The objectives of the report is to provide the results of the proper examination conducted for Maxis company and recommend the key strategies that the organisation should embark to be able to stay competitive. This survey is also to allow us, Management of Strategy students to apply the fundamental ideas and skills of tactical management to a real-life scenario in order to get a better understanding. This sensible procedure of learning allows us to gain better understanding compared to theoretical way of learning. Other than that, this assignment provided us the opportunity to show competency in both written and dental communication skills in formal business adjustments. Lastly, it can help us to gain more knowledge in create and integrate business knowledge, decision making, social, authority and entrepreneurial skills in proposing strategies and assessing them. This assignment is a really great chance of us to know more about external world which is not in books.
This statement shall cover the operations of Maxis company in Malaysia. In such a statement, all the significant information required for business and rival analysis are included. In addition, it contains the analysis of analysing an company, its industry, its closest competitors (immediate, impending, invisible) before devising several approaches for it to pursue, selecting the most likely strategy and outlining recommendations for its implementation in a formal business record that may also involve a formal business presentation at completion of these tasks.
The limitations of the report are the short period for the project to be completed. The brief duration of the assignment didn't permit us enough time to conduct an interview with Maxis for additional accurate information. However, we find information predicated on valid sources through online. Some information may be outdated with the current company situation so our understanding of the existing situation wouldn't normally be as appropriate as first-hand information.
Maxis Berhad, with its consolidated subsidiaries is the leading mobile communications provider in Malaysia with over 11. 4 million members beginning with 30 June 2009. It really is established in yr 1993 and has been publicly listed in time 2002. The company started its procedure in the entire year 1995. "012", "017" and "0142" dialing prefix is generally determined as Maxis dialing prefix. The company mobile services are given over different Global System for Mobile Communications (GSM) such as 900 & 1800 MHz GSM group. As of July 2005, the 2100 MHz General Mobile Telecommunications System (UMTS) music group was utilized by Maxis.
Other than that, Maxis is also the pioneered in the Malaysian market in providing innovative mobile products and services. In July 2005, Maxis was the first ever to launch 3G services in Malaysia. In Sept 2006, Maxis became one of the world's first to make use of High-Speed Downlink Packet Access (HSDPA), a high-speed enhanced version of its 3G network, to provide cellular broadband services. The 3G services coverage is up to 740 sites across Malaysia but still expanding now. The 3G services of Maxis enable the users to take pleasure from the internet access throughout Malaysia. Maxis was also the first operator to generate and sell the Blackberry and Iphone smart devices to Malaysia. Maxis was also the first to unveiled next to field marketing communications (NFC) service in Malaysia.
Maxis vision is to bring advanced communications services to enhance its customers' lives and businesses, in a manner that is easy and personalised, by efficiently and creatively harnessing leading edge technology, and providing a brand of service experience that is reliable and enchanting.
3. 0 Situation Analysis
Situation research is a organized collection and evaluation of former and present inexpensive, political, cultural, and scientific data. It really is targeted at the recognition of inner and external forces that may affect the organization's performance and choice of strategies, and the examination of the organization's current and future strengths, weaknesses, opportunities, and hazards.
3. 1 General environment analysis
General environment analysis includes factors such as demographic, financial, political/legal, sociocultural, scientific, global and physical environment that generally have an effect on everyone in an industry or market in the same way.
3. 1. 1 Demographic
Maxis invested RM1. 24 billion to update and modernize their 3G network in season 2009 in order to increase the population coverage from 50% to 57%, which presents the single most significant yearly deployment in Maxis' record.
In the first quater of 2010, Maxis mobile internet users grew from 1. 2 million to 6. 4 million which is a big increase in customers accessing the internet from their mobiles.
The statistics demonstrated that more than 50% of the Malaysia's human population is under the age of 25 years old, a sizeable volume of whom enter the 'phone owning' category each year. It is because the youth sections are actually the largest and quickest growing segment.
Maxis is a leading local content player with 39. 2% of non-voice revenue within mobile revenue and 7. 1 million effective mobile internet users, more than 50% of its customer bottom. Because of this, Maxis became the most attractive in high-growth, low-penetration marketplaces and diversifying the marketplace foundation as well.
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3. 1. 2 Economic
In calendar year 2010, Malaysia's economy was likely to grow. This much better outlook is likely to induce consumer and business spending for telecommunication services. Malaysia's determine to attain a broadband household penetration rate of 50% by 2010 for Maxis' growth in the immediate future.
The Malaysian telecommunications industry remains versatile even although challenging global economic climate. In 2009 2009, the entire growth of the mobile industry was acceptable and the mobile customer penetration crossed 100%.
The basic salary of the Maxis employees are set for the duration of contract. It can be reviewed into account the individual performance, the inflation price index, and information from 3rd party options on the rates of salary for similar positions in other comparable companies.
