Strengths

1. High-Speed Internet: Converge ICT was expanding its high-speed fiber-optic

network across the Philippines in order to provide quick and dependable internet
connectivity. Converge increased their year-on-year speed result by 70%, posting
a median download speed of 94.39 Mbps in the first quarter of 2023, compared
to 50.26 Mbps in the same quarter last year.

2. Cost Effective: The company's internet services were priced economical,

therefore attracting budget-conscious customers. The company claimed that
internet speeds for its 2,500 and 3,500 plans have been improved by 50% to up
to 75 and 150 megabits per second.

3. Strong Customer Base: Converge ICT's customer base was expanding,

indicating increased demand for its services. There were 49,000 net residential
additions in the second quarter alone. Prepaid fiber internet users surpassed
54,000 as of the end of June, nearly doubling from the end of March 2023 level.
 4. Technological Advancements: They were investing in modern technologies to
boost network performance and dependability. Converge ICT was most likely
employing cutting-edge networking equipment and technology to provide faster
and more dependable internet connections. The corporation had been investing
in network upgrades and improvements in order to increase the speed and
quality of its services, hence providing a better user experience for their clients.

Weaknesses

1. Installation of Equipment: Just as intelligent management has to act in the

purchase of equipment from its provider, it also needs to keep an eye on the
installation process. A good instrument is useless if the person handling it does
not have the necessary knowledge to extract the best from it. Sometimes a
network failure can occur because cables are not correctly labeled creating
problems.

2. Constant maintenance: This factor is also directly linked to the provider's

management. When maintenance becomes too frequent, with failures all the
time, the performance of the company and the technicians responsible also
suffers. As mentioned before, a good choice of equipment can help in this
regard, but we believe that good network management can also help. Lack of
workforce of Converge ICT assigned in different areas just like in customer
service caused citing long wait times, difficulty reaching a representative, and
slow response times. A negative perception can lead to reputational damage.

3. Network outages: The Converge ICT , just like other internet service providers,
is susceptible to network outages and disturbance. Due to these outages this
may result in service interruptions and a drawback in enterprise revenue. Power
failures can also cause problems for the stability of a network. In addition to
 inconveniences in the customer experience, it can cause serious damage to the
provider's equipment.

4. Internet speed issues: While Converge ICT is known for its fast internet speeds,
some customers have reported intermittent connection issues or slow speeds
during peak usage hours. The demand for data center services has dramatically
increased, and they are already engaging in a new series of major upgrades. In a
city as busy and crowded as Manila, a significantly smaller footprint is a big win.
According to Broadband Experience in the Philippines,Converge ICT's fiber has a
lower percentage when it comes to its consistent quality (47.7%) and also in
download speed (229.3 Mbps), whereas PLDT leads with 262.1 Mbps.

Opportunities

1. Local Expansion: The Company sees various opportunities for subscriber

growth in the coming years as it is positioned to connect unserved customers,
supported by its expansion into the Visayas and Mindanao region. Converge
network expansion can guarantee its users a constant, and powerful signal
throughout the said region. This expansion is supported by extensive
infrastructure and innovative plans.

2. Competitive Positioning: With more than eight million ports deployed across
the country, Converge is well- positioned to capitalize on this opportunity with its
expansive infrastructure. In terms of infrastructure and management, combining
several wireless technologies into one network may be more affordable.

3. Expanding Enterprise Reach: As the Company’s enterprise business continues

to grow, Converge is working on multiple projects to maintain and further build on
the current momentum via a wider target market and enhanced product
 portfolio.The Infocomm Media Development Authority, statutory board under the
Singapore Ministry of Communications, via a grant letter mentioned that
Converge SG has been awarded an FBO license.Converge SG can now start
providing wholesale connectivity services and fiber optic cable capacity to
customers such as other Internet Service Providers, data centers, enterprise
customers in the Southeast Asian city state.

4. Promos: Deals and discounts are a great way to enhance your brand awareness
and keep your business, service, or product in front of your target audience.
Offering a product discount and special deals can gain the attention and loyalty
of customers quite easily. Consumers are usually motivated to save on costs and
this is why they are attracted to products or services with relatively affordable
prices.

Threats

1. Competition: Increased competition from other telecommunications providers

can be a significant threat, potentially leading to price pressures and customer
churn.

