Strategy and Value Creation
GROWTH
Our business rests on three pillars: maintaining and protecting our client base in the retail market, increasing our share in the corporate market and productivity.
Our main goals are sustainable growth and a commitment to clients, following specific areas in each of our businesses while respecting their features and strategies.
Growth in the Telecom business has picked up over the past two years because we redesigned our long-term strategic planning and decided to expand even more in Brazil. Our business rests on three pillars: maintaining and protecting our client base in the retail market, increasing our share in the corporate market and productivity.
More proactive
In 2014, the regulatory compliance team adopted a more business-oriented and proactive approach to issues involving industry definitions and rules. This is becoming more and more necessary each day due to the consolidation of the telecom industry, in which a niche company’s position and dilemmas are relative in comparison to those of global companies. However, the environment conducive to competition puts us on a level playing field as far as standards are concerned.
In 2015, we will conclude the second phase of our internal program to improve efficiency, which exceeded the expected results in its first year, 2014, and accounted for 13% of the Company’s EBITDA. The acquisition of the 700 MHz frequency, 4G, will make B2C more competitive as of 2016, when we are planning to start offering this service to clients effectively. Concerning the corporate segment, we will have a strategically planned presence in Brazil by entering new markets, extending our offering to MSEs (Micro- and Small Enterprises) and laying the submarine cable.
Our goals for the Integrated ICT Solutions and BPO segment are consolidating our international expansion, boosting efficiency and earning returns on investments made. Revenue has risen by 23% a year on average in the last five years. This business is expected to double in size in five years. To achieve this goal, we believe we have to stand out for our operational efficiency and client relationships.
In 2014, we created a special department at Algar Tech to boost productivity even further by developing an intelligent transfer pricing model (pricing methods for services sold between related companies). The purpose was to make competitive operations possible and maximize gains from integrated operations and investments in cultural and professional exchanges among associates, as well as training programs focused on client service and relationships.
Our contracts with clients have an average term of about five years, but there are countless examples of clients who have been with Algar Tech since it was founded. This long-term relationship and trust are essential because the solutions we offer require access to our clients’ strategies and operations.