Maxis is time for list on Bursa Malaysia in November or December and its draft prospectus is uploaded on the Securities Commission rate website. Maxis was used private in 2007 and de-listed from Bursa the same season. Within a challenging global monetary climate in season 2009, Maxis shipped another strong yr.
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3. 1. 3 Politics/ Legal
The government possessed chosen Telekom Malaysia Bhd (TM) and Maxis Broadband Shd Bhd (Maxis) at 14th Dec 2010 to sign a landmark of a decade agreement for TM to attempt the High Speed Broadband (HSBB) services to Maxis. As we realize that, this task could offer more quality broadband services.
Malaysia government limits the amount of participating in field for international players in the industry. The country's major telecom players, Maxis and Celcom earned the bid as well as subsidiary of your time Dot Com and MiTV Corp for the 3G certificate. However, DiGi had not been awarded a 3G license as it includes a high overseas ownership.
The Maxis website details are had or manipulated for the purposes by Maxis or its content suppliers and are guarded by copyright, trademarks and other regulations. The compilation of most content on the website and the service will be the exclusive property of Maxis or its content distributor and secured by copyright.
Maxis also offers a stringent condition to avoid broadband end user abuse, that is why Maxis specify that each customer must be at least 18 years old to be always a Maxis customer. Sub-users under this age will need to have authorization from the bank account owner to access the Maxis Broadband service. Before using the Maxis Broadband service, the person must obtain agreement from the recorded customer. Customers also must not attempt to gain unauthorized usage of any computer system.
3. 1. 4 Sociocultural
Maxis provides guidelines for the way in which where all employees should carry out themselves at the task place, while undertaking their daily responsibilities for Maxis and as a Maxis staff in order to provide better services to customers.
Key factors of this progress included the option of more complex smartphone models in Malaysia and the strong progress of communal networking. Maxis was the first to provide popular iPhone to Malaysians, achieving annual goals, and it continued to boost the sales of BlackBerry telephones.
Maxis has Business Value Plus Programs for business people. Business Value Plus Ideas have many ways to help save money when calling. Data Programs exclusive to iPad for iPad users to enjoy online entertainment with a much lower price. Maxis prepaid Hotlink come out with a fresh plan which is much cheaper than other competitors.
Maxis focused on minimizing carbon footprint to care for the environment. So, Maxis partners with Malaysia Flight Systems to reduce the impact to the surroundings, as well as an in-house recycling advertising campaign. At their workplace, efforts are taken up to reduce wastage and disposal, reuse existing resources and recycle fully tired materials.
3. 1. 5 Technological
Malaysia is set to obtain a HSBB internet support allowing fast access to the internet by utilizing fibre optic technology to transfer data. It will allow network operators to be a part of and compete with the other person in this new network. TM acquired already commissioned international major vendors to lead the task. RM11. 3bil countrywide HSBB project is a relationship between TM and our federal to expand next-generation, high-speed broadband infrastructure and services for the country.
As we know that, HSBB offers bandwidth at network rates of speed of 10Mbps and above, through fixed line only, when compared with regular broadband services which are sent at network rates of speed ranging from 384Kbps to less than 10Mbps through set line which also known as DSL and wireless method, such as 3G, HSDPA, WiMAX and WiFi.
Maxis commercially launched the first-in-the-world contactless involved mobile payment services that utilizes Near Field Communication technology, with lovers Nokia, Visa, Maybank and Touch 'n Head to pay for purchases and transport charges using mobile phones in season 9 April 2009.
3. 1. 6 Global
Maxis brings excellent coverage in almost every corner of the country and their services are rapidly expanding. In addition to voice, GPRS and EDGE coverage, Maxis also offer Maxis 3G in Penang, Langkawi, Alor Setar, Kuantan, Genting, Klang Valley, Johor Bahru, Kota Kinabalu, Kuching, Kota Bahru, Ipoh, Malacca and Kuala Terengganu.
In India, Global Communication Services Holdings (GCSHL), a wholly-owned subsidiary of Malaysian telco, Maxis Communications Berhad, has put on the Foreign Investment Campaign Mother board (FIPB) to increase its immediate and indirect shareholding in Aircel from 26 percent to 73. 9 percent.
In 12 months 2009, Maxis and the American Union Company announce to kick off of mobile money copy service In Malaysia. It allows 11 million Maxis users and 1. 9 million foreign employees in Malaysia to send cross-border remittances straight from their cell phones.
3. 1. 7 Physical environment
The issues that Maxis concern works well and successful services, operating time, and user-friendly facilities in order to increase the values the company provides to its customers.
Maxis's main obstacle today is adapting well to a fast changing and often hostile environment of telecommunication industry. Things change very fast before company is unable to deal with the rapid tempo. Because of this Maxis shifts at the top management team in order to handle the changing business environment and global competition.
As everybody knows that, the changes in Maxis is due to trying to cope with moving market environment and transfer to the modified telecommunication technology, 3G.