2. Customer Perception: Negative consumer feedback can inflict substantial harm

on the company's reputation. In the age of social media and online reviews,
unfavorable experiences shared by customers can significantly impact Converge
ICT's image and make it challenging to attract and retain customers.

3. Obsolescence: Rapid technological advancements pose a threat as outdated

infrastructure and services can become obsolete quickly. Failure to keep up with
 technological trends can leave Converge ICT at a competitive disadvantage and
may result in customer dissatisfaction.

4. Economic and Market Volatility - Economic fluctuations and market

uncertainties can also threaten the company's stability. Converge ICT's revenue
and profitability could be adversely affected if the economy experiences
downturns or changes in consumer spending habits.

VII. Alternative Courses of Action

ACA # 1 - Feedback Loop: A necessary component of effective communication. It

allows people to provide feedback and gain insights from others in a timely manner.
Knowing what this entails can help Converge ICTs implement this loop itself, both in the
workplace and in how they'll interact with customers.

Pros:

1. Advantage: It enables Converge ICT to adapt, grow, and prosper in a dynamic

business environment. Customer feedback loops aim to improve products and
services, while employee feedback loops focus on improving operations and
workplace engagement. It can also help employees feel more involved in the
company and motivated to do their best. These loops are important in business
because they help create a feedback-driven culture and help businesses make
decisions based on feedback that aims to enhance the overall customer
experience.

2. Advantage: Allows customers to provide input and suggestions for improvement.

They can assist you in figuring out where you need to develop so you can keep
up with their demands. Customers value businesses when they take their
suggestions into account. This could promote client loyalty and general
 consumer satisfaction. By having direct contact with customers, they can
contribute to more proactive management and customer interaction.

Cons:

3. Disadvantage: If feedback is not acted upon or used to inform decision-making,

it becomes ineffective and may cause irritation among people who provide
feedback. Many people don’t bother giving feedback because nothing is done
with the feedback. Talking to customers is probably the single best thing you can
do if you want to be a customer-centric company and improve your customer
experience.

4. Disadvantage: Number of respondents. The percentage of customers

responding will not be enough. Sometimes there are people who love giving
feedback, or just getting paid for surveys or winning something, and people who
rarely do it, which can lead to a potentially overly positive response.

ACA # 2 - Infrastructure and Quality Enhancement: Improve the caliber and

dependability of the services. To increase internet speeds and decrease outages, spend
money on network infrastructure and technologies. To reduce disruptions, regularly
check and maintain the network.

Pros:
1. Advantage: The increase of internet speed and reduction of outages will further
improve customer satisfaction, having loyal customers which leads to repeat
business and positive word of mouth recommendations that boosts a company’s
long term success.

2. Advantage: Competitive Edge: As you consistently deliver high-quality products,

your competitors may find it challenging to match your standards, providing you
with a sustainable competitive edge. High-quality products tend to have longer
 lifespans and require less maintenance or replacement. This can result in cost
savings for customers over the long term, making your products more attractive.
And also positive reviews and referrals stemming from quality can help your
products penetrate new markets or demographics, further growing your customer
base.
Cons:
1. Disadvantages: Improving product quality and adding infrastructures often
requires investment in better materials, technology, and quality control
processes, which can increase production costs. This can lead to higher prices or
reduced profit margins.

2. Disadvantages: Resource Allocation: Focusing too much on product quality may

divert resources from other critical areas like marketing, sales, or customer
support. Once resources are allocated, they may be challenging to reassign. This
lack of flexibility can be problematic when circumstances change or when new
opportunities arise that require resource reallocation.

VIII. Conclusion & Recommendation

Exceeding the emerging dissatisfaction of customers whilst the competition with

other companies only leads to the conclusion on what can we do to surpass these
challenges, which this analysis was made to do. This analysis shows us what the
company is capable of doing and what risks are there that might hinder the success
of the company. Given the problem on how can we, Converge ICT Inc., surpass
these challenges gave us the opportunity to come up with the solution that can help
us succeed. Infrastructure and Quality Enhancement may be the feasible solution to
the emerging negative comments and competition with other companies. The given
action may not be a 100% success, but given the chances of succeeding, there is a
great potential for this solution, given that there are many advantages like solving
the issues regarding the customer dissatisfaction, having better marketing due to
positive feedback, and saving capital due to longer lifespan of the infrastructures.