With the increasing demand for IT to accomplish and support corporate objectives, IT division of Maxis must control with a continuous barrage of changes such as changes in product requirements, technology, development techniques, and deployment conditions. Because of this Maxis deliver newer technology belongings and applications to their current customers and entice new customer base through proactive management of change.
3. 2 Industry conditions (Porter's Five Causes Analysis)
Five causes which would impact an organization's behaviour in the market. Understanding the nature of these causes provides organizations the mandatory insights to permit these to formulate the correct strategies to be successful in their market (Thurlby, 1998).
3. 2. 1 Risk of new entrants (high admittance barriers)
High capital investment for competition entrance into telecommunication industry. Companies in this industry incurred high set costs and spend pretty massive amount capital on network equipment and maintain development. Besides, systems are also regarded as obstacles for new companies to go into the market.
Maxis's reputation has been built around their superior customer support and quality network. Because of high targets and standards that include the Maxis brand it isn't without reason that customers are usually more demanding of Maxis. Because of this, Maxis always feel that their business on being the customer's first choice.
Capital need usually build up a company which is the high capacity to compete in the industry. However, telecommunication is a higher competitive industry in order to gain large market show. Therefore, new entrants have to ensure they have ample financial tool to sustain in this industry.
3. 2. 2 Bargaining power of suppliers (high bargaining power of suppliers)
Telecommunications industry in Malaysia would depend on imports for the majority of its network components as most of the network equipment cannot be sourced locally.
Maxis' sites utilize standard equipment which can be acquired from a restricted quantity of suppliers. Most of the GSM equipment for Maxis' mobile network businesses is bought from Motorola, Siemens and Trisilco Folec, and Maxis keeps close working associations using its key network equipment suppliers.
Since the suppliers of Maxis are limited, hence Maxis' suppliers are powerful when the product they offer are differentiated or it has built up by transitioning cost. When there may be occasional necessity by the buyers such as high investment in submarine fibre optic wire, and replace the copper cable connection and old satellite dishes that might provide reliable broadband connection.
Maxis have high competitive environment causes existing entrants need to invest in high modernization solutions to enable the corporation to aid and be competitive in this industry. Therefore, it is important for companies to make sure the grade of the technology equipment. This makes the provider group are more powerful.
3. 2. 3 Bargaining ability of potential buyers (low bargaining ability of buyers)
In the age of globalization, advance of technology could increase the bargaining power of buyer, high available of information make it easier for buyer to evaluate sources of materials about telecommunication. There are plenty of alternatives product such as fax, email, and internet which enhance the bargaining electricity of buyer to the mobile company.
For as soon as, higher level of competition between your major telecommunication companies that prevails in current market brings about low transitioning cost for the customer to improve their mobile service provider. Customers are highly price delicate and easy to switch brand. It also means that customer will never be faithful to Maxis if indeed they find out other brand provides better services than Maxis so they will change brand.
As a result, this plays a part in attentiveness of the customers industry. Besides this, the potential buyers have high switching cost in this industry. As a result, the industry is more profitable when the potential buyers have low bargaining vitality which means the buyers cannot affect the setting of prices in the industry.
Maxis has came out numerous Business Value Plus Strategies for people. It has so many solutions to assist in saving money when chatting on the phone. Maxis wants to make certain that their customers can appreciate using Maxis services with a lower price than other challengers.
3. 2. 4 Threat of alternative product (high dangers of alternative)
Maxis have many substitutes in the mobile industry. For example, from traditional way which are using the letter, set home line mobile phone, fax and email to communication with other people till currently generally everyone using broadband Internet services, which enable faster and always-on link with the worldwide web, offer more promising growth probable.
Furthermore, the pressure on the suprisingly low cost to work with the phone getting in touch with via internet or speak via online messenger experienced threatened the mobile industry. For instance, nowadays many people use MSN, Facebook, and Skype to communicate alternatively than use their mobile.
Threat of alternative product also will directly influence the success of Maxis. Replacement product is the product or services in other companies that differs from the prevailing product or services but assists the similar needs. Hence, threat of substitutes exists whenever a product's demand is affected by the purchase price change of a substitute product. This menace is supposed to be a strong point for Maxis because these alternative products such as notice or e-mail cannot fulfill or completely replace the mobile services.
3. 2. 5 Depth of rivalry among opponents (low level of rivalry)
Telecommunication industry contains only several mobile providers such as TM, Maxis, Digi, Celcom, Umobile etc due to the entry restriction that imposed by the federal government. Success of the industry also influenced greatly by the depth of competition among existing competitors on the market.
Therefore, rivalry among rivals telecommunication industry in Malaysia is oligopoly composition nowadays and the level of competition in this specific industry is assumed that to be low one. Maxis have two main competitors, they can be Digi and Celcom.
Cannot be rejected that, Maxis lead the telecommunication industry. They generally contend on differentiate product and services about how to boost their features and applying innovation to the customers.
In addition, Maxis will definitely be competitive on the decision rates, bundle price and so forth with other two main rivals. Hence, Maxis try to gain competitive advantages through low call rate and price such as Youth Club. As we all know that Maxis, Digi and Celcom invested a lump total of the amount of money on advertising to market their products and also to appeal to more customers choose them.
Summary of environmental scanning
Basically, environmental scanning is approximately the careful examining of the firm's internal and external environment for spotting early on indicators of opportunities and threats that may affect an organisation's decision making process and its current and future ideas. Regarding Maxis, they can propagate and even penetrate into new market or other countries. Too much reliance on Malaysia as their main market is not enough in order to contend with its close rivals. Thus, Maxis can somehow use its weakness into opportunities that may bring them into a fresh future plan. Programs such as modifications to interconnect rates and ways to triumph over the hazards from its competition are soon to be executed.
In the sense of customer support, lots of threats such as worms, Trojans, spyware and adware etc would damage the special rights of customers as a Maxis user. Thus, Maxis requires certain software and devices in order to protect their customers from being tracked or harmed by needless parties. Experts who can track hackers or protect customers from being hacked are encouraged to stay static in the management team in order to help beat this hazard.
Although Maxis is the first telecommunication company to release iPhone, the recent start of Digi's iPhone got posed further pressure on Maxis. To be able to retain and appeal to more customers, Maxis would have to execute a better program with affordable rates because of its users. Customer services must be advanced to cater the majority of its customers' needs. Also, they need to keep improving their features or functions of its scientific devices in order to lure more people in purchasing their products. It is normal to see some hostile broadband offers by wireless rivals. Therefore, Maxis must stick out to be more important than the rest to make an impression on this challenging game. In addition to promotions, various other marketing strategies like collaboration with big companies in arranging a meeting, sponsorship from administration businesses and what not can be executed in order to get good image from the general public all together.
3. 3 Information of key stakeholders
Key Stakeholders are a subset of Stakeholders who, if their support were to be withdrawn, would cause the job to are unsuccessful.
3. 3. 1 Capital Market Stakeholders
Major suppliers of capital (e. g: banking companies)
Individuals, Loan provider/Finance Companies, Investment Trusts/Foundations/Charities, Other types of companies, Federal Agencies/Institutions/Nominees
In the company (Directors' Involvement in Stocks) (Maxis Berhad Annual Article 2009, 2009)
-Raja Tan Sri Dato' Seri Arshad bin Raja Tun Uda
-Robert William Boyle
-Dato' Mokhzani bin Mahathir
-Asgari bin Mohd Fuad Stephens
-Eng. Saud Majed A. AlDaweesh
-Dr. Fahad Hussain S. Mushayt
-Augustus Ralph Marshall
-Chan Chee Beng
30 Largest Shareholders (Maxis Berhad Annual Survey 2009, 2009)
1. Maxis Marketing communications Berhad
2. Kumpulan Wang Persaraan (Diperbadankan)
3. Employees Provident Fund Board
4. Amanahraya Trustees Berhad
Skim Amanah Saham Bumiputera
5. HSBC Nominees (Asing) Sdn Bhd
Exempt AN For JPMorgan Chase Bank, National Association (U. S. A)
6. Amanahraya Trustees Berhad
Amanah Saham Wawasan 2020
7. Amanahraya Trustees Berhad
Amanah Saham Malaysia
8. Citigroup Nominees (Tempatan) Sdn Bhd
Exempt AN For Prudential Fund Management Berhad
9. Amanahraya Trustees Berhad
Amanah Saham Didik
10. HSBC Nominees (Asing) Sdn Bhd
Exempt AN For J. P. Morgan Loan company Luxembourg S. A
11. HSBC Nominees (Asing) Sdn Bhd
Exempt AN For THE LENDER Of NY Mellon (Mellon Acct)
12. Malaysia Nominees (Tempatan) Sendirian Berhad
Great Eastern Life Guarantee (Malaysia) Berhad (Par 1)
13. Permodalan Nasional Berhad
14. HSBC Nominees (Asing) Sdn Bhd
BBH And Co Boston For Vanguard Emerging Market segments Stock Index Fund
15. Valuecap Sdn Bhd
16. Amanahraya Trustees Berhad
A s 1Malaysia
17. HSBC Nominees (Asing) Sdn Bhd
Exempt AN For JPMorgan Chase Bank, National Association (U. A. E)
18. Amanahraya Trustees Berhad
Public Islamic Dividend Fund
19. HSBC Nominees (Asing) Sdn Bhd
TNTC For Saudi Arabian Monetary Agency
20. Citigroup Nominees (Tempatan) Sdn Bhd
Exempt AN For North american International Confidence Berhad
21. DB (Malaysia) Nominee (Tempatan) Sendirian Berhad
Exempt AN For Deutsche Trustees Malaysia Berhad (MYET F-DJIM25)
22. HSBC Nominees (Tempatan) Sdn Bhd
Nomura Asset Mgmt Malaysia For Malaysia For Employees Provident Fund
23. HSBC Nominees (Asing) Sdn Bhd
TNTC For Mondrian Emerging Market segments Equity Fund L. P
24. Cartaban Nominees (Asing) Sdn Bhd
State Avenue For IS hares, Inc.
25. Lembaga Tabung Angkatan Tentera
26. SBB Nominees (Tempatan) Sdn Bhd
Kumpulan Wang Persaraan (Diperbadankan)
27. CIMSEC Nominees (Tempatan) Sdn Bhd
CIMB For Gegas Cekap Sdn Bhd (PB)
28. CIMSEC Nominees (Tempatan) Sdn Bhd
CIMB For Tiara Gateway Sdn. Bhd. (PB)
29. Amanahraya Trustees Berhad
Public Islamic Equity Fund
30. Citigroup Nominees (Tempatan) Sdn Bhd
ING Insurance Berhad (INV -IL PAR )
3. 3. 2 Product Market Stakeholders
All users which subscribe Maxis range (either pre-paid, postpaid or 3G) or choose the products such as Mobile Internet, Iphone, Blackberry, Android, Cordless and Wired broadband from Maxis.
Primary customers for Maxis IP VPN (IP VPN, 2010)
Van Wijnen Groep N. V.
Pharmaceuticals, chemicals, plastics
Develop staff and customer satisfaction by creating an ERP system and enhancing information flows via an increased private network.
Facilitate business restructuring and support development.
Versatel's IP VPN service is dependant on a Cisco MPLS network to give a data solution that is maintained end to end and provides excellent capabilities for aiding ERP.
BT Infonet's IP VPN service is helped bring over an MPLS network built end to end with Cisco equipment and offers a Cisco Powered Network designation.
The service sustains Solvay's global ERP and intranet trends.
The supervised network offers a flexible and protected base for new services, such as speech and video recording over IP.
Suppliers (Authorised Marketers, 2010)
ZyXEL Communications Organization (M) Sdn Bhd
ZyXEL, founded in 1989 in Hsinchu, Taiwan, is a pioneer producer and supplier of DSL Customer Idea Equipment. ZyXEL is currently world's major DSL router vendor and Europe's second largest router supplier. In addition to its ground breaking products and alternatives, ZyXEL has strong human relationships with worldwide COE sellers such as Alcatel, Lucent and Nokia; ILECs such as Verizon and Chunghwa Telecom; international carriers such as France Telecom, Deutsche Telekom, and Telefonica; ISPs such as EarthLink, Worldonline, Hinet, Seednet, Maxis and many more.
Working strongly with these and other companions, ZyXEL is focused on helping businesses succeed in the flourishing broadband market by providing them with value-added service and exceptional performance solutions at the most competitive price.
Advanced Broadband Marketing communications Sdn Bhd
Advanced Broadband Marketing communications Sdn Bhd is a newly formed company integrated in Apr 2001. The business is a private jv, high-tech founded company between Advanced Broadband Communication Sdn Bhd and Prestige Sierra Sdn Bhd. The business is 100% locally owned or operated to provide total telecommunication alternatives and services for both typical & IP Systems. The brand new technology that bridges conventional Circuit - Swap communication to Internet Protocol (IP) communication. All IP-based alternatives and services which will be developed and deployed by the company are directed at business and personal users whatsoever levels.
3. 3. 3 Organizational Stakeholders
All employees who work under Maxis
Managers (Malaysia Collateral Research PP, 2010)
Chief Professional Officer
Jean Pascal Emmanuel
Dominique Van Overbeke
Chief Operating Office
Rossana Annizah binti
Chief Financial Officer
Mark Man Dioguardi
Head of Network and
Stephen John Mead
Mohamed Fitri bin Abdullah
Head of Enterprise & Carrier Business
Matthew Charles Willsher
Chief Marketing Officer
Azmi bin Ujang
Head of Human
Chow Chee Yan
Head of Internal Audit
Chua Seok Theng
Chief Information Officer
3. 4 SWOT analysis predicated on stakeholder groups
3. 4. 1 Capital Market Stakeholders
Strong and competitive local player.
Association with MEASAT Dish System.
Depends too much on Malaysia as their main market.
Potential for triple play if tie-up with content specialist/broadcaster, e. g. Astro.
Association with Microsoft.
Broadband market in Malaysia keeps growing.
Wireless market in Asia Pacific has experienced a rapid growth.
Modifications to interconnect rates may pressure Maxis' profits as the company is a online receiver of phone calls.
Mobile number portability in Malaysia.
Intense competition from other telecommunication companies.
3. 4. 2 Product Market Stakeholders
Premium branding and customer care persist to entice and retain members. That is further accompanied by long-term iPhone ideas.
Much broader 3G/3. 5G coverage than Digi and similar coverage as Celcom.
Largest subscriber basic in Malaysia with c. 39% show.
Largest postpaid subscriber bottom part of c. 43% is essential to future market tendency towards more postpaid clients.
Its transparency and potential to deliver performance.
Good loyalty programmes as well as perhaps the best family plan in Malaysia in our view.
Maxis will not offer triple play of mobile, broadband and pay Tv set.
32% of the Malaysian inhabitants is under 15 yrs. old, which is a main target for broadband services over the next 15 years.
New cellular devices, e. g. iPhone ("4G") and just lately launched iPad drive demand for broadband services.
Under-served broadband human population provides great expansion opportunities.
Selective organization opportunities as Maxis build backhaul capacity mainly for cellular broadband, thus it can target some lucrative organization businesses by using the same backhaul network.
Viruses and worms propagate over Bluetooth, MMS information or infected memory cards.
Trojans pretend to be useful applications. They are able to devastate data or block functionality.
Spyware gathers information without you knowing. It can intercept e-mails and Text message, permit hackers to hear calls, and even keep track of you.
3. 4. 3 Organisational Stakeholders
All employees and professionals are fully prepared with knowledge and good strategic management.
Growing organization business may entail more CAPEX, and Maxis can only selectively cultivate its organization business.
Organization's personnel have the opportunity to collaborate with big companies such as Astro and Microsoft.
Digi's release of the iPhone the other day could put further pressure on Maxis.
Aggressive broadband promotions by wireless rivals, including WiMAX players.
3. 4. 4 Competitor analysis
Competitor evaluation has two main activities, 1) obtaining information about important challengers, and 2) using that information to forecast competitor behavior. The goal of competitor analysis is to comprehend:
with which opponents to contend,
competitors' strategies and planned actions,
how opponents might respond to a firm's actions,
how to affect competitor action to the firm's own edge.
-The immediate competitor for Maxis is Digi.
Comparison: Digi vs Maxis iPhone
Sunday, Apr 4th, 2010 at 11:40 PM
http://www. iphonemalaysiablog. com/comparison/comparison-digi-vs-maxis-iphone
Digi has finally officially launched the iPhone last week concluding Maxis' monopoly on the iPhone in Malaysia for nearly a year. Since then there's been a lot of discussions on the websites and forums as to which plan offers better value to consumers like us.
-The impending competitor for Maxis is Celcom.
Feedback from customers
Maxis Broadband? Or Celcom Broadband?
I am currently using Maxis Broadband myself, nonetheless it has come to my attention that Celcom Broadband provide similar service, but with a better performance. Maxis Broadband is good enough for my use, but I listened to a lot of men and women complaint about it.
3. 5 Summation of situation analysis
Effective and productive services, operating time, and user-friendly facilities to give the best customer satisfaction.
Maxis has different programs for different types of customers to ensure that customers can appreciate using Maxis services with a much lower price than other challengers.
Maxis provides guidelines for the manner where all employees should perform themselves at the work place so that as a Maxis employee in order to provide better customer services.
Pioneer of new services and systems. Maxis was the first ever to generate the Apple iPhone and the first to start the 3G network.
Maxis ensure good corporate social responsibility. Maxis is in a strategic collaboration with Malaysia Flight Systems in assignments to lessen our impact to the surroundings, as well as an interior recycling advertising campaign.
Strict condition to avoid broadband individual maltreatment. Nowadays, people are receiving more tech-savvy so Maxis would lose many customers below years 18.
Maxis will not offer triple play of mobile, broadband and pay Television.
Depends too much on Malaysia as their main market.
Maxis associates with Telekom Malaysia Bhd. to enhance the quality and provide High Speed Broadband services to customers.
Broadband users are growing in Malaysia. This gives a good chance of Maxis especially its collaboration with Telekom Malaysia Bhd. to offer broadband broadband services.
Potential for triple play of mobile, broadband and pay Television set if tie-up with content company/broadcaster such as Astro.
Customers are highly price sensitive and easy to change brand. In addition, it means that customer will not stay with Maxis if other brand could provide cheap and better or similar value.
Rapid changing and often hostile environment of telecommunication networking industry. Maxis must deal with a continuous barrage of changes such as changes in product requirements, technology, development functions, and deployment conditions in order to sustain in the market.
Intense competition from other telecommunication companies such as Digi and Celcom.
4. 0 Strategic options for the organisation
To be competitive in telecommunication industry, Maxis apply different proper to keep the footing as leading in telecommunication industry, it apply different ways of compete with it competitor like Digi and Celcom.
Maxis apply relationship strategy in their business. The explanation for Maxis alliances with different associates is to provide various mobile services to customers. Using a partnership, Maxis is able to provide better services to customers and increase earnings. To increase the competitive gain, Maxis partner with ZyXEL Communications Firm (M) Sdn Bhd which is the pioneer producer and suppliers of DSL Customer Idea Equipment. ZyXEL have a good romantic relationship with worldwide COE vendors. ZyXEL providing it partners with value-added services and better performance answers to helping then flourish in broadband market. Besides, Maxis also partner with Telekom Malaysia (TM) to create a new earnings stream for Maxis. TM makes an contract with Maxis to provide the high-speed broadband (HSBB) network to Maxis for 10 years. Maxis hoped to work with the HSBB provide by TM to soft -launch set broadband and Internet protocol television (IPTV). Alternatively, this contract will broaden the opportunity by leap from mobile space to home sphere. It'll create enriching opportunities for Maxis in 2011.
Next strategy employed by Maxis in its business is International strategy. International strategy means a companies offers its goods or services outside the local market. To extend business, Maxis acquisition stake in Aircel, India. Aircel is fifth major GSM mobile company in India and graded as the most effective growing Small and Medium Businesses (SME) in India. Besides, Aircel is the first ever to pioneer WiMax and since the first operator in India. These are several reasons for Maxis entry into international strategy. Firstly, is to raise the market size of business; Maxis already is the leading mobile communication in Malaysia. Thus, it's important for Maxis to enter new market. Second, is to boost the profits on return (ROI) to benefits shareholders. Third, the location edge in India which consider is low priced markets.
Maxis also adopted differentiation in its business. Maxis provide various rate programs and package to fulfill the requirement of different level. For postpaid plan, Maxis provide 8 type of rate plan and charges, customers can pick the plan based on their needs. Maxis likewise have Maxis One Membership to rewards postpaid customers. Maxis One Club is program which offers exclusive services and gives rewards to postpaid customers. The huge benefits include benefit from the concern services when you call to Maxis customer services. Besides, membership also can enjoy free phone calls from Maxis to Maxis on your birthday. Account also can benefit from the sales previews, concert or other provide by Maxis. A couple of 9 reasons used by Maxis to catch the attention of more customers turn to Maxis. In addition, it can consider as differentiation weighed against other opponents. First, Maxis have most significant mobile community and over 10 million people enjoy with the cheaper calls. Second, Maxis provide customers the best postpaid plan. Customers can enjoy only 10 sen per minutes. Third, Maxis offer the widest International Roaming network to convenience their customers. From good examples, when customers going in foreign countries to other country like Singapore, China, Indonesia; Maxis will auto roaming. It provide customers talk to good friend and family although at in foreign countries. Fourth, Maxis is the first choice in 3G and HSDPA services, so it allows their customers to reach anyone everywhere. Fifth, Maxis offer the best family plan and allows their customers talk about the same call rate and talk to your family. 6th, Maxis possess the most value -for-money prepaid plan to benefits their customers. Next, Maxis provide superior customer services to their customers. Besides, Maxis also is the leader in data service. Ninth, Maxis have sturdy brand with good reputation and are the success of internationally regarded awards.
Besides, Maxis provides differentiation in mobile plan for personal use, Maxis also provide various business value programs to customers. You will find offer free phone calls and SMS within your company. It also offer chat time writing with company. So business customers can benefit from the low rate provide by Maxis. Maxis also provide the business customers a package deal call Maxis M2M. Maxis M2M will boost your business with new cordless machine-to-machine services provide by Maxis. The huge benefits for Maxis M2M is can connect millions of possessions and provides Application Programming User interface (APIs) to developing custom application. The features provide by Maxis M2M have intensive coverage. The GSM network of Maxis enable customers remote control devices are always available to connected. Business customers can pick the value data plan to suit the precise needs on its business. The tailor-made plan will fulfill the customers' need.
Next strategy used by Maxis in its business is cost management. Companies apply cost management strategy is offer standardized product to customers. The characteristic of cost management is providing products and services to customers in low priced than other opponents and therefore create customer value. To put into practice cost lowering strategy in business, cost leadership should control the cost in products and services such as development cost and overhead cost.
Maxis is the price innovator in mobile broadband market. Maxis provide superior performance in their broadband services to customers. The network coverage by Maxis is extensive than their strong competitor like Digi. Maxis expand their network coverage in rural areas. It also provides more steady online services to customers. The other great things about Maxis broadband will be the deals are affordable for customers. Customers can starting on their consumption to find the suitable package. Maxis also provide customer services with a day. If customers encountered any problem with the broadband interconnection, they can call services middle. Besides, if you are a postpaid customer of Maxis, you'll get the special rebates in monthly fees. Maxis provide three types broadband services to customers; the cellular broadband, wired broadband and broadband internet. For cellular broadband, Maxis give a monthly fee as low as RM48 monthly and with free modem. Besides, customers can make the wireless broadband package package with laptop. This package includes a free modem and 4 calendar months Maxis broadband subscription. Customers can choose the repayments options with upfront repayment or installment. For wired broadband, customers can experience faster, easier and steady connection without hassle. Maxis wired Broadband provides higher rates of speed, reliability and always interconnection for customers. Besides, wired broadband provide single line access via existing cellphone line and this bundle is affordable for customers. Alternatively, Maxis also offer Maxis high speed Internet for customers. While using latest Fibre to the house (FTTH), Maxis customer can enjoy electric power high speed Internet. It provides faster rate when online at home and office and also brings customers in infinite entertainment. Customers can also enjoy faster acceleration when download music and movie.
Maxis also apply marketing strategy running a business. The online marketing strategy employed by Maxis is provides training with their employees to increase their performance. To provides superior services, Maxis placed campaign to their employees to boost the quality performance and so improve the customer value. Besides, Maxis also implement in cultural responsibility. Maxis is accountable in securing the surroundings and try to reduced the wastage and disposal in their work place.
5. 0 Key selection criteria
Strategy Used by Maxis
Activities / Tactics
Key selection/ criteria
Partnership with Telekom Malaysia to make use of TM's high speed broadband network.
Partnership with ZyXel Communications Company (M) Sdn Bhd
Enhance quality on broadband services. Customers can experience faster and steady when online.
Create technology advancement to broaden the number of offerings and enhance functions to capture more customers.
Acquisition on Aircel which is fifth most significant GSM mobile services specialist in India.
The acquisition gives maxis entry the entire world most attractive high growth and low penetration market.
The populace is keep increasing.
Aircel also is quickest growing on SME in India, so the acquisitions can increase the shareholder advantage.
Diversification of products and services.
Provide different kind of rate plan and package to fulfill different customers requirement based on specific needs.
Offer more choice and plans on broadband services.
Include cellular broadband, wired broadband and broadband internet.
Provide training to employees to increase quality services.
Separate customer services middle in personal and business. Thus, employees can focus more on customers.
Securing environment for future children.
6. 0 Recommendation
Option / Hypothesis
How does Maxis stay on the most notable of telecommunication industry in Malaysia?
Partner with other company to get competitive advantages.
Offers the least expensive plan coherent to the service provided.
Fulfill client satisfaction and keep maintaining customer loyalty.
Strong penetration to new target segments through effective marketing method.
Maxis partner with other company such as ZyXEL Communications Corp. (M) Sdn. Bhd. and Advanced Broadband Marketing communications Sdn. Bhd.
Maxis is able to provide their customers with better communication services and better broadband services.
Maxis have the chance to be takeover by these 2 partners.
Maxis will be too dependent on their companions.
Provides quality services
Maintain customer for using Maxis as their mobile phone service provider.
Maxis may not in a position to cover the expense of the assistance provided because the plan is cheaper.
Effective opinions system implemented.
Customer's problem can be solve immediately while satisfy them for subscribe Maxis.
Feedback system might come across technical mistake in the system.
Approaching new target segments to get competitive advantages.
Increase Maxis's customer network and sales.
Failure of marketing method is a waste products of money used.
Option / Hypothesis
How technology influences Maxis in telecommunication industry?
Follow the newest fads in technology.
Wide cordless coverage.
Partner with technology company.
Security system-secure customer information.
Become the first seller in Malaysia.
Customer can buy their preference phone at the very first hand.
Customers have their own personal preferences that are difficult to follow. They might not prefer the new products.
Maxis cellular coverage gets to almost the whole Malaysia.
Customer could be more dedicated to Maxis since they are in a position to provide wide cordless coverage.
The cost for cellular maintenance increase while customer obtain cheaper charges.
Maxis end up being the first dealer to sell iPhone, android telephone and etc. in Malaysia.
Maxis can pick up the first side profit before other company will.
Maxis will be too dependent on Technology Company. When there are no new products, there won't have any development in sales.
Insecure in data system will lead to leakage of customer information.
Customer will not be anxious about the leakage with their information to outsiders.
Hackers still able to access to the info system. This causes customer to loss confident in Maxis.
Option / Hypothesis
What are the conditions that Maxis needed to be able to compete with other telecommunication company outside Malaysia?
Maintain good relationships with international companies which are able to supply quality software and services.
Offers cheaper plan compared to other international company.
Localize the procedures team.
Good technology system maintenance.
Maxis partner with other company such as ZyXEL Marketing communications Corp. (M) Sdn. Bhd. and Advanced Broadband Marketing communications Sdn. Bhd.
Since Maxis is able to partner with these 2 company so well, Maxis is able to find various other foreign company. That is scheduled to Malaysia's partnering might not able to localize their product to suit the other contry.
Maxis have the chance of being takeover by these 2 partners.
Maxis will be too reliant on their partners.
Provides quality services
Gain outdoors country market will improve the sales as well as the brand of Maxis at international level.
Maxis may not in a position to cover the price of the services provided since this is at the international level and the chargers are cheaper.
Maxis manage to operate well in Malaysia.
Customer will feel more comfortable and might not be offended by Maxis employee. This will boost the customer loyalty and subscription too.
Employee will are having issues to learn the culture of specific country.
Maxis having the problem of mistaken impose their customer a huge amount of cellphone bills.
Customer will not be trouble for paying expenses when there is no problem with the charges. If not, they have to complain to Maxis that will waste their time.
Geographically and complex error is probably not in a position to solve it as quickly as possible since it is quite an inevitable problem.
7. 0 Conclusion
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